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United Parcel Service (NYSE: UPS) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the July $80.00 call while simultaneously buying UPS stock for $79.24 will result in a new position with a break-even point around $76.50. At that price, this position has a target return of 4.6 %. This trade has 3.5 % downside protection, while still providing a 4.6 % return in 186 days as long as UPS is above $80.00 on 7/20/2013. For comparison purposes only, this United Parcel Service covered call targets an annualized return rate of 9.0 %.

Seagate Technology (NASDAQ: STX) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the March $33.00 call while at the same time buying STX stock for $33.97 will produce a new covered call with a target return of 5.5 %. Based on recent data, this trade will cost about $31.27, which is also the covered call’s breakeven point. At that price, this covered call has 7.9 % downside protection, while seeking an assigned return of 5.5 % return in 60 days. If STX is higher than $33.00 on 3/16/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 33.6 %.

Lexmark International (NYSE: LXK) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $26.85 while simultaneously selling the April $26.00 call will result in a new position with a target return of 6.1 %. Based on recent prices, this position will cost about $24.50, which is also the trade’s breakeven point. At that level, this covered call has 8.8 % downside protection, while still providing a 6.1 % return in 95 days as long as LXK is above $26.00 on 4/20/2013. For comparison purposes only, this Lexmark International covered call aims for an annualized return rate of 23.5 %.

Cameco (NYSE: CCJ) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $21.22 while selling the June $21.00 call will produce a new covered call with a break-even point around $19.57. At that price, this position has a target return of 7.3 %. This trade will have roughly 7.8 % downside protection, while still aiming for a 7.3 % return in 158 days. It will lock in that return as long as Cameco is above $21.00 on 6/22/2013. For comparison purposes only, this CCJ covered call aims for an annualized return rate of 16.9 %.

Big Lots (NYSE: BIG) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the April $27.50 call while simultaneously buying BIG stock for $28.75 will result in a new position with a break-even point around $25.95. At that price, this position has a target return of 6.0 %. This trade has 9.7 % downside protection, while still providing a 6.0 % return in 95 days as long as BIG is above $27.50 on 4/20/2013. For comparison purposes only, this Big Lots covered call targets an annualized return rate of 22.9 %.

 

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