Covered Call Picks (THLD,MWW,MCP,BBY,NFLX)
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.
|THLD||Threshold Pharmaceuticals Inc||7.41||7.5||0.7||9.40%||October 2012|
|MWW||Monster Worldwide Inc||8.28||9||0.8||9.10%||October 2012|
|MCP||Molycorp Inc||13.9||14||1.1||7.70%||October 2012|
|BBY||Best BUY Co Inc||17.7||18||1.2||6.60%||October 2012|
|NFLX||Netflix Inc||56.1||57.5||2.7||4.90%||October 2012|
Threshold Pharmaceuticals Inc (THLD) is currently trading at $7.41. Its 52 week range is between $1.18 and $9.28.
Monster Worldwide Inc (MWW) is currently trading at $8.28. Its 52 week range is between $5.72 and $10.4.
Molycorp Inc (MCP) is currently trading at $13.85. Its 52 week range is between $9.4 and $53.56.
Best BUY Co Inc (BBY) is currently trading at $17.66. Its 52 week range is between $16.25 and $28.52.
Netflix Inc (NFLX) is currently trading at $56.06. Its 52 week range is between $52.81 and $162.99.
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
- Trump Has Split the GOP ... Now the Next Step? | ZeroHedge
- BullionStar attends LBMA Conference in Singapore, October 2016 | ZeroHedge
- Over 60% Of Americans Fear "Corruption Of Government Officials" Above Anything Else | ZeroHedge
- Assange Lashes Out At America: "Rigged Primary, Rigged Media, Rigged Candidate" | ZeroHedge
- The Big Four Economic Indicators: Industrial Production Rises Slightly | Financial Sense
- Caught On Tape: Filipino Police Run Over Anti-American Protesters As They Storm US Embassy | ZeroHedge
- Brazil Wrestles With Influx of Venezuelans as Mass Exodus Continues | Financial Sense
The most relevant financial news and articles from the Internets
- THE DIGITAL REMITTANCE REPORT: The new platforms... | Business Insider
- Donald Trump has revealing things to say about the movie everyone compares... | Business Insider
- 27 things you can buy for a dollar | Business Insider
- Ex-Wells Fargo employees reveal how some bankers abused customers | Business Insider
- The new game from the team behind 'Grand Theft Auto' is drop dead gorgeous | Business Insider
- A promising Hep C program seems to be working — and it could be a model for other... | Business Insider
- Lego Is for Girls | BusinessWeek