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eBay (NASDAQ: EBAY) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the April $52.50 call while simultaneously buying EBAY stock for $53.59 will result in a new position with a break-even point around $49.44. At that price, this position has a target return of 6.2 %. This trade has 7.7 % downside protection, while still providing a 6.2 % return in 107 days as long as EBAY is above $52.50 on 4/20/2013. For comparison purposes only, this eBay covered call targets an annualized return rate of 21.1 %.

CVS Caremark (NYSE: CVS) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the May $50.00 call while at the same time buying CVS stock for $49.68 will produce a new covered call with a target return of 4.5 %. Based on recent data, this trade will cost about $47.83, which is also the covered call’s breakeven point. At that price, this covered call has 3.7 % downside protection, while seeking an assigned return of 4.5 % return in 135 days. If CVS is higher than $50.00 on 5/18/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 12.2 %.

Commercial Metals (NYSE: CMC) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $15.57 while simultaneously selling the June $16.00 call will result in a new position with a target return of 9.8 %. Based on recent prices, this position will cost about $14.57, which is also the trade’s breakeven point. At that level, this covered call has 6.4 % downside protection, while still providing a 9.8 % return in 170 days as long as CMC is above $16.00 on 6/22/2013. For comparison purposes only, this Commercial Metals covered call aims for an annualized return rate of 21.1 %.

Clean Energy Fuels (NASDAQ: CLNE) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $13.11 while selling the June $13.00 call will produce a new covered call with a break-even point around $11.96. At that price, this position has a target return of 8.7 %. This trade will have roughly 8.8 % downside protection, while still aiming for a 8.7 % return in 170 days. It will lock in that return as long as Clean Energy Fuels is above $13.00 on 6/22/2013. For comparison purposes only, this CLNE covered call aims for an annualized return rate of 18.7 %.

United Rentals (NYSE: URI) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the March $47.00 call while simultaneously buying URI stock for $47.91 will result in a new position with a break-even point around $43.71. At that price, this position has a target return of 7.5 %. This trade has 8.8 % downside protection, while still providing a 7.5 % return in 72 days as long as URI is above $47.00 on 3/16/2013. For comparison purposes only, this United Rentals covered call targets an annualized return rate of 38.1 %.

 

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