Covered Call Picks (CLSN,HLF,QCOR,JCP,FSLR)
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||8.29||9||1.5||18.10%||January 2013|
|HLF||Herbalife Ltd||32.2||32.5||2.3||7.00%||January 2013|
|QCOR||Questcor Pharmaceuticals Inc||26||26||1.7||6.50%||January 2013|
|JCP||J C Penney Company Inc||20.8||21||1.1||5.20%||January 2013|
|FSLR||First Solar Inc||32||32||1.5||4.60%||January 2013|
Celsion Corp (CLSN) is currently trading at $8.29. Its 52 week range is between $1.63 and $8.86.
Herbalife Ltd (HLF) is currently trading at $32.2. Its 52 week range is between $24.24 and $73.
Questcor Pharmaceuticals Inc (QCOR) is currently trading at $25.99. Its 52 week range is between $17.25 and $58.91.
J C Penney Company Inc (JCP) is currently trading at $20.84. Its 52 week range is between $15.69 and $43.18.
First Solar Inc (FSLR) is currently trading at $31.99. Its 52 week range is between $11.43 and $50.2.
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
- This Hedge Fund Made 15% Yesterday As The Market Tumbled | ZeroHedge
- The Future of the Internet Is at Risk | Financial Sense
- Mapping The Crisis Contagion Process: The Flowchart | ZeroHedge
- Gartman Does it Again: Stocks Set To Surge As Newsletter Bulls Hit 6 Year Low | ZeroHedge
- This Is Not A Retest - It's A Live Bear! | ZeroHedge
- US Stays Solid Amid Global Quakes | Financial Sense
- Initial Jobless Claims Jumps Most In 2 Months - Unchanged Since End Of QE3 | ZeroHedge
The most relevant financial news and articles from the Internets
- Work to do for Michigan at quarterback, Utah feeling... | Business Insider
- U.S. Kids Using Media Almost 8 Hours a Day - BusinessWeek | BusinessWeek
- Justin Bieber explains why he broke down in tears at the VMAs | Business Insider
- In directorial debut, Portman focuses on her native Israel... | Business Insider
- Stephen Colbert one-ups Jeb Bush raffle with 1 of his own... | Business Insider
- Benghazi panel to interview more of Clinton's inner... | Business Insider
- The knives are starting to come out for one of the GOP's most surging... | Business Insider