Covered Call Picks (VHC,AVP,TPX,END,SODA)
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.
|VHC||VirnetX Holding Corp||31||31||3||9.70%||Jun-12|
|AVP||Avon Products Inc||20.9||21||1.7||8.10%||Jun-12|
|TPX||Tempur-Pedic International Inc||49.9||50||3.4||6.80%||Jun-12|
|END||Endeavour International Corp||8.49||10||0.6||6.50%||Jun-12|
|SODA||Sodastream International Ltd||36.1||37.5||1.9||5.10%||Jun-12|
VirnetX Holding Corp (VHC) is currently trading at $30.99. Its 52 week range is between $11.01 and $41.77.
Avon Products Inc (AVP) is currently trading at $20.89. Its 52 week range is between $16.09 and $30.63.
Tempur-Pedic International Inc (TPX) is currently trading at $49.92. Its 52 week range is between $44.5 and $87.43.
Endeavour International Corp (END) is currently trading at $8.49. Its 52 week range is $5.8 and $16.43.
Sodastream International Ltd (SODA) is currently trading at $36.11. Its 52 week range is between $27.6 and $79.72.
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
- The Best And Worst Performing Assets In April | ZeroHedge
- Every Time This Has Happened, A Recession Followed | ZeroHedge
- Banks Tighten As Economic Outlook Grows More Uncertain | Financial Sense
- China Threatens Its Economists And Analysts To Only Write Bullish Reports, Or Else | ZeroHedge
- Ben Tanosborn: How Blacks & Latinos Will Lose The Election For The Democratic Party In 2016 | ZeroHedge
- Why Is Tesla Short Interest Near All Time High: Each Car Is "Valued" At $620,000, And More | ZeroHedge
- Debt: The Key Factor Connecting Energy & The Economy | ZeroHedge
The most relevant financial news and articles from the Internets
- This app lets you schedule an Uber for any time you want | Business Insider
- An Australian bakery created a green tea croissant | Business Insider
- Texas is handling the oil crash pretty well | Business Insider
- Chris Bosh and the Miami Heat are in an 'awkward' standoff over Bosh... | Business Insider
- Investors are missing the big picture about Goldman Sachs | Business Insider
- Old Navy's customers had a great response to trolls on Twitter | Business Insider
- Younger football players are more likely to return to the... | Business Insider