Opened CAL covered call

I've opened a covered call on CAL for $19.96 cost on the stock and $1.92 premium on the March call option with a strike price of $19.

My covered call scan, posted over the weekend, had three airlines: CAL, JBLU and AMR.

This morning AMR rose and the potential premiums had declined. JBLU's premiums had also declined.

All three airlines have good financials and analyst reports, with CAL having the best analyst reports of the three.

At these prices the position has a potential return of 9.6% if it expires (that is, if the price is below $19 at the March 19 expiration), and 4.8% if it is exercised (the price is above $19). Either way, it's a fair return for one month's work.

On the chart CAL is trading in an area of congestion set in January. I show near-term support at $17, and upside resistance up to $21.60. So there's some room to move either way.

Topics:
Continental Airlines aviation, Jet Blue Airways, American Airlines.