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
- Fly Buy: $YGE | iBankCoin.com
- FT Joins The Fray: "Fed Likely To Signal Tapering Move" | ZeroHedge
- G8 Summit: Just How Effective? | ZeroHedge
- Sold Some RGR And Waiting | iBankCoin.com
- Water Cannon And Tear Gas In Turkey: The Photo Exhibition | ZeroHedge
- Theory of Interest and Prices in Paper Currency Part III (Credit) | Financial Sense
- NSA Director To Disclose Two Foiled Terrorist Plots To Diffuse PRISM-Gate Fallout - Live Webcast | ZeroHedge
The most relevant financial news and articles from the Internets
- Kim Kardashian's Baby Could Have One Of These Names | Business Insider
- Moody's Disagrees on MetLife 'Shadow Insurance' Risk | TheStreet.com
- Everyone Will Be Ready To Blame The Fed For Whatever Happens This Week | Business Insider
- The 'Standing Man' Has Become The Iconic Protest In Istanbul's Chaos... | Business Insider
- Notable... | StreetInsider.com
- Markets Are Rising In The Calm Before The Storm | Business Insider
- These New Astronauts May Be Among The First Humans To Walk... | Business Insider