Acme Packet (NASDAQ: APKT) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the January $16.00 call while simultaneously buying APKT stock for $16.86 will result in a new position with a break-even point around $14.46. At that price, this position has a target return of 10.7 %. This trade has 14.2 % downside protection, while still providing a 10.7 % return in 94 days as long as APKT is above $16.00 on 1/19/2013. For comparison purposes only, this Acme Packet covered call targets an annualized return rate of 41.4 %.

Starbucks (NASDAQ: SBUX) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $48.96 while selling the April $48.00 call will produce a new covered call with a break-even point around $44.86. At that price, this position has a target return of 7.0 %. This trade will have roughly 8.4 % downside protection, while still aiming for a 7.0 % return in 185 days. It will lock in that return as long as Starbucks is above $48.00 on 4/20/2013. For comparison purposes only, this SBUX covered call aims for an annualized return rate of 13.8 %.

Check your email for a password to log into our site and read all our Essentials analysis.

Level 3 Communications (NASDAQ: LVLT) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $22.82 while simultaneously selling the December $22.00 call will result in a new position with a target return of 5.9 %. Based on recent prices, this position will cost about $20.77, which is also the trade’s breakeven point. At that level, this covered call has 9.0 % downside protection, while still providing a 5.9 % return in 66 days as long as LVLT is above $22.00 on 12/22/2012. For comparison purposes only, this Level 3 Communications covered call aims for an annualized return rate of 32.7 %.

MSCI (NYSE: MSCI) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $27.20 while simultaneously selling the March $25.00 call will result in a new position with a target return of 5.0 %. Based on recent prices, this position will cost about $23.80, which is also the trade’s breakeven point. At that level, this covered call has 12.5 % downside protection, while still providing a 5.0 % return in 150 days as long as MSCI is above $25.00 on 3/16/2013. For comparison purposes only, this MSCI covered call aims for an annualized return rate of 12.3 %.

Crocs (NASDAQ: CROX) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the January $16.00 call while at the same time buying CROX stock for $16.00 will produce a new covered call with a target return of 10.0 %. Based on recent data, this trade will cost about $14.55, which is also the covered call’s breakeven point. At that price, this covered call has 9.1 % downside protection, while seeking an assigned return of 10.0 % return in 94 days. If CROX is higher than $16.00 on 1/19/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 38.7 %.