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UnitedHealth Group (NYSE: UNH) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $70.55 while simultaneously selling the December $70.00 call will result in a new position with a target return of 5.3 %. Based on recent prices, this position will cost about $66.45, which is also the trade’s breakeven point. At that level, this covered call has 5.8 % downside protection, while still providing a 5.3 % return in 155 days as long as UNH is above $70.00 on 12/21/2013. For comparison purposes only, this UnitedHealth Group covered call aims for an annualized return rate of 12.6 %.

Cypress Semiconductor (NASDAQ: CY) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the January $12.00 call while at the same time buying CY stock for $12.46 will produce a new covered call with a target return of 8.0 %. Based on recent data, this trade will cost about $11.11, which is also the covered call’s breakeven point. At that price, this covered call has 10.8 % downside protection, while seeking an assigned return of 8.0 % return in 183 days. If CY is higher than $12.00 on 1/18/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 16.0 %.

Johnson Controls (NYSE: JCI) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the January $40.00 call while simultaneously buying JCI stock for $40.43 will result in a new position with a break-even point around $37.78. At that price, this position has a target return of 5.9 %. This trade has 6.6 % downside protection, while still providing a 5.9 % return in 183 days as long as JCI is above $40.00 on 1/18/2014. For comparison purposes only, this Johnson Controls covered call targets an annualized return rate of 11.7 %.

WhiteWave Foods (NYSE: WWAV) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $18.82 while selling the January $20.00 call will produce a new covered call with a break-even point around $17.67. At that price, this position has a target return of 13.2 %. This trade will have roughly 6.1 % downside protection, while still aiming for a 13.2 % return in 183 days. It will lock in that return as long as WhiteWave Foods is above $20.00 on 1/18/2014. For comparison purposes only, this WWAV covered call aims for an annualized return rate of 26.3 %.

US Silica (NYSE: SLCA) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $23.00 while simultaneously selling the September $22.50 call will result in a new position with a target return of 6.9 %. Based on recent prices, this position will cost about $21.05, which is also the trade’s breakeven point. At that level, this covered call has 8.5 % downside protection, while still providing a 6.9 % return in 64 days as long as SLCA is above $22.50 on 9/21/2013. For comparison purposes only, this US Silica covered call aims for an annualized return rate of 39.2 %.

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