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
- Universities Ban Politically-Incorrect Halloween Costumes | ZeroHedge
- What Happens When the Electricity Is Off for Three Days? | Financial Sense
- Cashless Society - Is The War On Cash Set To Benefit Gold? | ZeroHedge
- Watergate's Bob Woodward: "Clinton Foundation Is Corrupt, It's A Scandal" | ZeroHedge
- Paul Volcker Explains Why The Fed Can't Raise Rates | ZeroHedge
- Thermodynamic Oil Collapse: Why The Global Economy Will Disintegrate Rapidly | ZeroHedge
- Monopoly AT&T Plan Will Further Control the Internet, Content | ZeroHedge
The most relevant financial news and articles from the Internets
- Use the 'X - 25' rule to figure out how much your super-busy friends are... | Business Insider
- ASK A FINANCIAL PLANNER: Is it worth taking a salary cut to get stock options... | Business Insider
- LL Cool J breaks down his favorite 60-minute full-body workout | Business Insider
- The easiest way to tell if your batteries are dead | Business Insider
- US retailers should look to the UK in order to grow click and collect | Business Insider
- Donald Trump's 'big,... | Business Insider
- See inside the historic, jewel-filled Manhattan mansion that Cartier turned into a boutique 100 years ago | Business Insider