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Lowe's (NYSE: LOW) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $35.11 while selling the April $35.00 call will produce a new covered call with a break-even point around $33.09. At that price, this position has a target return of 5.8 %. This trade will have roughly 5.8 % downside protection, while still aiming for a 5.8 % return in 121 days. It will lock in that return as long as Lowe's is above $35.00 on 4/20/2013. For comparison purposes only, this LOW covered call aims for an annualized return rate of 17.4 %.

Focus Media (NASDAQ: FMCN) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $25.52 while simultaneously selling the April $25.00 call will result in a new position with a target return of 4.7 %. Based on recent prices, this position will cost about $23.87, which is also the trade’s breakeven point. At that level, this covered call has 6.5 % downside protection, while still providing a 4.7 % return in 121 days as long as FMCN is above $25.00 on 4/20/2013. For comparison purposes only, this Focus Media covered call aims for an annualized return rate of 14.3 %.

Itau Unibanco (NYSE: ITUB) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the June $16.00 call while at the same time buying ITUB stock for $16.33 will produce a new covered call with a target return of 6.8 %. Based on recent data, this trade will cost about $14.98, which is also the covered call’s breakeven point. At that price, this covered call has 8.3 % downside protection, while seeking an assigned return of 6.8 % return in 184 days. If ITUB is higher than $16.00 on 6/22/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 13.5 %.

Western Union (NYSE: WU) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $13.70 while simultaneously selling the May $14.00 call will result in a new position with a target return of 9.4 %. Based on recent prices, this position will cost about $12.80, which is also the trade’s breakeven point. At that level, this covered call has 6.6 % downside protection, while still providing a 9.4 % return in 149 days as long as WU is above $14.00 on 5/18/2013. For comparison purposes only, this Western Union covered call aims for an annualized return rate of 23.0 %.

Splunk (NASDAQ: SPLK) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the May $25.00 call while simultaneously buying SPLK stock for $29.37 will result in a new position with a break-even point around $22.77. At that price, this position has a target return of 9.8 %. This trade has 22.5 % downside protection, while still providing a 9.8 % return in 149 days as long as SPLK is above $25.00 on 5/18/2013. For comparison purposes only, this Splunk covered call targets an annualized return rate of 24.0 %.

 

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