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Philip Morris International (NYSE: PM) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the June $90.00 call while simultaneously buying PM stock for $89.23 will result in a new position with a break-even point around $85.93. At that price, this position has a target return of 4.7 %. This trade has 3.7 % downside protection, while still providing a 4.7 % return in 159 days as long as PM is above $90.00 on 6/22/2013. For comparison purposes only, this Philip Morris International covered call targets an annualized return rate of 10.9 %.

SanDisk (NASDAQ: SNDK) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the April $46.00 call while at the same time buying SNDK stock for $46.53 will produce a new covered call with a target return of 7.3 %. Based on recent data, this trade will cost about $42.88, which is also the covered call’s breakeven point. At that price, this covered call has 7.8 % downside protection, while seeking an assigned return of 7.3 % return in 96 days. If SNDK is higher than $46.00 on 4/20/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 27.6 %.

Peabody Energy (NYSE: BTU) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $25.17 while simultaneously selling the March $25.00 call will result in a new position with a target return of 6.8 %. Based on recent prices, this position will cost about $23.40, which is also the trade’s breakeven point. At that level, this covered call has 7.0 % downside protection, while still providing a 6.8 % return in 61 days as long as BTU is above $25.00 on 3/16/2013. For comparison purposes only, this Peabody Energy covered call aims for an annualized return rate of 40.9 %.

US Airways (NYSE: LCC) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $14.78 while selling the June $14.00 call will produce a new covered call with a break-even point around $12.44. At that price, this position has a target return of 12.5 %. This trade will have roughly 15.8 % downside protection, while still aiming for a 12.5 % return in 159 days. It will lock in that return as long as US Airways is above $14.00 on 6/22/2013. For comparison purposes only, this LCC covered call aims for an annualized return rate of 28.8 %.

Alexion Pharmaceuticals (NASDAQ: ALXN) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the May $100.00 call while simultaneously buying ALXN stock for $100.39 will result in a new position with a break-even point around $92.29. At that price, this position has a target return of 8.4 %. This trade has 8.1 % downside protection, while still providing a 8.4 % return in 124 days as long as ALXN is above $100.00 on 5/18/2013. For comparison purposes only, this Alexion Pharmaceuticals covered call targets an annualized return rate of 24.6 %.

 

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