Covered Call Picks (VHC,OCZ,VQ,NAV,WLT)
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.
VirnetX Holding Corp (VHC) is currently trading at $23.66. Its 52 week range is between $11.01 and $41.93.
OCZ Technology Group Inc (OCZ) is currently trading at $6.27. Its 52 week range is between $4.14 and $10.05.
Venoco Inc (VQ) is currently trading at $9.27. Its 52 week range is between $6.5 and $13.
Navistar International Corp (NAV) is currently trading at $24.6. Its 52 week range is $20.21 and $52.36.
Walter Energy Inc (WLT) is currently trading at $34.3. Its 52 week range is between $31.33 and $126.
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
- Germany's Anti-Establishment AfD To Discipline Leader For Controversial Holocaust Memorial Speech | ZeroHedge
- Politicians Across America Continue Push To Make Protesting Illegal | ZeroHedge
- Nomi Prins Warns Financial Crash From Epic Debt, Asset Bubbles "Possible In Last Quarter 2017" | ZeroHedge
- Protest In The Era Of Trump | ZeroHedge
- The Last Time Oil Speculators Were This 'Long', Crude Collapsed | ZeroHedge
- Mexican Protesters Seize Control Of U.S. Border Crossing In Tijuana | ZeroHedge
- Jack Ma Accuses The US Of Spending $14 Trillion On War Instead Of Its People | ZeroHedge
The most relevant financial news and articles from the Internets
- Mexico's bloody cartel realignment is intensifying in one... | Business Insider
- The trials of those involved in the Turkey Coup have begun | Business Insider
- Don't expect nationwide marijuana legalization under the Trump... | Business Insider
- Japan's airliner of the future just announced some bad news | Business Insider
- BMW's chief designer is reportedly quitting the company | Business Insider
- Sundance vets Elijah Wood... | Business Insider
- Here's Tom Brady's résumé from when he didn't think he'd make it in the NFL... | Business Insider