MorningUpdate - Options Trading Email
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New PriceWatch Alerts for COF, QCOM, WYNN, TWX, and More...
January 6, 8:30 AM EST - Before the open... PriceWatch Alerts for
COF, QCOM, WYNN, TWX, CAL, MRO, AEO, BHI, ADBE, AGU, CB, BMY, GRMN,
WDC, and IP, Market Overview, News Leaders and Laggards, Today's
Economic Calendar, and Index Support & Resistance Levels.
New PriceWatch Alerts for COF, QCOM, WYNN, TWX, CAL, MRO, AEO, BHI,
ADBE, AGU, CB, BMY, GRMN, WDC, and IP
PRICEWATCH ALERTS - HIGH RETURN COVERED CALL OPTIONS--------------
-- Capital One Financial Corp. (NYSE: COF)
Last Price 40.59 - FEB 40.00 CALL OPTION@ $2.60 -> 5.3% Return
(42.9% Annualized) assigned*
-- Bristol-Myers Squibb Co. (NYSE: BMY)
Last Price 25.23 - MAR 25.00 CALL OPTION@ $1.28 -> 4.4% Return
(21.9% Annualized) assigned*
-- Garmin Ltd. (Nasdaq: GRMN)
Last Price 32.26 - FEB 32.00 CALL OPTION@ $1.80 -> 5.1% Return
(41.0% Annualized) assigned*
-- Western Digital Corp. (NYSE: WDC)
Last Price 46.46 - FEB 46.00 CALL OPTION@ $2.75 -> 5.2% Return
(42.5% Annualized) assigned*
-- International Paper Co. (NYSE: IP)
Last Price 28.14 - FEB 28.00 CALL OPTION@ $1.55 -> 5.3% Return
(43.0% Annualized) assigned*
-- Qualcomm Inc. (Nasdaq: QCOM)
Last Price 48.07 - APR 48.00 CALL OPTION@ $2.56 -> 5.5% Return
(19.8% Annualized) assigned*
-- Baker Hughes Incorporated (NYSE: BHI)
Last Price 43.66 - FEB 43.00 CALL OPTION@ $2.45 -> 4.3% Return
(35.2% Annualized) assigned*
-- Adobe Systems Inc. (Nasdaq: ADBE)
Last Price 37.70 - APR 37.00 CALL OPTION@ $2.70 -> 5.7% Return
(20.7% Annualized) assigned*
-- Agrium Inc. (NYSE: AGU)
Last Price 65.04 - FEB 65.00 CALL OPTION@ $3.80 -> 6.1% Return
(49.8% Annualized) assigned*
-- The Chubb Corporation (NYSE: CB)
Last Price 48.83 - JUL 50.00 CALL OPTION@ $2.55 -> 8.0% Return
(15.3% Annualized) assigned*
-- Wynn Resorts Ltd. (Nasdaq: WYNN)
Last Price 48.83 - JUL 50.00 CALL OPTION@ $2.55 -> 4.7% Return
(37.9% Annualized) assigned*
-- Time Warner Inc. (NYSE: TWX)
Last Price 29.09 - APR 29.00 CALL OPTION@ $1.75 -> 6.1% Return
(21.9% Annualized) assigned*
-- Continental Airlines, Inc. (NYSE: CAL)
Last Price 20.62 - FEB 20.00 CALL OPTION@ $2.05 -> 7.7% Return
(62.5% Annualized) assigned*
-- Marathon Oil Corporation (NYSE: MRO)
Last Price 32.14 - APR 32.00 CALL OPTION@ $1.95 -> 6.0% Return
(21.7% Annualized) assigned*
-- American Eagle Outfitters, Inc. (NYSE: AEO)
Last Price 17.59 - MAY 17.50 CALL OPTION@ $1.70 -> 10.1% Return
(27.2% 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 McDonald's (MCD), Kohl's (KSS), and FedEx (FDX) with up
to 47% targeted annualized return and 12.0% downside protection.
See the Select 10 Hedged Strategies list for all the details.
NEWS LEADERS AND LAGGARDS-----------------------------------------
So far this morning, Family Dollar Stores (FDO), Tempur-Pedic
International (TPX), and RPM International (RPM) lead the list of
companies with positive news, while Mosaic (MOS), Monsanto (MON),
and Worthington Industries (WOR) lead the list of companies with
negative news. Arch Coal (ACI), Tyson Foods (TSN) and Dow Chemical
(DOW) were upgraded this morning, while Deutsche Telekom (DT), Time
Warner Telecom (TWTC), and KC Southern (KSU) received downgrades.
MARKET OVERVIEW---------------------------------------------------
Overseas trading is mixed this morning, as six of the 10 foreign
indexes that we track are in positive territory. The cumulative
average return on the collective stands at a gain of 0.12%. In
Asia, stocks closed mostly higher, with Japanese shares advancing
for a third straight session as exporters were boosted by weakness
in the yen. Turning to Europe, stocks couldn't hold early gains on
Wednesday as the market continued to drift in he wake of a year-
opening rally.
Crude futures extended their winning streak to nine straight
sessions on Tuesday, thanks to anticipation ahead of today's weekly
inventory report. The Energy Information Administration is expected
to release its data later this morning, with economists expecting
crude stockpiles to rise by 200,000 barrels in the week ended Jan.
1. Meanwhile, distillate inventories – which include diesel and
heating oil – are predicted to decrease by 2 million barrels, as a
recent cold front is expected to weigh on demand. However, limiting
black gold's momentum today was the U.S. dollar, which pared early
losses against most of its foreign rivals, weighing on dollar-
denominated commodities. By the close, February-dated crude futures
added 26 cents, or 0.32%, to finish at $81.77 per barrel.
PUT/CALL RATIO ---------------------------------------------------
Equity option activity on the Chicago Board Options Exchange (CBOE)
saw 1,858,932 call contracts traded on Tuesday, compared to
1,043,265 put contracts. The resultant single-session put/call
ratio arrived at 0.56, while the 21-day moving average slipped to
0.61.
SUPPORT & RESISTANCE LEVELS --------------------------------------
The S&P Depository Receipts (SPY) show support in the neighborhood
of $111.40 and resistance around $113.70. For the Nasdaq 100
(QQQQ), support is near $45.95 and resistance is around $46.50.
TODAY'S ECONOMIC CALENDAR ----------------------------------------
7:30 a.m. Dec Challenger Job Cuts
8:15 a.m. Dec ADP Employment Report
10:00 a.m. Dec ISM Services
10:30 a.m. 12/31 Crude Inventories
EARNINGS EXPECTED TODAY (w/current estimates) --------------------
AYI 0.50
BBBY 0.43
FDO 0.47
MON 0.00
RBN 0.13
RT -0.02
SHAW 0.45
SMSC 0.22
ZEP 0.15
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