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International Business Machines (NYSE: IBM) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $193.43 while selling the April $195.00 call will produce a new covered call with a break-even point around $185.23. At that price, this position has a target return of 5.3 %. This trade will have roughly 4.2 % downside protection, while still aiming for a 5.3 % return in 166 days. It will lock in that return as long as International Business Machines is above $195.00 on 4/20/2013. For comparison purposes only, this IBM covered call aims for an annualized return rate of 11.6 %.

Kohls (NYSE: KSS) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $54.55 while simultaneously selling the January $55.00 call will result in a new position with a target return of 4.7 %. Based on recent prices, this position will cost about $52.55, which is also the trade’s breakeven point. At that level, this covered call has 3.7 % downside protection, while still providing a 4.7 % return in 75 days as long as KSS is above $55.00 on 1/19/2013. For comparison purposes only, this Kohls covered call aims for an annualized return rate of 22.7 %.

Tiffany (NYSE: TIF) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $65.25 while simultaneously selling the January $65.00 call will result in a new position with a target return of 5.8 %. Based on recent prices, this position will cost about $61.45, which is also the trade’s breakeven point. At that level, this covered call has 5.8 % downside protection, while still providing a 5.8 % return in 75 days as long as TIF is above $65.00 on 1/19/2013. For comparison purposes only, this Tiffany covered call aims for an annualized return rate of 28.1 %.

Focus Media (NASDAQ: FMCN) 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 FMCN stock for $24.91 will produce a new covered call with a target return of 5.7 %. Based on recent data, this trade will cost about $22.71, which is also the covered call’s breakeven point. At that price, this covered call has 8.8 % downside protection, while seeking an assigned return of 5.7 % return in 75 days. If FMCN 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 27.6 %.

Texas Roadhouse (NASDAQ: TXRH) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the June $17.50 call while simultaneously buying TXRH stock for $17.15 will result in a new position with a break-even point around $16.00. At that price, this position has a target return of 9.4 %. This trade has 6.7 % downside protection, while still providing a 9.4 % return in 229 days as long as TXRH is above $17.50 on 6/22/2013. For comparison purposes only, this Texas Roadhouse covered call targets an annualized return rate of 14.9 %.


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