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Amazon (NASDAQ: AMZN) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $268.46 while simultaneously selling the April $265.00 call will result in a new position with a target return of 6.2 %. Based on recent prices, this position will cost about $249.56, which is also the trade’s breakeven point. At that level, this covered call has 7.0 % downside protection, while still providing a 6.2 % return in 102 days as long as AMZN is above $265.00 on 4/20/2013. For comparison purposes only, this Amazon covered call aims for an annualized return rate of 22.1 %.

Whole Foods (NASDAQ: WFM) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the May $88.00 call while at the same time buying WFM stock for $88.41 will produce a new covered call with a target return of 7.0 %. Based on recent data, this trade will cost about $82.21, which is also the covered call’s breakeven point. At that price, this covered call has 7.0 % downside protection, while seeking an assigned return of 7.0 % return in 130 days. If WFM is higher than $88.00 on 5/18/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 19.8 %.

Georgia Gulf (NYSE: GGC) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the May $42.50 call while simultaneously buying GGC stock for $43.46 will result in a new position with a break-even point around $40.36. At that price, this position has a target return of 5.3 %. This trade has 7.1 % downside protection, while still providing a 5.3 % return in 130 days as long as GGC is above $42.50 on 5/18/2013. For comparison purposes only, this Georgia Gulf covered call targets an annualized return rate of 14.9 %.

Toll Brothers (NYSE: TOL) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $34.35 while selling the March $34.00 call will produce a new covered call with a break-even point around $33.25. At that price, this position has a target return of 2.3 %. This trade will have roughly 3.2 % downside protection, while still aiming for a 2.3 % return in 67 days. It will lock in that return as long as Toll Brothers is above $34.00 on 3/16/2013. For comparison purposes only, this TOL covered call aims for an annualized return rate of 12.3 %.

Servicenow (NYSE: NOW) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $27.36 while simultaneously selling the May $25.00 call will result in a new position with a target return of 10.3 %. Based on recent prices, this position will cost about $22.66, which is also the trade’s breakeven point. At that level, this covered call has 17.2 % downside protection, while still providing a 10.3 % return in 130 days as long as NOW is above $25.00 on 5/18/2013. For comparison purposes only, this Servicenow covered call aims for an annualized return rate of 29.0 %.

 

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