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
- Why the End of China's “Strong Yuan” Policy Matters to Global Markets | Financial Sense
- China and Global Market Turbulence | Financial Sense
- Bernie Sanders Blasts "The Business Model Of Wall Street Is Fraud" | ZeroHedge
- Chicago PMI Bounce Stalls, "Firms At Risk Of Being Over-Inventoried" | ZeroHedge
- Market Recap Aug 31, 2015 | FundMyMutualFund
- 80 Year Old Woman Trampled To Death In Venezuela Supermarket Stampede | ZeroHedge
- The Value-At-Risk Fiasco | ZeroHedge
The most relevant financial news and articles from the Internets
- Some Hollywood blockbuster movies are about to disappear from Netflix (NFLX) | Business Insider
- The Latest: Thai police find bomb materials in 2nd... | Business Insider
- 3 reasons markets lost faith in China's economy, at a... | Business Insider
- Almost every single detail about Apple's new TV just leaked ahead of its launch (AAPL) | Business Insider
- McDonald's is making a change to its McMuffins and biscuits | Business Insider
- The 25 hottest under-the-radar startups in America right now | Business Insider
- Gold hunters blocked from site of alleged Nazi gold train... | Business Insider