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
- Trump's (Not So) Invisible Hand | ZeroHedge
- Does Michael Moore Matter Anymore? An Open Letter From One Filmmaker To Another | ZeroHedge
- 20 Trillion in Debt - Where Are Fitch, Moodys, Standard and Poors (Video) | ZeroHedge
- Oil Slides After Rig Count Spikes Most Since April 2013 | ZeroHedge
- "Is This Thing Still On?" Obama Returns To Personal Twitter | ZeroHedge
- Commuter-In-Chief: Obama Sets New Single-Day Clemency Record On Last Day In Office | ZeroHedge
- "He Is Going To Fail": Georges Soros Slams "Would Be Dictator" Trump | ZeroHedge
The most relevant financial news and articles from the Internets
- Ad tech firm MediaMath undergoes major reorganization of its exec team as it prepares for 'the... | Business Insider
- Netflix says it is 'unlikely' to be affected by weaker open internet laws under Trump (NFLX) | Business Insider
- Al Qaeda has claimed a massive suicide attack that left at least 50 dead in Mali | Business Insider
- Here's how Mark Zuckerberg thinks the VR industry will... | Business Insider
- What you need to know on Wall Street right now | Business Insider
- 'From this moment on, it's going to be America First... | Business Insider
- Trump's Treasury pick failed to disclose $100... | Business Insider