Apple (NASDAQ: AAPL) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $634.03 while selling the December $630.00 call will produce a new covered call with a break-even point around $598.08. At that price, this position has a target return of 5.3 %. This trade will have roughly 5.7 % downside protection, while still aiming for a 5.3 % return in 60 days. It will lock in that return as long as Apple is above $630.00 on 12/22/2012. For comparison purposes only, this AAPL covered call aims for an annualized return rate of 32.4 %.

Icici Bank (NYSE: IBN) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the December $40.00 call while simultaneously buying IBN stock for $40.60 will result in a new position with a break-even point around $38.31. At that price, this position has a target return of 4.4 %. This trade has 5.6 % downside protection, while still providing a 4.4 % return in 60 days as long as IBN is above $40.00 on 12/22/2012. For comparison purposes only, this Icici Bank covered call targets an annualized return rate of 26.8 %.

Arcelor Mittal (NYSE: MT) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $16.56 while simultaneously selling the January $16.00 call will result in a new position with a target return of 6.7 %. Based on recent prices, this position will cost about $14.99, which is also the trade’s breakeven point. At that level, this covered call has 9.5 % downside protection, while still providing a 6.7 % return in 88 days as long as MT is above $16.00 on 1/19/2013. For comparison purposes only, this Arcelor Mittal covered call aims for an annualized return rate of 27.9 %.

H&R Block (NYSE: HRB) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $17.74 while simultaneously selling the April $18.00 call will result in a new position with a target return of 6.3 %. Based on recent prices, this position will cost about $16.94, which is also the trade’s breakeven point. At that level, this covered call has 4.5 % downside protection, while still providing a 6.3 % return in 179 days as long as HRB is above $18.00 on 4/20/2013. For comparison purposes only, this H&R Block covered call aims for an annualized return rate of 12.7 %.

United Continental (NYSE: UAL) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the December $20.00 call while at the same time buying UAL stock for $20.48 will produce a new covered call with a target return of 6.3 %. Based on recent data, this trade will cost about $18.82, which is also the covered call’s breakeven point. At that price, this covered call has 8.1 % downside protection, while seeking an assigned return of 6.3 % return in 60 days. If UAL is higher than $20.00 on 12/22/2012, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 38.1 %.

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