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Netflix (NASDAQ: NFLX) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $66.67 while selling the November $65.00 call will produce a new covered call with a break-even point around $59.42. At that price, this position has a target return of 9.4 %. This trade will have roughly 10.9 % downside protection, while still aiming for a 9.4 % return in 43 days. It will lock in that return as long as Netflix is above $65.00 on 11/17/2012. For comparison purposes only, this NFLX covered call aims for an annualized return rate of 79.7 %.

WellPoint Health Networks (NYSE: WLP) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $62.16 while simultaneously selling the January $60.00 call will result in a new position with a target return of 4.1 %. Based on recent prices, this position will cost about $57.66, which is also the trade’s breakeven point. At that level, this covered call has 7.2 % downside protection, while still providing a 4.1 % return in 106 days as long as WLP is above $60.00 on 1/19/2013. For comparison purposes only, this WellPoint Health Networks covered call aims for an annualized return rate of 13.9 %.

 

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NVIDIA (NASDAQ: NVDA) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $13.62 while simultaneously selling the March $13.00 call will result in a new position with a target return of 9.6 %. Based on recent prices, this position will cost about $11.86, which is also the trade’s breakeven point. At that level, this covered call has 12.9 % downside protection, while still providing a 9.6 % return in 162 days as long as NVDA is above $13.00 on 3/16/2013. For comparison purposes only, this NVIDIA covered call aims for an annualized return rate of 21.7 %.

Lincoln National (NYSE: LNC) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the January $24.00 call while at the same time buying LNC stock for $24.64 will produce a new covered call with a target return of 5.9 %. Based on recent data, this trade will cost about $22.66, which is also the covered call’s breakeven point. At that price, this covered call has 8.0 % downside protection, while seeking an assigned return of 5.9 % return in 106 days. If LNC is higher than $24.00 on 1/19/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 20.4 %.

Silver Wheaton (NYSE: SLW) 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 SLW stock for $40.75 will result in a new position with a break-even point around $37.50. At that price, this position has a target return of 6.7 %. This trade has 8.0 % downside protection, while still providing a 6.7 % return in 78 days as long as SLW is above $40.00 on 12/22/2012. For comparison purposes only, this Silver Wheaton covered call targets an annualized return rate of 31.2 %.

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