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Cisco Systems (NASDAQ: CSCO) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $20.11 while selling the April $20.00 call will produce a new covered call with a break-even point around $18.93. At that price, this position has a target return of 5.7 %. This trade will have roughly 5.9 % downside protection, while still aiming for a 5.7 % return in 123 days. It will lock in that return as long as Cisco Systems is above $20.00 on 4/20/2013. For comparison purposes only, this CSCO covered call aims for an annualized return rate of 16.8 %.

AFLAC (NYSE: AFL) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $54.09 while simultaneously selling the May $52.50 call will result in a new position with a target return of 4.9 %. Based on recent prices, this position will cost about $50.04, which is also the trade’s breakeven point. At that level, this covered call has 7.5 % downside protection, while still providing a 4.9 % return in 151 days as long as AFL is above $52.50 on 5/18/2013. For comparison purposes only, this AFLAC covered call aims for an annualized return rate of 11.9 %.

Computer Sciences (NYSE: CSC) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the March $40.00 call while at the same time buying CSC stock for $40.58 will produce a new covered call with a target return of 5.9 %. Based on recent data, this trade will cost about $37.78, which is also the covered call’s breakeven point. At that price, this covered call has 6.9 % downside protection, while seeking an assigned return of 5.9 % return in 88 days. If CSC is higher than $40.00 on 3/16/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 24.3 %.

Avago Technologies (NASDAQ: AVGO) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the April $30.00 call while simultaneously buying AVGO stock for $31.99 will result in a new position with a break-even point around $28.29. At that price, this position has a target return of 6.0 %. This trade has 11.6 % downside protection, while still providing a 6.0 % return in 123 days as long as AVGO is above $30.00 on 4/20/2013. For comparison purposes only, this Avago Technologies covered call targets an annualized return rate of 17.9 %.

ACE (NYSE: ACE) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $80.90 while selling the May $80.00 call will produce a new covered call with a break-even point around $76.80. At that price, this position has a target return of 4.2 %. This trade will have roughly 5.1 % downside protection, while still aiming for a 4.2 % return in 151 days. It will lock in that return as long as ACE is above $80.00 on 5/18/2013. For comparison purposes only, this ACE covered call aims for an annualized return rate of 10.1 %.

 

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