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Netflix (NASDAQ: NFLX) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $81.71 while selling the January $80.00 call will produce a new covered call with a break-even point around $74.81. At that price, this position has a target return of 6.9 %. This trade will have roughly 8.4 % downside protection, while still aiming for a 6.9 % return in 47 days. It will lock in that return as long as Netflix is above $80.00 on 1/19/2013. For comparison purposes only, this NFLX covered call aims for an annualized return rate of 53.8 %.

Nike (NYSE: NKE) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $97.48 while simultaneously selling the April $97.50 call will result in a new position with a target return of 5.7 %. Based on recent prices, this position will cost about $92.23, which is also the trade’s breakeven point. At that level, this covered call has 5.4 % downside protection, while still providing a 5.7 % return in 138 days as long as NKE is above $97.50 on 4/20/2013. For comparison purposes only, this Nike covered call aims for an annualized return rate of 15.1 %.

Illumina (NASDAQ: ILMN) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the December $52.50 call while at the same time buying ILMN stock for $53.71 will produce a new covered call with a target return of 4.8 %. Based on recent data, this trade will cost about $50.11, which is also the covered call’s breakeven point. At that price, this covered call has 6.7 % downside protection, while seeking an assigned return of 4.8 % return in 19 days. If ILMN is higher than $52.50 on 12/22/2012, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 91.4 %.

Progressive (NYSE: PGR) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the May $21.00 call while at the same time buying PGR stock for $21.25 will produce a new covered call with a target return of 4.2 %. Based on recent data, this trade will cost about $20.15, which is also the covered call’s breakeven point. At that price, this covered call has 5.2 % downside protection, while seeking an assigned return of 4.2 % return in 166 days. If PGR is higher than $21.00 on 5/18/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 9.3 %.

Catamaran (NASDAQ: CTRX) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $48.69 while simultaneously selling the January $47.50 call will result in a new position with a target return of 4.2 %. Based on recent prices, this position will cost about $45.59, which is also the trade’s breakeven point. At that level, this covered call has 6.4 % downside protection, while still providing a 4.2 % return in 47 days as long as CTRX is above $47.50 on 1/19/2013. For comparison purposes only, this Catamaran covered call aims for an annualized return rate of 32.5 %.

 

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