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CBS (NYSE: CBS) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $50.85 while selling the December $50.00 call will produce a new covered call with a break-even point around $47.25. At that price, this position has a target return of 5.8 %. This trade will have roughly 7.1 % downside protection, while still aiming for a 5.8 % return in 121 days. It will lock in that return as long as CBS is above $50.00 on 12/21/2013. For comparison purposes only, this CBS covered call aims for an annualized return rate of 17.6 %.

US Bancorp (NYSE: USB) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $36.79 while simultaneously selling the January $37.00 call will result in a new position with a target return of 4.3 %. Based on recent prices, this position will cost about $35.47, which is also the trade’s breakeven point. At that level, this covered call has 3.6 % downside protection, while still providing a 4.3 % return in 149 days as long as USB is above $37.00 on 1/18/2014. For comparison purposes only, this US Bancorp covered call aims for an annualized return rate of 10.6 %.

Texas Instruments (NASDAQ: TXN) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the January $38.00 call while at the same time buying TXN stock for $38.45 will produce a new covered call with a target return of 5.0 %. Based on recent data, this trade will cost about $36.18, which is also the covered call’s breakeven point. At that price, this covered call has 5.9 % downside protection, while seeking an assigned return of 5.0 % return in 149 days. If TXN is higher than $38.00 on 1/18/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 12.3 %.

Johnson Controls (NYSE: JCI) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $40.58 while simultaneously selling the January $40.00 call will result in a new position with a target return of 5.3 %. Based on recent prices, this position will cost about $37.98, which is also the trade’s breakeven point. At that level, this covered call has 6.4 % downside protection, while still providing a 5.3 % return in 149 days as long as JCI is above $40.00 on 1/18/2014. For comparison purposes only, this Johnson Controls covered call aims for an annualized return rate of 13.0 %.

Randgold Resources (NASDAQ: GOLD) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the September $77.50 call while simultaneously buying GOLD stock for $77.46 will result in a new position with a break-even point around $73.96. At that price, this position has a target return of 4.8 %. This trade has 4.5 % downside protection, while still providing a 4.8 % return in 30 days as long as GOLD is above $77.50 on 9/21/2013. For comparison purposes only, this Randgold Resources covered call targets an annualized return rate of 58.2 %.

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