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Morgan Stanley (NYSE: MS) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $23.40 while simultaneously selling the April $23.00 call will result in a new position with a target return of 5.0 %. Based on recent prices, this position will cost about $21.91, which is also the trade’s breakeven point. At that level, this covered call has 6.4 % downside protection, while still providing a 5.0 % return in 73 days as long as MS is above $23.00 on 4/20/2013. For comparison purposes only, this Morgan Stanley covered call aims for an annualized return rate of 24.9 %.

AOL (NYSE: AOL) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the April $30.00 call while at the same time buying AOL stock for $30.50 will produce a new covered call with a target return of 5.8 %. Based on recent data, this trade will cost about $28.35, which is also the covered call’s breakeven point. At that price, this covered call has 7.0 % downside protection, while seeking an assigned return of 5.8 % return in 73 days. If AOL is higher than $30.00 on 4/20/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 29.1 %.

IAC InterActiveCorp (NASDAQ: IACI) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the April $40.00 call while simultaneously buying IACI stock for $42.39 will result in a new position with a break-even point around $38.39. At that price, this position has a target return of 4.2 %. This trade has 9.4 % downside protection, while still providing a 4.2 % return in 73 days as long as IACI is above $40.00 on 4/20/2013. For comparison purposes only, this IAC InterActiveCorp covered call targets an annualized return rate of 21.0 %.

Newell Rubbermaid (NYSE: NWL) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $24.12 while selling the June $24.00 call will produce a new covered call with a break-even point around $22.92. At that price, this position has a target return of 4.7 %. This trade will have roughly 5.0 % downside protection, while still aiming for a 4.7 % return in 136 days. It will lock in that return as long as Newell Rubbermaid is above $24.00 on 6/22/2013. For comparison purposes only, this NWL covered call aims for an annualized return rate of 12.6 %.

Copart (NASDAQ: CPRT) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $36.48 while simultaneously selling the August $35.00 call will result in a new position with a target return of 5.5 %. Based on recent prices, this position will cost about $33.18, which is also the trade’s breakeven point. At that level, this covered call has 9.0 % downside protection, while still providing a 5.5 % return in 192 days as long as CPRT is above $35.00 on 8/17/2013. For comparison purposes only, this Copart covered call aims for an annualized return rate of 10.4 %.

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