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Johnson and Johnson (NYSE: JNJ) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $93.56 while selling the April $97.50 call will produce a new covered call with a break-even point around $92.20. At that price, this position has a target return of 5.7 %. This trade will have roughly 1.5 % downside protection, while still aiming for a 5.7 % return in 157 days. It will lock in that return as long as Johnson and Johnson is above $97.50 on 4/19/2014. For comparison purposes only, this JNJ covered call aims for an annualized return rate of 13.3 %.

Abbvie (NYSE: ABBV) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $47.48 while simultaneously selling the February $47.50 call will result in a new position with a target return of 4.8 %. Based on recent prices, this position will cost about $45.33, which is also the trade’s breakeven point. At that level, this covered call has 4.5 % downside protection, while still providing a 4.8 % return in 101 days as long as ABBV is above $47.50 on 2/22/2014. For comparison purposes only, this Abbvie covered call aims for an annualized return rate of 17.3 %.

Air Products and Chemicals (NYSE: APD) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $107.97 while simultaneously selling the January $110.00 call will result in a new position with a target return of 4.6 %. Based on recent prices, this position will cost about $105.12, which is also the trade’s breakeven point. At that level, this covered call has 2.6 % downside protection, while still providing a 4.6 % return in 66 days as long as APD is above $110.00 on 1/18/2014. For comparison purposes only, this Air Products and Chemicals covered call aims for an annualized return rate of 25.7 %.

American Capital Agency (NASDAQ: AGNC) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the June $21.00 call while at the same time buying AGNC stock for $21.07 will produce a new covered call with a target return of 5.0 %. Based on recent data, this trade will cost about $20.00, which is also the covered call’s breakeven point. At that price, this covered call has 5.1 % downside protection, while seeking an assigned return of 5.0 % return in 220 days. If AGNC is higher than $21.00 on 6/21/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 8.3 %.

AFLAC (NYSE: AFL) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the May $67.50 call while simultaneously buying AFL stock for $65.25 will result in a new position with a break-even point around $63.02. At that price, this position has a target return of 7.1 %. This trade has 3.4 % downside protection, while still providing a 7.1 % return in 185 days as long as AFL is above $67.50 on 5/17/2014. For comparison purposes only, this AFLAC covered call targets an annualized return rate of 14.0 %.

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