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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 $259.36 while simultaneously selling the May $255.00 call will result in a new position with a target return of 5.8 %. Based on recent prices, this position will cost about $240.96, which is also the trade’s breakeven point. At that level, this covered call has 7.1 % downside protection, while still providing a 5.8 % return in 80 days as long as AMZN is above $255.00 on 5/18/2013. For comparison purposes only, this Amazon covered call aims for an annualized return rate of 26.6 %.

Anadarko Petroleum (NYSE: APC) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the May $77.50 call while at the same time buying APC stock for $78.58 will produce a new covered call with a target return of 6.2 %. Based on recent data, this trade will cost about $72.98, which is also the covered call’s breakeven point. At that price, this covered call has 7.1 % downside protection, while seeking an assigned return of 6.2 % return in 80 days. If APC is higher than $77.50 on 5/18/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 28.2 %.

D R Horton (NYSE: DHI) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the May $22.00 call while simultaneously buying DHI stock for $22.25 will result in a new position with a break-even point around $20.64. At that price, this position has a target return of 6.6 %. This trade has 7.2 % downside protection, while still providing a 6.6 % return in 80 days as long as DHI is above $22.00 on 5/18/2013. For comparison purposes only, this D R Horton covered call targets an annualized return rate of 30.0 %.

Cheniere Energy (AMEX: LNG) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $21.15 while selling the June $21.00 call will produce a new covered call with a break-even point around $19.18. At that price, this position has a target return of 9.5 %. This trade will have roughly 9.3 % downside protection, while still aiming for a 9.5 % return in 115 days. It will lock in that return as long as Cheniere Energy is above $21.00 on 6/22/2013. For comparison purposes only, this LNG covered call aims for an annualized return rate of 30.1 %.

Sealed Air (NYSE: SEE) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $21.58 while simultaneously selling the October $22.50 call will result in a new position with a target return of 10.7 %. Based on recent prices, this position will cost about $20.33, which is also the trade’s breakeven point. At that level, this covered call has 5.8 % downside protection, while still providing a 10.7 % return in 234 days as long as SEE is above $22.50 on 10/19/2013. For comparison purposes only, this Sealed Air covered call aims for an annualized return rate of 16.6 %.

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