PriceWatch Alerts

Free Stock Alerts
Every trading day, InvestorsObserver analysts prove our members with trade ideas, research, and analysis.
Check your email and confirm your membership to get information just like these alerts and all 100% Free!

American Express (NYSE: AXP) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $53.65 while selling the April $52.50 call will produce a new covered call with a break-even point around $49.85. At that price, this position has a target return of 5.3 %. This trade will have roughly 7.1 % downside protection, while still aiming for a 5.3 % return in 156 days. It will lock in that return as long as American Express is above $52.50 on 4/20/2013. For comparison purposes only, this AXP covered call aims for an annualized return rate of 12.4 %.

Potash (NYSE: POT) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $37.68 while simultaneously selling the March $37.00 call will result in a new position with a target return of 5.9 %. Based on recent prices, this position will cost about $34.95, which is also the trade’s breakeven point. At that level, this covered call has 7.2 % downside protection, while still providing a 5.9 % return in 121 days as long as POT is above $37.00 on 3/16/2013. For comparison purposes only, this Potash covered call aims for an annualized return rate of 17.7 %.

FedEx (NYSE: FDX) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $57.12 while simultaneously selling the January $87.50 call will result in a new position with a target return of 62.6 %. Based on recent prices, this position will cost about $53.82, which is also the trade’s breakeven point. At that level, this covered call has 5.8 % downside protection, while still providing a 62.6 % return in 65 days as long as FDX is above $87.50 on 1/19/2013. For comparison purposes only, this FedEx covered call aims for an annualized return rate of 351.4 %.

Urban Outfitters (NASDAQ: URBN) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the January $36.00 call while at the same time buying URBN stock for $36.21 will produce a new covered call with a target return of 6.3 %. Based on recent data, this trade will cost about $33.86, which is also the covered call’s breakeven point. At that price, this covered call has 6.5 % downside protection, while seeking an assigned return of 6.3 % return in 65 days. If URBN is higher than $36.00 on 1/19/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 35.5 %.

Xilinx (NASDAQ: XLNX) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the March $33.00 call while simultaneously buying XLNX stock for $33.68 will result in a new position with a break-even point around $31.45. At that price, this position has a target return of 4.9 %. This trade has 6.6 % downside protection, while still providing a 4.9 % return in 121 days as long as XLNX is above $33.00 on 3/16/2013. For comparison purposes only, this Xilinx covered call targets an annualized return rate of 14.8 %.

 

Check your email for a password to log into our site and read all our Essentials analysis.

Don't miss out on any vital trading information! Add Support@InvestorsObserver.com to your address book. View complete step-by-step instructions here.