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
- Existing-Home Sales in May Highest Pace in 9 Years | Financial Sense
- Hillary's Lead Over Trump Is Either 1% Or 12% Depending On Which Poll You Believe | ZeroHedge
- Something Just Snapped In VIX | ZeroHedge
- Bonds & Bullion Bid But Brexit Blowback Batters Banks | ZeroHedge
- Conference Board Leading Economic Index: Decrease in May | Financial Sense
- Brexit Drives Gold Frenzy, Report 26 June, 2016 | ZeroHedge
- Greenspan Warns A Crisis Is Imminent, Urges A Return To The Gold Standard | ZeroHedge
The most relevant financial news and articles from the Internets
- After one hyped scene, 'Game of Thrones' fans are about to... | Business Insider
- 4 ways to get customers to buy more | Business Insider
- These are the 25 most reliable new cars of 2016 | Business Insider
- Tell us the worst career advice you've ever gotten | Business Insider
- A NASA spacecraft is about to explore Jupiter like never before — here’s... | Business Insider
- The Googler who bet $250 million on Uber says it's like 'looking in the... | Business Insider
- Saab is officially dead | Business Insider