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AFLAC (NYSE: AFL) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the May $52.50 call while at the same time buying AFL stock for $52.46 will produce a new covered call with a target return of 4.4 %. Based on recent data, this trade will cost about $50.31, which is also the covered call’s breakeven point. At that price, this covered call has 4.1 % downside protection, while seeking an assigned return of 4.4 % return in 107 days. If AFL is higher than $52.50 on 5/18/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 14.8 %.

 

Herbalife (NYSE: HLF) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $37.09 while simultaneously selling the May $35.00 call will result in a new position with a target return of 11.9 %. Based on recent prices, this position will cost about $31.29, which is also the trade’s breakeven point. At that level, this covered call has 15.6 % downside protection, while still providing a 11.9 % return in 107 days as long as HLF is above $35.00 on 5/18/2013. For comparison purposes only, this Herbalife covered call aims for an annualized return rate of 40.4 %.

Keurig Green Mountain (NASDAQ: GMCR) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the March $44.00 call while simultaneously buying GMCR stock for $44.56 will result in a new position with a break-even point around $40.01. At that price, this position has a target return of 10.0 %. This trade has 10.2 % downside protection, while still providing a 10.0 % return in 44 days as long as GMCR is above $44.00 on 3/16/2013. For comparison purposes only, this Keurig Green Mountain covered call targets an annualized return rate of 82.7 %.

HCA (NYSE: HCA) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $38.07 while selling the June $37.50 call will produce a new covered call with a break-even point around $34.87. At that price, this position has a target return of 7.5 %. This trade will have roughly 8.4 % downside protection, while still aiming for a 7.5 % return in 142 days. It will lock in that return as long as HCA is above $37.50 on 6/22/2013. For comparison purposes only, this HCA covered call aims for an annualized return rate of 19.4 %.

Canon (NYSE: CAJ) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the June $35.00 call while at the same time buying CAJ stock for $37.93 will produce a new covered call with a target return of 4.1 %. Based on recent data, this trade will cost about $33.63, which is also the covered call’s breakeven point. At that price, this covered call has 11.3 % downside protection, while seeking an assigned return of 4.1 % return in 142 days. If CAJ is higher than $35.00 on 6/22/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 10.5 %.

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