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Often writing an in-the-money call against a one of your stocks that has had a swift run-up can be a good way to lock in profits.  This week, we used the Value Line Stock Screener to generate a list stocks with above average expectations that have risen 25% or more since the beginning of the year. We then opened our Option Screener with this result and looked for in-the-money covered calls that offered protection of more than 10% and per annum yields of more than 15%.  Among our stocks are BJ Restaurants (BJRI) and Sprint Nextel Corp. (S).

Company

Ticker

Stock Price

Industry

Per Annum Yield

Downside Breakeven

Max Profit

BJs Restaurants

BJRI

        47.13

 Restaurant

18%

11%

7%

Dean Foods

DF

        13.29

 Food Processing

21%

12%

11%

Dillards Inc

DDS

        53.62

 Retail Store

20%

11%

2%

NETGEAR Inc

NTGR

        42.76

 Telecom. Equipment

22%

12%

6%

Sprint Nextel Corp

S

          5.67

 Telecom. Services

19%

15%

4%


BJ's Restaurants, Inc. (BJRI) engages in operating casual dining establishments. The company owned and operated 103 restaurants in Arizona, California, Colorado, Nevada, Oregon, and Texas. Each of the restaurants is operated either as a BJ's Restaurant & Brewery, BJ's Restaurant & Brewhouse, or BJ's Pizza & Grill that is full service restaurant. BJ's menu features the signature deep-dish pizza, its own hand-crafted beers, as well as a selection of appetizers and entrees. www.bjsrestaurants.com.

Dean Foods Company (DF) (formerly Suiza Foods Corporation) is the leading United States manufacturer and distributor of fresh milk and dairy-related products. Suiza Foods acquired Dean Foods in December of 2001 and then changed its name to Dean Foods. Sold Reddy Ice, the largest packaged ice company in the U.S., in April of 1998, and a 51% interest in its plastic package business in July of 1999. It spun off the speciality foods unit in June of 2005. www.deanfoods.com.

Dillard's, Inc. (DDS) operates 308 department stores in 29 states (as of 1/11) in the Sun Belt and Midwest. DDs acquired Mercantile Stores in August, 1008. Most stores are located in Texas, Florida, Ohio, and Tennessee. Features branded and growing private-label goods for middle- to upper-middle income consumers. www.dillards.com.

NETGEAR, Inc. (NTGR) develops networking products for small business and home users. It offers ethernet networking products, broadband products, and wireless networking offerings. NETGEAR sells its products primarily through sales channel networks, which includes traditional and online retailers, and direct market resellers in North America, Europe, the Middle East, Africa, and Asia/Pacific. www.netgear.com.

Sprint Nextel Corp. (S) serves 49.9 million wireless subscribers in the U.S. and, with its affiliates, has a network that covers a population of more than 280 million. The network utilizes CDMA, EV-DO, and iDEN technology. Sprint provides communications and data services to domestic and international businesses as well as long distance and wireless services to commercial and residential customers. www.investors.sprint.com.

At the time of the writing of this report, the author had no positions in any of the stocks mentioned.