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
- Left-Right Divide Explodes In Spitting, Swearing, Fight As Alex Jones Interrupts 'Young Turks' At RNC | ZeroHedge
- China Plans Military Exercise in South China Sea | Financial Sense
- Former Fed Governor Admits "Fed Is Not Data Dependent; It Is Propping Up Asset Markets" | ZeroHedge
- US Shale Industry Is Painfully Adapting to Low Oil Prices | Financial Sense
- Gold Investment Slows, Soft Summer 'Risks $1300' But Bond Defaults 'Will Spike' as Japan, Eurozone Deny Fresh Stimulus | Financial Sense
- The Big Four Economic Indicators: June Industrial Production Rebounds | Financial Sense
- Goldman: The Last Two Times P/E Multiples Expanded This Much, The Result Was A Historic Crash | ZeroHedge
The most relevant financial news and articles from the Internets
- This is how British commandos pulled off ‘The Greatest Raid of All’ | Business Insider
- Idris Elba says there have been 'no talks' about him playing... | Business Insider
- 2012 Honda CR-V | BusinessWeek
- Suze Orman, Debit-Card Dealer | BusinessWeek
- Facebook just flew its ridiculously large drone for the first... | Business Insider
- Smartwatch shipments have plummeted... | Business Insider
- Marvel showed off footage of its Netflix show starring a ‘Game of Thrones’ favorite at Comic-Con and... | Business Insider