Covered Call Picks (CLSN,MBI,GMCR,MCP,AGO)
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.
Celsion Corp (CLSN) is currently trading at $7.58. Its 52 week range is between $1.63 and $7.86.
MBIA Inc (MBI) is currently trading at $8.56. Its 52 week range is between $6.78 and $13.5.
Green Mountain Coffee Roasters Inc (GMCR) is currently trading at $28.95. Its 52 week range is between $17.11 and $71.15.
Molycorp Inc (MCP) is currently trading at $8.47. Its 52 week range is between $5.75 and $35.79.
Assured Guaranty Ltd (AGO) is currently trading at $13.9. Its 52 week range is between $9.22 and $19.04.
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
- Guest Post: There Is A Plunge Protection Team - It’s Called The FOMC | ZeroHedge
- AND NoW FoR A MeSSaGe FRoM YouR EBoLa CZaR... | ZeroHedge
- WTI Crude Slides Below $81 | ZeroHedge
- New York Department Of Health Issues Statement On Suspected Ebola Case | ZeroHedge
- Trannies Up Over 10% From Bullard Lows, Shorts Squeezed Most In 3 Years | ZeroHedge
- Why Advertising Revenue At CNBC Parent Comcast Declined By 5% | ZeroHedge
- Daily Scorecard | iBankCoin.com
The most relevant financial news and articles from the Internets
- An Uber Campaign That Promised To Pair Customers With 'Hot... | Business Insider
- Woman charged after baby corpses found in Canada... | Business Insider
- Madeleine Albright Had The Perfect Response To Conan's Dirty Joke About Her | Business Insider
- Financial Pros Make Critical Mistakes With Millennial Women Clients | Business Insider
- Canada faces jihadist threat after home-grown attacks | Business Insider
- Herbalife CEO: We Are At 'War' With Bill Ackman (HLF) | Business Insider
- Google Has A New App To Reinvent Email (GOOG) | Business Insider