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
- Reality Catching Up With Expectations | Financial Sense
- I See Red, People! | ZeroHedge
- Pettis: Capital Flooding Into US as Global Trade Environment Deteriorates | Financial Sense
- The Reflationary Window: Open How Wide For How Long? | Financial Sense
- French Prosecutor To Open Official Probe Into Francois Fillon's Embezzlement Allegations | ZeroHedge
- The $74 Trillion Global Economy In One Chart | ZeroHedge
- 9 Lessons From The Reagan Tax Cuts | ZeroHedge
The most relevant financial news and articles from the Internets
- How I launched a side hustle that earns enough to cover my mortgage payment... | Business Insider
- Amazon's Hit Man | BusinessWeek
- Pamela Anderson wants to advocate for men who are falsely accused of rape... | Business Insider
- Watch a... | Business Insider
- Save on online prep courses for the GMAT and LSAT — and more of today's best... | Business Insider
- Trump's controversial national security aide reportedly... | Business Insider
- Bitcoin busts out to an all-time high | Business Insider