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
- Traders Are Panic-Buying Colombian Pesos | ZeroHedge
- Market Recap Aug 28, 2015 | FundMyMutualFund
- What China's Treasury Liquidation Means: $1 Trillion QE In Reverse | ZeroHedge
- A Winter of Discontent for Russia | Financial Sense
- The Evolution of America's Energy Supply (1776 – 2014) | ZeroHedge
- What The Yen Might Reveal | ZeroHedge
- Despite Being A 'Pet Rock', The Premium For Physical Bullion Is Exploding | ZeroHedge
The most relevant financial news and articles from the Internets
- Spieth loses No. 1 ranking with missed cut | Business Insider
- USDA to approve Simplot's genetically engineered potato... | Business Insider
- Goodyear retiring blimps, rolling out new cigar-shaped... | Business Insider
- Former Subway ad exec says he didn't know of Fogle'... | Business Insider
- White supremacist takes stand in Jewish site shootings | Business Insider
- Survey: General LOL most irked by grammar, spelling slips | Business Insider
- Google is showing developers how to turn off iOS 9's security features... | Business Insider