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Starbucks (NASDAQ: SBUX) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the July $55.00 call while at the same time buying SBUX stock for $56.51 will produce a new covered call with a target return of 4.6 %. Based on recent data, this trade will cost about $52.56, 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 4.6 % return in 136 days. If SBUX is higher than $55.00 on 7/20/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 12.5 %.

Prudential Financial (NYSE: PRU) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the September $55.00 call while simultaneously buying PRU stock for $56.76 will result in a new position with a break-even point around $51.96. At that price, this position has a target return of 5.9 %. This trade has 8.5 % downside protection, while still providing a 5.9 % return in 199 days as long as PRU is above $55.00 on 9/21/2013. For comparison purposes only, this Prudential Financial covered call targets an annualized return rate of 10.7 %.

American Eagle Outfitters (NYSE: AEO) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $22.55 while selling the August $22.00 call will produce a new covered call with a break-even point around $20.50. At that price, this position has a target return of 7.3 %. This trade will have roughly 9.1 % downside protection, while still aiming for a 7.3 % return in 164 days. It will lock in that return as long as American Eagle Outfitters is above $22.00 on 8/17/2013. For comparison purposes only, this AEO covered call aims for an annualized return rate of 16.3 %.

CarMax Group (NYSE: KMX) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $40.24 while simultaneously selling the July $40.00 call will result in a new position with a target return of 6.8 %. Based on recent prices, this position will cost about $37.44, which is also the trade’s breakeven point. At that level, this covered call has 7.0 % downside protection, while still providing a 6.8 % return in 136 days as long as KMX is above $40.00 on 7/20/2013. For comparison purposes only, this CarMax Group covered call aims for an annualized return rate of 18.3 %.

KLA Tencor (NASDAQ: KLAC) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the June $55.00 call while at the same time buying KLAC stock for $55.55 will produce a new covered call with a target return of 5.1 %. Based on recent data, this trade will cost about $52.35, which is also the covered call’s breakeven point. At that price, this covered call has 5.8 % downside protection, while seeking an assigned return of 5.1 % return in 108 days. If KLAC is higher than $55.00 on 6/22/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 17.1 %.

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