Covered Call Picks (ONTY,AMRN,RIMM,CTIC,ZNGA)
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.
|ONTY||Oncothyreon Inc||4.13||5||1.1||25.40%||January 2013|
|AMRN||Amarin Corporation PLC||12||12||2.1||17.20%||January 2013|
|RIMM||Research In Motion Ltd||11.9||12||1.2||9.80%||January 2013|
|CTIC||Cell Therapeutics Inc||1.36||1.5||0.1||9.60%||January 2013|
|ZNGA||Zynga Inc||2.49||2.5||0.2||9.60%||January 2013|
Oncothyreon Inc (ONTY) is currently trading at $4.13. Its 52 week range is between $3.35 and $9.23.
Amarin Corporation PLC (AMRN) is currently trading at $11.95. Its 52 week range is between $5.99 and $15.96.
Research In Motion Ltd (RIMM) is currently trading at $11.89. Its 52 week range is between $6.22 and $17.96.
Cell Therapeutics Inc (CTIC) is currently trading at $1.36. Its 52 week range is between $1.14 and $8.25.
Zynga Inc (ZNGA) is currently trading at $2.48. Its 52 week range is between $2.09 and $15.91.
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
- Russia Slams "Puzzling And Unprecedented" $50 Billion Yukos Award, Challenges "One-Sided" Court Ruling | ZeroHedge
- Is This How China Will Deal With Its Massive Mal-Investment? | ZeroHedge
- Near-Record Trulia Shorts Crushed After Zillow Acquires Incomeless Company For $3.5 Billion | ZeroHedge
- Doing Channel Checks Into El Pollo Loco | iBankCoin.com
- Avi Gilburt: Gold Could Break Below $1000; Sees Sharp Decline in Stocks Before Final Top | Financial Sense
- Marc Faber Responds To CNBC Mockery, Asks "How Has CNBC's Portfolio Done Since 1999?" | ZeroHedge
- China's Solution To “Property Companies Facing Huge Debt Burdens”: Much More Debt | ZeroHedge
The most relevant financial news and articles from the Internets
- ... | StreetInsider.com
- ... | StreetInsider.com
- Inside TMZ's Awesome Office Space And TV Studio In Downtown LA | Business Insider
- America's Poorest Shoppers Are Putting Discount Stores Out Of Business | Business Insider
- America's Foremost Anti-Tax Crusader Is Very Excited To Party At The Burning Man... | Business Insider
- Multiple News Sites Publish Corrections After Falling For Fake Story... | Business Insider
- Terrifying Iceberg Collapse Caught On Camera | Business Insider