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Morgan Stanley (NYSE: MS) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $16.47 while simultaneously selling the April $16.00 call will result in a new position with a target return of 8.4 %. Based on recent prices, this position will cost about $14.76, which is also the trade’s breakeven point. At that level, this covered call has 10.4 % downside protection, while still providing a 8.4 % return in 137 days as long as MS is above $16.00 on 4/20/2013. For comparison purposes only, this Morgan Stanley covered call aims for an annualized return rate of 22.4 %.

Under Armour (NYSE: UA) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $52.64 while selling the January $52.50 call will produce a new covered call with a break-even point around $50.19. At that price, this position has a target return of 4.6 %. This trade will have roughly 4.7 % downside protection, while still aiming for a 4.6 % return in 46 days. It will lock in that return as long as Under Armour is above $52.50 on 1/19/2013. For comparison purposes only, this UA covered call aims for an annualized return rate of 36.5 %.

Polaris Industries (NYSE: PII) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $81.96 while simultaneously selling the March $80.00 call will result in a new position with a target return of 5.9 %. Based on recent prices, this position will cost about $75.56, which is also the trade’s breakeven point. At that level, this covered call has 7.8 % downside protection, while still providing a 5.9 % return in 102 days as long as PII is above $80.00 on 3/16/2013. For comparison purposes only, this Polaris Industries covered call aims for an annualized return rate of 21.0 %.

Tesla (NASDAQ: TSLA) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the March $34.00 call while at the same time buying TSLA stock for $34.62 will produce a new covered call with a target return of 6.2 %. Based on recent data, this trade will cost about $32.02, which is also the covered call’s breakeven point. At that price, this covered call has 7.5 % downside protection, while seeking an assigned return of 6.2 % return in 102 days. If TSLA is higher than $34.00 on 3/16/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 22.1 %.

Corrections Corporation of America (NYSE: CXW) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the March $34.00 call while simultaneously buying CXW stock for $34.97 will result in a new position with a break-even point around $32.17. At that price, this position has a target return of 5.7 %. This trade has 8.0 % downside protection, while still providing a 5.7 % return in 102 days as long as CXW is above $34.00 on 3/16/2013. For comparison purposes only, this Corrections Corporation of America covered call targets an annualized return rate of 20.3 %.

 

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