Covered Call Picks (VRNG,AEGR,ALXA,SRPT,GMCR)
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||5.43||5.5||1.6||28.50%||November 2012|
|AEGR||Aegerion Pharmaceuticals Inc||14||15||2.3||16.50%||November 2012|
|ALXA||Alexza Pharmaceuticals Inc||5.63||6||0.8||14.20%||November 2012|
|SRPT||Sarepta Therapeutics Inc||32.9||33||3.9||11.90%||November 2012|
|GMCR||Green Mountain Coffee Roasters Inc||22.5||23||2.5||11.10%||November 2012|
Vringo Inc (VRNG) is currently trading at $5.43. Its 52 week range is between $0.68 and $5.55.
Aegerion Pharmaceuticals Inc (AEGR) is currently trading at $13.97. Its 52 week range is between $11.75 and $17.72.
Alexza Pharmaceuticals Inc (ALXA) is currently trading at $5.63. Its 52 week range is between $2.55 and $14.8.
Sarepta Therapeutics Inc (SRPT) is currently trading at $32.85. Its 52 week range is between $2.6 and $45.
Green Mountain Coffee Roasters Inc (GMCR) is currently trading at $22.53. Its 52 week range is between $17.11 and $96.77.
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
- What Brexit Means for the World | Financial Sense
- US Shale Producers Just Won Their Biggest Legal Case in Years | Financial Sense
- Bernie Sanders: The World Is Rejecting Globalization | ZeroHedge
- Another Attempt To Explain The Volumeless Rally, Now From JPM: "A Function Of Disbelief And Skepticism" | ZeroHedge
- Onward Toward Bullion Bank Collapse | ZeroHedge
- Juncker Refuses To Speak English In Address To EU Parliament | ZeroHedge
- Why Did The UK Enter The EU In The First Place? | ZeroHedge
The most relevant financial news and articles from the Internets
- 11 keyboard shortcuts only Mac power users know about | Business Insider
- This is my new favorite pair of headphones | Business Insider
- Amazon is putting ads and product offers on the lockscreen of Android... | Business Insider
- The top 7 predictions for the future of media | Business Insider
- The founders of a multi-billion dollar hedge fund were split on... | Business Insider
- The sequels that are bombing badly at the box office this year | Business Insider
- eBay is looking to a unique location to get more customers (... | Business Insider