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
- Martin Armstrong Warns: The #1 Terrorist Group Is You, Domestic Citizens | ZeroHedge
- Saudi Arabia Just Cut Crude Selling Prices To The US, Europe And Asia | ZeroHedge
- All Eyes On The ECB: Fearful Markets Pray Mario Draghi "Panicks" | ZeroHedge
- Circling The Drain.... | ZeroHedge
- West Point Professor Calls For Military Strikes On Journalists Critical Of War On Terror | ZeroHedge
- Is The Stock Market Now "Too Big to Fail"? | ZeroHedge
- Why the Next Crisis Will Be Worse Than 2008 | ZeroHedge
The most relevant financial news and articles from the Internets
- 2 cases of polio found in Ukraine, caused by mutated virus... | Business Insider
- Some men's rights activists are... | Business Insider
- House Judiciary panel sets first Planned Parenthood... | Business Insider
- Chris Brown is being sued by a fan who claims to have been shot at one of his... | Business Insider
- Britain's government is about to make a massive change to the... | Business Insider
- How enterprises will secure IoT devices | Business Insider
- Stephen Colbert one-ups Jeb Bush raffle with 1 of his own... | Business Insider