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
- Algos Gone Wild: BABA "Glitch" Halted 7 Seconds, "100s Of Flash Crashes" Into Close | ZeroHedge
- The Mortal Kombat Finish Him Stocks | iBankCoin.com
- Yahoo Is Not Having A Good Day | ZeroHedge
- Quote Of The Day: Jack Ma Edition | ZeroHedge
- Jackie DeAngelis Blows | ZeroHedge
- Jim Bianco on Gold, Oil, and Why the Market Doesn't Care About Geopolitical Events | Financial Sense
- How Does the Stock Market Perform During Rate Hikes? | Financial Sense
The most relevant financial news and articles from the Internets
- Pre-Open... | StreetInsider.com
- Alibaba Employees Will Wear A Silly Shirt With An Inspirational Message For Its Historic... | Business Insider
- NFL Player Breaks Down On Sideline After Breaking Record | Business Insider
- Oracle Reports Another Miss On Earnings And Says CEO Larry Ellison Is Stepping Down (ORCL... | Business Insider
- Dollar Spikes To Highest Level Against Yen Since 2008 (USD, JPY) | Business Insider
- Why The US Air Force Is Way Tougher Than People Think [PHOTOS] | Business Insider
- Bordeaux down hapless Evian to go top | Business Insider