What's a Covered Call?

They are Jaguar Mining (JAG), Yamana Gold (AUY) and Ivanhoe Mines (IVN).

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.

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.

Mastery believes shares of AuRico Gold (AUQ), SilverCorp Metals (SVM) and Jaguar Mines (JAG) could gain more in 2012. The Junior Gold Miners ETF (GDXJ) has fared well so far in January (rising nearly 20%), but it's still down 13% in the last 52 weeks. In fact, the GDXJ is still below the mid-point of its 52 week range, which is $32.78. With Gold & Silver near their 2011 highs, we think Junior Miners AUQ, SVM, and JAG will continue to follow suit.