Covered Call Picks (GRPN,VRNG,AMRN,NAV,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.
|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:
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
- Rand Plunges Most Since US Election After Zuma Aborts International Investor Roadshow | ZeroHedge
- Trump Son-In-Law Kushner To Testify On Russia Ties | ZeroHedge
- Don Coxe on Brewing US Pension Crisis, Stimulus vs. Rising Rates | Financial Sense
- Kremlin Rejects US, EU Call To Free Detained Protesters As Court Fines Opposition Leader Navalny | ZeroHedge
- Atlanta GDPNow Confirms “Hard” Data Still Disappointing | Financial Sense
- Stock Market Getting Ready for a BIG Move; Risk to the Downside | Financial Sense
- As Market Tumbles, Investors Rush Into Safe Haven SNAP After Mass Wall Street Upgrade | ZeroHedge
The most relevant financial news and articles from the Internets
- The movie business is in big trouble, and studios are scrambling to figure out the future | Business Insider
- 8 questions your CEO doesn’t want to hear | Business Insider
- Rouhani hints at 'big development... | Business Insider
- Learn the email etiquette rules every professional should know from this... | Business Insider
- 3 signs you should give house flipping a shot, according to a man who's been in real... | Business Insider
- The 25 most popular travel destinations in the US | Business Insider
- Uber's no-good, very bad month: The stunning string of blows that have upended the world... | Business Insider