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Google (NASDAQ: GOOG) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $696.88 while simultaneously selling the March $695.00 call will result in a new position with a target return of 5.2 %. Based on recent prices, this position will cost about $660.78, which is also the trade’s breakeven point. At that level, this covered call has 5.2 % downside protection, while still providing a 5.2 % return in 94 days as long as GOOG is above $695.00 on 3/16/2013. For comparison purposes only, this Google covered call aims for an annualized return rate of 20.1 %.

Cliffs Natural Resources (NYSE: CLF) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $31.96 while selling the January $31.00 call will produce a new covered call with a break-even point around $29.34. At that price, this position has a target return of 5.7 %. This trade will have roughly 8.2 % downside protection, while still aiming for a 5.7 % return in 38 days. It will lock in that return as long as Cliffs Natural Resources is above $31.00 on 1/19/2013. For comparison purposes only, this CLF covered call aims for an annualized return rate of 54.3 %.

United Continental (NYSE: UAL) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the March $21.00 call while at the same time buying UAL stock for $21.71 will produce a new covered call with a target return of 6.8 %. Based on recent data, this trade will cost about $19.66, which is also the covered call’s breakeven point. At that price, this covered call has 9.4 % downside protection, while seeking an assigned return of 6.8 % return in 94 days. If UAL is higher than $21.00 on 3/16/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 26.4 %.

Fastenal (NASDAQ: FAST) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the May $42.50 call while at the same time buying FAST stock for $43.02 will produce a new covered call with a target return of 6.5 %. Based on recent data, this trade will cost about $39.92, which is also the covered call’s breakeven point. At that price, this covered call has 7.2 % downside protection, while seeking an assigned return of 6.5 % return in 157 days. If FAST is higher than $42.50 on 5/18/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 15.0 %.

Valeant Pharmac. (NYSE: VRX) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the April $57.50 call while simultaneously buying VRX stock for $59.23 will result in a new position with a break-even point around $53.23. At that price, this position has a target return of 8.0 %. This trade has 10.1 % downside protection, while still providing a 8.0 % return in 129 days as long as VRX is above $57.50 on 4/20/2013. For comparison purposes only, this Valeant Pharmac. covered call targets an annualized return rate of 22.7 %.

 

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