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
- Why Is Loan Growth Collapsing: Goldman Has An Answer | ZeroHedge
- White House On Lockdown As Secret Service Investigate "Suspicious Package" | ZeroHedge
- Felix Zulauf: 2017 Could Be a "Game Changer" | Financial Sense
- Ep. 221: Tucker Max – The Top Five Things I Learned From Tucker Max | Altucher Confidential
- Did The Government Spy On Trump? Ron Paul's Answer: "Of Course... It Spies On All Of Us!" | ZeroHedge
- If Evelyn Farkas Resigned in 2015, How Did She Have Access to Trump-Russian Intelligence? | ZeroHedge
- NeW WoRLD ODouR... | ZeroHedge
The most relevant financial news and articles from the Internets
- Some of the biggest hedge funds are closing — here's what it takes to launch one today | Business Insider
- Cable news networks are shattering ratings records | Business Insider
- I save half my income, and it's not because I'm frugal | Business Insider
- The cost of an MRI can vary by thousands of dollars depending on where you go | Business Insider
- Get Frye boots and bags for up to half off — and more of today's best deals from around the web | Business Insider
- This is the MacBook accessory that’ll make getting work done on your... | Business Insider
- HBO is reviving 'True Detective' for season 3 | Business Insider