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.

This week Mastery found potential in Yum! Brands (YUM) and Apple Inc (AAPL).  YUM could fall even further thanks to the Bird Flu panic in China.  Apple has been holding its own and refuses to retouch a new 12 month low.  Let's get into the week and spend 5 seconds on the crappiest retailer on the planet, J.C. Penny (JCP).

By now you've head, J.C. Penny (JCP) finally gave Ron Johnson the boot.  It was long overdue and now the company fights for survival. 

Mastery found a few choice equities that could survive any volatility with the pending March 27th deadline.  Some of those stocks include iPath S&P 500 VIX Short Term Futures TM ETN (VXX), General Electric (GE) and Procter & Gamble Company (PG). We also don't want you to sleep on silver, those names include Endeavour Silver Corp. (EXK) and MAG Silver Corp. (MVG).  The links to the articles with the stocks we want you to consider are detailed after the jump.

Get J.C. Penny Company (JCP) CEO Ron Johnson out of there before he burns any more money.  Mastery is predicting an instant 10% jump on JCP shares if Johnson leaves the company.

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 Covered Call?

What's a Covered Call?

The S&P 500 and the Down Jones Ind. finished 0.6% higher today despite zero progess made avoiding the 'Fiscal Cliff'.  Four stocks did finish higher today and they are loaded with short interest.  Those names are Zillow Inc. (Z), RadioShack Corp. (RSH), J.C. Penny Company, Inc. (JCP) and wildcard candidate Pandora Media Inc. (P).  If the rally in equities continues the short sellers are going to have to switch course and send those four stocks higher.

Its holiday season and it begins with Thanksgiving. We all will have to deal with a 'Cousin Eddie' very soon, here's some stock bliss to help us all.  Mastery wants you to look at Amazon.com Inc. (AMZN), Deere & Co. (DE), and J.C. Penny Company Inc (JCP).