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Kohls (NYSE: KSS) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $43.73 while selling the April $43.00 call will produce a new covered call with a break-even point around $40.43. At that price, this position has a target return of 6.4 %. This trade will have roughly 7.5 % downside protection, while still aiming for a 6.4 % return in 136 days. It will lock in that return as long as Kohls is above $43.00 on 4/20/2013. For comparison purposes only, this KSS covered call aims for an annualized return rate of 17.0 %.

Seagate Technology (NASDAQ: STX) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $26.46 while simultaneously selling the March $26.00 call will result in a new position with a target return of 8.0 %. Based on recent prices, this position will cost about $24.08, which is also the trade’s breakeven point. At that level, this covered call has 9.0 % downside protection, while still providing a 8.0 % return in 101 days as long as STX is above $26.00 on 3/16/2013. For comparison purposes only, this Seagate Technology covered call aims for an annualized return rate of 28.8 %.

AOL (NYSE: AOL) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the January $31.00 call while at the same time buying AOL stock for $31.24 will produce a new covered call with a target return of 4.6 %. Based on recent data, this trade will cost about $29.64, which is also the covered call’s breakeven point. At that price, this covered call has 5.1 % downside protection, while seeking an assigned return of 4.6 % return in 45 days. If AOL is higher than $31.00 on 1/19/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 37.1 %.

Youku.com (NYSE: YOKU) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the January $15.00 call while simultaneously buying YOKU stock for $15.27 will result in a new position with a break-even point around $13.82. At that price, this position has a target return of 8.5 %. This trade has 9.5 % downside protection, while still providing a 8.5 % return in 45 days as long as YOKU is above $15.00 on 1/19/2013. For comparison purposes only, this Youku.com covered call targets an annualized return rate of 69.2 %.

Mentor Graphics (NASDAQ: MENT) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the April $15.00 call while simultaneously buying MENT stock for $15.49 will result in a new position with a break-even point around $13.99. At that price, this position has a target return of 7.2 %. This trade has 9.7 % downside protection, while still providing a 7.2 % return in 136 days as long as MENT is above $15.00 on 4/20/2013. For comparison purposes only, this Mentor Graphics covered call targets an annualized return rate of 19.4 %.

 

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