Covered Call Picks (CLSN,ALXA,KERX,OCZ,PPHM)
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.
|CLSN||Celsion Corp||7.82||8||1.6||20.50%||January 2013|
|ALXA||Alexza Pharmaceuticals Inc||5.49||5.5||1||18.20%||January 2013|
|KERX||Keryx Biopharmaceuticals Inc||2.77||3||0.5||16.20%||January 2013|
|OCZ||OCZ Technology Group Inc||1.9||2||0.3||13.20%||January 2013|
|PPHM||Peregrine Pharmaceuticals Inc||1.23||1.5||0.2||12.20%||January 2013|
Celsion Corp (CLSN) is currently trading at $7.82. Its 52 week range is between $1.63 and $8.86.
Alexza Pharmaceuticals Inc (ALXA) is currently trading at $5.49. Its 52 week range is between $2.55 and $9.9.
Keryx Biopharmaceuticals Inc (KERX) is currently trading at $2.77. Its 52 week range is between $1.28 and $5.19.
OCZ Technology Group Inc (OCZ) is currently trading at $1.9. Its 52 week range is between $1.11 and $10.05.
Peregrine Pharmaceuticals Inc (PPHM) is currently trading at $1.23. Its 52 week range is between $0.39 and $5.5.
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
- OPEC, Non-OPEC Oil Producers Recommend Extending Production Cuts By Six Months | ZeroHedge
- Hedge Fund CIO: "The Market Doesn’t Care About Health Care. Poor People Care About Health Care" | ZeroHedge
- "We've Reached Our Limits" - Greece Begins Blocking Refugees | ZeroHedge
- London Mayor's Ties To Extremism Call Commitment To Fighting Terror Into Question | ZeroHedge
- McCain: "The New World Order Is Under Enormous Strain" | ZeroHedge
- Gold Prices +3% as Fed Rate Rise Lags Inflation, Dollar Falls, Greek Debt Deadlines Loom | Financial Sense
- Michael Hudson: Trump Is Obama's Legacy - Is This The End Of The Democratic Party? | ZeroHedge
The most relevant financial news and articles from the Internets
- More homebuyers are turning to the risky mortgages that were popular... | Business Insider
- 4 basic problems cause all the cognitive... | Business Insider
- 14 apps every modern gentleman should have on his phone | Business Insider
- Apple totally dissed WikiLeaks this week — here's why (... | Business Insider
- Seeing how the highest and lowest-earners spend their money... | Business Insider
- Mike Pence revived talk of the US moving its embassy... | Business Insider
- The best and worst of Amazon's new TV show pilots | Business Insider