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Halliburton (NYSE: HAL) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $30.36 while selling the January $30.00 call will produce a new covered call with a break-even point around $28.53. At that price, this position has a target return of 5.2 %. This trade will have roughly 6.0 % downside protection, while still aiming for a 5.2 % return in 64 days. It will lock in that return as long as Halliburton is above $30.00 on 1/19/2013. For comparison purposes only, this HAL covered call aims for an annualized return rate of 29.4 %.

DirecTV (NASDAQ: DTV) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $49.02 while simultaneously selling the March $49.00 call will result in a new position with a target return of 5.5 %. Based on recent prices, this position will cost about $46.46, which is also the trade’s breakeven point. At that level, this covered call has 5.2 % downside protection, while still providing a 5.5 % return in 120 days as long as DTV is above $49.00 on 3/16/2013. For comparison purposes only, this DirecTV covered call aims for an annualized return rate of 16.6 %.

CIGNA (NYSE: CI) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $50.87 while simultaneously selling the April $50.00 call will result in a new position with a target return of 6.3 %. Based on recent prices, this position will cost about $47.02, which is also the trade’s breakeven point. At that level, this covered call has 7.6 % downside protection, while still providing a 6.3 % return in 155 days as long as CI is above $50.00 on 4/20/2013. For comparison purposes only, this CIGNA covered call aims for an annualized return rate of 14.9 %.

GameStop (NYSE: GME) 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 GME stock for $24.50 will produce a new covered call with a target return of 5.5 %. Based on recent data, this trade will cost about $22.75, which is also the covered call’s breakeven point. At that price, this covered call has 7.1 % downside protection, while seeking an assigned return of 5.5 % return in 64 days. If GME 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 31.3 %.

Nexen (NYSE: NXY) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the March $25.00 call while simultaneously buying NXY stock for $25.18 will result in a new position with a break-even point around $23.28. At that price, this position has a target return of 7.4 %. This trade has 7.5 % downside protection, while still providing a 7.4 % return in 120 days as long as NXY is above $25.00 on 3/16/2013. For comparison purposes only, this Nexen covered call targets an annualized return rate of 22.4 %.

 

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