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Amgen (NASDAQ: AMGN) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $85.77 while selling the April $85.00 call will produce a new covered call with a break-even point around $80.67. At that price, this position has a target return of 5.4 %. This trade will have roughly 5.9 % downside protection, while still aiming for a 5.4 % return in 157 days. It will lock in that return as long as Amgen is above $85.00 on 4/20/2013. For comparison purposes only, this AMGN covered call aims for an annualized return rate of 12.5 %.

Southwestern Energy (NYSE: SWN) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $35.10 while simultaneously selling the December $35.00 call will result in a new position with a target return of 4.2 %. Based on recent prices, this position will cost about $33.59, which is also the trade’s breakeven point. At that level, this covered call has 4.3 % downside protection, while still providing a 4.2 % return in 38 days as long as SWN is above $35.00 on 12/22/2012. For comparison purposes only, this Southwestern Energy covered call aims for an annualized return rate of 40.2 %.

AmerisourceBergen (NYSE: ABC) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $40.71 while simultaneously selling the May $40.00 call will result in a new position with a target return of 4.7 %. Based on recent prices, this position will cost about $38.21, which is also the trade’s breakeven point. At that level, this covered call has 6.1 % downside protection, while still providing a 4.7 % return in 185 days as long as ABC is above $40.00 on 5/18/2013. For comparison purposes only, this AmerisourceBergen covered call aims for an annualized return rate of 9.2 %.

Westport Innovations (NASDAQ: WPRT) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the January $27.00 call while at the same time buying WPRT stock for $27.56 will produce a new covered call with a target return of 5.6 %. Based on recent data, this trade will cost about $25.56, which is also the covered call’s breakeven point. At that price, this covered call has 7.3 % downside protection, while seeking an assigned return of 5.6 % return in 66 days. If WPRT is higher than $27.00 on 1/19/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 31.1 %.

Fusion-io (NYSE: FIO) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the January $22.00 call while simultaneously buying FIO stock for $22.17 will result in a new position with a break-even point around $20.07. At that price, this position has a target return of 9.6 %. This trade has 9.5 % downside protection, while still providing a 9.6 % return in 66 days as long as FIO is above $22.00 on 1/19/2013. For comparison purposes only, this Fusion-io covered call targets an annualized return rate of 53.1 %.

 

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