Captain Capitalism

The third Friday has come once again, and it is time to make some more money.

This month I have a single pick, Myriad Genetics Inc (MYGN). MYGN is a biopharmaceutical company whose current focus is on developing a number of cancer drugs. At $19.97 per share, you can sell the $20.00 April call option for $1.10. This is an option yield of 5.5% over four weeks, or 5.65% if your option gets called away. These are annual returns of 71.6% and 73.6%, respectively.
I would be remiss if I did not point out two other things about MYGN. First, it is possible to sell options more than one month out. For example, with MYGN you could sell the $20.00 May call option for $2.30, an option yield of 11.5% over nine weeks or 66.5% annualized. Since you get the money up front, you're a bit better protected from a fluctuating market, but the overall return rate is lower. And second, the market hates pharmaceuticals right now, never mind how good the company. So if you buy this, it could go flat or down for months. You were warned.

Now for disclosure. Last month I picked Novastar Financial Inc (NFI) and Netease.com (NTES). I am pleased to state that both are up, and had you exercised any of the options I put forward, you would have made some money. Yes, I did make money on this, and no, I have no affiliation with these two companies aside from owning their stock. Whew. It's nice to pick a couple of winners first time back.