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American International Group (NYSE: AIG) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the April $38.00 call while simultaneously buying AIG stock for $38.35 will result in a new position with a break-even point around $36.21. At that price, this position has a target return of 4.9 %. This trade has 5.6 % downside protection, while still providing a 4.9 % return in 60 days as long as AIG is above $38.00 on 4/20/2013. For comparison purposes only, this American International Group covered call targets an annualized return rate of 30.1 %.

US Steel (NYSE: X) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the April $23.00 call while at the same time buying X stock for $23.16 will produce a new covered call with a target return of 6.7 %. Based on recent data, this trade will cost about $21.56, which is also the covered call’s breakeven point. At that price, this covered call has 6.9 % downside protection, while seeking an assigned return of 6.7 % return in 60 days. If X is higher than $23.00 on 4/20/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 40.6 %.

News Corp. (NASDAQ: NWSA) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $28.90 while simultaneously selling the July $28.00 call will result in a new position with a target return of 4.1 %. Based on recent prices, this position will cost about $26.90, which is also the trade’s breakeven point. At that level, this covered call has 6.9 % downside protection, while still providing a 4.1 % return in 151 days as long as NWSA is above $28.00 on 7/20/2013. For comparison purposes only, this News Corp. covered call aims for an annualized return rate of 9.9 %.

Hospira (NYSE: HSP) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $29.13 while selling the August $30.00 call will produce a new covered call with a break-even point around $27.28. At that price, this position has a target return of 10.0 %. This trade will have roughly 6.4 % downside protection, while still aiming for a 10.0 % return in 179 days. It will lock in that return as long as Hospira is above $30.00 on 8/17/2013. For comparison purposes only, this HSP covered call aims for an annualized return rate of 20.3 %.

Michael Kors (NYSE: KORS) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the May $60.00 call while simultaneously buying KORS stock for $63.27 will result in a new position with a break-even point around $57.07. At that price, this position has a target return of 5.1 %. This trade has 9.8 % downside protection, while still providing a 5.1 % return in 88 days as long as KORS is above $60.00 on 5/18/2013. For comparison purposes only, this Michael Kors covered call targets an annualized return rate of 21.3 %.

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