Forest Oil (FST) May Be A Good Covered Call with Video

While scanning for stocks that have become oversold I found Forest Oil out of Colorado having oil fields in Tesas and Alberta Canada.

Here is my video from last night covering the company.

The stock is down like many companies in the natural gas space, but Forest continues to profit and as an oil producer with a current $100 a barrel price they are expected to continue to maintain.

Don't let the chart fool you, a large part of the gap down in Sep 2011 was due to a large spin off by a special dividend.

I like the covered call idea of selling the March $15 strike price call against shares bought. This allows an investor to hedge part of the risk and gather option premium much like a dividend would pay out. If the option gets exercised and the

Robert Weinstein Google+