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Netflix (NASDAQ: NFLX) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $96.59 while simultaneously selling the February $95.00 call will result in a new position with a target return of 9.5 %. Based on recent prices, this position will cost about $86.74, which is also the trade’s breakeven point. At that level, this covered call has 10.2 % downside protection, while still providing a 9.5 % return in 43 days as long as NFLX is above $95.00 on 2/16/2013. For comparison purposes only, this Netflix covered call aims for an annualized return rate of 80.8 %.

Transocean (NYSE: RIG) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $49.20 while selling the May $49.00 call will produce a new covered call with a break-even point around $45.85. At that price, this position has a target return of 6.9 %. This trade will have roughly 6.8 % downside protection, while still aiming for a 6.9 % return in 134 days. It will lock in that return as long as Transocean is above $49.00 on 5/18/2013. For comparison purposes only, this RIG covered call aims for an annualized return rate of 18.7 %.

Crocs (NASDAQ: CROX) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the March $15.00 call while at the same time buying CROX stock for $15.08 will produce a new covered call with a target return of 7.7 %. Based on recent data, this trade will cost about $13.93, which is also the covered call’s breakeven point. At that price, this covered call has 7.6 % downside protection, while seeking an assigned return of 7.7 % return in 71 days. If CROX is higher than $15.00 on 3/16/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 39.5 %.

Arch Coal (NYSE: ACI) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the July $7.00 call while simultaneously buying ACI stock for $7.33 will result in a new position with a break-even point around $5.94. At that price, this position has a target return of 17.8 %. This trade has 19.0 % downside protection, while still providing a 17.8 % return in 197 days as long as ACI is above $7.00 on 7/20/2013. For comparison purposes only, this Arch Coal covered call targets an annualized return rate of 33.1 %.

Sarepta Therapeutics (NASDAQ: SRPT) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $28.14 while simultaneously selling the February $28.00 call will result in a new position with a target return of 14.1 %. Based on recent prices, this position will cost about $24.54, which is also the trade’s breakeven point. At that level, this covered call has 12.8 % downside protection, while still providing a 14.1 % return in 43 days as long as SRPT is above $28.00 on 2/16/2013. For comparison purposes only, this Sarepta Therapeutics covered call aims for an annualized return rate of 119.6 %.

 

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