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International Business Machines (NYSE: IBM) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $212.36 while simultaneously selling the July $215.00 call will result in a new position with a target return of 4.2 %. Based on recent prices, this position will cost about $206.41, which is also the trade’s breakeven point. At that level, this covered call has 2.8 % downside protection, while still providing a 4.2 % return in 115 days as long as IBM is above $215.00 on 7/20/2013. For comparison purposes only, this International Business Machines covered call aims for an annualized return rate of 13.2 %.

Lions Gate Entertainment (NYSE: LGF) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the September $23.00 call while at the same time buying LGF stock for $23.81 will produce a new covered call with a target return of 7.4 %. Based on recent data, this trade will cost about $21.41, which is also the covered call’s breakeven point. At that price, this covered call has 10.1 % downside protection, while seeking an assigned return of 7.4 % return in 178 days. If LGF is higher than $23.00 on 9/21/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 15.2 %.

Sarepta Therapeutics (NASDAQ: SRPT) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the May $29.00 call while simultaneously buying SRPT stock for $36.12 will result in a new position with a break-even point around $25.92. At that price, this position has a target return of 11.9 %. This trade has 28.2 % downside protection, while still providing a 11.9 % return in 52 days as long as SRPT is above $29.00 on 5/18/2013. For comparison purposes only, this Sarepta Therapeutics covered call targets an annualized return rate of 83.4 %.

Cheniere Energy (AMEX: LNG) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $26.37 while selling the June $26.00 call will produce a new covered call with a break-even point around $24.33. At that price, this position has a target return of 6.9 %. This trade will have roughly 7.7 % downside protection, while still aiming for a 6.9 % return in 87 days. It will lock in that return as long as Cheniere Energy is above $26.00 on 6/22/2013. For comparison purposes only, this LNG covered call aims for an annualized return rate of 28.8 %.

Embraer Empresa Brasileira de Aeronautics (NYSE: ERJ) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $35.28 while simultaneously selling the July $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 6.0 % downside protection, while still providing a 5.5 % return in 115 days as long as ERJ is above $35.00 on 7/20/2013. For comparison purposes only, this Embraer Empresa Brasileira de Aeronautics covered call aims for an annualized return rate of 17.4 %.

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