Covered Call Picks (AEGR,VRNG,AMRN,STSI,VHC)
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.
|AEGR||Aegerion Pharmaceuticals Inc||14.9||15||3||20.20%||October 2012|
|VRNG||Vringo Inc||4.3||4.5||0.7||15.10%||October 2012|
|AMRN||Amarin Corporation PLC||11.8||12||0.8||6.80%||October 2012|
|STSI||Star Scientific Inc||3.23||3.5||0.2||6.20%||October 2012|
|VHC||VirnetX Holding Corp||26.9||27||1.4||5.20%||October 2012|
Aegerion Pharmaceuticals Inc (AEGR) is currently trading at $14.88. Its 52 week range is between $11.75 and $17.72.
Vringo Inc (VRNG) is currently trading at $4.3. Its 52 week range is between $0.68 and $5.45.
Amarin Corporation PLC (AMRN) is currently trading at $11.81. Its 52 week range is between $5.99 and $15.96.
Star Scientific Inc (STSI) is currently trading at $3.23. Its 52 week range is between $2 and $5.05.
VirnetX Holding Corp (VHC) is currently trading at $26.86. Its 52 week range is between $11.5 and $41.93.
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
- LOCO IPO Soars To Insane 20x EBITDA Multiple | ZeroHedge
- Today's Other Anniversary | ZeroHedge
- Friends Don’t Let Friends Buy Junk | iBankCoin.com
- You Know Iraq's Bad When... | ZeroHedge
- WHERE ARE THE SETUPS? | iBankCoin.com
- Israel Destroys Hamas Media Broadcast Outlets In Massive Explosion - Live Feed | ZeroHedge
- US May Send Military Aid To Ukraine; Accuses Russia Of Violating Nuclear Arms Treaty With ICBM Launch | ZeroHedge
The most relevant financial news and articles from the Internets
- Putin's MH17 Lies Have Grave Consequences... | Business Insider
- Get Ready For An Unusually Busy Week For The Economy | Business Insider
- 10 Cool Games You Can Play On Your Mac | Business Insider
- Dollar Tree, Family Dollar Merge, Coach & Herbalife Earnings, Jim's Marathon | TheStreet.com
- How Dwayne 'The Rock' Johnson Went From WWE Wrestler To Hollywood's Box Office... | Business Insider
- Here's A Simple, Sneaky Way To Win Any Argument | Business Insider
- The Godfather Of Las Vegas Sports Betting Is Auctioning His Rancho Santa Fe Mansion For... | Business Insider