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Hewlett Packard (NYSE: HPQ) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the August $16.00 call while simultaneously buying HPQ stock for $16.87 will result in a new position with a break-even point around $14.84. At that price, this position has a target return of 7.8 %. This trade has 12.0 % downside protection, while still providing a 7.8 % return in 187 days as long as HPQ is above $16.00 on 8/17/2013. For comparison purposes only, this Hewlett Packard covered call targets an annualized return rate of 15.2 %.

Western Digital (NASDAQ: WDC) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the April $48.00 call while at the same time buying WDC stock for $48.49 will produce a new covered call with a target return of 6.1 %. Based on recent data, this trade will cost about $45.24, which is also the covered call’s breakeven point. At that price, this covered call has 6.7 % downside protection, while seeking an assigned return of 6.1 % return in 68 days. If WDC is higher than $48.00 on 4/20/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 32.7 %.

Lear (NYSE: LEA) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $53.98 while simultaneously selling the June $55.00 call will result in a new position with a target return of 7.1 %. Based on recent prices, this position will cost about $51.33, which is also the trade’s breakeven point. At that level, this covered call has 4.9 % downside protection, while still providing a 7.1 % return in 131 days as long as LEA is above $55.00 on 6/22/2013. For comparison purposes only, this Lear covered call aims for an annualized return rate of 19.9 %.

ACE (NYSE: ACE) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $86.20 while selling the August $87.50 call will produce a new covered call with a break-even point around $83.40. At that price, this position has a target return of 4.9 %. This trade will have roughly 3.2 % downside protection, while still aiming for a 4.9 % return in 187 days. It will lock in that return as long as ACE is above $87.50 on 8/17/2013. For comparison purposes only, this ACE covered call aims for an annualized return rate of 9.6 %.

Sony (NYSE: SNE) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the July $15.00 call while simultaneously buying SNE stock for $14.92 will result in a new position with a break-even point around $13.52. At that price, this position has a target return of 10.9 %. This trade has 9.4 % downside protection, while still providing a 10.9 % return in 159 days as long as SNE is above $15.00 on 7/20/2013. For comparison purposes only, this Sony covered call targets an annualized return rate of 25.1 %.

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