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Merck (NYSE: MRK) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $47.41 while selling the October $48.00 call will produce a new covered call with a break-even point around $46.02. At that price, this position has a target return of 4.3 %. This trade will have roughly 2.9 % downside protection, while still aiming for a 4.3 % return in 102 days. It will lock in that return as long as Merck is above $48.00 on 10/19/2013. For comparison purposes only, this MRK covered call aims for an annualized return rate of 15.4 %.

Cheniere Energy (AMEX: LNG) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $29.61 while simultaneously selling the August $29.00 call will result in a new position with a target return of 5.1 %. Based on recent prices, this position will cost about $27.58, which is also the trade’s breakeven point. At that level, this covered call has 6.9 % downside protection, while still providing a 5.1 % return in 39 days as long as LNG is above $29.00 on 8/17/2013. For comparison purposes only, this Cheniere Energy covered call aims for an annualized return rate of 48.1 %.

Tempur-Pedic (NYSE: TPX) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the August $41.00 call while at the same time buying TPX stock for $43.54 will produce a new covered call with a target return of 4.2 %. Based on recent data, this trade will cost about $39.34, which is also the covered call’s breakeven point. At that price, this covered call has 9.6 % downside protection, while seeking an assigned return of 4.2 % return in 39 days. If TPX is higher than $41.00 on 8/17/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 39.4 %.

Stifel (NYSE: SF) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $35.95 while simultaneously selling the January $35.00 call will result in a new position with a target return of 6.2 %. Based on recent prices, this position will cost about $32.95, which is also the trade’s breakeven point. At that level, this covered call has 8.3 % downside protection, while still providing a 6.2 % return in 193 days as long as SF is above $35.00 on 1/18/2014. For comparison purposes only, this Stifel covered call aims for an annualized return rate of 11.8 %.

Nielsen Holdings (NYSE: NLSN) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the November $35.00 call while simultaneously buying NLSN stock for $35.10 will result in a new position with a break-even point around $33.10. At that price, this position has a target return of 5.7 %. This trade has 5.7 % downside protection, while still providing a 5.7 % return in 130 days as long as NLSN is above $35.00 on 11/16/2013. For comparison purposes only, this Nielsen Holdings covered call targets an annualized return rate of 16.1 %.

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