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
- Hillary's Source At The State Department Revealed In Leaked Podesta Email | ZeroHedge
- Wikileaks Releases Part 16 Of The Podesta Files: Total Is Now 26,803 Emails | ZeroHedge
- TRUMP exposes the Establishment, politics a metaphor for FX | ZeroHedge
- New Reuters Poll Shows That 70% Of Republicans Think The Election Is Rigged | ZeroHedge
- This Is How WaPo's Latest Poll Gave Hillary A 12 Point Advantage Over Trump | ZeroHedge
- Wikileaks Releases Part 15 Of The Podesta Files, Bringing Total To 26,095 Emails | ZeroHedge
- Former Haitian Senate President Calls Clintons "Common Thieves Who Should Be In Jail" | ZeroHedge
The most relevant financial news and articles from the Internets
- Book Review: <em>Thinking, Fast and Slow</em> by Daniel Kahneman | BusinessWeek
- The government will make its airport... | Business Insider
- A single statistic shows why all airline passengers are not created equal (AAL, UAL,... | Business Insider
- AT&T is buying Time Warner for $85 billion (T, TWX) | Business Insider
- Here's how Donald Trump can function on barely any sleep | Business Insider
- Tour bus crash in southern California reportedly kills... | Business Insider
- Clinton's leaked list of preliminary VP candidates included 9 of the biggest names in... | Business Insider