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
- Mutiny Breaks Out Inside The World's Most Successful Hedge Fund Over Donald Trump | ZeroHedge
- Earnings Provide Foundational Value | Financial Sense
- It's Time To Beat Up On Credit Suisse and Their Woefully Misinformed Bitcoin Advice | ZeroHedge
- Bonds & Bullion Bid As Stocks, Dollar Drop On Fed Warning | ZeroHedge
- How Corporate Media Continues To Use The 'Russia Scapegoat' To Distract from Status Quo Failure | ZeroHedge
- Reality Catching Up With Expectations | Financial Sense
- Sweden Has Another Problem - It's Collecting Too Much Tax | ZeroHedge
The most relevant financial news and articles from the Internets
- Vanguard Personal Advisor Services Review 2017: Fees, Returns, Investing Services... | Business Insider
- Amazon's Hit Man | BusinessWeek
- Charleston church shooter Roof... | Business Insider
- 22 beautiful road trips to take this spring | Business Insider
- I'm a Silicon Valley liberal, and I traveled across the country to interview... | Business Insider
- Under Armour's 'soaring' shoe sales reveal a terrible truth for the business (UA... | Business Insider
- Obama deported 3 million immigrants during his presidency —... | Business Insider