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
- Head Trader Of World's 4th Largest Hedge Fund Caught In HFT Frontrunning Scandal | ZeroHedge
- Former FDIC Head Sheila Bair Resigns From Parent Of World's Largest Subprime Auto Lender | ZeroHedge
- Amoeba, Fish, Lizard, Ape, Human, Investor... Meet Evolutionary Economics | ZeroHedge
- US Economy Sees Substantial Increase After Weak QI, Though Still Below Average | Financial Sense
- Hybrid Moves | iBankCoin.com
- Gold Surges Back Above $1100 As Dollar Dumps After Wage Data | ZeroHedge
- Is the Gold Price Manipulated? | Financial Sense
The most relevant financial news and articles from the Internets
- The Legenday F4U Corsair as you have never seen it before | Business Insider
- GE may be shipping $10 billion worth of work overseas | Business Insider
- Greek bailout talks with auditors begin as market to... | Business Insider
- Azarenka, Hantuchova withdraw from WTA event | Business Insider
- J.J. Abrams literally broke his back helping... | Business Insider
- Australia 'increasingly confident debris from... | Business Insider
- Hillary Clinton’s plan to combat climate change has a glaring hole | Business Insider