Petroleo Brasileiro (NYSE: PBR) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $20.87 while selling the January $20.00 call will produce a new covered call with a break-even point around $18.66. At that price, this position has a target return of 7.2 %. This trade will have roughly 10.6 % downside protection, while still aiming for a 7.2 % return in 164 days. It will lock in that return as long as Petroleo Brasileiro  is above $20.00 on 1/19/2013. For comparison purposes only, this PBR covered call aims for an annualized return rate of 16.0 %.

United Technologies (NYSE: UTX) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $78.12 while simultaneously selling the January $77.50 call will result in a new position with a target return of 5.0 %. Based on recent prices, this position will cost about $73.82, which is also the trade’s breakeven point. At that level, this covered call has 5.5 % downside protection, while still providing a 5.0 % return in 164 days as long as  UTX is above $77.50 on 1/19/2013. For comparison purposes only, this United Technologies covered call aims for an annualized return rate of 11.1 %.

American Tower (NYSE: AMT) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $70.52 while simultaneously selling the January $69.65 call will result in a new position with a target return of 5.2 %. Based on recent prices, this position will cost about $66.22, which is also the trade’s breakeven point. At that level, this covered call has 6.1 % downside protection, while still providing a 5.2 % return in 164 days as long as  AMT is above $69.65 on 1/19/2013. For comparison purposes only, this American Tower covered call aims for an annualized return rate of 11.5 %.

Valeant Pharmac. (NYSE: VRX) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the September $49.00 call while at the same time buying VRX stock for $49.58 will produce a new covered call with a target return of 5.4 %. Based on recent data, this trade will cost about $46.48, which is also the covered call’s breakeven point. At that price, this covered call has 6.3 % downside protection, while seeking an assigned return of 5.4 % return in 45 days. If VRX is higher than $49.00 on 9/22/2012, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 44.0 %.

Endo Pharmaceuticals (NASDAQ: ENDP) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the October $30.00 call while simultaneously buying ENDP stock for $30.67 will result in a new position with a break-even point around $28.82. At that price, this position has a target return of 4.1 %. This trade has 6.0 % downside protection, while still providing a 4.1 % return in 73 days as long as  ENDP is above $30.00 on 10/20/2012. For comparison purposes only, this Endo Pharmaceuticals covered call targets an annualized return rate of 20.5 %.