Covered Call Picks (NAVB,ALXA,VHC,OCZ,P)
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.
|NAVB||Navidea Biopharmaceuticals Inc||3.58||4||0.5||12.60%||September|
|ALXA||Alexza Pharmaceuticals Inc||3.82||4||0.4||10.50%||September|
|VHC||VirnetX Holding Corp||26.5||27||2.8||10.40%||September|
|OCZ||OCZ Technology Group Inc||4.84||5||0.5||10.30%||September|
|P||Pandora Media Inc||9.29||10||0.8||8.60%||September|
Navidea Biopharmaceuticals Inc (NAVB) is currently trading at $3.6. Its 52 week range is between $2.05 and $4.77.
Alexza Pharmaceuticals Inc (ALXA) is currently trading at $4. Its 52 week range is between $2.55 and $14.8.
VirnetX Holding Corp (VHC) is currently trading at $26.32. Its 52 week range is between $11.01 and $41.93.
OCZ Technology Group Inc (OCZ) is currently trading at $4.83. Its 52 week range is $4.14 and $10.05.
Pandora Media Inc (P) is currently trading at $9.3. Its 52 week range is between $7.83 and $15.98.
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
- Market Seasonality and The Fed Are a Powerful Combination | Financial Sense
- Asymmetrical Bubbles | ZeroHedge
- Bitcoin Tumbles After China Central Bank Bans Financial Companies From Using Digital Currency | ZeroHedge
- Will the “Least Loved” Bull throw a “Taper Tantrum?” | Financial Sense
- The Long and Short of It | Financial Sense
- Adding Up the Numbers on $BALT | iBankCoin.com
- Morning Notes and Chuckles | iBankCoin.com
The most relevant financial news and articles from the Internets
- There's Now A Drug To Fix A Bent Penis | Business Insider
- Most Workers Skip Their Company Holiday Party, And That's A Major Blunder... | Business Insider
- Box CEO Aaron Levie Confirms He Raised A Whopping $100 Million At A $2 Billion... | Business Insider
- Book Review: <em>Thinking, Fast and Slow</em> by Daniel Kahneman | BusinessWeek
- Microsoft Says Government Surveillance Is... | Business Insider
- Mobile And E-Commerce Exploded Over... | Business Insider
- BOOM: A Major Wall Street Bank Just Initiated Coverage On Bitcoin And Identified A... | Business Insider