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Chesapeake Energy (NYSE: CHK) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the May $19.00 call while simultaneously buying CHK stock for $19.11 will result in a new position with a break-even point around $17.69. At that price, this position has a target return of 7.4 %. This trade has 7.4 % downside protection, while still providing a 7.4 % return in 81 days as long as CHK is above $19.00 on 5/18/2013. For comparison purposes only, this Chesapeake Energy covered call targets an annualized return rate of 33.3 %.

Toll Brothers (NYSE: TOL) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the April $33.00 call while at the same time buying TOL stock for $33.09 will produce a new covered call with a target return of 5.1 %. Based on recent data, this trade will cost about $31.39, which is also the covered call’s breakeven point. At that price, this covered call has 5.1 % downside protection, while seeking an assigned return of 5.1 % return in 53 days. If TOL is higher than $33.00 on 4/20/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 35.3 %.

Mohawk Industries (NYSE: MHK) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $101.50 while simultaneously selling the May $100.00 call will result in a new position with a target return of 4.8 %. Based on recent prices, this position will cost about $95.40, which is also the trade’s breakeven point. At that level, this covered call has 6.0 % downside protection, while still providing a 4.8 % return in 81 days as long as MHK is above $100.00 on 5/18/2013. For comparison purposes only, this Mohawk Industries covered call aims for an annualized return rate of 21.7 %.

Cabot Oil & Gas (NYSE: COG) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $58.50 while selling the July $55.00 call will produce a new covered call with a break-even point around $51.90. At that price, this position has a target return of 6.0 %. This trade will have roughly 11.3 % downside protection, while still aiming for a 6.0 % return in 144 days. It will lock in that return as long as Cabot Oil & Gas is above $55.00 on 7/20/2013. For comparison purposes only, this COG covered call aims for an annualized return rate of 15.1 %.

Nu Skin Enterprises (NYSE: NUS) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the June $35.00 call while simultaneously buying NUS stock for $38.66 will result in a new position with a break-even point around $32.96. At that price, this position has a target return of 6.2 %. This trade has 14.7 % downside protection, while still providing a 6.2 % return in 116 days as long as NUS is above $35.00 on 6/22/2013. For comparison purposes only, this Nu Skin Enterprises covered call targets an annualized return rate of 19.4 %.

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