MorningUpdate - Options Trading Email
Dear [FIRST_NAME]:
You received this alert as part of your subscription to one of the
PowerOptions products.
It's one of the PriorityONE benefits included with our service.
As always, if you have any questions feel free to email us at
support@poweropt.com or call 877-992-7971.
------------------------------------------------------------------
New PriceWatch Alerts for AMZN, KO, ORCL, MON, and More...
February 5, 8:30 AM EST - Before the open... PriceWatch Alerts for
AMZN, KO, ORCL, MON, COST, DO, IR, CVS, CME, and CCJ, Market
Overview, News Leaders and Laggards, Today's Economic Calendar, and
Index Support & Resistance Levels.
New PriceWatch Alerts for AMZN, KO, ORCL, MON, COST, DO, IR, CVS,
CME, and CCJ
PRICEWATCH ALERTS - HIGH RETURN COVERED CALL OPTIONS--------------
-- Amazon.com Inc. (Nasdaq: AMZN)
Last Price 115.94 - MAR 115.00 CALL OPTION@ $7.15 -> 5.7% Return
(48.5% Annualized) assigned*
-- The Coca-Cola Company (NYSE: KO)
Last Price 53.43 - AUG 55.00 CALL OPTION@ $2.17 -> 7.3% Return
(13.5% Annualized) assigned*
-- CVS Caremark Corporation (NYSE: CVS)
Last Price 31.15 - MAY 31.00 CALL OPTION@ $2.13 -> 6.8% Return
(23.5% Annualized) assigned*
-- CME Group Inc. (Nasdaq: CME)
Last Price 269.29 - MAR 270.00 CALL OPTION@ $12.80 -> 5.3% Return
(44.7% Annualized) assigned*
-- Cameco Corp. (NYSE: CCJ)
Last Price 25.98 - JUN 25.00 CALL OPTION@ $2.90 -> 8.3% Return
(22.7% Annualized) assigned*
-- Oracle Corp. (Nasdaq: ORCL)
Last Price 23.11 - JUN 23.00 CALL OPTION@ $1.64 -> 7.1% Return
(19.4% Annualized) assigned*
-- Monsanto Co. (NYSE: MON)
Last Price 75.48 - APR 75.00 CALL OPTION@ $4.50 -> 5.7% Return
(29.1% Annualized) assigned*
-- Costco Wholesale Corporation (Nasdaq: COST)
Last Price 58.520- JUL 57.50 CALL OPTION@ $3.90 -> 5.3% Return
(11.9% Annualized) assigned*
-- Diamond Offshore Drilling Inc. (NYSE: DO)
Last Price 89.79 - JUN 85.00 CALL OPTION@ $9.70 -> 6.1% Return
(16.7% Annualized) assigned*
-- Ingersoll-Rand Plc (NYSE: IR)
Last Price 33.06 - MAR 32.50 CALL OPTION@ $1.90 -> 4.3% Return
(36.5% Annualized) assigned*
*Annualized returns are shown for comparison purposes only
What exactly is a Covered Call? What are the risks, benefits, and
requirements? If you are asking yourself these questions, the
answers you seek lie in :Covered Calls: Aggressive Strategy for the
Conservative Investor: (http://www.poweropt.com/107/). This
educational kit, written by the founders of PowerOptions, will
teach you the ins and outs of the Covered Call Strategy. PLUS, it
comes with two free months of PowerOptions AND a 30 day risk free
guarantee!
Can you back test these strategies? Yes, you can! PowerOptions
offers a full back testing screener, SmartHistoryXL, to its
subscribers. Back test over 20 different options strategies using
your personal search criteria. Check out PowerOptions
SmartHistoryXL (http://www.poweropt.com/optionsbacktesting-
instructions.asp) and start back testing today!
NEWS LEADERS AND LAGGARDS-----------------------------------------
So far this morning, Beazer Homes (BZH), Tyson Foods (TSN), and
Airgas (ARG) lead the list of companies with positive news, while
Aetna (AET), Weyerhaeuser (WY), and TECO Energy (TE) lead the list
of companies with negative news. MetLife (MET), Motorola (MOT), and
Archer-Daniels-Midland (ADM) were upgraded this morning, while
Ciena (CIEN), Dollar Tree (DLTR), and Meritage (MTH) received
downgrades.
MARKET OVERVIEW---------------------------------------------------
Overseas trading looks abysmal heading into the weekend, as all 10
of the foreign indexes that we track are in negative territory.
The cumulative average return on the collective stands at a loss of
2.14%. In Asia, stock tumbled to within reach of five-month lows
as investors dumped riskier assets after rising sovereign debt
problems in the euro zone and poor jobs data sent U.S. and European
stocks tumbling. In Europe, shares tagged 10-week lows due to
continued anxiety over high levels of debt in the euro zone.
European markets followed Asia's lead and headed sharply lower,
with banking stocks leading the way.
Fears of excess European debt continued to run amuck in currency
trading on Thursday, providing lift of the U.S. dollar, but sending
the euro to a seven-month low versus the Japanese yen. In pre-
market activity, the U.S. Dollar Index has extended yesterday's
gains, adding 0.32% to trade at 80.17. Those same debt fears
raised economic concerns for the European region, which, when
combined with a stronger U.S. dollar, provided a double whammy for
crude prices yesterday. Despite the strengthening U.S. dollar,
crude futures are headed higher in electronic trading, as the March
contract is up 30 cents at $73.44 per barrel. Finally, gold
futures have not been able to shake off the rising dollar, with the
April futures contract off $7.10 at $1,055.90 an ounce in overseas
trading.
PUT/CALL RATIO ---------------------------------------------------
Equity option activity on the Chicago Board Options Exchange (CBOE)
saw 1,226,287 call contracts traded on Wednesday, compared to
788,278 put contracts. The resultant single-session put/call ratio
arrived at 0.64, while the 21-day moving average rose to 0.61.
SUPPORT & RESISTANCE LEVELS --------------------------------------
The S&P Depository Receipts (SPY) show support in the neighborhood
of $103.05 and resistance around $110.60. For the Nasdaq 100
(QQQQ), support is near $40.85 and resistance is around $43.80.
TODAY'S ECONOMIC CALENDAR ----------------------------------------
8:30 a.m. Jan Nonfarm Payrolls & Average Workweek
8:30 a.m. Jan Hourly Earnings & Unemployment Rate
3:00 p.m. Dec Consumer Credit
EARNINGS EXPECTED TODAY (w/current estimates) --------------------
AET 0.42
AYE 0.50
AIV 0.35
PPL 0.36
SPG 1.52
TE 0.25
TSN 0.18
WY -0.38
|
