PriceWatch Alerts

Free Stock Alerts
Every trading day, InvestorsObserver analysts prove our members with trade ideas, research, and analysis.
Check your email and confirm your membership to get information just like these alerts and all 100% Free!

Berkshire Hathaway B (NYSE: BRK.B) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the June $97.50 call while at the same time buying BRK.B stock for $96.51 will produce a new covered call with a target return of 4.1 %. Based on recent data, this trade will cost about $93.67, which is also the covered call’s breakeven point. At that price, this covered call has 2.9 % downside protection, while seeking an assigned return of 4.1 % return in 137 days. If BRK.B is higher than $97.50 on 6/22/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 10.9 %.

Macy's (NYSE: M) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the May $38.00 call while simultaneously buying M stock for $38.72 will result in a new position with a break-even point around $36.30. At that price, this position has a target return of 4.7 %. This trade has 6.3 % downside protection, while still providing a 4.7 % return in 102 days as long as M is above $38.00 on 5/18/2013. For comparison purposes only, this Macy's covered call targets an annualized return rate of 16.7 %.

T Rowe Price (NASDAQ: TROW) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $71.54 while selling the July $74.00 call will produce a new covered call with a break-even point around $69.24. At that price, this position has a target return of 6.9 %. This trade will have roughly 3.2 % downside protection, while still aiming for a 6.9 % return in 165 days. It will lock in that return as long as T Rowe Price is above $74.00 on 7/20/2013. For comparison purposes only, this TROW covered call aims for an annualized return rate of 15.2 %.

Limited Brands (NYSE: LTD) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $47.42 while simultaneously selling the May $47.00 call will result in a new position with a target return of 4.7 %. Based on recent prices, this position will cost about $44.87, which is also the trade’s breakeven point. At that level, this covered call has 5.4 % downside protection, while still providing a 4.7 % return in 102 days as long as LTD is above $47.00 on 5/18/2013. For comparison purposes only, this Limited Brands covered call aims for an annualized return rate of 17.0 %.

Sally Beauty (NYSE: SBH) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the September $25.00 call while at the same time buying SBH stock for $26.64 will produce a new covered call with a target return of 6.4 %. Based on recent data, this trade will cost about $23.49, which is also the covered call’s breakeven point. At that price, this covered call has 11.8 % downside protection, while seeking an assigned return of 6.4 % return in 228 days. If SBH is higher than $25.00 on 9/21/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 10.3 %.

Check your email for a password to log into our site and read all our Essentials analysis.

Don't miss out on any vital trading information! Add Support@InvestorsObserver.com to your address book. View complete step-by-step instructions here.