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International Business Machines (NYSE: IBM) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $190.73 while selling the January $190.00 call will produce a new covered call with a break-even point around $182.78. At that price, this position has a target return of 4.0 %. This trade will have roughly 4.2 % downside protection, while still aiming for a 4.0 % return in 127 days. It will lock in that return as long as International Business Machines is above $190.00 on 1/18/2014. For comparison purposes only, this IBM covered call aims for an annualized return rate of 11.4 %.

Cytokinetics (NASDAQ: CYTK) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $8.62 while simultaneously selling the February $10.00 call will result in a new position with a target return of 33.0 %. Based on recent prices, this position will cost about $7.52, which is also the trade’s breakeven point. At that level, this covered call has 12.8 % downside protection, while still providing a 33.0 % return in 162 days as long as CYTK is above $10.00 on 2/22/2014. For comparison purposes only, this Cytokinetics covered call aims for an annualized return rate of 74.3 %.

Freeport McMoran (NYSE: FCX) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the November $33.00 call while at the same time buying FCX stock for $33.15 will produce a new covered call with a target return of 4.8 %. Based on recent data, this trade will cost about $31.49, which is also the covered call’s breakeven point. At that price, this covered call has 5.0 % downside protection, while seeking an assigned return of 4.8 % return in 64 days. If FCX is higher than $33.00 on 11/16/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 27.3 %.

Portfolio Recovery Associates (NASDAQ: PRAA) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the December $55.00 call while simultaneously buying PRAA stock for $58.47 will result in a new position with a break-even point around $52.67. At that price, this position has a target return of 4.4 %. This trade has 9.9 % downside protection, while still providing a 4.4 % return in 99 days as long as PRAA is above $55.00 on 12/21/2013. For comparison purposes only, this Portfolio Recovery Associates covered call targets an annualized return rate of 16.3 %.

Spectra Energy (NYSE: SE) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $33.03 while selling the January $33.00 call will produce a new covered call with a break-even point around $31.63. At that price, this position has a target return of 4.3 %. This trade will have roughly 4.2 % downside protection, while still aiming for a 4.3 % return in 127 days. It will lock in that return as long as Spectra Energy is above $33.00 on 1/18/2014. For comparison purposes only, this SE covered call aims for an annualized return rate of 12.4 %.

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