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Facebook (NASDAQ: FB) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $25.94 while selling the January $25.00 call will produce a new covered call with a break-even point around $23.64. At that price, this position has a target return of 5.8 %. This trade will have roughly 8.9 % downside protection, while still aiming for a 5.8 % return in 53 days. It will lock in that return as long as Facebook is above $25.00 on 1/19/2013. For comparison purposes only, this FB covered call aims for an annualized return rate of 39.6 %.

Broadcom (NASDAQ: BRCM) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $32.17 while simultaneously selling the January $32.00 call will result in a new position with a target return of 4.2 %. Based on recent prices, this position will cost about $30.72, which is also the trade’s breakeven point. At that level, this covered call has 4.5 % downside protection, while still providing a 4.2 % return in 53 days as long as BRCM is above $32.00 on 1/19/2013. For comparison purposes only, this Broadcom covered call aims for an annualized return rate of 28.6 %.

3D Systems (NYSE: DDD) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the January $45.00 call while at the same time buying DDD stock for $46.55 will produce a new covered call with a target return of 5.5 %. Based on recent data, this trade will cost about $42.65, which is also the covered call’s breakeven point. At that price, this covered call has 8.4 % downside protection, while seeking an assigned return of 5.5 % return in 53 days. If DDD is higher than $45.00 on 1/19/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 37.9 %.

Nuance Communications (NASDAQ: NUAN) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the April $21.00 call while simultaneously buying NUAN stock for $21.57 will result in a new position with a break-even point around $19.27. At that price, this position has a target return of 9.0 %. This trade has 10.7 % downside protection, while still providing a 9.0 % return in 144 days as long as NUAN is above $21.00 on 4/20/2013. For comparison purposes only, this Nuance Communications covered call targets an annualized return rate of 22.7 %.

Aeropostale (NYSE: ARO) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $13.77 while simultaneously selling the April $13.00 call will result in a new position with a target return of 10.9 %. Based on recent prices, this position will cost about $11.72, which is also the trade’s breakeven point. At that level, this covered call has 14.9 % downside protection, while still providing a 10.9 % return in 144 days as long as ARO is above $13.00 on 4/20/2013. For comparison purposes only, this Aeropostale covered call aims for an annualized return rate of 27.7 %.

 

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