MorningUpdate - Options Trading Email
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New PriceWatch Alerts for PNC, GPS, FCX, KSS, and More...
January 8, 8:30 AM EST - Before the open... PriceWatch Alerts for
PNC, GPS, FCX, KSS, MGM, RF, PHM, CVS, CMI, and ICE, Market
Overview, News Leaders and Laggards, Today's Economic Calendar, and
Index Support & Resistance Levels.
New PriceWatch Alerts for PNC, GPS, FCX, KSS, MGM, RF, PHM, CVS,
CMI, and ICE
PRICEWATCH ALERTS - HIGH RETURN COVERED CALL OPTIONS--------------
-- PNC Financial Services Group Inc. (NYSE: PNC)
Last Price 56.98 - MAY 55.45 CALL OPTION@ $5.80 -> 7.5% Return
(20.3% Annualized) assigned*
-- Gap Inc. (NYSE: GPS)
Last Price 20.27 - JUN 20.00 CALL OPTION@ $1.75 -> 8.0% Return
(18.0% Annualized) assigned*
-- CVS Caremark Corporation (NYSE: CVS)
Last Price 33.76 - MAY 33.00 CALL OPTION@ $2.60 -> 5.9% Return
(16.1% Annualized) assigned*
-- Cummins Inc. (NYSE: CMI)
Last Price 50.95 - MAR 50.00 CALL OPTION@ $3.50 -> 5.4% Return
(27.6% Annualized) assigned*
-- IntercontinentalExchange, Inc. (NYSE: ICE)
Last Price 108.14 - MAR 105.00 CALL OPTION@ $8.40 -> 5.3% Return
(27.1% Annualized) assigned*
-- Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX)
Last Price 85.64 - FEB 85.00 CALL OPTION@ $4.80 -> 5.1% Return
(43.7% Annualized) assigned*
-- Kohl's Corp. (NYSE: KSS)
Last Price 53.46 - JUL 50.00 CALL OPTION@ $6.50 -> 6.5% Return
(12.4% Annualized) assigned*
-- MGM Mirage (NYSE: MGM)
Last Price 10.80 - JUN 10.00 CALL OPTION@ $2.31 -> 17.8% Return
(40.1% Annualized) assigned*
-- Regions Financial Corp. (NYSE: RF)
Last Price 6.17 - AUG 6.00 CALL OPTION@ $1.08 -> 17.9% Return
(29.0% Annualized) assigned*
-- Pulte Homes Inc. (NYSE: PHM)
Last Price 11.21 - JUL 11.00 CALL OPTION@ $1.50 -> 13.3% Return
(25.5% 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 Freeport-McMoRan Copper & Gold (FCX), Gilead Sciences
(GILD), and CSX (CSX) with up to 65% targeted annualized return and
8.5% downside protection. See the Select 10 Hedged Strategies list
for all the details.
NEWS LEADERS AND LAGGARDS-----------------------------------------
So far this morning, Barclays PLC (BCS) and Best Buy (BBY) lead the
list of companies with positive news, while Apollo Group (APOL),
Lawson Software (LWSN), and Coca-Cola (KO) lead the list of
companies with negative news. Deutsche Bank (DB), Calpine (CPN) and
Ensco (ESV) were upgraded this morning, while Colgate-Palmolive
(CL), Aeropostale (ARO), and Brinker International(EAT) received
downgrades.
MARKET OVERVIEW---------------------------------------------------
Overseas trading has rebounded from yesterday's poor performance,
as nine of the 10 foreign indexes that we track in positive
territory. The cumulative average return on the collective stands
at a gain of 0.33%. In Asia, most markets climbed, with Japanese
exporters helped by the yen's recent weakness, while Hutchison
Telecommunications' shares surged in Hong Kong on an offer to take
the company private. In Europe, stocks advanced Friday as investors
hoped for a better picture on jobs from the U.S. than what was seen
in the euro zone.
The futures contract on the 30-year bond dropped 23/32 on Thursday.
Treasury fell and yields rose ahead of today's December nonfarm
payrolls report. Furthermore, the bond market came under additional
pressure after the U.S. government announced that it will raise $84
billion next week. The Treasury Department said it will sell $74
billion in notes and bonds and an additional $10 billion in
Treasury-inflation protected securities next week. The Treasury
plans to sell $40 billion in 3-year notes, $21 billion in 10-year
notes, and $13 billion in 30-year bonds.
PUT/CALL RATIO ---------------------------------------------------
Equity option activity on the Chicago Board Options Exchange (CBOE)
saw 2,069,059 call contracts traded on Thursday, compared to
1,024,414 put contracts. The resultant single-session put/call
ratio arrived at 0.50, while the 21-day moving average dipped to
0.60.
SUPPORT & RESISTANCE LEVELS --------------------------------------
The S&P Depository Receipts (SPY) show support in the neighborhood
of $111.40 and resistance around $114.35. For the Nasdaq 100
(QQQQ), support is near $45.75 and resistance is around $46.55.
TODAY'S ECONOMIC CALENDAR ----------------------------------------
8:30 a.m. Dec Average Workweek & Nonfarm Payrolls
8:30 a.m. Dec Hourly Earnings & Unemployment Rate
10:00 a.m. Nov Wholesale Inventories
3:00 p.m. Nov Consumer Credit
EARNINGS EXPECTED TODAY (w/current estimates) --------------------
GBX -0.12
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