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Coca Cola (NYSE: KO) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the August $37.50 call while simultaneously buying KO stock for $37.13 will result in a new position with a break-even point around $35.97. At that price, this position has a target return of 4.3 %. This trade has 3.1 % downside protection, while still providing a 4.3 % return in 206 days as long as KO is above $37.50 on 8/17/2013. For comparison purposes only, this Coca Cola covered call targets an annualized return rate of 7.5 %.

Schlumberger (NYSE: SLB) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the May $77.50 call while at the same time buying SLB stock for $78.00 will produce a new covered call with a target return of 4.4 %. Based on recent data, this trade will cost about $74.25, which is also the covered call’s breakeven point. At that price, this covered call has 4.8 % downside protection, while seeking an assigned return of 4.4 % return in 115 days. If SLB is higher than $77.50 on 5/18/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 13.9 %.

Walter Energy (NYSE: WLT) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $38.62 while simultaneously selling the March $37.50 call will result in a new position with a target return of 6.3 %. Based on recent prices, this position will cost about $35.27, which is also the trade’s breakeven point. At that level, this covered call has 8.7 % downside protection, while still providing a 6.3 % return in 52 days as long as WLT is above $37.50 on 3/16/2013. For comparison purposes only, this Walter Energy covered call aims for an annualized return rate of 44.4 %.

Aetna (NYSE: AET) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $48.34 while selling the April $48.00 call will produce a new covered call with a break-even point around $46.10. At that price, this position has a target return of 4.1 %. This trade will have roughly 4.6 % downside protection, while still aiming for a 4.1 % return in 87 days. It will lock in that return as long as Aetna is above $48.00 on 4/20/2013. For comparison purposes only, this AET covered call aims for an annualized return rate of 17.3 %.

Yamana Gold (NYSE: AUY) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the July $18.00 call while simultaneously buying AUY stock for $18.11 will result in a new position with a break-even point around $16.61. At that price, this position has a target return of 8.4 %. This trade has 8.3 % downside protection, while still providing a 8.4 % return in 178 days as long as AUY is above $18.00 on 7/20/2013. For comparison purposes only, this Yamana Gold covered call targets an annualized return rate of 17.1 %.

 

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