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
- The Biggest Winner From The Greek Tragedy | ZeroHedge
- Greece Deal, ADP Cheer Markets | Financial Sense
- Jade Helm, Terrorist Attacks, Surveillance & Other Fairy Tales For A Gullible Nation | ZeroHedge
- Deadlines Come and Go, Markets Endure | Financial Sense
- Have the Saudis Miscalculated the Impact of Lower Crude Prices on US Production? | Financial Sense
- Meanwhile, Back In Obama Legacy-Land | ZeroHedge
- "Greece Is Coming To Your Neighborhood" Marc Faber Warns | ZeroHedge
The most relevant financial news and articles from the Internets
- 21 US destinations where it's legal to drink outside | Business Insider
- Euro drops against dollar after Greek referendum... | Business Insider
- Science explains how American soccer star Carli Lloyd made the shots... | Business Insider
- VAROUFAKIS: 'Our NO is a majestic, big YES to a democratic Europe.... | Business Insider
- The New York Times has its Vatican reporter using WhatsApp to send short updates to... | Business Insider
- Tennis star Kyrgios in 'racist' spat with swim... | Business Insider
- 54% of American adults living with friends or relatives plan... | Business Insider