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
- Dakota Access Pipeline Tensions Grow Increasingly Hostile As Officials Cut Off Water Supply, Arrest Dozens | ZeroHedge
- Is Portugal The Next "Shoe To Drop" In Europe? | ZeroHedge
- On The Bizarre Media Blackout Of Hacked George Soros Documents | ZeroHedge
- TRoLL MaGaZiNe | ZeroHedge
- FBI Admits Clinton Used Software Designed To "Prevent Recovery" And "Hide Traces Of" Deleted Emails | ZeroHedge
- Cracking Open a Six-Pack | Financial Sense
- Market Recap Aug 24, 2016 | FundMyMutualFund
The most relevant financial news and articles from the Internets
- Captain America is giving up his superhero identity in the next Marvel... | Business Insider
- Don't believe the hype about human music curators | Business Insider
- I took a hot lap with the Stig from 'Top Gear' — then I took some hot laps of... | Business Insider
- Hillary Clinton: 'A fringe element has effectively taken over the... | Business Insider
- Public schools in 21 states still hit kids, and black students... | Business Insider
- Book Review: <em>Thinking, Fast and Slow</em> by Daniel Kahneman | BusinessWeek
- 'Game of Thrones' actress promises fans that 's--t gets real... | Business Insider