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
- Greenspan: Price of Gold Will Rise | Financial Sense
- Starting Off Strong: Goldman Slashes Q4 GDP Estimate From 3.0% To 2.2% | ZeroHedge
- 100% of Mainstream Interest Rate Theory Is Wrong | Financial Sense
- HAPPY HALLOWEEN | iBankCoin.com
- Who Will Suffer From A Leveraged Credit Shakeout? | ZeroHedge
- Goldman On BOJ's Banzainomics: "We Highlight The Potential For Harsh Criticism Of Further Cost-Push Inflation" | ZeroHedge
- As Tim Cook "Comes Out", These Nations Still View Homosexuality As "Morally Unacceptable" | ZeroHedge
The most relevant financial news and articles from the Internets
- Asia shares rally after US growth figures | Business Insider
- Hazmat Suit Supplier Shares Explode (LAKE) | Business Insider
- Starbucks Will Start Delivering Coffee And Food | Business Insider
- America's Best Young Entrepreneurs 2011 | BusinessWeek
- Retail Investors Flock to Derivatives for Income and Safety | TheStreet.com
- Rand Paul Explains Why The GOP Brand 'Sucks'... | Business Insider
- Here's A Detailed Look At How The Virgin Galactic Spacecraft Works | Business Insider