Covered Call Picks (EXAS,SRPT,THRX,IOC,ALXA)
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.
|EXAS||Exact Sciences Corp||9.85||10||1.3||13.20%||April 2013|
|SRPT||Sarepta Therapeutics Inc||35.9||36||3.6||10.00%||April 2013|
|THRX||Theravance Inc||22.7||23||1.9||8.10%||April 2013|
|IOC||InterOil Corp||73.1||75||3.3||4.40%||April 2013|
|ALXA||Alexza Pharmaceuticals Inc||4.6||5||0.2||4.30%||April 2013|
Exact Sciences Corp (EXAS) is currently trading at $9.85. Its 52 week range is between $8.87 and $12.3.
Sarepta Therapeutics Inc (SRPT) is currently trading at $35.85. Its 52 week range is between $2.6 and $45.
Theravance Inc (THRX) is currently trading at $22.72. Its 52 week range is between $17.06 and $31.87.
InterOil Corp (IOC) is currently trading at $73.14. Its 52 week range is between $47.33 and $99.05.
Alexza Pharmaceuticals Inc (ALXA) is currently trading at $4.6. Its 52 week range is between $2.55 and $7.6.
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
- US Manufacturing Jumps to 33-Year High | Financial Sense
- Norway Central Banker Warns Of Massive 50% Drop In Wealth Fund Assets To Cover Budget Deficits | ZeroHedge
- Snyder: "It's About Time We Had A President Willing To Go To War With Mainstream Media" | ZeroHedge
- Ep. 214: Cass Sunstein – The World According to Star Wars | Altucher Confidential
- What's Wrong With This Picture? | ZeroHedge
- 2017: Euphoria...Then Panic | Financial Sense
- Earnings Provide Foundational Value | Financial Sense
The most relevant financial news and articles from the Internets
- The top 20 presidents in US history, according to historians... | Business Insider
- Tesla has sent investors on an epic roller coaster ride for years — look back at the craziest... | Business Insider
- Here's why Justin Trudeau won't criticize Trump | Business Insider
- The upcoming 'Good Wife' spinoff is going to be can't-miss TV | Business Insider
- THE SELF-INSTALLED SMART HOME REPORT: Why current smart home device owners are... | Business Insider
- Trump is in the wrong place at the wrong time when... | Business Insider
- 'A star is born': Watch... | Business Insider