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
- Ackman Loses Over $100 Million In Early Trading As More Valeant Questions Emerge | ZeroHedge
- Guest Post: Why Is The US Hanging Turkey Out To Dry? | ZeroHedge
- Why We’re Sliding Towards World War | ZeroHedge
- US Blames Afghanistan Hospital Massacre On "Malfunctioning Sensors," "Human Error" | ZeroHedge
- US Taxpayer Faces $230 Million Loss As Spain's 'Solyndra' Files For Creditor Protection | ZeroHedge
- Ask The Expert - Steve St. Angelo! | ZeroHedge
- Year-End Squeeze Begins As Predicted - "Most Shorted" Stocks Up 10x The Market This Week | ZeroHedge
The most relevant financial news and articles from the Internets
- US stocks edge higher in early trading; Deere gains on... | Business Insider
- Guy V. Lewis, coach of Phi Slama Jama teams, dies at 93 | Business Insider
- Warriors make NBA history as first team to start season... | Business Insider
- 25 Ways to Make LinkedIn Work for You | BusinessWeek
- 20 college majors where the pay goes nowhere | Business Insider
- The Latest: Protesters in downtown Chicago disperse | Business Insider
- Police: Newborn left in Christmas nativity manger at... | Business Insider