Covered Call Trade Candidate: WLT

Walter Energy (NYSE: WLT) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today.

Buying the stock for $14.69 while simultaneously selling the January $14.00 call will result in a new position with a target return of 8.7%.

Based on recent prices, this position will cost about $12.88, which is also the trade’s breakeven point. At that level, this covered call has 12.3% downside protection, while still providing a 8.7% return in 53 days as long as WLT is above $14.00 on 1/18/2014.

For comparison purposes only, this Walter Energy covered call aims for an annualized return rate of 59.8%.

*Annualized returns are shown for comparison purposes
*For more details on these covered calls and how you can use them to enhance your portfolio performance, go to:


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s