Covered Call Picks (AEGR,VRNG,AMRN,STSI,VHC)
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.
|AEGR||Aegerion Pharmaceuticals Inc||14.9||15||3||20.20%||October 2012|
|VRNG||Vringo Inc||4.3||4.5||0.7||15.10%||October 2012|
|AMRN||Amarin Corporation PLC||11.8||12||0.8||6.80%||October 2012|
|STSI||Star Scientific Inc||3.23||3.5||0.2||6.20%||October 2012|
|VHC||VirnetX Holding Corp||26.9||27||1.4||5.20%||October 2012|
Aegerion Pharmaceuticals Inc (AEGR) is currently trading at $14.88. Its 52 week range is between $11.75 and $17.72.
Vringo Inc (VRNG) is currently trading at $4.3. Its 52 week range is between $0.68 and $5.45.
Amarin Corporation PLC (AMRN) is currently trading at $11.81. Its 52 week range is between $5.99 and $15.96.
Star Scientific Inc (STSI) is currently trading at $3.23. Its 52 week range is between $2 and $5.05.
VirnetX Holding Corp (VHC) is currently trading at $26.86. Its 52 week range is between $11.5 and $41.93.
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
- Janet Yellen Trolls America's Poor: Tells Them It Is Important To Get Rich | ZeroHedge
- What Happened After China's Last "Stealth QE"? | ZeroHedge
- Keynes Was a Failure in Japan – No Need to Embrace Him in Europe | Financial Sense
- Producer Price Increase Lowest In 2014 As Energy Slides | ZeroHedge
- Back From Scottsdale | iBankCoin.com
- The Emergence of the U.S. Petro-Dollar | Financial Sense
- China Launches CNY500 Billion In "Stealth QE" | ZeroHedge
The most relevant financial news and articles from the Internets
- Minnesota Governor Calls For Vikings To Suspend Adrian Peterson... | Business Insider
- The Highest-Paid Actors On TV This Fall | Business Insider
- Oscar Pistorius Will Be Allowed To Compete In The Paralympics After... | Business Insider
- China's Xi heads to Sri Lanka to promote '... | Business Insider
- MICROSOFT IS BUYING THE COMPANY BEHIND MINECRAFT FOR $2.5 BILLION (MSFT) | Business Insider
- 'The German Recovery Is Petering Out' | Business Insider
- Samsung Is Making Its Own Hour-Long Sitcom Starring A Fictional Employee | Business Insider