Time Warner (NYSE: TWX) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $40.67 while selling the December $40.00 call will produce a new covered call with a break-even point around $38.20. At that price, this position has a target return of 4.7 %. This trade will have roughly 6.1 % downside protection, while still aiming for a 4.7 % return in 141 days. It will lock in that return as long as Time Warner  is above $40.00 on 12/22/2012. For comparison purposes only, this TWX covered call aims for an annualized return rate of 12.2 %.

Prudential Financial (NYSE: PRU) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $50.04 while simultaneously selling the September $50.00 call will result in a new position with a target return of 4.1 %. Based on recent prices, this position will cost about $48.04, which is also the trade’s breakeven point. At that level, this covered call has 4.0 % downside protection, while still providing a 4.1 % return in 50 days as long as  PRU is above $50.00 on 9/22/2012. For comparison purposes only, this Prudential Financial covered call aims for an annualized return rate of 29.7 %.

Gilead Sciences (NASDAQ: GILD) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $57.29 while simultaneously selling the November $55.00 call will result in a new position with a target return of 5.1 %. Based on recent prices, this position will cost about $52.34, which is also the trade’s breakeven point. At that level, this covered call has 8.6 % downside protection, while still providing a 5.1 % return in 106 days as long as  GILD is above $55.00 on 11/17/2012. For comparison purposes only, this Gilead Sciences covered call aims for an annualized return rate of 17.5 %.

Weight Watchers (NYSE: WTW) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the September $42.50 call while simultaneously buying WTW stock for $42.66 will result in a new position with a break-even point around $40.06. At that price, this position has a target return of 6.1 %. This trade has 6.1 % downside protection, while still providing a 6.1 % return in 50 days as long as  WTW is above $42.50 on 9/22/2012. For comparison purposes only, this Weight Watchers covered call targets an annualized return rate of 44.5 %.

Navistar (NYSE: NAV) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the August $21.00 call while at the same time buying NAV stock for $21.44 will produce a new covered call with a target return of 7.2 %. Based on recent data, this trade will cost about $19.59, which is also the covered call’s breakeven point. At that price, this covered call has 8.6 % downside protection, while seeking an assigned return of 7.2 % return in 15 days. If NAV is higher than $21.00 on 8/18/2012, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 175.0 %.