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HSBC PLC (NYSE: HBC) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $58.17 while selling the September $60.00 call will produce a new covered call with a break-even point around $56.92. At that price, this position has a target return of 5.4 %. This trade will have roughly 2.1 % downside protection, while still aiming for a 5.4 % return in 122 days. It will lock in that return as long as HSBC PLC is above $60.00 on 9/21/2013. For comparison purposes only, this HBC covered call aims for an annualized return rate of 16.2 %.

Merck (NYSE: MRK) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $47.33 while simultaneously selling the October $48.00 call will result in a new position with a target return of 4.9 %. Based on recent prices, this position will cost about $45.75, which is also the trade’s breakeven point. At that level, this covered call has 3.3 % downside protection, while still providing a 4.9 % return in 150 days as long as MRK is above $48.00 on 10/19/2013. For comparison purposes only, this Merck covered call aims for an annualized return rate of 11.9 %.

CSX (NYSE: CSX) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the January $27.50 call while at the same time buying CSX stock for $26.14 will produce a new covered call with a target return of 9.8 %. Based on recent data, this trade will cost about $25.04, which is also the covered call’s breakeven point. At that price, this covered call has 4.2 % downside protection, while seeking an assigned return of 9.8 % return in 241 days. If CSX is higher than $27.50 on 1/18/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 14.9 %.

Wynn Resorts (NASDAQ: WYNN) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the September $140.00 call while simultaneously buying WYNN stock for $142.43 will result in a new position with a break-even point around $133.13. At that price, this position has a target return of 5.2 %. This trade has 6.5 % downside protection, while still providing a 5.2 % return in 122 days as long as WYNN is above $140.00 on 9/21/2013. For comparison purposes only, this Wynn Resorts covered call targets an annualized return rate of 15.4 %.

Lam Research (NASDAQ: LRCX) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $47.92 while simultaneously selling the July $48.00 call will result in a new position with a target return of 4.1 %. Based on recent prices, this position will cost about $46.12, which is also the trade’s breakeven point. At that level, this covered call has 3.8 % downside protection, while still providing a 4.1 % return in 59 days as long as LRCX is above $48.00 on 7/20/2013. For comparison purposes only, this Lam Research covered call aims for an annualized return rate of 25.2 %.

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