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Rackspace Hosting (NYSE: RAX) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $36.34 while selling the September $35.00 call will produce a new covered call with a break-even point around $32.04. At that price, this position has a target return of 9.2 %. This trade will have roughly 11.8 % downside protection, while still aiming for a 9.2 % return in 93 days. It will lock in that return as long as Rackspace Hosting is above $35.00 on 9/21/2013. For comparison purposes only, this RAX covered call aims for an annualized return rate of 36.2 %.

Polycom (NASDAQ: PLCM) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $10.78 while simultaneously selling the January $10.00 call will result in a new position with a target return of 11.4 %. Based on recent prices, this position will cost about $8.98, which is also the trade’s breakeven point. At that level, this covered call has 16.7 % downside protection, while still providing a 11.4 % return in 212 days as long as PLCM is above $10.00 on 1/18/2014. For comparison purposes only, this Polycom covered call aims for an annualized return rate of 19.5 %.

Volcano Corp. (NASDAQ: VOLC) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the October $17.50 call while at the same time buying VOLC stock for $17.70 will produce a new covered call with a target return of 8.7 %. Based on recent data, this trade will cost about $16.10, which is also the covered call’s breakeven point. At that price, this covered call has 9.0 % downside protection, while seeking an assigned return of 8.7 % return in 121 days. If VOLC is higher than $17.50 on 10/19/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 26.2 %.

Dreamworks Animation (NASDAQ: DWA) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $24.95 while simultaneously selling the December $22.50 call will result in a new position with a target return of 6.4 %. Based on recent prices, this position will cost about $21.15, which is also the trade’s breakeven point. At that level, this covered call has 15.2 % downside protection, while still providing a 6.4 % return in 184 days as long as DWA is above $22.50 on 12/21/2013. For comparison purposes only, this Dreamworks Animation covered call aims for an annualized return rate of 12.7 %.

Questcor Pharmaceuticals (NASDAQ: QCOR) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the July $47.00 call while simultaneously buying QCOR stock for $47.46 will result in a new position with a break-even point around $42.36. At that price, this position has a target return of 11.0 %. This trade has 10.7 % downside protection, while still providing a 11.0 % return in 30 days as long as QCOR is above $47.00 on 7/20/2013. For comparison purposes only, this Questcor Pharmaceuticals covered call targets an annualized return rate of 133.2 %.

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