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International Business Machines (NYSE: IBM) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $186.97 while selling the April $190.00 call will produce a new covered call with a break-even point around $178.82. At that price, this position has a target return of 6.3 %. This trade will have roughly 4.4 % downside protection, while still aiming for a 6.3 % return in 186 days. It will lock in that return as long as International Business Machines is above $190.00 on 4/19/2014. For comparison purposes only, this IBM covered call aims for an annualized return rate of 12.3 %.

Walgreen (NYSE: WAG) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $56.70 while simultaneously selling the April $55.00 call will result in a new position with a target return of 5.2 %. Based on recent prices, this position will cost about $52.30, which is also the trade’s breakeven point. At that level, this covered call has 7.8 % downside protection, while still providing a 5.2 % return in 186 days as long as WAG is above $55.00 on 4/19/2014. For comparison purposes only, this Walgreen covered call aims for an annualized return rate of 10.1 %.

Goldcorp (NYSE: GG) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $23.57 while simultaneously selling the January $22.00 call will result in a new position with a target return of 6.2 %. Based on recent prices, this position will cost about $20.72, which is also the trade’s breakeven point. At that level, this covered call has 12.1 % downside protection, while still providing a 6.2 % return in 95 days as long as GG is above $22.00 on 1/18/2014. For comparison purposes only, this Goldcorp covered call aims for an annualized return rate of 23.7 %.

CSX (NYSE: CSX) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the May $27.50 call while at the same time buying CSX stock for $26.02 will produce a new covered call with a target return of 10.0 %. Based on recent data, this trade will cost about $24.99, which is also the covered call’s breakeven point. At that price, this covered call has 4.0 % downside protection, while seeking an assigned return of 10.0 % return in 214 days. If CSX is higher than $27.50 on 5/17/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 17.1 %.

Rackspace Hosting (NYSE: RAX) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the December $45.00 call while simultaneously buying RAX stock for $49.52 will result in a new position with a break-even point around $43.02. At that price, this position has a target return of 4.6 %. This trade has 13.1 % downside protection, while still providing a 4.6 % return in 67 days as long as RAX is above $45.00 on 12/21/2013. For comparison purposes only, this Rackspace Hosting covered call targets an annualized return rate of 25.1 %.

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