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Freeport McMoran (NYSE: FCX) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $32.52 while simultaneously selling the February $32.00 call will result in a new position with a target return of 4.9 %. Based on recent prices, this position will cost about $30.50, which is also the trade’s breakeven point. At that level, this covered call has 6.2 % downside protection, while still providing a 4.9 % return in 65 days as long as FCX is above $32.00 on 2/16/2013. For comparison purposes only, this Freeport McMoran covered call aims for an annualized return rate of 27.6 %.

Abercrombie and Fitch (NYSE: ANF) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $46.26 while selling the February $46.00 call will produce a new covered call with a break-even point around $42.66. At that price, this position has a target return of 7.8 %. This trade will have roughly 7.8 % downside protection, while still aiming for a 7.8 % return in 65 days. It will lock in that return as long as Abercrombie and Fitch is above $46.00 on 2/16/2013. For comparison purposes only, this ANF covered call aims for an annualized return rate of 43.9 %.

Silver Wheaton (NYSE: SLW) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the January $38.00 call while at the same time buying SLW stock for $38.00 will produce a new covered call with a target return of 4.6 %. Based on recent data, this trade will cost about $36.33, which is also the covered call’s breakeven point. At that price, this covered call has 4.4 % downside protection, while seeking an assigned return of 4.6 % return in 37 days. If SLW is higher than $38.00 on 1/19/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 45.3 %.

Informatica (NASDAQ: INFA) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the March $27.50 call while simultaneously buying INFA stock for $27.52 will result in a new position with a break-even point around $24.52. At that price, this position has a target return of 12.2 %. This trade has 10.9 % downside protection, while still providing a 12.2 % return in 93 days as long as INFA is above $27.50 on 3/16/2013. For comparison purposes only, this Informatica covered call targets an annualized return rate of 47.7 %.

Acme Packet (NASDAQ: APKT) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $21.79 while simultaneously selling the February $21.00 call will result in a new position with a target return of 8.3 %. Based on recent prices, this position will cost about $19.39, which is also the trade’s breakeven point. At that level, this covered call has 11.0 % downside protection, while still providing a 8.3 % return in 65 days as long as APKT is above $21.00 on 2/16/2013. For comparison purposes only, this Acme Packet covered call aims for an annualized return rate of 46.6 %.

 

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