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Morgan Stanley (NYSE: MS) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $27.73 while selling the October $27.00 call will produce a new covered call with a break-even point around $25.85. At that price, this position has a target return of 4.4 %. This trade will have roughly 6.8 % downside protection, while still aiming for a 4.4 % return in 86 days. It will lock in that return as long as Morgan Stanley is above $27.00 on 10/19/2013. For comparison purposes only, this MS covered call aims for an annualized return rate of 18.8 %.

Hanesbrands (NYSE: HBI) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $57.58 while simultaneously selling the October $60.00 call will result in a new position with a target return of 7.1 %. Based on recent prices, this position will cost about $56.03, which is also the trade’s breakeven point. At that level, this covered call has 2.7 % downside protection, while still providing a 7.1 % return in 86 days as long as HBI is above $60.00 on 10/19/2013. For comparison purposes only, this Hanesbrands covered call aims for an annualized return rate of 30.0 %.

Bristol Myers (NYSE: BMY) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the December $44.00 call while at the same time buying BMY stock for $44.59 will produce a new covered call with a target return of 5.1 %. Based on recent data, this trade will cost about $41.86, which is also the covered call’s breakeven point. At that price, this covered call has 6.1 % downside protection, while seeking an assigned return of 5.1 % return in 149 days. If BMY is higher than $44.00 on 12/21/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 12.5 %.

Expedia (NASDAQ: EXPE) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $63.78 while simultaneously selling the October $60.00 call will result in a new position with a target return of 4.7 %. Based on recent prices, this position will cost about $57.28, which is also the trade’s breakeven point. At that level, this covered call has 10.2 % downside protection, while still providing a 4.7 % return in 86 days as long as EXPE is above $60.00 on 10/19/2013. For comparison purposes only, this Expedia covered call aims for an annualized return rate of 20.1 %.

D R Horton (NYSE: DHI) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the September $21.00 call while simultaneously buying DHI stock for $21.20 will result in a new position with a break-even point around $19.75. At that price, this position has a target return of 6.3 %. This trade has 6.8 % downside protection, while still providing a 6.3 % return in 58 days as long as DHI is above $21.00 on 9/21/2013. For comparison purposes only, this D R Horton covered call targets an annualized return rate of 39.8 %.

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