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
- Best Idea For Wednesday ? | iBankCoin.com
- EU Warns of Debt Dangers Facing Ireland and Euro Zone – “Emperor Has No Clothes” | ZeroHedge
- Conference Board Leading Economic Index: Growth Moderates | Financial Sense
- The One Number The Market Is Focused On: Real Hourly Wages Surge Most Since Lehman Deflationary Shock | ZeroHedge
- Ukraine To Halt Currency Trading Again Any Minute | ZeroHedge
- Lowest Interest Rates Ever | Financial Sense
- Welcome To The Recession? | ZeroHedge
The most relevant financial news and articles from the Internets
- The 'King of Instagram' just created a very NSFW Snapchat account | Business Insider
- Apple CEO Tim Cook met with Angela Merkel (AAPL) | Business Insider
- 10 things in tech you need to know today (GOOG, AAPL, TSLA) | Business Insider
- Kobe Bryant explains when he first realized he was different from other NBA players | Business Insider
- Warby Parker sent a customer a... | Business Insider
- This bullish analyst says half of... | Business Insider
- 6 paradoxes women face at work | Business Insider