Covered Call Picks (VRNG,AMRN,ZNGA,ISIS,GRPN)
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.
|VRNG||Vringo Inc||3.19||3.5||0.8||25.10%||November 2012|
|AMRN||Amarin Corporation PLC||12||12||1.8||15.00%||November 2012|
|ZNGA||Zynga Inc||2.84||3||0.3||10.20%||November 2012|
|ISIS||Isis Pharmaceuticals Inc||14||15||1.4||10.00%||November 2012|
|GRPN||Groupon Inc||4.7||5||0.5||9.60%||November 2012|
Vringo Inc (VRNG) is currently trading at $3.19. Its 52 week range is between $0.68 and $5.45.
Amarin Corporation PLC (AMRN) is currently trading at $11.99. Its 52 week range is between $5.99 and $15.96.
Zynga Inc (ZNGA) is currently trading at $2.84. Its 52 week range is between $2.66 and $15.91.
Isis Pharmaceuticals Inc (ISIS) is currently trading at $14.04. Its 52 week range is between $6.25 and $15.61.
Groupon Inc (GRPN) is currently trading at $4.7. Its 52 week range is between $4 and $31.14.
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
- Why Futures Are Lower: JPMorgan Summarizes The Chaotic Overnight Session | ZeroHedge
- A Hint of Gold Backwardation - Rising Gold Scarcity | ZeroHedge
- In Stunning Pair Of Interviews, Trump Slams NATO And EU, Threatens BMW With Tax; Prepared To "Cut Ties" With Merkel | ZeroHedge
- Trump's Delusion: Halting Eurasian Integration And Saving 'US World Order' | ZeroHedge
- I HaVe A DRoNe... | ZeroHedge
- Abolish The CIA | ZeroHedge
- 2017: Year of Extremes | Financial Sense
The most relevant financial news and articles from the Internets
- ... | Business Insider
- The one thing you need to start using if you want... | Business Insider
- The money management business could reach 'a turning point' in... | Business Insider
- Venus is hiding a 'bizarre' gravity wave in its clouds that spans the entire... | Business Insider
- At least 4 killed, 12 wounded in gunfight at Mexico... | Business Insider
- THE CHATBOT MONETIZATION REPORT: Sizing the market, key... | Business Insider
- Buying these 9 gadgets will save you money in 2017 | Business Insider