Covered Call Picks (ALXA,JAG,FSLR,VXX,GMCR)
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.
|ALXA||Alexza Pharmaceuticals Inc||0.58||1||0.1||17.20%||May-12|
|JAG||Jaguar Mining Inc||3.36||4||0.4||10.40%||May-12|
|FSLR||First Solar Inc||23||23||2.2||9.80%||May-12|
|VXX||iPath S&P 500 VIX Short-Term Futures ETN||18||18||1.7||9.60%||May-12|
|GMCR||Green Mountain Coffee Roasters Inc||45.4||46||4.1||9.00%||May-12|
Alexza Pharmaceuticals Inc (ALXA) is currently trading at $0.58. Its 52 week range is between $0.46 and $1.91.
Jaguar Mining Inc (JAG) is currently trading at $3.36. Its 52 week range is between $3.32 and $8.18.
First Solar Inc (FSLR) is currently trading at $22.96. Its 52 week range is between $20.02 and $145.16.
iPath S&P 500 VIX Short-Term Futures ETN (VXX) is currently trading at $17.99. Its 52 week range is $15.57 and $59.18.
Green Mountain Coffee Roasters Inc (GMCR) is currently trading at $45.37. Its 52 week range is between $34.06 and $115.98.
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
- Dirty Connecticut Mayor (Sentenced To Prison For Corruption) Reelected In Landslide | ZeroHedge
- Why China Hit The Panic Button On Metals Traders (In 1 Simple Copper Chart) | ZeroHedge
- China Unleashes Perfect Storm Of Bad News Prompting Stock Market Plunge | ZeroHedge
- Russia Sends 10,000 AK-47s To Afghanistan As Government Mulls "Inviting" Moscow To Help Fight "Terrorists" | ZeroHedge
- Turkey Arrests Journalists Who Exposed Erdogan's Weapons Smuggling To Extremist Syrian Rebels | ZeroHedge
- Goldman's Meteoronomists Have A Dire Forecast: "Winter Is Coming" | ZeroHedge
- Submerging Markets | ZeroHedge
The most relevant financial news and articles from the Internets
- Apple's Supply-Chain Secret? Hoard Lasers | BusinessWeek
- Police: Puig gets swollen eye during encounter with... | Business Insider
- Kiwis rampant in pink ball Test to wreck Aussie innings | Business Insider
- Wall Street is not going to like the 'Big Short' movie | Business Insider
- Burkina Faso to hold elections to replace transitional... | Business Insider
- Thousands cheer Trump at raucous rally in Florida | Business Insider
- Suze Orman, Debit-Card Dealer | BusinessWeek