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
- Weather Constrained Retail: Focus on Outdoor Dining | Financial Sense
- Dumb Money: 30% Of New Equity Investors In China Have Elementary Education Or Less, Bloomberg Says | ZeroHedge
- Guest Post: The Only Truly Compliant, Submissive Citizen In A Police State Is A Dead One | ZeroHedge
- Janet Yellen To Discuss "The New Normal For Monetary Policy" | ZeroHedge
- Black Swan 2: This Is "The Next Critical Chapter In The Austrian Banking System Story" | ZeroHedge
- The Road To The Final Four | iBankCoin.com
- Santelli Stunned As Janet Yellen Admits "Cash Is Not A Store Of Value" | ZeroHedge
The most relevant financial news and articles from the Internets
- Harry Reid just shocked the Senate — and everyone's trying to figure out what happens... | Business Insider
- Teenager Tuktamysheva takes world figure skating gold | Business Insider
- 'The Walking Dead' may have teased one of the next big villains back in... | Business Insider
- Nigeria wraps up presidential election campaign | Business Insider
- James Bond is back in the first teaser trailer for 'Spectre' | Business Insider
- Business Insider is hiring a night news editor | Business Insider
- Singapore honours Lee with grand state funeral | Business Insider