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Schlumberger (NYSE: SLB) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $69.95 while selling the January $70.00 call will produce a new covered call with a break-even point around $66.70. At that price, this position has a target return of 4.9 %. This trade will have roughly 4.6 % downside protection, while still aiming for a 4.9 % return in 74 days. It will lock in that return as long as Schlumberger is above $70.00 on 1/19/2013. For comparison purposes only, this SLB covered call aims for an annualized return rate of 24.4 %.

Ariad Pharmaceuticals (NASDAQ: ARIA) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the December $22.00 call while simultaneously buying ARIA stock for $22.28 will result in a new position with a break-even point around $20.73. At that price, this position has a target return of 6.1 %. This trade has 7.0 % downside protection, while still providing a 6.1 % return in 46 days as long as ARIA is above $22.00 on 12/22/2012. For comparison purposes only, this Ariad Pharmaceuticals covered call targets an annualized return rate of 48.6 %.

F5 Networks (NASDAQ: FFIV) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $85.13 while simultaneously selling the December $85.00 call will result in a new position with a target return of 5.8 %. Based on recent prices, this position will cost about $80.33, which is also the trade’s breakeven point. At that level, this covered call has 5.6 % downside protection, while still providing a 5.8 % return in 46 days as long as FFIV is above $85.00 on 12/22/2012. For comparison purposes only, this F5 Networks covered call aims for an annualized return rate of 46.1 %.

Marathon Petroleum (NYSE: MPC) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $54.76 while simultaneously selling the April $52.50 call will result in a new position with a target return of 6.6 %. Based on recent prices, this position will cost about $49.26, which is also the trade’s breakeven point. At that level, this covered call has 10.0 % downside protection, while still providing a 6.6 % return in 165 days as long as MPC is above $52.50 on 4/20/2013. For comparison purposes only, this Marathon Petroleum covered call aims for an annualized return rate of 14.5 %.

Western Union (NYSE: WU) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the May $12.00 call while at the same time buying WU stock for $12.22 will produce a new covered call with a target return of 7.9 %. Based on recent data, this trade will cost about $11.12, which is also the covered call’s breakeven point. At that price, this covered call has 9.0 % downside protection, while seeking an assigned return of 7.9 % return in 193 days. If WU is higher than $12.00 on 5/18/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 15.0 %.


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