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
- Gold & Silver Are Jumping On Heavy Volume | ZeroHedge
- Citi Slams Today's Historic Oil Surge: "Another False Start, Time To Fade The Rally" | ZeroHedge
- Conference Board Leading Economic Index Sees Fractional Decline in July | Financial Sense
- Russian Military Forces Arrive In Syria, Set Forward Operating Base Near Damascus | ZeroHedge
- "The Quantitative Easing Hangover Is Starting" - Dallas Fed Dead-Cat-Bounce Collapses To Post-2009 Recession Lows | ZeroHedge
- WHAT DID I MISS? | iBankCoin.com
- Here's How High Oil Prices Must Climb To Stop Saudi Arabia's Budget Bleed | ZeroHedge
The most relevant financial news and articles from the Internets
- Instagram just made it a lot less annoying to share photos | Business Insider
- 25 photos of luxurious private islands you can rent for your next vacation | Business Insider
- Ripken honored by Orioles in celebration of 2131 game | Business Insider
- 'Concussion' director says no compromises were... | Business Insider
- Here's how much time people in US cities waste sitting in traffic | Business Insider
- Here's the important stuff that happened in Jackson Hole this weekend | Business Insider
- Everyone just piled into stocks at their fastest pace in... | Business Insider