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
- Calls For Texas Independence Surge After Brexit Vote | ZeroHedge
- 4 Reasons the Twin Towers Could NOT Have Been Brought Down With Explosives On 9/11 | ZeroHedge
- Hedge Funds which are really Money Managers have become Dumb Money (Video) | ZeroHedge
- What the Bond Market Is Telling Investors | Financial Sense
- Brexit: What to Expect After the EU-UK Membership Vote | Financial Sense
- Not So Fast: Scotland And Northern Ireland May Have Brexit Veto Rights | ZeroHedge
- Dow Futures Down 900 Points From Pre-Brexit Highs, Plunge Below Friday's Crash Lows | ZeroHedge
The most relevant financial news and articles from the Internets
- Fans are celebrating the demise of this minor 'Game of Thrones'... | Business Insider
- Here's everything the modern gentleman needs to know about buying a flattering pair of... | Business Insider
- Night doesn't exist anymore in Singapore | Business Insider
- How LeBron James makes and spends his millions | Business Insider
- THE BLOCKCHAIN REPORT: Why the technology behind Bitcoin is seeing widespread investment and early... | Business Insider
- Watch these baseball-sized chunks of hail destroy cars in a Chinese... | Business Insider
- These bizarre Japanese electric vehicles could change how we get around cities | Business Insider