Covered Call Picks (LNKD,WLT,LCC,NOK,VVUS)
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.
|WLT||Walter Energy Inc||51.4||52.5||2.4||4.70%||Jun-12|
|LCC||US Airways Group Inc||12.6||13||0.6||4.60%||Jun-12|
|NOK||Nokia ADR representing one Ord Shs Series A||2.95||3||0.1||4.40%||Jun-12|
LinkedIn Corp (LNKD) is currently trading at $99.94. Its 52 week range is between $55.98 and $120.63.
Walter Energy Inc (WLT) is currently trading at $51.4. Its 52 week range is between $47.42 and $132.38.
US Airways Group Inc (LCC) is currently trading at $12.62. Its 52 week range is between $3.96 and $12.4.
Nokia ADR representing one Ord Shs Series A (NOK) is currently trading at $2.95. Its 52 week range is $2.68 and $8.22.
Vivus Inc (VVUS) is currently trading at $24.89. Its 52 week range is between $6.13 and $26.75.
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
- Time To End Monetary Central Planning | ZeroHedge
- When The Aristocracy Leaves The Commoners In The Dust, The Empire Is Doomed | ZeroHedge
- According To Bernanke, This Was The "Biggest Impact Of QE" | ZeroHedge
- FOMC Becomes Self-Aware: Lockhart "Understands" Why People May Be "Skeptical" Of The Fed | ZeroHedge
- 47 Years After 1968, Bundesbank STILL Fails To Deliver A Gold Bar Number List | ZeroHedge
- The Final Crescendo of Cognitive Dollar Dissonance and the Remonetization of Gold | Financial Sense
- Gold Jumps To 3-Week Highs On Heavy Volume | ZeroHedge
The most relevant financial news and articles from the Internets
- 2012 Honda CR-V | BusinessWeek
- Microsoft is light years ahead of IBM, Oracle, and SAP in the cloud,... | Business Insider
- The World Bank is betting on mass migration driving the global... | Business Insider
- The biggest names in digital will be at IGNITION 2015 — check out the full lineup | Business Insider
- Strachan coy over future after Scots' Euro flop | Business Insider
- Apple's giant iPad Pro has 'teeth' that make it feel like a piece of... | Business Insider
- Vote: Councilman to become Memphis' 1st white mayor... | Business Insider