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General Electric (NYSE: GE) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $20.99 while simultaneously selling the June $21.00 call will result in a new position with a target return of 5.6 %. Based on recent prices, this position will cost about $19.89, which is also the trade’s breakeven point. At that level, this covered call has 5.2 % downside protection, while still providing a 5.6 % return in 171 days as long as GE is above $21.00 on 6/22/2013. For comparison purposes only, this General Electric covered call aims for an annualized return rate of 11.9 %.

Monsanto (NYSE: MON) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $94.65 while selling the April $92.50 call will produce a new covered call with a break-even point around $88.65. At that price, this position has a target return of 4.3 %. This trade will have roughly 6.3 % downside protection, while still aiming for a 4.3 % return in 108 days. It will lock in that return as long as Monsanto is above $92.50 on 4/20/2013. For comparison purposes only, this MON covered call aims for an annualized return rate of 14.7 %.

Qihoo 360 Technology (NYSE: QIHU) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the February $29.00 call while at the same time buying QIHU stock for $29.69 will produce a new covered call with a target return of 5.9 %. Based on recent data, this trade will cost about $27.39, which is also the covered call’s breakeven point. At that price, this covered call has 7.7 % downside protection, while seeking an assigned return of 5.9 % return in 45 days. If QIHU is higher than $29.00 on 2/16/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 47.6 %.

KLA Tencor (NASDAQ: KLAC) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the March $47.00 call while simultaneously buying KLAC stock for $47.76 will result in a new position with a break-even point around $45.16. At that price, this position has a target return of 4.1 %. This trade has 5.4 % downside protection, while still providing a 4.1 % return in 73 days as long as KLAC is above $47.00 on 3/16/2013. For comparison purposes only, this KLA Tencor covered call targets an annualized return rate of 20.4 %.

Timken (NYSE: TKR) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $47.83 while simultaneously selling the March $47.50 call will result in a new position with a target return of 6.0 %. Based on recent prices, this position will cost about $44.83, which is also the trade’s breakeven point. At that level, this covered call has 6.3 % downside protection, while still providing a 6.0 % return in 73 days as long as TKR is above $47.50 on 3/16/2013. For comparison purposes only, this Timken covered call aims for an annualized return rate of 29.8 %.

 

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