Covered Call Picks (YOKU,GMCR,BAC,CLF,UPL)
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.
|GMCR||Green Mountain Coffee Roasters Inc||51.4||52.5||2.7||5.30%||Apr-12|
|BAC||Bank of America Corp||9.8||10||0.4||4.20%||Apr-12|
|CLF||Cliffs Natural Resources Inc||72||72.5||2.9||4.00%||Apr-12|
|UPL||Ultra Petroleum Corp||24.9||25||1||4.00%||Apr-12|
Youku Inc (YOKU) is currently trading at $27.06. Its 52 week range is between $13.76 and $69.95.
Green Mountain Coffee Roasters Inc (GMCR) is currently trading at $51.39. Its 52 week range is between $34.06 and $115.98.
Bank of America Corp (BAC) is currently trading at $9.8. Its 52 week range is between $4.92 and $14.29.
Cliffs Natural Resources Inc (CLF) is currently trading at $72.03. Its 52 week range is $47.31 and $102.48.
Ultra Petroleum Corp (UPL) is currently trading at $24.9. Its 52 week range is between $22.51 and $51.2.
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
- An Establishment In Panic | ZeroHedge
- Tesla Now Fully Able to Self-Drive Safer Than Humans | Financial Sense
- Here's The 30 Seconds After The Last Debate That CNN Would Rather You Didn't See | ZeroHedge
- The Standard Of Living Of The Irredeemables Continues To Plunge As 'Not So Hidden' Inflation Soars | ZeroHedge
- Did Clinton Press Secretary Get Caught On Tape 'Rigging' Media Questions? | ZeroHedge
- Russia Wants To Monitor "Rigged" US Presidential Elections | ZeroHedge
- Russian Naval Fleet Filmed Off British Coast, Followed "Every Inch Of The Way" | ZeroHedge
The most relevant financial news and articles from the Internets
- Thailand is ordering its former prime minister to pay $1... | Business Insider
- Apple is investigating the iPhone 7 that reportedly caught on fire (AAPL... | Business Insider
- This thin, cheap phone case is perfect for Moto G owners | Business Insider
- Thousands of police officers stage a nearly weeklong protest in... | Business Insider
- South Africa becomes second country to... | Business Insider
- I just visited New York City after moving to San Francisco — here are the 5 things... | Business Insider
- Fast-food chains like KFC and Arby’s are fixing a big customer service problem — and it's paying off | Business Insider