Covered Call Picks (UNXL,ASTX,BBRY,TSLA,FSLR)
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.
|UNXL||UniPixel Inc||26||26||3.6||13.90%||July 2013|
|ASTX||Astex Pharmaceuticals Inc||5.48||5.5||0.6||10.90%||July 2013|
|BBRY||Research In Motion Ltd||15||15||1.5||10.00%||July 2013|
|TSLA||Tesla Motors Inc||89.9||90||8.5||9.50%||July 2013|
|FSLR||First Solar Inc||54.9||55||5||9.00%||July 2013|
UniPixel Inc (UNXL) is currently trading at $25.95. Its 52 week range is between $5.27 and $41.42.
Astex Pharmaceuticals Inc (ASTX) is currently trading at $5.48. Its 52 week range is between $1.57 and $6.95.
Research In Motion Ltd (BBRY) is currently trading at $14.98. Its 52 week range is between $6.22 and $18.32.
Tesla Motors Inc (TSLA) is currently trading at $89.94. Its 52 week range is between $25.52 and $97.12.
First Solar Inc (FSLR) is currently trading at $54.89. Its 52 week range is between $11.43 and $52.69.
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
- HFT Accounts For 76% Of All Orders In Europe | ZeroHedge
- No Gifts For Me | iBankCoin.com
- THAT WAS A KILL | iBankCoin.com
- A Pessimist's Guide To The World In 2015 | ZeroHedge
- The Fed Is "Confused & Confusing" | ZeroHedge
- Over $1 Trillion And Counting | iBankCoin.com
- Howard Marks On "The Lessons Of Oil" | ZeroHedge
The most relevant financial news and articles from the Internets
- Israel Launches First Airstrike On Hamas Since This Summer... | Business Insider
- Uber Voluntarily Suspends Service In A US City For The... | Business Insider
- Mother arrested over deaths of eight... | Business Insider
- The Three Biggest Problems On College Campuses | Business Insider
- Groceries Are The Biggest Untapped... | Business Insider
- BREAKING: Police Say They Believe Witness Who... | Business Insider
- The US Says 3 Senior ISIS Leaders Have Been Killed... | Business Insider