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
- 52 Year-Old French Banker Jumps To Her Death In Paris (After Questioning Her Superiors) | ZeroHedge
- Assuming Leadership | iBankCoin.com
- Gazprom Delighted By China Announcement Nat Gas Need To Soar By 150% In 6 Years | ZeroHedge
- The Crowd Mine | Financial Sense
- Japan Trade Deficit Largest in History; Imports Soar, Exports Barely Up | Financial Sense
- What Professional Buyside Traders Really Think Of HFT | ZeroHedge
- A Stunning 80% Of All New York, Florida And Nevada Condo Purchases Are "All Cash" | ZeroHedge
The most relevant financial news and articles from the Internets
- Why Politicians Care More About Old People Than Young People In One Chart | Business Insider
- Larry Page Was The Editor Of A... | Business Insider
- 25 Ways to Make LinkedIn Work for You | BusinessWeek
- The Ex-Boyfriend Of Billionaire Investor Vinod... | Business Insider
- It Looks Like We Just Got A Hint About How Big Chipotle's Price Hikes Are Going To Be | Business Insider
- ... | StreetInsider.com
- The 'Nintendo Girls Club' Is So Sexist It Made Me Sick | Business Insider