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
- The Hidden Agenda Behind Saudi Arabia’s Market Share Strategy | ZeroHedge
- Liberty Activists And ISIS Will Soon Be Treated As Identical Threats | ZeroHedge
- Apple Analysis (Video) | ZeroHedge
- Through The Looking Glass On Rates | ZeroHedge
- Socialism & The Battle Of Ideas | ZeroHedge
- Europe's Most Distressing Chart: For Banks 2016 Is Already Worse Than 2008 | ZeroHedge
- Frontrunning: February 12 | ZeroHedge
The most relevant financial news and articles from the Internets
- Here's the hidden strategy behind Saudi Arabia's oil plan | Business Insider
- Women take longer than men to pay off their student loans — here's why... | Business Insider
- Here's what to do if your boss asks you out on a date | Business Insider
- These maps of 1.1 billion New York taxi rides show Manhattan's allure | Business Insider
- The aerial data revolution is approaching | Business Insider
- What 2,000 calories looks like at major fast-food restaurants | Business Insider
- France will evict nearly 1,000 people from the 'jungle... | Business Insider