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.
------------------------------------------------------------------
MORNING UPDATE: PriceWatch Alerts for C, CVX, BSC, TJX, and ODP
March 4 - 8:30 AM EST - Before the open... PriceWatch Alerts for
IBM C, CVX, BSC, TJX, and ODP, Market Overview, News Leaders and
Laggards, and Today's Economic Calendar.
New PriceWatch Alerts for C, CVX, BSC, TJX, and ODP
PRICEWATCH ALERTS - HIGH RETURN COVERED CALL OPTIONS--------------
-- Citigroup Inc. (NYSE: C)
Last Price 23.09 - APR 22.50 CALL OPTION@ $2.17 -> 7.6% Return
(58.7% Annualized) assigned*
-- Chevron Corp. (NYSE: CVX)
Last Price 87.20 - JUN 85.00 CALL OPTION@ $6.70 -> 5.6% Return
(18.5% Annualized) assigned*
-- Bear Stearns Companies, Inc. (NYSE: BSC)
Last Price 77.32 - APR 75.00 CALL OPTION@ $7.90 -> 8.0% Return
(62.4% Annualized) assigned*
-- The TJX Companies, Inc. (NYSE: TJX)
Last Price 32.68 - JUL 30.00 CALL OPTION@ $4.30 -> 5.7% Return
(15.1% Annualized) assigned*
-- Office Depot, Inc. (NYSE: ODP)
Last Price 11.11 - JUL 10.00 CALL OPTION@ $2.15 -> 11.6% Return
(30.7% 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 today, Staples, General Motors, and American Tower lead the
list of companies with the most news stories while General Dynamics
Corporation and Parker-Hannifin Corporation are showing a spike in
news. Express Scripts, KLA-Tencor, and Bank of Nova Scotia have the
highest srtIndex scores to top the list of companies with positive
news while Psychiatric Solutions, Inc. and MiddleBrook
Pharmaceuticals, Inc. lead the list of companies with negative news
reports. Cell Therapeutics has popped up with a high positive news
sraIndex score.
MARKET OVERVIEW---------------------------------------------------
Overseas trading remains dismal this morning, as 2 of the 11
foreign indices that we track are in positive territory. The
cumulative average return on the collective stands at a loss of
1.14%. In Asian trading, the Japanese Nikkei 225 eked out a
positive finish on the day after bouncing around breakeven all
session. Weakness in banking stocks such as Mizuho Financial Group
was offset by bargain hunting in exporters such as Honda Motor
(HMC). Elsewhere, Hong Kong stocks reversed course mid-session on
China-related issues such as China Life Insurance (LFC).
Across the pond in Europe, auto and technology stocks pulled
regional indices broadly lower. Specifically, French carmaker
Peugeot fell 3.9% after the company's chief executive, Christian
Streiff, said that his company has cut projections for the European
auto market. In the tech sector, chip stocks such as
STMicroelectronics (STM) fell sharply after Intel (INTC) lowered
its gross-margin outlook for the current quarter due to lower-
than-expected flash-memory chip prices.
Gold futures continued their assault on the $1,000 level, closing
yesterday's trading session $6.50 higher at $967.50 an ounce. The
contract was boosted by gold's safe-haven appeal as the litany of
economic concerns continues to grow. The contract's intraday high
came in at $970 an ounce, but surpassed the $975 level in after-
hours electronic trading yesterday. Many analysts are speculating
that gold will advance past $1,000 before the end of March, as
economic woes continue to weigh on the dollar.
Crude futures rocketed to a record of $103.95 per barrel in
intraday trading yesterday, thanks to a weak dollar. Concerns over
inflation, slowing consumer spending, and the dollar's weakness
caused the mass influx of oil buying. The front-month contract
tacked on 61 cents to close the day's trading at $102.45 per
barrel. In Ecuador and Venezuela, troops have been deployed to
their borders with Colombia in response to a dispute stemming from
the killing of a Colombian rebel leader in Ecuador. In addition, a
report surfaced that the U.S. has launched an attack against a
"known al-Qaeda terrorist" in southern Somalia. All of this
geopolitical tension helped push crude higher as well.
PUT/CALL RATIO ---------------------------------------------------
Equity option activity on the CBOE saw 845,847 put contracts traded
on Monday, compared to 1,066,207 call contracts. The resultant
single-session put/call ratio inched lower to 0.79, and the 21-day
moving average stayed at 0.76.
TODAY'S ECONOMIC CALENDAR ----------------------------------------
12:00 a.m. Feb Auto and Truck Sales
EARNINGS EXPECTED TODAY (w/current estimates) --------------------
CHS -0.15
CLWR -1.01
JTX 0.96
SPLS 0.47
|
