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Goldman Sachs (NYSE: GS) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the April $140.00 call while simultaneously buying GS stock for $141.01 will result in a new position with a break-even point around $134.41. At that price, this position has a target return of 4.2 %. This trade has 4.7 % downside protection, while still providing a 4.2 % return in 92 days as long as GS is above $140.00 on 4/20/2013. For comparison purposes only, this Goldman Sachs covered call targets an annualized return rate of 16.5 %.

Comcast (NASDAQ: CMCSA) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the July $40.00 call while at the same time buying CMCSA stock for $39.95 will produce a new covered call with a target return of 5.7 %. Based on recent data, this trade will cost about $37.85, which is also the covered call’s breakeven point. At that price, this covered call has 5.3 % downside protection, while seeking an assigned return of 5.7 % return in 183 days. If CMCSA is higher than $40.00 on 7/20/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 11.3 %.

Michael Kors (NYSE: KORS) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $53.06 while simultaneously selling the February $52.50 call will result in a new position with a target return of 5.7 %. Based on recent prices, this position will cost about $49.66, which is also the trade’s breakeven point. At that level, this covered call has 6.4 % downside protection, while still providing a 5.7 % return in 29 days as long as KORS is above $52.50 on 2/16/2013. For comparison purposes only, this Michael Kors covered call aims for an annualized return rate of 71.9 %.

Pulte Homes (NYSE: PHM) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $20.37 while selling the April $20.00 call will produce a new covered call with a break-even point around $18.59. At that price, this position has a target return of 7.6 %. This trade will have roughly 8.7 % downside protection, while still aiming for a 7.6 % return in 92 days. It will lock in that return as long as Pulte Homes is above $20.00 on 4/20/2013. For comparison purposes only, this PHM covered call aims for an annualized return rate of 30.1 %.

Marathon Oil (NYSE: MRO) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the April $33.00 call while simultaneously buying MRO stock for $33.16 will result in a new position with a break-even point around $31.65. At that price, this position has a target return of 4.3 %. This trade has 4.6 % downside protection, while still providing a 4.3 % return in 92 days as long as MRO is above $33.00 on 4/20/2013. For comparison purposes only, this Marathon Oil covered call targets an annualized return rate of 16.9 %.

 

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