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
- Visualizing The Collapse Of The Middle Class In 20 Major U.S. Cities | ZeroHedge
- Did Russia Shoot Down US Missiles In Syria | ZeroHedge
- Fracking Comes to the Arctic in a New Alaska Oil Boom | Financial Sense
- Is the US Workforce Nearing Full Recovery? | Financial Sense
- The Simple Reason Why A Second American Civil War May Be Inevitable | ZeroHedge
- Fed Bombshell Minutes Indicate Balance Sheet Reductions, Suggest Markets are Overvalued | Financial Sense
- Our State-Corporate Plantation Economy | ZeroHedge
The most relevant financial news and articles from the Internets
- The best time of day to do different types of tasks | Business Insider
- There are 5 elite US service academies that prepare the next generation of the American... | Business Insider
- The new documentary 'Born in China' reveals a side of China you... | Business Insider
- The US will honor a 'dumb' refugee deal with... | Business Insider
- GOP congressman: 'Something in the swamp' stopped Trump from repealing... | Business Insider
- Book Review: <em>Thinking, Fast and Slow</em> by Daniel Kahneman | BusinessWeek
- America's Best Young Entrepreneurs 2011 | BusinessWeek