Lowe's (NYSE: LOW) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $25.80 while simultaneously selling the October $25.00 call will result in a new position with a target return of 4.6 %. Based on recent prices, this position will cost about $23.91, which is also the trade’s breakeven point. At that level, this covered call has 7.3 % downside protection, while still providing a 4.6 % return in 95 days as long as  LOW is above $25.00 on 10/20/2012. For comparison purposes only, this Lowe's covered call aims for an annualized return rate of 17.5 %.

Abercrombie and Fitch (NYSE: ANF) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $34.36 while simultaneously selling the August $34.00 call will result in a new position with a target return of 7.1 %. Based on recent prices, this position will cost about $31.74, which is also the trade’s breakeven point. At that level, this covered call has 7.6 % downside protection, while still providing a 7.1 % return in 32 days as long as  ANF is above $34.00 on 8/18/2012. For comparison purposes only, this Abercrombie and Fitch covered call aims for an annualized return rate of 81.2 %.

IAC InterActiveCorp (NASDAQ: IACI) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the January $45.00 call while simultaneously buying IACI stock for $47.69 will result in a new position with a break-even point around $42.79. At that price, this position has a target return of 5.2 %. This trade has 10.3 % downside protection, while still providing a 5.2 % return in 186 days as long as  IACI is above $45.00 on 1/19/2013. For comparison purposes only, this IAC InterActiveCorp covered call targets an annualized return rate of 10.1 %.

Sherwin Williams (NYSE: SHW) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the September $125.00 call while at the same time buying SHW stock for $127.23 will produce a new covered call with a target return of 4.1 %. Based on recent data, this trade will cost about $120.13, which is also the covered call’s breakeven point. At that price, this covered call has 5.6 % downside protection, while seeking an assigned return of 4.1 % return in 67 days. If SHW is higher than $125.00 on 9/22/2012, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 22.1 %.

JC Penney (NYSE: JCP) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $19.58 while selling the August $19.00 call will produce a new covered call with a break-even point around $17.76. At that price, this position has a target return of 7.0 %. This trade will have roughly 9.3 % downside protection, while still aiming for a 7.0 % return in 32 days. It will lock in that return as long as JC Penney  is above $19.00 on 8/18/2012. For comparison purposes only, this JCP covered call aims for an annualized return rate of 79.6 %.