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Netflix (NASDAQ: NFLX) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $253.41 while selling the September $250.00 call will produce a new covered call with a break-even point around $239.21. At that price, this position has a target return of 4.5 %. This trade will have roughly 5.6 % downside protection, while still aiming for a 4.5 % return in 36 days. It will lock in that return as long as Netflix is above $250.00 on 9/21/2013. For comparison purposes only, this NFLX covered call aims for an annualized return rate of 45.7 %.

Kohls (NYSE: KSS) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $53.51 while simultaneously selling the January $52.50 call will result in a new position with a target return of 4.4 %. Based on recent prices, this position will cost about $50.31, which is also the trade’s breakeven point. At that level, this covered call has 6.0 % downside protection, while still providing a 4.4 % return in 155 days as long as KSS is above $52.50 on 1/18/2014. For comparison purposes only, this Kohls covered call aims for an annualized return rate of 10.2 %.

21St Century Fox (NASDAQ: FOX) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the January $31.00 call while at the same time buying FOX stock for $31.95 will produce a new covered call with a target return of 5.3 %. Based on recent data, this trade will cost about $29.45, which is also the covered call’s breakeven point. At that price, this covered call has 7.8 % downside protection, while seeking an assigned return of 5.3 % return in 155 days. If FOX is higher than $31.00 on 1/18/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 12.4 %.

Beam (NYSE: BEAM) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $62.08 while simultaneously selling the January $60.00 call will result in a new position with a target return of 4.6 %. Based on recent prices, this position will cost about $57.38, which is also the trade’s breakeven point. At that level, this covered call has 7.6 % downside protection, while still providing a 4.6 % return in 155 days as long as BEAM is above $60.00 on 1/18/2014. For comparison purposes only, this Beam covered call aims for an annualized return rate of 10.7 %.

Caterpillar (NYSE: CAT) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the January $85.00 call while simultaneously buying CAT stock for $85.86 will result in a new position with a break-even point around $80.86. At that price, this position has a target return of 5.1 %. This trade has 5.8 % downside protection, while still providing a 5.1 % return in 155 days as long as CAT is above $85.00 on 1/18/2014. For comparison purposes only, this Caterpillar covered call targets an annualized return rate of 12.0 %.

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