Covered Call Picks (VRNG,AEGR,ALXA,SRPT,GMCR)
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.
|VRNG||Vringo Inc||5.43||5.5||1.6||28.50%||November 2012|
|AEGR||Aegerion Pharmaceuticals Inc||14||15||2.3||16.50%||November 2012|
|ALXA||Alexza Pharmaceuticals Inc||5.63||6||0.8||14.20%||November 2012|
|SRPT||Sarepta Therapeutics Inc||32.9||33||3.9||11.90%||November 2012|
|GMCR||Green Mountain Coffee Roasters Inc||22.5||23||2.5||11.10%||November 2012|
Vringo Inc (VRNG) is currently trading at $5.43. Its 52 week range is between $0.68 and $5.55.
Aegerion Pharmaceuticals Inc (AEGR) is currently trading at $13.97. Its 52 week range is between $11.75 and $17.72.
Alexza Pharmaceuticals Inc (ALXA) is currently trading at $5.63. Its 52 week range is between $2.55 and $14.8.
Sarepta Therapeutics Inc (SRPT) is currently trading at $32.85. Its 52 week range is between $2.6 and $45.
Green Mountain Coffee Roasters Inc (GMCR) is currently trading at $22.53. Its 52 week range is between $17.11 and $96.77.
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
- The 'Wages-Fuel-Demand' Fallacy | ZeroHedge
- The Manufacturing World Suddenly Goes Into Reverse: Global August PMI Summary | ZeroHedge
- Goldman's Special Purpose Tentacle Revealed In Europe's Latest Bank Failure | ZeroHedge
- Middle-East 'Frenemies' | ZeroHedge
- Deflationary Fears Are Spreading Globally | Financial Sense
- Gold Is the Money of Kings, Debt the Money of Slaves | Financial Sense
- Sunday Matinee at Chess Cinemas | iBankCoin.com
The most relevant financial news and articles from the Internets
- The 10 Most Important Things In The World Right Now | Business Insider
- Here's A Brutal Quote About Twitter CEO Dick Costolo From A VC Who Owns Shares In Twitter (... | Business Insider
- Should You Worry About That Mole? Here's How To Tell | Business Insider
- Laptop Computer Reviews - BusinessWeek | BusinessWeek
- 15 Ridiculous Finance Moments That Have Us Convinced This Must Be... | Business Insider
- SADC regional bloc to send observers to Lesotho after... | Business Insider
- Reddit Now Has An Official App To Help You Keep Track Of Its Famous 'AMA'... | Business Insider