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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 $164.80 while simultaneously selling the April $160.00 call will result in a new position with a target return of 9.9 %. Based on recent prices, this position will cost about $145.65, which is also the trade’s breakeven point. At that level, this covered call has 11.6 % downside protection, while still providing a 9.9 % return in 75 days as long as NFLX is above $160.00 on 4/20/2013. For comparison purposes only, this Netflix covered call aims for an annualized return rate of 47.9 %.

JC Penney (NYSE: JCP) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the March $19.00 call while at the same time buying JCP stock for $19.88 will produce a new covered call with a target return of 8.7 %. Based on recent data, this trade will cost about $17.48, which is also the covered call’s breakeven point. At that price, this covered call has 12.1 % downside protection, while seeking an assigned return of 8.7 % return in 40 days. If JCP is higher than $19.00 on 3/16/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 79.3 %.

Williams Companies (NYSE: WMB) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the May $35.00 call while simultaneously buying WMB stock for $35.43 will result in a new position with a break-even point around $33.54. At that price, this position has a target return of 4.4 %. This trade has 5.3 % downside protection, while still providing a 4.4 % return in 103 days as long as WMB is above $35.00 on 5/18/2013. For comparison purposes only, this Williams Companies covered call targets an annualized return rate of 15.4 %.

JDS Uniphase (NASDAQ: JDSU) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $14.78 while selling the June $14.00 call will produce a new covered call with a break-even point around $12.98. At that price, this position has a target return of 7.9 %. This trade will have roughly 12.2 % downside protection, while still aiming for a 7.9 % return in 138 days. It will lock in that return as long as JDS Uniphase is above $14.00 on 6/22/2013. For comparison purposes only, this JDSU covered call aims for an annualized return rate of 20.8 %.

Grupo Financiero Santander (NYSE: BSMX) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $15.88 while simultaneously selling the July $15.00 call will result in a new position with a target return of 7.3 %. Based on recent prices, this position will cost about $13.98, which is also the trade’s breakeven point. At that level, this covered call has 12.0 % downside protection, while still providing a 7.3 % return in 166 days as long as BSMX is above $15.00 on 7/20/2013. For comparison purposes only, this Grupo Financiero Santander covered call aims for an annualized return rate of 16.0 %.

 

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