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Coca Cola (NYSE: KO) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $76.34 while selling the November $77.50 call will produce a new covered call with a break-even point around $74.40. At that price, this position has a target return of 4.2 %. This trade will have roughly 2.5 % downside protection, while still aiming for a 4.2 % return in 142 days. It will lock in that return as long as Coca Cola  is above $77.50 on 11/17/2012. For comparison purposes only, this KO covered call aims for an annualized return rate of 10.7 %.

Deere (NYSE: DE) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $78.08 while simultaneously selling the September $77.50 call will result in a new position with a target return of 5.3 %. Based on recent prices, this position will cost about $73.63, which is also the trade’s breakeven point. At that level, this covered call has 5.7 % downside protection, while still providing a 5.3 % return in 86 days as long as  DE is above $77.50 on 9/22/2012. For comparison purposes only, this Deere covered call aims for an annualized return rate of 22.3 %.

 

News Corp. (NASDAQ: NWSA) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $22.31 while simultaneously selling the October $22.00 call will result in a new position with a target return of 5.7 %. Based on recent prices, this position will cost about $20.81, which is also the trade’s breakeven point. At that level, this covered call has 6.7 % downside protection, while still providing a 5.7 % return in 114 days as long as  NWSA is above $22.00 on 10/20/2012. For comparison purposes only, this News Corp. covered call aims for an annualized return rate of 18.3 %.

 

Arena Pharmaceuticals (NASDAQ: ARNA) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the August $11.00 call while at the same time buying ARNA stock for $11.39 will produce a new covered call with a target return of 13.5 %. Based on recent data, this trade will cost about $9.69, which is also the covered call’s breakeven point. At that price, this covered call has 14.9 % downside protection, while seeking an assigned return of 13.5 % return in 51 days. If ARNA is higher than $11.00 on 8/18/2012, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 96.7 %.

 

American Tower (NYSE: AMT) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the January $69.65 call while simultaneously buying AMT stock for $69.63 will result in a new position with a break-even point around $65.03. At that price, this position has a target return of 7.1 %. This trade has 6.6 % downside protection, while still providing a 7.1 % return in 205 days as long as  AMT is above $69.65 on 1/19/2013. For comparison purposes only, this American Tower covered call targets an annualized return rate of 12.6 %.

 

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