Covered Call Picks (ANR,MWW,GMCR,STX,LNG)
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.
Alpha Natural Resources Inc (ANR) is currently trading at $6.92. Its 52 week range is between $5.28 and $32.28.
Monster Worldwide Inc (MWW) is currently trading at $8.15. Its 52 week range is between $5.72 and $10.4.
Green Mountain Coffee Roasters Inc (GMCR) is currently trading at $30.36. Its 52 week range is between $17.11 and $115.98.
Seagate Technology PLC (STX) is currently trading at $29.87. Its 52 week range is between $9.05 and $35.71.
Cheniere Energy Inc (LNG) is currently trading at $15.72. Its 52 week range is between $3.17 and $18.92.
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
- Foreign Buying Plummets In Vancouver: Sales To Foreigners Crash 96% | ZeroHedge
- Charlotte Police Release Dashcam, Body-Cam Footage Of Keith Scott's Death, Chief Says "Absolutely" Had A Gun | ZeroHedge
- Amazon "Tweaks" Its Hillary Book Stats: Doubles '5-Star' Reviews Overnight | ZeroHedge
- "It All Has A Very 2008 Feel To It" - For Deutsche Bank, The News Just Keeps Getting Worse | ZeroHedge
- The Wedge That's Driving Facebook's Stock | ZeroHedge
- A Turning Point In The US Presidential Campaign. What Happened? | ZeroHedge
- "You're An Idiot & A Lunatic if You Question 'Safe Spaces' Or 'Microaggression'" - President Of Northwestern | ZeroHedge
The most relevant financial news and articles from the Internets
- 15 behind-the-scenes secrets you didn't know about 'Shark... | Business Insider
- Surveillance footage appears to show somebody intentionally... | Business Insider
- BlackBerry moves into fleet management (BBRY) | Business Insider
- Most food chains are failing this crucial test — here's how the biggest... | Business Insider
- Eight people, including a 3-year-old girl, were hurt in a Baltimore... | Business Insider
- We spent a day with the people who fly and fix the F-35 — here's what they have to say about... | Business Insider
- The graphics in 'FIFA 17' are the closest thing we've seen to a... | Business Insider