Covered Call Picks (GRPN,VRNG,AMRN,NAV,FSLR)

covered calls beavis

Here are today's Covered Call Picks for Wednesday 08-08-2012.

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.

Ticker Company Price Strike Bid Return Expiration Date
GRPN  Groupon Inc  6.93 7 1.1 15.20% Sep-12
VRNG  Vringo Inc  3.44 3.5 0.5 14.50% Sep-12
AMRN  Amarin Corporation PLC  11.3 12 1.6 14.10% Sep-12
NAV  Navistar International Corp  25.2 26 2.7 10.50% Sep-12
FSLR  First Solar Inc  21.4 22 1.7 7.80% Sep-12

Groupon Inc (GRPN) is currently trading at $6.93. Its 52 week range is between $6.35 and $31.14.

Vringo Inc (VRNG) is currently trading at $3.44. Its 52 week range is between $0.68 and $5.45.

Amarin Corporation PLC (AMRN) is currently trading at $11.34. Its 52 week range is between $5.99 and $15.96.

Navistar International Corp (NAV) is currently trading at $25.17. Its 52 week range is $20.07 and $48.18.

First Solar Inc (FSLR) is currently trading at $21.41. Its 52 week range is between $11.43 and $107.99.

MASTERY Bottom Line (Ninja Style)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.

Is that expiration date correct?  Don't options expire on Saturdays?

That's actually the expiration month and year. September 2012.

Be careful of selling covered calls with ex-dividend periods before the strike date. More get executed around those times. Be prepared to repurchase your call or even roll it to the next week or month options. They can buy at any time, but dividend plays can burn your call strategy.

Sounds like someone is upset because they are too stupid not to resist buying on impulse based on a ridiculous pamphlet they received in the mail. Don't blame the market because you're an idiot!

What a joke,All these Healthcare fraud sector always rob investor with the wind and they show no profit from any operation.All these scam become possible through the paid pumpers.AMRN is worth only a 0 penny it it's been trading between 5.50 to 19 from last three year.All healthcare companies do is they sell share and they sell more share and more after.Then they they sell more share till the number of outstanding reach up to trrillion share then they break it down in reverse split to bring it under 50 million then start selling more share to from the new end.All these become possible through paid pumpers.