PriceWatch Alerts

Free Stock Alerts
Every trading day, InvestorsObserver analysts prove our members with trade ideas, research, and analysis.
Check your email and confirm your membership to get information just like these alerts and all 100% Free!

American International Group (NYSE: AIG) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $32.00 while selling the December $32.00 call will produce a new covered call with a break-even point around $30.70. At that price, this position has a target return of 4.2 %. This trade will have roughly 4.1 % downside protection, while still aiming for a 4.2 % return in 44 days. It will lock in that return as long as American International Group is above $32.00 on 12/22/2012. For comparison purposes only, this AIG covered call aims for an annualized return rate of 35.1 %.

Capital One (NYSE: COF) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $59.42 while simultaneously selling the March $57.50 call will result in a new position with a target return of 5.6 %. Based on recent prices, this position will cost about $54.47, which is also the trade’s breakeven point. At that level, this covered call has 8.3 % downside protection, while still providing a 5.6 % return in 128 days as long as COF is above $57.50 on 3/16/2013. For comparison purposes only, this Capital One covered call aims for an annualized return rate of 15.9 %.

CSX (NYSE: CSX) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $20.23 while simultaneously selling the May $20.00 call will result in a new position with a target return of 6.9 %. Based on recent prices, this position will cost about $18.71, which is also the trade’s breakeven point. At that level, this covered call has 7.5 % downside protection, while still providing a 6.9 % return in 191 days as long as CSX is above $20.00 on 5/18/2013. For comparison purposes only, this CSX covered call aims for an annualized return rate of 13.2 %.

Agrium (NYSE: AGU) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the January $95.00 call while at the same time buying AGU stock for $95.58 will produce a new covered call with a target return of 4.8 %. Based on recent data, this trade will cost about $90.68, which is also the covered call’s breakeven point. At that price, this covered call has 5.1 % downside protection, while seeking an assigned return of 4.8 % return in 72 days. If AGU is higher than $95.00 on 1/19/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 24.1 %.

Randgold Resources (NASDAQ: GOLD) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the January $110.00 call while simultaneously buying GOLD stock for $114.39 will result in a new position with a break-even point around $104.89. At that price, this position has a target return of 4.9 %. This trade has 8.3 % downside protection, while still providing a 4.9 % return in 72 days as long as GOLD is above $110.00 on 1/19/2013. For comparison purposes only, this Randgold Resources covered call targets an annualized return rate of 24.7 %.

 

Check your email for a password to log into our site and read all our Essentials analysis.

Don't miss out on any vital trading information! Add Support@InvestorsObserver.com to your address book. View complete step-by-step instructions here.