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
- WTF Chart Of The Day: When Central Planning Fails | ZeroHedge
- Nike Tumbles To August 2015 Levels After Missing On Revenue, Future Orders, Margin Decline | ZeroHedge
- Brexiteers 1 : 0 Scaremongers - UK Stocks Erase All Brexit Losses | ZeroHedge
- 71% of Americans Think the Economy is “Rigged” … They’re RIGHT | ZeroHedge
- Scathing New Report Shows Just How Bankrupt Social Security Really Is | ZeroHedge
- Brexit Is What Happens When the Pie Is Shrinking | Financial Sense
- Nigel Farage Batters Obama: "He Came To Britain And Behaved Disgracefully" | ZeroHedge
The most relevant financial news and articles from the Internets
- Why Lady Gaga was just banned from China | Business Insider
- Facebook and Snapchat are reaping the... | Business Insider
- People are losing it over the speech Donald Trump gave in front of a wall of garbage | Business Insider
- ... | Business Insider
- Salesforce CEO Marc Benioff slams UK government leaders for doing... | Business Insider
- Personal spending climbs as expected in May | Business Insider
- Here's where the best investors run when the world flips upside down | Business Insider