The third Friday has come and gone, so it is time for Captain Capitalism to reveal his new pick. Actually, this month's pick is an old pick, recycled. Genta Incorporated (GNTA) once again leaps to the front, shining light where once there was darkness. Genta is a small-cap pharma company whose shares currently cost $11.34 each. This stock can be played two different ways. The May $10 covered calls are paying $3.20, a return of 16.4% over five weeks, and the May $12.50 covered calls are paying $2, a return of 17.6% over five weeks. The story for Genta is one we've all heard for small-cap pharma, promising pipeline, no product, short cash, etc., but this one needs a special note of caution. Past experience says that this can be an extremely volatile stock. But very rewarding. People with heart conditions, pregnant women, small children and pussies should stay away from this one, for I can only promise that it will be an exciting ride.

Time for disclosure on last month's pick. OSI Pharmaceuticals, costing $38.81 when picked last month, now goes for $36.20, an unrealized loss of $2.61 over four weeks. That means that if you took April $40 covered call at $3.90 and now sold the stock, you would still have a profit of $1.29, or 3.3%, over four weeks. The other possibility is to take the May $40 covered calls for $3.50, or a total of $7.40 in cash, a return of 19.1% over nine weeks not counting the unrealized loss. You judge if this was a good pick or not.