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Apple (NASDAQ: AAPL) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $504.77 while simultaneously selling the March $500.00 call will result in a new position with a target return of 5.0 %. Based on recent prices, this position will cost about $476.12, which is also the trade’s breakeven point. At that level, this covered call has 5.7 % downside protection, while still providing a 5.0 % return in 52 days as long as AAPL is above $500.00 on 3/16/2013. For comparison purposes only, this Apple covered call aims for an annualized return rate of 35.2 %.

Chesapeake Energy (NYSE: CHK) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the July $18.00 call while at the same time buying CHK stock for $18.73 will produce a new covered call with a target return of 8.7 %. Based on recent data, this trade will cost about $16.56, which is also the covered call’s breakeven point. At that price, this covered call has 11.6 % downside protection, while seeking an assigned return of 8.7 % return in 178 days. If CHK is higher than $18.00 on 7/20/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 17.8 %.

Best Buy (NYSE: BBY) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the March $15.00 call while simultaneously buying BBY stock for $15.39 will result in a new position with a break-even point around $13.91. At that price, this position has a target return of 7.8 %. This trade has 9.6 % downside protection, while still providing a 7.8 % return in 52 days as long as BBY is above $15.00 on 3/16/2013. For comparison purposes only, this Best Buy covered call targets an annualized return rate of 55.0 %.

Allstate (NYSE: ALL) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $44.20 while selling the July $45.00 call will produce a new covered call with a break-even point around $42.61. At that price, this position has a target return of 5.6 %. This trade will have roughly 3.6 % downside protection, while still aiming for a 5.6 % return in 178 days. It will lock in that return as long as Allstate is above $45.00 on 7/20/2013. For comparison purposes only, this ALL covered call aims for an annualized return rate of 11.5 %.

McDermott International (NYSE: MDR) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $12.51 while simultaneously selling the August $12.00 call will result in a new position with a target return of 10.0 %. Based on recent prices, this position will cost about $10.91, which is also the trade’s breakeven point. At that level, this covered call has 12.8 % downside protection, while still providing a 10.0 % return in 206 days as long as MDR is above $12.00 on 8/17/2013. For comparison purposes only, this McDermott International covered call aims for an annualized return rate of 17.7 %.

 

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