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
- Why All The Yawning Over The Yuan? | ZeroHedge
- Did Russia Hack the DNC … Really? | ZeroHedge
- December Rate Hike Considerations | Financial Sense
- Did The White House Just Declare War On Russia? | ZeroHedge
- The Public Pension Time Bomb Is Starting to Explode | Financial Sense
- The Elimination Of Reason | ZeroHedge
- Gold Market in Crisis, Risks Collapse: LBMA | Financial Sense
The most relevant financial news and articles from the Internets
- Apple is working on its car in Canada (AAPL) | Business Insider
- NASA is developing a supersonic jet that could change the way we travel | Business Insider
- 'Women have had it with guys like you' — Elizabeth... | Business Insider
- Bombshell lawsuit reveals drama at Magic Leap, the secretive multibillion-dollar... | Business Insider
- 13 jobs that have seen the biggest pay increase over the last year | Business Insider
- Older athletes stopped exercising for 10 days and it transformed... | Business Insider
- The new 'SNL' 'Black Jeopardy!' is the best... | Business Insider