Covered Call Picks (ONTY,CHTP,KERX,AMRN,TSL)
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.
|CHTP||Chelsea Therapeutics International Ltd||3.99||4||1||23.80%||Apr-12|
|KERX||Keryx Biopharmaceuticals Inc||3.11||4||0.7||20.90%||Apr-12|
|AMRN||Amarin Corporation PLC||8.87||9||1.4||15.20%||Apr-12|
|TSL||Trina Solar Ltd||7.93||8||0.9||11.20%||Apr-12|
Oncothyreon Inc (ONTY) is currently trading at $8.74. Its 52 week range is between $3.1 and $11.59.
Chelsea Therapeutics International Ltd (CHTP) is currently trading at $3.99. Its 52 week range is between $2.18 and $6.06.
Keryx Biopharmaceuticals Inc (KERX) is currently trading at $3.11. Its 52 week range is between $2.27 and $5.55.
Amarin Corporation PLC (AMRN) is currently trading at $8.87. Its 52 week range is $5.99 and $19.87.
Trina Solar Ltd (TSL) is currently trading at $7.93. Its 52 week range is between $5.28 and $30.6.
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
- Myths: Past, Present, and Future | Financial Sense
- Began Building A New Position – VOC | iBankCoin.com
- MIT vs. ShadowStats – Who’s Right on Inflation? | Financial Sense
- Saut: Dow Theory Says Primary Trend Still Positive Though Short-Term Caution Advised | Financial Sense
- Hong Kong Stocks Tumble Erase 2014 Gains, Volatility Soars As Protests Freeze City: Full Summary | ZeroHedge
- What Just Happened In Today's "Crazy" And Biggest Ever "Window-Dressing" Reverse Repo? | ZeroHedge
- Hong Kong Protesters Give Wednesday Deadline For Reform As Chinese Army Watches From Above | ZeroHedge
The most relevant financial news and articles from the Internets
- Hong Kong leader demands protests end 'immediately' | Business Insider
- Streetinsider.com's Hot Lunchtime... | StreetInsider.com
- Can HP's $200 Windows Laptop Slow the Chromebook Onslaught? | TheStreet.com
- Apple Defends The Irish Tax Arrangement That Allegedly Saved It Billions Since The... | Business Insider
- ... | StreetInsider.com
- Here's What It Looks Like Inside Tesla's Massive Factory | TheStreet.com
- Obama Is Getting Shredded For Throwing The Intel Community Under The... | Business Insider