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
- If You Think Cultural Fragmentation Is Bad Now... | ZeroHedge
- Market Recap May 27, 2016 | FundMyMutualFund
- Losing Ground In Flyover America, Part 3 | ZeroHedge
- Massive Jump in New Home Sales, 17-Sigma Event | Financial Sense
- Self Employment Tax Penalties Continue To Plague Small Businesses | ZeroHedge
- Why TRUMP is good for USD and FX | ZeroHedge
- Everyone Is Missing The Most Troubling Part About Hillary's Email Audit! | ZeroHedge
The most relevant financial news and articles from the Internets
- The top 5 must-know retail trends in mobile and social... | Business Insider
- David Cameron thinks Boris Johnson could be the next... | Business Insider
- THE CONNECTED CAR REPORT: Forecasts, competing technologies... | Business Insider
- Study: Lack of confidence prevents some... | Business Insider
- Try this renowned steakhouse marinade recipe for the ultimate steak | Business Insider
- Here's why Russians don't smile | Business Insider
- Donald Trump keeps giving Republicans major cause for alarm — because he's... | Business Insider