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Cisco Systems (NASDAQ: CSCO) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $20.85 while selling the October $21.00 call will produce a new covered call with a break-even point around $19.64. At that price, this position has a target return of 6.9 %. This trade will have roughly 5.8 % downside protection, while still aiming for a 6.9 % return in 207 days. It will lock in that return as long as Cisco Systems is above $21.00 on 10/19/2013. For comparison purposes only, this CSCO covered call aims for an annualized return rate of 12.2 %.

Cliffs Natural Resources (NYSE: CLF) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $21.66 while simultaneously selling the May $21.00 call will result in a new position with a target return of 7.2 %. Based on recent prices, this position will cost about $19.59, which is also the trade’s breakeven point. At that level, this covered call has 9.6 % downside protection, while still providing a 7.2 % return in 53 days as long as CLF is above $21.00 on 5/18/2013. For comparison purposes only, this Cliffs Natural Resources covered call aims for an annualized return rate of 49.5 %.

TIBCO Software (NASDAQ: TIBX) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the August $20.00 call while at the same time buying TIBX stock for $20.33 will produce a new covered call with a target return of 9.7 %. Based on recent data, this trade will cost about $18.23, which is also the covered call’s breakeven point. At that price, this covered call has 10.3 % downside protection, while seeking an assigned return of 9.7 % return in 144 days. If TIBX is higher than $20.00 on 8/17/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 24.6 %.

Tenet Healthcare (NYSE: THC) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the August $46.00 call while simultaneously buying THC stock for $46.66 will result in a new position with a break-even point around $42.76. At that price, this position has a target return of 7.6 %. This trade has 8.4 % downside protection, while still providing a 7.6 % return in 144 days as long as THC is above $46.00 on 8/17/2013. For comparison purposes only, this Tenet Healthcare covered call targets an annualized return rate of 19.2 %.

Splunk (NASDAQ: SPLK) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $39.98 while selling the August $37.50 call will produce a new covered call with a break-even point around $34.78. At that price, this position has a target return of 7.8 %. This trade will have roughly 13.0 % downside protection, while still aiming for a 7.8 % return in 144 days. It will lock in that return as long as Splunk is above $37.50 on 8/17/2013. For comparison purposes only, this SPLK covered call aims for an annualized return rate of 19.8 %.

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