General Electric (NYSE: GE) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $19.00 while selling the September $19.00 call will produce a new covered call with a break-even point around $17.94. At that price, this position has a target return of 5.9 %. This trade will have roughly 5.6 % downside protection, while still aiming for a 5.9 % return in 128 days. It will lock in that return as long as General Electric  is above $19.00 on 9/22/2012. For comparison purposes only, this GE covered call aims for an annualized return rate of 16.8 %.

Seagate Technology (NASDAQ: STX) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $30.24 while simultaneously selling the June $30.00 call will result in a new position with a target return of 5.6 %. Based on recent prices, this position will cost about $28.40, which is also the trade’s breakeven point. At that level, this covered call has 6.1 % downside protection, while still providing a 5.6 % return in 30 days as long as  STX is above $30.00 on 6/16/2012. For comparison purposes only, this Seagate Technology covered call aims for an annualized return rate of 68.5 %.

Chicos FAS (NYSE: CHS) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $15.21 while simultaneously selling the August $15.00 call will result in a new position with a target return of 7.8 %. Based on recent prices, this position will cost about $13.91, which is also the trade’s breakeven point. At that level, this covered call has 8.5 % downside protection, while still providing a 7.8 % return in 93 days as long as  CHS is above $15.00 on 8/18/2012. For comparison purposes only, this Chicos FAS covered call aims for an annualized return rate of 30.7 %.

Level 3 Communications (NASDAQ: LVLT) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the September $22.00 call while simultaneously buying LVLT stock for $22.92 will result in a new position with a break-even point around $19.62. At that price, this position has a target return of 12.1 %. This trade has 14.4 % downside protection, while still providing a 12.1 % return in 128 days as long as  LVLT is above $22.00 on 9/22/2012. For comparison purposes only, this Level 3 Communications covered call targets an annualized return rate of 34.6 %.

Tata Motors (NYSE: TTM) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the June $24.00 call while at the same time buying TTM stock for $24.38 will produce a new covered call with a target return of 4.9 %. Based on recent data, this trade will cost about $22.88, which is also the covered call’s breakeven point. At that price, this covered call has 6.2 % downside protection, while seeking an assigned return of 4.9 % return in 30 days. If TTM is higher than $24.00 on 6/16/2012, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 59.5 %.