Covered Call Picks (FSLR,URI,MS,GRPN,SPPI)
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.
|FSLR||First Solar Inc||15||15||1.7||11.00%||Jul-12|
|URI||United Rentals Inc||32.3||33||2.6||8.00%||Jul-12|
|SPPI||Spectrum Pharmaceuticals Inc||11.7||12||0.8||6.40%||Jul-12|
First Solar Inc (FSLR) is currently trading at $14.95. Its 52 week range is between $11.43 and $142.22.
United Rentals Inc (URI) is currently trading at $32.3. Its 52 week range is between $12.81 and $47.98.
Morgan Stanley (MS) is currently trading at $13.93. Its 52 week range is between $11.58 and $24.46.
Groupon Inc (GRPN) is currently trading at $9.95. Its 52 week range is $8.8 and $31.14.
Spectrum Pharmaceuticals Inc (SPPI) is currently trading at $11.72. Its 52 week range is between $6.94 and $16.
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
- Anti-Trump Propagandist David Brock Suffers Heart Attack | ZeroHedge
- Bank Of America Enters Correction - Drops Over 10% From Trump-Speech Highs | ZeroHedge
- John Murphy on Intermarket Analysis and the Sequence of Market Peaks | Financial Sense
- D.C. Drama Trashes Trump Trades: Bonds Bid As Banks Bloodbath Most Since Brexit | ZeroHedge
- THe CaSTaWaY... | ZeroHedge
- Banks, Bonds, & Bullion Bid As Healthcare Hope Trumps Terror Attack Turmoil | ZeroHedge
- How I Became More Comfortable With Public Speaking | Altucher Confidential
The most relevant financial news and articles from the Internets
- A legendary Silicon Valley designer is selling his wacky 6-in-1 home for $... | Business Insider
- The Senate is starting hearings for Trump's new... | Business Insider
- 'You were given many lies, go with our plan': Trump tweets last ditch pitch to the... | Business Insider
- 5 must-have apps for people who travel a lot | Business Insider
- Here are the countries that are most and least prepared for a cyberattack | Business Insider
- Markets fret as Trump agenda shows signs of cracks | Business Insider
- Facebook may unveil new hardware in April (FB) | Business Insider