Covered Call Picks (VVUS,MBI,IVN,KWK,GS)
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.
|IVN||Ivanhoe Mines Ltd||19.2||20||2.8||14.30%||Jan-12|
|KWK||Quicksilver Resources Inc||7.43||7.5||0.9||11.40%||Jan-12|
|GS||Goldman Sachs Group Inc||89.4||90||7.2||8.10%||Jan-12|
Vivus Inc (VVUS) is currently trading at $9.95. Its 52 week range is between $6 and $11.48.
MBIA Inc (MBI) is currently trading at $7.26. Its 52 week range is between $5.99 and $14.96.
Ivanhoe Mines Ltd (IVN) is currently trading at $19.19. Its 52 week range is between $12.11 and $30.03.
Quicksilver Resources Inc (KWK) is currently trading at $7.43. Its 52 week range is $6.17 and $15.98.
Goldman Sachs Group Inc (GS) is currently trading at $89.4. Its 52 week range is between $84.27 and $175.34.
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
- 4D Chess Alert: Rep. Nunes Confirms Trump Transition Team Was Under ‘Incidental’ Surveillance | ZeroHedge
- Hawkier Fed, Drowning Oil, and Insiders Jumping Ship | Financial Sense
- Biggest US Equity Outflows Since Brexit; US Banks Hit The Hardest | ZeroHedge
- Mexico's Finance Minister Warns Mexican Companies "Not To Participate In Construction Of The Wall" | ZeroHedge
- Trump Was Right Again: Israeli Teenager Arrested Over Phone Threats To Jewish Community Centers | ZeroHedge
- Wikileaks Releases "NightSkies 1.2": Proof CIA Bugs "Factory Fresh" iPhones | ZeroHedge
- 16 Years Of European Terrorism In One Chart | ZeroHedge
The most relevant financial news and articles from the Internets
- 6 tech essentials every amateur musician needs to record music | Business Insider
- 'Sleep with one eye open': Schools in Honduras are... | Business Insider
- If you want to learn to drive a stickshift, this is the best way to do it | Business Insider
- 4 maps of past empires that can tell us about the future | Business Insider
- Everything that happened on 'This is Us,' in... | Business Insider
- FUND MANAGER: Trump's take on Reaganomics won't work in America — here's where it will | Business Insider
- You could save $71,000 a year living in a New York suburb instead of the city —... | Business Insider