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
- ISIS Mastermind Behind Istanbul Terrorist Attack Was A "Refugee" Protected By Europe | ZeroHedge
- No June Swoon, Bye Bye in July? | Financial Sense
- US Treasury Yields Hit New Record Lows | ZeroHedge
- Confidence Crushed Despite Collapsing Jobless Claims | ZeroHedge
- Tesla Tumbles After Fatal "Auto Pilot" Car Crash | ZeroHedge
- Venezuela: Mired in Crisis, With No Clear Path Ahead | Financial Sense
- Brexit and the Revolt Against Globalism | Financial Sense
The most relevant financial news and articles from the Internets
- Iraqi and US-led airstrikes decimated 2 ISIS... | Business Insider
- I graduated from college over a year ago and I'm still paying for the 'free stuff... | Business Insider
- GOP senator: We should have a new Supreme Court strategy if it... | Business Insider
- 8 Disney movies where female characters share at... | Business Insider
- Google bought the entire 12-year output of a Norwegian wind... | Business Insider
- The amount of cash corporate America is dishing to investors sends a scary... | Business Insider
- Microsoft's final Windows 10 upgrade nag is its worst yet — here's... | Business Insider