Covered Call Picks (UNXL,ACI,IOC,ARNA,CLF)
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.
|UNXL||UniPixel Inc||35.7||36||3.7||10.40%||May 2013|
|ACI||Arch Coal Inc||4.89||5||0.3||6.30%||May 2013|
|IOC||InterOil Corp||77||77.5||4.8||6.20%||May 2013|
|ARNA||Arena Pharmaceuticals Inc||7.95||8||0.5||6.20%||May 2013|
|CLF||Cliffs Natural Resources Inc||17.7||18||1||5.80%||May 2013|
UniPixel Inc (UNXL) is currently trading at $35.67. Its 52 week range is between $5.15 and $41.42.
Arch Coal Inc (ACI) is currently trading at $4.89. Its 52 week range is between $4.47 and $10.26.
InterOil Corp (IOC) is currently trading at $76.99. Its 52 week range is between $47.33 and $99.05.
Arena Pharmaceuticals Inc (ARNA) is currently trading at $7.97. Its 52 week range is between $2 and $13.5.
Cliffs Natural Resources Inc (CLF) is currently trading at $17.65. Its 52 week range is between $16.96 and $69.5.
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
- Finland Unleashes Helicopter Money In "Greatest Societal Transformation Of Our Time" | ZeroHedge
- Another Donor Email Seeking Another Favor; Huma Worries The "Problem Is She Keeps Emailing HRC Directly" | ZeroHedge
- Futures Flat, Global Stocks Rise As Treasury Yields See Biggest Monthly Jump In Over A Year | ZeroHedge
- The Most Important Thing Willy Wonka Ever Said | Altucher Confidential
- Low-Volatility Stocks At Risk As Credit Cycle Ends, UBS Warns A Crash Is Coming | ZeroHedge
- Ep. 182: Caleb Carr – The Curse of Knowledge | Altucher Confidential
- The Illusion of Power | Financial Sense
The most relevant financial news and articles from the Internets
- This new 'Seamless for food waste' lets you buy restaurants' surplus for... | Business Insider
- A 31-year-old who's been abroad for 5 years explains what everyone gets wrong about... | Business Insider
- The EU has ordered Apple to pay $14.5 billion in back taxes... | Business Insider
- Watch coalition airstrikes level a factory producing ISIS' most... | Business Insider
- Rush Limbaugh battles with caller in tense exchange over Donald Trump... | Business Insider
- California bill closes major sexual-... | Business Insider
- ISIS says its leader who coordinated attacks on the West has been killed | Business Insider