What's a Covered Call?

What's a Strong Volume Gainer?

A strong volume gainer is when volume is four times greater than the 20-day SMA and is above yesterday's close.

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.

Barron's shot down Facebook (FB) over the weekend. Today the internets is a buzz about the upcoming lock-up and down the stock goes.  FB is down 11%.

An impressive gain for Facebook (FB) shares this week and we told you consider the stock on Monday.  From $18 range to close Friday at $22, the 'Like' button has been pressed.

Facebook Inc's (FB) is trading at $18.81 and its shares are 6.7% from its 52-week low.  FB is a far cry from its $45 share price.  Keep in mind the company has only been trading since May.

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.

Facebook (FB) was an absolute disaster and volatility cooled its jets.  Mastery found some stocks worth checking out including Deckers (DECK) and Take-Two (TTWO).  We also reminded readers about how well stocks do in election years, get ready Masters.

 

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Facebook (FB) shares hit $19.84 today and continue to plunge.  Turns out CEO Mark Zuckerberg was also born in 1984.  Coincidence?  Maybe Mark and shareholders needs a visit from Matt Foley.

Forget wasting $20 on a single share of Facebook (FB), they are going to get cheaper. In After-Hours trading, Facebook is down to $19.86 a share.