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
- Silver & Crude Are Soaring | ZeroHedge
- The Perilous Misperception That Central Bankers Have Mitigated Market Risk | ZeroHedge
- Dow Surges 650 Points Off "Dismal Jobs Data" Lows, Small Caps Up 5%! | ZeroHedge
- Trans-Pacific Partnership Deal Struck As "Corporate Secrecy" Wins Again | ZeroHedge
- US Government Accused Of "War Crime" By Doctors Without Borders In "Horrible" Hospital Bombing That Killed 22 | ZeroHedge
- 10 Reasons Why JPMorgan Is Apocalyptic On The LNG Market | ZeroHedge
- Jim Puplava: "This Is Not 2007-2008" | Financial Sense
The most relevant financial news and articles from the Internets
- Lambo's field goal as time expires lifts Bolts over... | Business Insider
- A terrible shake, then roar as Guatemala slide kills 26 | Business Insider
- The Latest: Hurricane Joaquin menacing Bermuda | Business Insider
- The 12 most innovative countries in the world | Business Insider
- Glencore shares up 34% on unit sale talks | Business Insider
- Glencore shares are going crazy on... | Business Insider
- The Latest: UN agency chief wants getter Muslim-Western... | Business Insider