Bio-Tech Covered Calls (CLSN,PPHM,KERX,ISIS,SRPT)
What's a Covered Call?
The covered call is a strategy where an investor writes a call option contract (sells an option) while at the same time owning an equivalent number of shares of the underlying stock.If this stock is purchased simultaneously with writing the call contract, the strategy is commonly referred to as a buy-write.
While you may have heard that trading options is risky business, covered calls are actually a very conservative strategy, and most brokerages even allow retirement IRA accounts to write covered calls.
|PPHM||Peregrine Pharmaceuticals Inc||2.33||2.5||0.4||17.20%||February 2013|
|KERX||Keryx Biopharmaceuticals Inc||2.97||3||0.5||15.20%||February 2013|
|ISIS||Isis Pharmaceuticals Inc||11.9||12||1.1||9.20%||February 2013|
|SRPT||Sarepta Therapeutics Inc||28.3||29||2.6||9.00%||February 2013|
|AMRN||Amarin Corporation PLC||8.38||9||0.5||6.30%||February 2013|
Peregrine Pharmaceuticals Inc (PPHM) is currently trading at $2.33. Its 52 week range is between $0.39 and $5.5.
Keryx Biopharmaceuticals Inc (KERX) is currently trading at $2.97. Its 52 week range is between $1.28 and $5.19.
Isis Pharmaceuticals Inc (ISIS) is currently trading at $11.92. Its 52 week range is between $7.02 and $15.61.
Sarepta Therapeutics Inc (SRPT) is currently trading at $28.28. Its 52 week range is between $2.6 and $45.
Amarin Corporation PLC (AMRN) is currently trading at $8.38. Its 52 week range is between $6.52 and $15.96.
MASTERY Bottom line:
There are pros and cons to writing covered calls. In theory, this strategy will out perform outright stock ownership if the stock price declines, remains the same, or slightly increases in price. The principal disadvantage of this strategy, on the other hand, is that profit potential can be limited if the underlying stock price advances sharply.
Best of the Blogs
Scanning and identifying the best blog entries every hour
- Something Appears To Be Going On With Gold | ZeroHedge
- A Tidal Wave of Gold Repatriations Could be Unleashed | ZeroHedge
- Swiss Gold Initiative: Good Idea With Unintended Consequences | Financial Sense
- Investor Sentiment in the Balance | Financial Sense
- The 2014 Oil Price Crash Explained | ZeroHedge
- "We Are A Nation Built On The Rule Of Law" | ZeroHedge
- Eurozone Moves in Wrong Direction, While the British Go Shopping and Japanese Exports Jump | Financial Sense
The most relevant financial news and articles from the Internets
- 25 Ways to Make LinkedIn Work for You | BusinessWeek
- Tibetan tapestry fetches record $45 million in Hong Kong | Business Insider
- The Best Black Friday Deals In Tech | Business Insider
- Palantir, the War on Terror's Secret Weapon | BusinessWeek
- Samsung sells defence, petrochemical units for $1.7 bn | Business Insider
- A Former Disney Imagineer Built This Incredible Survival Vehicle For His Daughter... | Business Insider
- Unusual 11 Mid-... | StreetInsider.com