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Occidental Petroleum (NYSE: OXY) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $74.52 while simultaneously selling the May $72.50 call will result in a new position with a target return of 6.0 %. Based on recent prices, this position will cost about $68.37, which is also the trade’s breakeven point. At that level, this covered call has 8.3 % downside protection, while still providing a 6.0 % return in 162 days as long as OXY is above $72.50 on 5/18/2013. For comparison purposes only, this Occidental Petroleum covered call aims for an annualized return rate of 13.6 %.

Adobe Systems (NASDAQ: ADBE) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $35.14 while selling the January $35.00 call will produce a new covered call with a break-even point around $33.66. At that price, this position has a target return of 4.0 %. This trade will have roughly 4.2 % downside protection, while still aiming for a 4.0 % return in 43 days. It will lock in that return as long as Adobe Systems is above $35.00 on 1/19/2013. For comparison purposes only, this ADBE covered call aims for an annualized return rate of 33.8 %.

Interoil (NYSE: IOC) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $51.47 while simultaneously selling the January $50.00 call will result in a new position with a target return of 7.7 %. Based on recent prices, this position will cost about $46.42, which is also the trade’s breakeven point. At that level, this covered call has 9.8 % downside protection, while still providing a 7.7 % return in 43 days as long as IOC is above $50.00 on 1/19/2013. For comparison purposes only, this Interoil covered call aims for an annualized return rate of 65.4 %.

Guess (NYSE: GES) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the January $26.00 call while at the same time buying GES stock for $26.08 will produce a new covered call with a target return of 4.5 %. Based on recent data, this trade will cost about $24.88, which is also the covered call’s breakeven point. At that price, this covered call has 4.6 % downside protection, while seeking an assigned return of 4.5 % return in 43 days. If GES is higher than $26.00 on 1/19/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 38.2 %.

Beam (NYSE: BEAM) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the March $60.00 call while simultaneously buying BEAM stock for $58.83 will result in a new position with a break-even point around $56.93. At that price, this position has a target return of 5.4 %. This trade has 3.2 % downside protection, while still providing a 5.4 % return in 99 days as long as BEAM is above $60.00 on 3/16/2013. For comparison purposes only, this Beam covered call targets an annualized return rate of 19.9 %.

 

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