Covered Call Picks (ATPG,VXX,FSLR,NFLX,UNG)
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.
|ATPG||ATP Oil & Gas Corporation||7.87||8||0.8||10.70%||Apr-12|
|VXX||iPath S&P 500 VIX Short-Term Futures ETN||26||27||2.4||9.40%||Apr-12|
|FSLR||First Solar Inc||27.6||28||2.6||9.30%||Apr-12|
|UNG||United States Natural Gas||18.7||19||1.1||6.00%||Apr-12|
ATP Oil & Gas Corporation (ATPG) is currently trading at $7.87. Its 52 week range is between $5.53 and $20.19.
iPath S&P 500 VIX Short-Term Futures ETN (VXX) is currently trading at $26.03. Its 52 week range is between $19.88 and $59.18.
First Solar Inc (FSLR) is currently trading at $27.63. Its 52 week range is between $27.5 and $163.
Netflix Inc (NFLX) is currently trading at $107.13. Its 52 week range is $62.37 and $304.79.
United States Natural Gas (UNG) is currently trading at $18.66. Its 52 week range is between $18.68 and $50.56.
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
- Broken Market (Worse Than 2013 Nasdaq Blackout) Just Fails To Send S&P Back Over 2,000 | ZeroHedge
- How Money is Made & Printed | iBankCoin.com
- Gold Prices to 1-Week Low as Safe Haven Demand Falls | Financial Sense
- The Fed is Absolutely Terrified of Something… What Is It? | ZeroHedge
- Thank You US Taxpayers: Russia-Ukraine Agree Terms On Gas-Supply Through March | ZeroHedge
- OIL COUNTRY | iBankCoin.com
- Algos Please Ignore: Citi Slashes Previously Reported Net Income Due To "Legal Investigations" Over FX Rigging Probe | ZeroHedge
The most relevant financial news and articles from the Internets
- Researchers Say They've Found A Piece Of Amelia... | Business Insider
- The Single Most Annoying Thing About Watching An NFL Game In One Chart | Business Insider
- Tax summit in Berlin aims to say goodbye to banking... | Business Insider
- STOCKS FALL AFTER THE FED ENDS OF QE: Here's What You Need To Know (DIA, SPY, QQQ, TLT,... | Business Insider
- The 30 Most Influential LGBT People In Tech | Business Insider
- Take A Look At The $48 Million Private Jet Tesco Is Selling Amid An Accounting Scandal | Business Insider
- Marry Someone With This Trait If You Want To Get Ahead In Your Career | Business Insider