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Abercrombie and Fitch (NYSE: ANF) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the June $50.00 call while at the same time buying ANF stock for $52.07 will produce a new covered call with a target return of 4.7 %. Based on recent data, this trade will cost about $47.77, which is also the covered call’s breakeven point. At that price, this covered call has 8.3 % downside protection, while seeking an assigned return of 4.7 % return in 45 days. If ANF is higher than $50.00 on 6/22/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 37.8 %.

United Parcel Service (NYSE: UPS) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the October $92.50 call while simultaneously buying UPS stock for $88.66 will result in a new position with a break-even point around $87.36. At that price, this position has a target return of 5.9 %. This trade has 1.5 % downside protection, while still providing a 5.9 % return in 164 days as long as UPS is above $92.50 on 10/19/2013. For comparison purposes only, this United Parcel Service covered call targets an annualized return rate of 13.1 %.

Harley Davidson (NYSE: HOG) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $57.54 while selling the November $55.00 call will produce a new covered call with a break-even point around $52.14. At that price, this position has a target return of 5.5 %. This trade will have roughly 9.4 % downside protection, while still aiming for a 5.5 % return in 192 days. It will lock in that return as long as Harley Davidson is above $55.00 on 11/16/2013. For comparison purposes only, this HOG covered call aims for an annualized return rate of 10.4 %.

Avis Budget (NYSE: CAR) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $30.91 while simultaneously selling the August $30.00 call will result in a new position with a target return of 6.7 %. Based on recent prices, this position will cost about $28.11, which is also the trade’s breakeven point. At that level, this covered call has 9.1 % downside protection, while still providing a 6.7 % return in 101 days as long as CAR is above $30.00 on 8/17/2013. For comparison purposes only, this Avis Budget covered call aims for an annualized return rate of 24.3 %.

Chemtura (NYSE: CHMT) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the September $20.00 call while at the same time buying CHMT stock for $21.33 will produce a new covered call with a target return of 6.2 %. Based on recent data, this trade will cost about $18.83, which is also the covered call’s breakeven point. At that price, this covered call has 11.7 % downside protection, while seeking an assigned return of 6.2 % return in 136 days. If CHMT is higher than $20.00 on 9/21/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 16.7 %.

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