Writing options on these stocks could create income for your portfolio. How it works

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Markets,Avis Budget Group Inc,DICK's Sporting Goods Inc

Bank of America identified stocks that could serve as candidates for a call writing strategy.

Investors looking for a way to generate more income now that interest rates appear set to fall can look to wring some extra cash out of their stock portfolio using options. Bank of America derivatives analyst Arjun Goyal this week identified stocks that are strong candidates for an "overwriting" strategy.

Trade ideas To find overwriting candidates, Bank of America identified call options on stocks in the Russell 1000 index with mid-October expirations that allow at least 7% upside and have a minimum premium of 5%. Some of the names on the list include car rental company Avis , retailer Dick's Sporting Goods and health care name in Neurocrine Biosciences . The market price of options can change rapidly, particularly around corporate events like earnings.

 

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