MorningUpdate - Options Trading Email
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New PriceWatch Alerts for MSFT, WMT, PFE, HPQ, and More...
January 5, 8:30 AM EST - Before the open... PriceWatch Alerts for
MSFT, WMT, PFE, HPQ, AMAT, PPG, AU, RIG, PCLN, ATI, CTXS, VLO, ACI,
NTES, and SNY, Market Overview, News Leaders and Laggards, Today's
Economic Calendar, and Index Support & Resistance Levels.
New PriceWatch Alerts for MSFT, WMT, PFE, HPQ, AMAT, PPG, AU, RIG,
PCLN, ATI, CTXS, VLO, ACI, NTES, and SNY
PRICEWATCH ALERTS - HIGH RETURN COVERED CALL OPTIONS--------------
-- Microsoft Corporation (Nasdaq: MSFT)
Last Price 30.95 - APR 31.00 CALL OPTION@ $1.45 -> 5.1% Return
(18.2% Annualized) assigned*
-- Valero Energy Corp. (NYSE: VLO)
Last Price 17.89 - JUN 17.00 CALL OPTION@ $2.10 -> 7.7% Return
(17.0% Annualized) assigned*
-- Arch Coal Inc. (NYSE: ACI)
Last Price 23.48 - FEB 23.00 CALL OPTION@ $1.60 -> 5.1% Return
(40.6% Annualized) assigned*
-- Netease.com Inc. (Nasdaq: NTES)
Last Price 41.66 - FEB 41.00 CALL OPTION@ $2.50 -> 4.7% Return
(37.3% Annualized) assigned*
-- Sanofi-Aventis (NYSE: SNY)
Last Price 40.82 - JUN 40.00 CALL OPTION@ $2.75 -> 5.1% Return
(11.2% Annualized) assigned*
-- Wal-Mart Stores Inc. (NYSE: WMT)
Last Price 54.23 - JUN 55.00 CALL OPTION@ $2.00 -> 5.3% Return
(11.7% Annualized) assigned*
-- Transocean Ltd. (NYSE: RIG)
Last Price 86.78 - MAY 85.00 CALL OPTION@ $7.90 -> 7.8% Return
(20.7% Annualized) assigned*
-- priceline.com Incorporated (Nasdaq: PCLN)
Last Price 223.96 - FEB 220.00 CALL OPTION@ $16.30 -> 5.9% Return
(47.2% Annualized) assigned*
-- Allegheny Technologies Inc. (NYSE: ATI)
Last Price 47.28 - FEB 47.00 CALL OPTION@ $3.10 -> 6.4% Return
(50.6% Annualized) assigned*
-- Citrix Systems, Inc. (Nasdaq: CTXS)
Last Price 42.84 - JUN 40.00 CALL OPTION@ $5.30 -> 6.6% Return
(14.5% Annualized) assigned*
-- Pfizer Inc. (NYSE: PFE)
Last Price 18.93 - JUN 19.00 CALL OPTION@ $1.19 -> 7.1% Return
(15.7% Annualized) assigned*
-- Hewlett-Packard Company (NYSE: HPQ)
Last Price 52.45 - MAY 50.00 CALL OPTION@ $4.80 -> 4.9% Return
(13.1% Annualized) assigned*
-- Applied Materials Inc. (Nasdaq: AMAT)
Last Price 14.30 - JUL 14.00 CALL OPTION@ $1.50 -> 9.4% Return
(17.7% Annualized) assigned*
-- PPG Industries Inc. (NYSE: PPG)
Last Price 60.60 - MAY 60.00 CALL OPTION@ $3.80 -> 5.6% Return
(15.0% Annualized) assigned*
-- AngloGold Ashanti Ltd. (NYSE: AU)
Last Price 42.16 - APR 40.00 CALL OPTION@ $5.00 -> 7.6% Return
(27.3% Annualized) assigned*
*Annualized returns are shown for comparison purposes only
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SELECT 10 STRATEGIES FOR TODAY -----------------------------------
Every trading day our Special Daily Select 10 Hedged Strategies
service points out 10 covered call trades and 10 hedged trades
normally requiring much less capital. The goal is for each trade to
generate at least a 5% return over 60 to 180 days. Using our
sophisticated computer models we hunt down the trades with the
highest return and the lowest risk. This is a great way see the
types of trades that can rely on solid stocks to produce double-
digit annual returns while reducing overall risk of holding the
stock and conserving your investment funds.
Today our Select 10 picks include strategies, tactics and trade
ideas for BP (BP), WellPoint (WLP), and HJ Heinz (HNZ) with up to
77% targeted annualized return and 12.1% downside protection. See
the Select 10 Hedged Strategies list for all the details.
NEWS LEADERS AND LAGGARDS-----------------------------------------
So far this morning, Kraft Foods (KFT), L-3 Communications Holdings
(LLL), and WellPoint (WLP) lead the list of companies with positive
news, while Cadbury (CBY), Mesa Air Group (MESA), and Brightpoint
(CELL) lead the list of companies with negative news. Capital One
(COF), Zimmer Holdings (ZMH) and LM Ericsson (ERIC) were upgraded
this morning, while Visa (V), Cabot Oil & Gas (COG), and Fidelity
National (FNF) received downgrades.
MARKET OVERVIEW---------------------------------------------------
Overseas trading is strong this morning as eight of the 10 markets
that we follow are in positive territory. The cumulative average
return on the group stands at a gain of 0.52%. In Asia, stocks
closed mostly higher, boosted by Wall Street's upbeat start for
2010 and strong commodity prices, while technology shares advanced
on optimism for chip sales this year. Turning to Europe, stocks
pulled back after the strong start to the year, with Cadbury
dropping after Nestlé formally took itself out of the running for
the U.K. chocolate maker by buying Kraft Foods' frozen business
instead.
Crude futures continued their winning ways on Monday, with the
dollar-denominated commodity catching a lift from weakness in the
U.S. currency. Traders also cheered the day's stronger-than-
forecast ISM report, along with similarly robust manufacturing data
from China and India. Additionally, speculators placed bets on an
uptick in heating oil demand as a remarkable cold snap swept the
Eastern U.S., with temperatures plummeting far below normal levels
from New England all the way down to the Florida Everglades. By the
close, crude oil for February delivery added $2.15, or 2.71%, to
end the day at $81.51 per barrel.
PUT/CALL RATIO ---------------------------------------------------
Equity option activity on the Chicago Board Options Exchange (CBOE)
saw 1,631,295 call contracts traded on Monday, compared to 853,489
put contracts. The resultant single-session put/call ratio arrived
at 0.52, while the 21-day moving average held at 0.62.
SUPPORT & RESISTANCE LEVELS --------------------------------------
The S&P Depository Receipts (SPY) show support in the neighborhood
of $111.40 and resistance around $113.40. For the Nasdaq 100
(QQQQ), support is near $45.95 and resistance is around $46.50.
TODAY'S ECONOMIC CALENDAR ----------------------------------------
10:00 a.m. Nov Factory Orders
2:00 p.m. Dec Auto & Truck Sales
EARNINGS EXPECTED TODAY (w/current estimates) --------------------
LNDC 0.06
MOS 0.35
SONC 0.14
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