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Caterpillar (NYSE: CAT) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $84.51 while simultaneously selling the July $85.00 call will result in a new position with a target return of 4.0 %. Based on recent prices, this position will cost about $81.73, which is also the trade’s breakeven point. At that level, this covered call has 3.3 % downside protection, while still providing a 4.0 % return in 85 days as long as CAT is above $85.00 on 7/20/2013. For comparison purposes only, this Caterpillar covered call aims for an annualized return rate of 17.2 %.

Bristol Myers (NYSE: BMY) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the September $41.00 call while at the same time buying BMY stock for $40.22 will produce a new covered call with a target return of 5.3 %. Based on recent data, this trade will cost about $38.92, which is also the covered call’s breakeven point. At that price, this covered call has 3.2 % downside protection, while seeking an assigned return of 5.3 % return in 148 days. If BMY is higher than $41.00 on 9/21/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 13.2 %.

F5 Networks (NASDAQ: FFIV) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the June $75.00 call while simultaneously buying FFIV stock for $74.89 will result in a new position with a break-even point around $71.19. At that price, this position has a target return of 5.4 %. This trade has 4.9 % downside protection, while still providing a 5.4 % return in 57 days as long as FFIV is above $75.00 on 6/22/2013. For comparison purposes only, this F5 Networks covered call targets an annualized return rate of 34.3 %.

Lear (NYSE: LEA) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $57.38 while selling the September $60.00 call will produce a new covered call with a break-even point around $55.33. At that price, this position has a target return of 8.4 %. This trade will have roughly 3.6 % downside protection, while still aiming for a 8.4 % return in 148 days. It will lock in that return as long as Lear is above $60.00 on 9/21/2013. For comparison purposes only, this LEA covered call aims for an annualized return rate of 20.8 %.

Leap Wireless International (NASDAQ: LEAP) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $6.22 while simultaneously selling the January $6.00 call will result in a new position with a target return of 20.0 %. Based on recent prices, this position will cost about $5.00, which is also the trade’s breakeven point. At that level, this covered call has 19.6 % downside protection, while still providing a 20.0 % return in 267 days as long as LEAP is above $6.00 on 1/18/2014. For comparison purposes only, this Leap Wireless International covered call aims for an annualized return rate of 27.3 %.

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