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Ford Motor (NYSE: F) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $14.97 while selling the December $15.00 call will produce a new covered call with a break-even point around $13.89. At that price, this position has a target return of 8.0 %. This trade will have roughly 7.2 % downside protection, while still aiming for a 8.0 % return in 178 days. It will lock in that return as long as Ford Motor is above $15.00 on 12/21/2013. For comparison purposes only, this F covered call aims for an annualized return rate of 16.4 %.

PepsiCo (NYSE: PEP) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $80.04 while simultaneously selling the October $82.50 call will result in a new position with a target return of 5.3 %. Based on recent prices, this position will cost about $78.34, which is also the trade’s breakeven point. At that level, this covered call has 2.1 % downside protection, while still providing a 5.3 % return in 115 days as long as PEP is above $82.50 on 10/19/2013. For comparison purposes only, this PepsiCo covered call aims for an annualized return rate of 16.9 %.

HSBC PLC (NYSE: HBC) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the September $52.50 call while at the same time buying HBC stock for $52.04 will produce a new covered call with a target return of 4.6 %. Based on recent data, this trade will cost about $50.17, which is also the covered call’s breakeven point. At that price, this covered call has 3.6 % downside protection, while seeking an assigned return of 4.6 % return in 87 days. If HBC is higher than $52.50 on 9/21/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 19.5 %.

Sony (NYSE: SNE) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the August $20.00 call while at the same time buying SNE stock for $20.40 will produce a new covered call with a target return of 6.7 %. Based on recent data, this trade will cost about $18.75, which is also the covered call’s breakeven point. At that price, this covered call has 8.1 % downside protection, while seeking an assigned return of 6.7 % return in 52 days. If SNE is higher than $20.00 on 8/17/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 46.7 %.

Magna (NYSE: MGA) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the December $65.00 call while simultaneously buying MGA stock for $68.15 will result in a new position with a break-even point around $61.75. At that price, this position has a target return of 5.3 %. This trade has 9.4 % downside protection, while still providing a 5.3 % return in 178 days as long as MGA is above $65.00 on 12/21/2013. For comparison purposes only, this Magna covered call targets an annualized return rate of 10.8 %.

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