Covered Call Picks (ALXA,VHC,MCP,ANR,LEAP)
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.
|ALXA||Alexza Pharmaceuticals Inc||5.11||5.5||1.6||30.30%||December 2012|
|VHC||VirnetX Holding Corp||31||32||5.6||18.10%||December 2012|
|MCP||Molycorp Inc||10.9||11||1.2||10.80%||December 2012|
|ANR||Alpha Natural Resources Inc||8.43||9||0.9||10.20%||December 2012|
|LEAP||Leap Wireless International Inc||5.5||6||0.5||9.80%||December 2012|
Alexza Pharmaceuticals Inc (ALXA) is currently trading at $5.11. Its 52 week range is between $2.55 and $14.8.
VirnetX Holding Corp (VHC) is currently trading at $31.01. Its 52 week range is between $16.59 and $41.93.
Molycorp Inc (MCP) is currently trading at $10.93. Its 52 week range is between $9.4 and $42.9.
Alpha Natural Resources Inc (ANR) is currently trading at $8.43. Its 52 week range is between $5.28 and $29.29.
Leap Wireless International Inc (LEAP) is currently trading at $5.5. Its 52 week range is between $4.28 and $11.3.
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
- The Narrative Machine | Financial Sense
- Mugabe Orders Arrest Of "Rats We Call Athletes" After Zimbabwe Wins No Olympic Medals | ZeroHedge
- Mylan Caves, Announces EpiPen Cost Cuts Up To 50% | ZeroHedge
- Kurt Kallaus: Slow Growth Persists but US Recession Likely Still Years Away | Financial Sense
- The Market for Autonomous Vehicles Revs Up | Financial Sense
- Trump Rips Hillary Claim He Represents Racists, Neo-Nazis And The KKK | ZeroHedge
- What the New SEC Money Market Fund Regulations Mean for the Financial System | Financial Sense
The most relevant financial news and articles from the Internets
- Mika Brzezinski trashes Trump on 'Morning Joe': You don't know '... | Business Insider
- How ‘weather bombs’ could help reveal Earth’s innermost... | Business Insider
- Here's why you don't need to run your car on premium gas | Business Insider
- Microsoft is challenging Google on Apple's iOS devices (MSFT,... | Business Insider
- Laptop Computer Reviews - BusinessWeek | BusinessWeek
- Here's where Obamacare's biggest problem will... | Business Insider
- Visa opens NFC Ring to general public (V) | Business Insider