MorningUpdate - Options Trading Email
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New PriceWatch Alerts for MCD, ABX, F, BIDU, and More...
January 7, 8:30 AM EST - Before the open... PriceWatch Alerts for
MCD, ABX, F, BIDU, NEM, CLF, CREE, BWA, APOL, ZION, SOLF, NUE,
NWSA, SII, and GME, Market Overview, News Leaders and Laggards,
Today's Economic Calendar, and Index Support & Resistance Levels.
New PriceWatch Alerts for MCD, ABX, F, BIDU, NEM, CLF, CREE, BWA, APOL,
ZION, SOLF, NUE, NWSA, SII, and GME
PRICEWATCH ALERTS - HIGH RETURN COVERED CALL OPTIONS--------------
-- McDonald’s Corp. (NYSE: MCD)
Last Price 61.45 - JUN 61.45 CALL OPTION@ $2.25 -> 5.63% Return (12.5%
Annualized) assigned*
-- Nucor Corporation (NYSE: NUE)
Last Price 49.57 - FEB 49.00 CALL OPTION@ $2.45 -> 4.0%
Return (33.1% Annualized) assigned*
-- News Corp. (Nasdaq: NWSA)
Last Price 14.20 - JUL 15.00 CALL OPTION@ $1.20 -> 15.4%
Return (29.4% Annualized) assigned*
-- Smith International Inc. (NYSE: SII)
Last Price 30.06 - FEB 30.00 CALL OPTION@ $1.60 -> 5.4%
Return (44.9% Annualized) assigned*
-- GameStop Corp. (NYSE: GME)
Last Price 24.03 - FEB 24.00 CALL OPTION@ $1.30 -> 5.6%
Return (46.3% Annualized) assigned*
-- Barrick Gold Corporation (NYSE: ABX)
Last Price 41.76 - FEB 41.00 CALL OPTION@ $2.78 -> 5.2% Return (43.0%
Annualized) assigned*
-- Ford Motor Co. (NYSE: F)
Last Price 11.37 - JUN 11.00 CALL OPTION@ $1.58 -> 12.4% Return (27.7%
Annualized) assigned*
-- Apollo Group Inc. (Nasdaq: APOL)
Last Price 63.70 - FEB 60.00 CALL OPTION@ $6.90 -> 5.6% Return (46.7%
Annualized) assigned*
-- Zions Bancorp. (Nasdaq: ZION)
Last Price 15.00 - FEB 15.00 CALL OPTION@ $1.00 -> 7.1% Return (59.3%
Annualized) assigned*
-- Solarfun Power Holdings Co. Ltd. (Nasdaq: SOLF)
Last Price 9.99 - FEB 10.00 CALL OPTION@ $1.00 -> 11.2% Return (93.2%
Annualized) assigned*
-- Baidu, Inc. (Nasdaq: BIDU)
Last Price 412.50 - FEB 410.00 CALL OPTION@ $25.30 -> 5.9% Return (48.8%
Annualized) assigned*
-- Newmont Mining Corp. (NYSE: NEM)
Last Price 49.61 - FEB 49.00 CALL OPTION@ $2.89 -> 4.9% Return (40.5%
Annualized) assigned*
-- Cliffs Natural Resources Inc. (NYSE: CLF)
Last Price 58.83 - MAR 55.00 CALL OPTION@ $6.50 -> 5.6% Return (46.6%
Annualized) assigned*
-- Cree Inc. (Nasdaq: CREE)
Last Price 58.83 - MAR 55.00 CALL OPTION@ $6.50 -> 5.1% Return (25.9%
Annualized) assigned*
-- BorgWarner Inc. (NYSE: BWA)
Last Price 36.69 - APR 35.00 CALL OPTION@ $3.40 -> 5.1% Return (18.7%
Annualized) assigned*
*Annualized returns are shown for comparison purposes only
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SELECT 10 STRATEGIES FOR TODAY ----------------------------
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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 Research in Motion (RIMM), Coca-Cola (KO),
Dow Chemical (DOW) with up to 115% targeted annualized
return and 17.1% downside protection. See the Select 10
Hedged Strategies list for all the details.
NEWS LEADERS AND LAGGARDS----------------------------------
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So far this morning, Lennar Corp. (LEN), Children’s Place
Retail Stores (PLCE), and VIVUS, Inc. (VVUS) lead the list
of companies with positive news, while Progressive (PGR),
Hot Topic (HOTT), and Tessera Technologies (TSRA) lead the
list of companies with negative news. Bed Bath & Beyond
(BBBY), Bank of America (BAC) and McKesson (MCK) were
upgraded this morning, while Wendy’s (WEN), Compass
Minerals International (CMP), and Aetna (AET) received
downgrades.
MARKET OVERVIEW--------------------------------------------
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Overseas trading is in poor shape this morning, as all 10
foreign indexes that we track are in negative territory.
The cumulative average return on the collective stands at a
loss of 0.65%. In Asia, most markets declined, with
Chinese shares dropping sharply as the central bank’s move
to tighten liquidity raised fears interest rate increases
could come sooner than expected. Turning to Europe,
automakers paced an early dip, though U.K. supermarket
chain J Sainsbury climbed after reporting stronger-than-
forecast sales. Daimler has fallen 1.8% and Peugeot has
retreated 1% in early trade. Meanwhile, the Bank of
England announced no changes to monetary policy, including
the central bank’s money-creating asset-purchase plan.
Crude futures climbed for the 10th straight session on
Wednesday, shrugging off a round of bearish inventory data.
Black gold initially declined after the Energy Information
Administration reported an unexpected increase in domestic
inventories, but the hot commodity battled back. Weakness
in the U.S. dollar contributed to crude’s rebound, and
traders also continued to place bets on an uptick in
heating oil demand, with Arctic chills still hammering the
Eastern half of the U.S. By the close, crude oil for
February delivery added $1.41, or 1.72%, to settle at
$83.18 per barrel.
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PUT/CALL RATIO --------------------------------------------
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Equity option activity on the Chicago Board Options
Exchange (CBOE) saw 1,730,296 call contracts traded on
Wednesday, compared to 904,212 put contracts. The
resultant single-session put/call ratio arrived at 0.52,
while the 21-day moving average held at 0.61.
SUPPORT & RESISTANCE LEVELS -------------------------------
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The S&P Depository Receipts (SPY) show support in the
neighborhood of $111.40 and resistance around $114.00. For
the Nasdaq 100 (QQQQ), support is near $45.95 and
resistance is around $46.55.
TODAY’S ECONOMIC CALENDAR ---------------------------------
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8:30 a.m. 1/2 Initial Claims
8:30 a.m. 12/26 Continuing Claims
EARNINGS EXPECTED TODAY (w/current estimates) -------------
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APOL 1.46
STZ 0.52
GPN 0.61
IHS 0.66
LWSN 0.09
LEN -0.48
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