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Hartford Financial (NYSE: HIG) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $22.50 while simultaneously selling the March $22.00 call will result in a new position with a target return of 5.1 %. Based on recent prices, this position will cost about $20.94, which is also the trade’s breakeven point. At that level, this covered call has 6.9 % downside protection, while still providing a 5.1 % return in 87 days as long as HIG is above $22.00 on 3/16/2013. For comparison purposes only, this Hartford Financial covered call aims for an annualized return rate of 21.2 %.

EMC (NYSE: EMC) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $25.86 while selling the April $25.00 call will produce a new covered call with a break-even point around $23.83. At that price, this position has a target return of 4.9 %. This trade will have roughly 7.8 % downside protection, while still aiming for a 4.9 % return in 122 days. It will lock in that return as long as EMC is above $25.00 on 4/20/2013. For comparison purposes only, this EMC covered call aims for an annualized return rate of 14.7 %.

Ryland Group (NYSE: RYL) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the January $37.00 call while at the same time buying RYL stock for $37.39 will produce a new covered call with a target return of 4.3 %. Based on recent data, this trade will cost about $35.49, 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 4.3 % return in 31 days. If RYL is higher than $37.00 on 1/19/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 50.0 %.

International Paper (NYSE: IP) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $38.94 while simultaneously selling the April $38.00 call will result in a new position with a target return of 5.4 %. Based on recent prices, this position will cost about $36.06, which is also the trade’s breakeven point. At that level, this covered call has 7.4 % downside protection, while still providing a 5.4 % return in 122 days as long as IP is above $38.00 on 4/20/2013. For comparison purposes only, this International Paper covered call aims for an annualized return rate of 16.1 %.

Tronox (NYSE: TROX) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the May $17.50 call while simultaneously buying TROX stock for $19.08 will result in a new position with a break-even point around $16.43. At that price, this position has a target return of 6.5 %. This trade has 13.9 % downside protection, while still providing a 6.5 % return in 150 days as long as TROX is above $17.50 on 5/18/2013. For comparison purposes only, this Tronox covered call targets an annualized return rate of 15.8 %.

 

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