Covered Call Picks (JCP,GRPN,DDD,BBRY,SD)
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.
|JCP||J C Penney Company Inc||21.6||22||1.7||7.90%||March 2013|
|GRPN||Groupon Inc||5.8||6||0.5||7.90%||March 2013|
|DDD||3D Systems Corp||54.9||55||4.3||7.80%||March 2013|
|BBRY||Research In Motion Ltd||13.9||14||1.1||7.60%||March 2013|
|SD||SandRidge Energy Inc||5.88||6||0.4||6.10%||March 2013|
J C Penney Company Inc (JCP) is currently trading at $21.55. Its 52 week range is between $15.69 and $42.05.
Groupon Inc (GRPN) is currently trading at $5.8. Its 52 week range is between $2.6 and $20.5.
3D Systems Corp (DDD) is currently trading at $54.89. Its 52 week range is between $20.5 and $71.98.
Research In Motion Ltd (BBRY) is currently trading at $13.88. Its 52 week range is between $6.22 and $18.32.
SandRidge Energy Inc (SD) is currently trading at $5.88. Its 52 week range is between $4.81 and $8.98.
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
- Michael Brown's Parents (And Al Sharpton) Address Media: Investigation Was 'Broken' - Live Feed | ZeroHedge
- I HAVE A MESSAGE FOR $GPRO SHORTS | iBankCoin.com
- This Indicator Suggests Gold’s Bear Market Has a lot Longer to Go – But Is It Right? | Financial Sense
- Jamie Dimon's Daughter Is Asking You For A Favor | ZeroHedge
- Misery Mounts As Airline Delays & Cancellations Surge On East Coast | ZeroHedge
- Two FBI Agents Shot Near Ferguson Protests | ZeroHedge
- Core Durable Orders Drop Most Since Polar Vortex, Core CapEx Lowest Since May | ZeroHedge
The most relevant financial news and articles from the Internets
- There's Finally A Dedicated Hashtag Key For Macs | Business Insider
- New Home Sales Climb | Business Insider
- Halifax And Bank Of Scotland Punished Bankers With Cabbages If They Didn't... | Business Insider
- Aaron Rodgers Watches Packers TV Broadcasts To Look For Weaknesses In His Game | Business Insider
- Sometimes, A Veteran Advisor With A Ton Of Business Will Just Leave For A Rival... | Business Insider
- Germany's Consumers Saved The Country... | Business Insider
- Thai police royal defamation probe widens | Business Insider