MorningUpdate - Options Trading Email
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New PriceWatch Alerts for AAPL, PRU, V, SBUX, and More...
February 25, 8:30 AM EST - Before the open... PriceWatch Alerts for
AAPL, PRU, V, SBUX, MU, TJX, HOG, ABT, CA, and TEX, Market
Overview, News Leaders and Laggards, Today's Economic Calendar, and
Index Support & Resistance Levels.
New PriceWatch Alerts for AAPL, PRU, V, SBUX, MU, TJX, HOG, ABT,
CA, and TEX
PRICEWATCH ALERTS - HIGH RETURN COVERED CALL OPTIONS--------------
-- Apple Inc. (Nasdaq: AAPL)
Last Price 200.66 - APR 200.00 CALL OPTION@ $9.00 -> 4.4% Return
(31.2% Annualized) assigned*
-- Prudential Financial, Inc. (NYSE: PRU)
Last Price 51.90 - JUN 50.00 CALL OPTION@ $5.00 -> 6.6% Return
(21.2% Annualized) assigned*
-- Abbott Laboratories (NYSE: ABT)
Last Price 54.33 - AUG 55.00 CALL OPTION@ $2.25 -> 5.6% Return
(11.6% Annualized) assigned*
-- CA, Inc. (Nasdaq: CA)
Last Price 22.56 - MAY 22.50 CALL OPTION@ $1.10 -> 4.8% Return
(20.6% Annualized) assigned*
-- Terex Corp. (NYSE: TEX)
Last Price 19.38 - APR 19.00 CALL OPTION@ $1.45 -> 6.0% Return
(42.7% Annualized) assigned*
-- Visa, Inc. (NYSE: V)
Last Price 85.63 - JUN 85.00 CALL OPTION@ $4.90 -> 5.3% Return
(16.9% Annualized) assigned*
-- Starbucks Corp. (Nasdaq: SBUX)
Last Price 23.08 - JUL 23.00 CALL OPTION@ $1.72 -> 7.7% Return
(19.7% Annualized) assigned*
-- Micron Technology Inc. (Nasdaq: MU)
Last Price 9.09 - JUL 9.00 CALL OPTION@ $1.19 -> 13.9% Return
(35.8% Annualized) assigned*
-- TJX Companies, Inc. (NYSE: TJX)
Last Price 40.51 - JUL 40.00 CALL OPTION@ $2.50 -> 5.2% Return
(13.5% Annualized) assigned*
-- Harley-Davidson, Inc. (NYSE: HOG)
Last Price 24.53 - APR 24.00 CALL OPTION@ $1.63 -> 4.8% Return
(34.4% Annualized) assigned*
*Annualized returns are shown for comparison purposes only
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NEWS LEADERS AND LAGGARDS-----------------------------------------
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
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Today our Select 10 picks include strategies, tactics and trade
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NEWS LEADERS AND LAGGARDS-----------------------------------------
So far this morning, H.J. Heinz (HNZ), Newmont Mining (NEM), and
Kohl's (KSS) lead the list of companies with positive news, while
Flowserve Corporation (FLS), Goodrich Petroleum (GDP), and Lamar
Advertising (LAMR) lead the list of companies with negative news.
CME Group (CME), Suntech Power (STP), Big Lots (BIG) were upgraded
this morning, while Fifth Third Bancorp (FITB), Gamestop (GME), and
Thomson Reuters (TRI) received downgrades.
MARKET OVERVIEW---------------------------------------------------
Overseas trading remains weak this morning, as only two of the 10
foreign indexes that we track are in positive territory. The
cumulative average return on the collective stands at a loss of
0.18%. In Asia, stock markets dipped on fears that a potential
downgrade on Greece's debt rating will worsen Europe's outlook and
imperil the global economic recovery. This outweighed comments by
U.S. Federal Reserve Chairman Ben Bernanke that interest rates
would be kept at very low levels for a long time. Turning to
Europe, stocks gave up their morning gains, despite banks gaining
after results at Royal Bank of Scotland and Credit Agricole beat
forecasts. Meanwhile, Moody's Investors Service said any changes
in its ratings on Greece would depend on whether Athens was
smoothly enacting its fiscal reform plans as promised. Standard &
Poor's said on Wednesday it may downgrade Greece's BBB-plus rating
by one or two notches within a month
With the turmoil surrounding Greece brewing once again, the U.S.
dollar has gained a modicum of strength this morning. However, the
greenback hasn't strayed far from breakeven, as the U.S. Dollar
Index is up a mere 0.08% at 80.92. Struggles for commodities have
only worsened in the wake of the news, with crude futures down
0.57% at $79.54 per barrel. What's more, gold futures have dropped
$2.20 to trade at $1,095 an ounce in London.
PUT/CALL RATIO ---------------------------------------------------
Equity option activity on the Chicago Board Options Exchange (CBOE)
saw 1,236,453 call contracts traded on Wednesday, compared to
794,415 put contracts. The resultant single-session put/call ratio
arrived at 0.64, while the 21-day moving average held at 0.68.
SUPPORT & RESISTANCE LEVELS --------------------------------------
The S&P Depository Receipts (SPY) show support in the neighborhood
of $109.50 and resistance around $111.60. For the Nasdaq 100
(QQQQ), support is near $44.30 and resistance is around $45.05.
TODAY'S ECONOMIC CALENDAR ----------------------------------------
8:30 a.m. 2/20 Initial Claims
8:30 a.m. 2/13 Continuing Claims
8:30 a.m. Jan Durable Orders
10:00 a.m. Dec FHFA Housing Price Index
EARNINGS EXPECTED TODAY (w/current estimates) --------------------
CTL 0.88
DPS 0.43
DYN -0.13
ESV 1.23
FLR 0.88
GPS 0.50
HNZ 0.76
TEG 0.49
IRM 0.24
KG 0.24
KSS 1.37
PCS 0.06
MYL 0.30
NEM 0.79
NOVL 0.07
SWY 0.53
SRE 1.10
SWN 0.44
WYNN 0.13
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