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
- ISIS Beheads Captured American Journalist, Threatens To Kill Another | ZeroHedge
- "Isolation Procedures Put In Place" After Ebola Suspect Dies In Ireland; Ebola-Like Disease Claims 70 In Congo | ZeroHedge
- Bad News For Profit Margins As Philly Fed Prices-Received-Less-Paid Drops To 2012 Levels | ZeroHedge
- St.Louis PD Release 'Suicide-By-Cop' Shooting Clip | ZeroHedge
- Gold, Complacency, & Why Hookers And Bankers Share The Same Neighborhoods | ZeroHedge
- Alternative Measures Suggest Weaker Economy | ZeroHedge
- Novel Fuel Resources, the Force of Economics and the Renewed East–West Power Struggle | Financial Sense
The most relevant financial news and articles from the Internets
- The 10 Most 'Livable' Cities In The World | Business Insider
- BANK OF AMERICA AGREES TO PAY $16.65 BILLION SETTLEMENT | Business Insider
- The 10 Most Important Things In The World Right Now | Business Insider
- These New Technologies Are Making Smartphones Less... | Business Insider
- The National Guard Is Being Withdrawn From Ferguson | Business Insider
- A Food Critic Has Finally Given Tavern On The Green The Brutal Review It... | Business Insider
- The Real Reason This Ebola Outbreak Is So Big | Business Insider