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Home Depot (NYSE: HD) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $50.39 while selling the November $49.00 call will produce a new covered call with a break-even point around $46.49. At that price, this position has a target return of 5.4 %. This trade will have roughly 7.7 % downside protection, while still aiming for a 5.4 % return in 187 days. It will lock in that return as long as Home Depot  is above $49.00 on 11/17/2012. For comparison purposes only, this HD covered call aims for an annualized return rate of 10.5 %.

Dow Chemical (NYSE: DOW) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $32.15 while simultaneously selling the September $31.00 call will result in a new position with a target return of 5.2 %. Based on recent prices, this position will cost about $29.47, which is also the trade’s breakeven point. At that level, this covered call has 8.3 % downside protection, while still providing a 5.2 % return in 131 days as long as  DOW is above $31.00 on 9/22/2012. For comparison purposes only, this Dow Chemical covered call aims for an annualized return rate of 14.5 %.

Perrigo (NASDAQ: PRGO) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the November $100.00 call while simultaneously buying PRGO stock for $101.61 will result in a new position with a break-even point around $93.81. At that price, this position has a target return of 6.6 %. This trade has 7.7 % downside protection, while still providing a 6.6 % return in 187 days as long as  PRGO is above $100.00 on 11/17/2012. For comparison purposes only, this Perrigo covered call targets an annualized return rate of 12.9 %.

Baidu.com (NASDAQ: BIDU) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $122.23 while simultaneously selling the September $110.00 call will result in a new position with a target return of 7.0 %. Based on recent prices, this position will cost about $102.78, which is also the trade’s breakeven point. At that level, this covered call has 15.9 % downside protection, while still providing a 7.0 % return in 131 days as long as  BIDU is above $110.00 on 9/22/2012. For comparison purposes only, this Baidu.com covered call aims for an annualized return rate of 19.6 %.

Rio (NYSE: RIO) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the October $47.50 call while at the same time buying RIO stock for $50.05 will produce a new covered call with a target return of 8.9 %. Based on recent data, this trade will cost about $43.60, which is also the covered call’s breakeven point. At that price, this covered call has 12.9 % downside protection, while seeking an assigned return of 8.9 % return in 159 days. If RIO is higher than $47.50 on 10/20/2012, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 20.5 %.

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