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
- These Are The Ten Companies That Have Cut The Most Jobs In 2016 | ZeroHedge
- Crude Spikes Above $49 After Biggest Inventory Draw Since 2015 | ZeroHedge
- CNN Lashes Out At Trump Over Vince Foster "Conspiracy", Rushes To Hillary's Defense | ZeroHedge
- Key Events In The Coming Week | ZeroHedge
- Here’s How The U.S. Government Treats Whistleblowers | ZeroHedge
- How Referenda Threaten the EU | Financial Sense
- What Is Your Philosophy Of Life? What Is Sacred To You? Here Is Mine: | Altucher Confidential
The most relevant financial news and articles from the Internets
- Helicopter money would actually work | Business Insider
- You won’t recognize the new world of digital payments without... | Business Insider
- The British pound is on fire — here's what's happening in FX | Business Insider
- 5 important things you probably missed on this week's 'Game of... | Business Insider
- Huawei sues Samsung in new patent fight | Business Insider
- Marissa Mayer took home only $14 million last year because Yahoo 'fell... | Business Insider
- A new 'Finding Dory' trailer is here — and it looks just as magical as 'Finding... | Business Insider