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 May "Stop Enforcing Obamacare's Individual Mandate" | ZeroHedge
- Fakewood EXPOSED: Where Fake News began | ZeroHedge
- Trader Warns "Trump's First Week Could Keep Markets Busy" - What To Watch | ZeroHedge
- Visualizing The Global War On Cash | ZeroHedge
- Twitter Storms and Trade Wars | Financial Sense
- The Six Stages Of Democrat Grief Are Complete | ZeroHedge
- Raoul Pal Warns The Day Of Reckoning Looms For VIX Shorts: "Reminds Me Of Portfolio Insurance In 1987" | ZeroHedge
The most relevant financial news and articles from the Internets
- The colossal price to fly a pair of B-2 bombers to hit two ISIS camps in Libya... | Business Insider
- Rolex is suddenly battling one of the biggest... | Business Insider
- The key to making new habits stick | Business Insider
- MORGAN STANLEY: Everything that used to make sense in... | Business Insider
- 5 things Google's Pixel phone can do that the iPhone can... | Business Insider
- Book Review: <em>Thinking, Fast and Slow</em> by Daniel Kahneman | BusinessWeek
- Millennials are leading the trend on America's hottest... | Business Insider