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Dow Chemical (NYSE: DOW) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $29.49 while selling the March $29.00 call will produce a new covered call with a break-even point around $27.72. At that price, this position has a target return of 4.6 %. This trade will have roughly 6.0 % downside protection, while still aiming for a 4.6 % return in 100 days. It will lock in that return as long as Dow Chemical is above $29.00 on 3/16/2013. For comparison purposes only, this DOW covered call aims for an annualized return rate of 16.8 %.

SanDisk (NASDAQ: SNDK) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $39.80 while simultaneously selling the January $39.00 call will result in a new position with a target return of 4.1 %. Based on recent prices, this position will cost about $37.48, which is also the trade’s breakeven point. At that level, this covered call has 5.8 % downside protection, while still providing a 4.1 % return in 44 days as long as SNDK is above $39.00 on 1/19/2013. For comparison purposes only, this SanDisk covered call aims for an annualized return rate of 33.6 %.

Alpha Natural Resources (NYSE: ANR) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the March $8.00 call while at the same time buying ANR stock for $8.07 will produce a new covered call with a target return of 17.1 %. Based on recent data, this trade will cost about $6.83, which is also the covered call’s breakeven point. At that price, this covered call has 15.4 % downside protection, while seeking an assigned return of 17.1 % return in 100 days. If ANR is higher than $8.00 on 3/16/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 62.5 %.

Waste Management (NYSE: WM) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the July $34.00 call while simultaneously buying WM stock for $33.52 will result in a new position with a break-even point around $32.27. At that price, this position has a target return of 5.4 %. This trade has 3.7 % downside protection, while still providing a 5.4 % return in 226 days as long as WM is above $34.00 on 7/20/2013. For comparison purposes only, this Waste Management covered call targets an annualized return rate of 8.7 %.

Motorola Solutions (NYSE: MSI) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the April $55.00 call while at the same time buying MSI stock for $55.18 will produce a new covered call with a target return of 4.8 %. Based on recent data, this trade will cost about $52.46, which is also the covered call’s breakeven point. At that price, this covered call has 4.9 % downside protection, while seeking an assigned return of 4.8 % return in 135 days. If MSI is higher than $55.00 on 4/20/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 13.1 %.

 

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