Polycom (NASDAQ: PLCM) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the April $10.00 call while simultaneously buying PLCM stock for $11.31 will result in a new position with a break-even point around $9.06. At that price, this position has a target return of 10.4 %. This trade has 19.9 % downside protection, while still providing a 10.4 % return in 218 days as long as  PLCM is above $10.00 on 4/20/2013. For comparison purposes only, this Polycom covered call targets an annualized return rate of 17.4 %.

General Electric (NYSE: GE) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $22.02 while selling the March $22.00 call will produce a new covered call with a break-even point around $20.97. At that price, this position has a target return of 4.9 %. This trade will have roughly 4.8 % downside protection, while still aiming for a 4.9 % return in 183 days. It will lock in that return as long as General Electric  is above $22.00 on 3/16/2013. For comparison purposes only, this GE covered call aims for an annualized return rate of 9.8 %.

Alcoa (NYSE: AA) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $9.63 while simultaneously selling the April $10.00 call will result in a new position with a target return of 12.2 %. Based on recent prices, this position will cost about $8.91, which is also the trade’s breakeven point. At that level, this covered call has 7.5 % downside protection, while still providing a 12.2 % return in 218 days as long as  AA is above $10.00 on 4/20/2013. For comparison purposes only, this Alcoa covered call aims for an annualized return rate of 20.5 %.

Steel Dynamics (NASDAQ: STLD) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $12.40 while simultaneously selling the February $12.00 call will result in a new position with a target return of 8.1 %. Based on recent prices, this position will cost about $11.10, which is also the trade’s breakeven point. At that level, this covered call has 10.5 % downside protection, while still providing a 8.1 % return in 155 days as long as  STLD is above $12.00 on 2/16/2013. For comparison purposes only, this Steel Dynamics covered call aims for an annualized return rate of 19.1 %.

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Brasil Foods (NYSE: BRFS) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the March $17.50 call while at the same time buying BRFS stock for $17.30 will produce a new covered call with a target return of 8.0 %. Based on recent data, this trade will cost about $16.20, which is also the covered call’s breakeven point. At that price, this covered call has 6.4 % downside protection, while seeking an assigned return of 8.0 % return in 183 days. If BRFS is higher than $17.50 on 3/16/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 16.0 %.