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Transocean (NYSE: RIG) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the May $57.50 call while simultaneously buying RIG stock for $57.98 will result in a new position with a break-even point around $54.38. At that price, this position has a target return of 5.7 %. This trade has 6.2 % downside protection, while still providing a 5.7 % return in 103 days as long as RIG is above $57.50 on 5/18/2013. For comparison purposes only, this Transocean covered call targets an annualized return rate of 20.3 %.

 

Humana (NYSE: HUM) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the May $75.00 call while at the same time buying HUM stock for $75.35 will produce a new covered call with a target return of 4.8 %. Based on recent data, this trade will cost about $71.55, which is also the covered call’s breakeven point. At that price, this covered call has 5.0 % downside protection, while seeking an assigned return of 4.8 % return in 103 days. If HUM is higher than $75.00 on 5/18/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 17.1 %.

Fifth Third Bancorp (NASDAQ: FITB) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $16.49 while simultaneously selling the August $17.00 call will result in a new position with a target return of 7.7 %. Based on recent prices, this position will cost about $15.79, which is also the trade’s breakeven point. At that level, this covered call has 4.2 % downside protection, while still providing a 7.7 % return in 194 days as long as FITB is above $17.00 on 8/17/2013. For comparison purposes only, this Fifth Third Bancorp covered call aims for an annualized return rate of 14.4 %.

Southern Copper (NYSE: SCCO) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $39.84 while selling the June $40.00 call will produce a new covered call with a break-even point around $38.04. At that price, this position has a target return of 5.2 %. This trade will have roughly 4.5 % downside protection, while still aiming for a 5.2 % return in 138 days. It will lock in that return as long as Southern Copper is above $40.00 on 6/22/2013. For comparison purposes only, this SCCO covered call aims for an annualized return rate of 13.6 %.

Kulicke and Soffa Industries (NASDAQ: KLIC) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the July $12.00 call while simultaneously buying KLIC stock for $11.65 will result in a new position with a break-even point around $10.75. At that price, this position has a target return of 11.6 %. This trade has 7.7 % downside protection, while still providing a 11.6 % return in 166 days as long as KLIC is above $12.00 on 7/20/2013. For comparison purposes only, this Kulicke and Soffa Industries covered call targets an annualized return rate of 25.6 %.

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