Biotech Covered Call Picks (SRPT,NAVB,AMRN,DNDN,ALXA)
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.
Sarepta Therapeutics Inc (SRPT) is currently trading at $14.92. Its 52 week range is between $2.6 and $16.32.
Navidea Biopharmaceuticals Inc (NAVB) is currently trading at $3.8. Its 52 week range is between $2.05 and $4.77.
Amarin Corporation PLC (AMRN) is currently trading at $14.64. Its 52 week range is between $5.99 and $15.96.
Dendreon Corp (DNDN) is currently trading at $4.98. Its 52 week range is between $4.17 and $17.04.
Alexza Pharmaceuticals Inc (ALXA) is currently trading at $4.55. Its 52 week range is between $2.55 and $14.8.
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
- Worlds Made By Hand: "Survival Of The Fittest Will Replace Checking In On Facebook" | ZeroHedge
- "This One Is Very Surprising" - US Luxury Rental Market Turmoiling As EQR Cuts Guidance For 3rd Time | ZeroHedge
- Bernie Sanders Leaves The Democratic Party | ZeroHedge
- Should Investors Fear China’s Anti-American Protests? | Financial Sense
- 2016 Election Decision Is "Cholera Or Gonorrhea"; Julian Assange "Would Prefer Neither" | ZeroHedge
- German Special Forces Raid Mosque, Apartments In Crackdown On Salafists | ZeroHedge
- Nobody Knows Who's Paying For The Privately Funded Democratic National Convention | ZeroHedge
The most relevant financial news and articles from the Internets
- New York Gov. Andrew Cuomo rips Donald Trump's campaign slogan... | Business Insider
- The world’s most active volcano is releasing lava into the Pacific Ocean | Business Insider
- Microsoft just released an iPhone app it says takes better... | Business Insider
- Islamic banking turns out to be less risky than conventional... | Business Insider
- North Korea: US sanctions on Kim Jong Un 'cross... | Business Insider
- This legendary Silicon Valley VC firm had a chance to invest in Apple,... | Business Insider
- Homicides are on the rise in Mexico after years of decline, and it'... | Business Insider