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Deere (NYSE: DE) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $89.56 while selling the June $87.50 call will produce a new covered call with a break-even point around $83.71. At that price, this position has a target return of 4.5 %. This trade will have roughly 6.5 % downside protection, while still aiming for a 4.5 % return in 156 days. It will lock in that return as long as Deere is above $87.50 on 6/22/2013. For comparison purposes only, this DE covered call aims for an annualized return rate of 10.6 %.

Valero Energy (NYSE: VLO) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $36.79 while simultaneously selling the June $36.00 call will result in a new position with a target return of 7.2 %. Based on recent prices, this position will cost about $33.59, which is also the trade’s breakeven point. At that level, this covered call has 8.7 % downside protection, while still providing a 7.2 % return in 156 days as long as VLO is above $36.00 on 6/22/2013. For comparison purposes only, this Valero Energy covered call aims for an annualized return rate of 16.8 %.

Pioneer Natural Resources (NYSE: PXD) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the March $110.00 call while at the same time buying PXD stock for $113.00 will produce a new covered call with a target return of 4.5 %. Based on recent data, this trade will cost about $105.30, which is also the covered call’s breakeven point. At that price, this covered call has 6.8 % downside protection, while seeking an assigned return of 4.5 % return in 58 days. If PXD is higher than $110.00 on 3/16/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 28.1 %.

Dunkin (NASDAQ: DNKN) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the March $35.00 call while simultaneously buying DNKN stock for $34.89 will result in a new position with a break-even point around $33.59. At that price, this position has a target return of 4.2 %. This trade has 3.7 % downside protection, while still providing a 4.2 % return in 58 days as long as DNKN is above $35.00 on 3/16/2013. For comparison purposes only, this Dunkin covered call targets an annualized return rate of 26.4 %.

Illumina (NASDAQ: ILMN) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $50.59 while selling the March $50.00 call will produce a new covered call with a break-even point around $47.39. At that price, this position has a target return of 5.5 %. This trade will have roughly 6.3 % downside protection, while still aiming for a 5.5 % return in 58 days. It will lock in that return as long as Illumina is above $50.00 on 3/16/2013. For comparison purposes only, this ILMN covered call aims for an annualized return rate of 34.6 %.

 

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