Covered Call Picks (CLSN,ALXA,KERX,OCZ,PPHM)
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.
|CLSN||Celsion Corp||7.82||8||1.6||20.50%||January 2013|
|ALXA||Alexza Pharmaceuticals Inc||5.49||5.5||1||18.20%||January 2013|
|KERX||Keryx Biopharmaceuticals Inc||2.77||3||0.5||16.20%||January 2013|
|OCZ||OCZ Technology Group Inc||1.9||2||0.3||13.20%||January 2013|
|PPHM||Peregrine Pharmaceuticals Inc||1.23||1.5||0.2||12.20%||January 2013|
Celsion Corp (CLSN) is currently trading at $7.82. Its 52 week range is between $1.63 and $8.86.
Alexza Pharmaceuticals Inc (ALXA) is currently trading at $5.49. Its 52 week range is between $2.55 and $9.9.
Keryx Biopharmaceuticals Inc (KERX) is currently trading at $2.77. Its 52 week range is between $1.28 and $5.19.
OCZ Technology Group Inc (OCZ) is currently trading at $1.9. Its 52 week range is between $1.11 and $10.05.
Peregrine Pharmaceuticals Inc (PPHM) is currently trading at $1.23. Its 52 week range is between $0.39 and $5.5.
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
- Buy the Dip or Sell the Rally | Financial Sense
- Silver, Copper Slammed As Commodities Crumble Into US Open | ZeroHedge
- Who Will Win This Next Pennant? | iBankCoin.com
- DEATH TO VLADIMIR PUTIN | iBankCoin.com
- Fly Buy: $SLCA | iBankCoin.com
- Why Every Banker On Wall Street Suddenly Wants To Be Jefferies' Managing Director Sage Kelly | ZeroHedge
- I AM BEAR KILLER. I GOT BIG MAGIC | iBankCoin.com
The most relevant financial news and articles from the Internets
- A Day In The Life Of Dynamic Morgan Stanley Exec Gary Kaminsky | Business Insider
- One Stock Is Responsible For 109 Points Of The Dow Rally | Business Insider
- More Executive Change At Twitter — The Head Of Revenue Product Takes Over As Head Of All Consumer... | Business Insider
- The Single Most Annoying Thing About Watching An NFL Game In One Chart | Business Insider
- ... | StreetInsider.com
- EU, Ukraine must agree gas debt deal for talks to... | Business Insider
- Taxi Association President Compares UberX To ISIS Terrorists | Business Insider