Covered Call Picks (CLSN,HLF,QCOR,JCP,FSLR)
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.
|CLSN||Celsion Corp||8.29||9||1.5||18.10%||January 2013|
|HLF||Herbalife Ltd||32.2||32.5||2.3||7.00%||January 2013|
|QCOR||Questcor Pharmaceuticals Inc||26||26||1.7||6.50%||January 2013|
|JCP||J C Penney Company Inc||20.8||21||1.1||5.20%||January 2013|
|FSLR||First Solar Inc||32||32||1.5||4.60%||January 2013|
Celsion Corp (CLSN) is currently trading at $8.29. Its 52 week range is between $1.63 and $8.86.
Herbalife Ltd (HLF) is currently trading at $32.2. Its 52 week range is between $24.24 and $73.
Questcor Pharmaceuticals Inc (QCOR) is currently trading at $25.99. Its 52 week range is between $17.25 and $58.91.
J C Penney Company Inc (JCP) is currently trading at $20.84. Its 52 week range is between $15.69 and $43.18.
First Solar Inc (FSLR) is currently trading at $31.99. Its 52 week range is between $11.43 and $50.2.
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
- The US Department Of Commerce Officially Jumps The Shark, Will "Double Seasonally Adjust" GDP Data | ZeroHedge
- Steen Jakobsen Warns, Brace For The Next Recession | ZeroHedge
- Time To Get Real About China | ZeroHedge
- ISIS: Mapping A Militant Expansion | ZeroHedge
- Behind The Scenes In FX Trading: What Is Really Going On | ZeroHedge
- Is Greece Still a Country if Someone Else Owns Its Assets? | Financial Sense
- Argentina’s Growing Dependency on Beijing | Financial Sense
The most relevant financial news and articles from the Internets
- How one woman turned her side gig into a business that earns $12,000 a month | Business Insider
- This Nike running installation transforms portraits into moving particles | Business Insider
- Why it totally makes sense for Snapchat to invest in shopping startup Spring | Business Insider
- Ethiopia votes with ruling party set to return | Business Insider
- 13 of the best graduation speeches of all time | Business Insider
- Here’s what happened when a young attractive couple was given a makeover to see what... | Business Insider
- 9 Facebook facts you weren’t aware of (FB) | Business Insider