MorningUpdate - Options Trading Email
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MORNING UPDATE: PriceWatch Alerts for AAPL, COP, ORCL, and More...
April 25, 8:30 AM EST - Before the open... PriceWatch Alerts for ,
COP, YHOO, LCC, MYL, ORCL, BBY, ANF, SPLS, and LTD, Market
Overview, News Leaders and Laggards, Today's Economic Calendar, and
Index Support & Resistance Levels.
New PriceWatch Alerts for AAPL, COP, YHOO, LCC, MYL, ORCL, BBY,
ANF, SPLS, and LTD
Apple (NASDAQ: AAPL) has been selected by InvestorsObserver
analysts as a stock that is an ideal candidate for a new covered
call today. Buying the stock for $558.22 while simultaneously
selling the August $525.00 call will result in a new position with
a target return of 5.0 %. Based on recent prices, this position
will cost about $499.82, which is also the trade�s breakeven point.
At that level, this covered call has 10.5 % downside protection,
while still providing a 5.0 % return in 95 days as long as AAPL is
above $525.00 on 8/18/2012. For comparison purposes only, this
Apple covered call aims for an annualized return rate of 18.3 %.
ConocoPhillips (NYSE: COP) has been identified by InvestorsObserver
analysts as being well-positioned for a new covered call today.
Buying the stock for $52.93 while selling the November $52.50 call
will produce a new covered call with a break-even point around
$49.88. At that price, this position has a target return of 5.3 %.
This trade will have roughly 5.8 % downside protection, while still
aiming for a 5.3 % return in 186 days. It will lock in that return
as long as ConocoPhillips is above $52.50 on 11/17/2012. For
comparison purposes only, this COP covered call aims for an
annualized return rate of 7.3 %.
US Airways (NYSE: LCC) has been selected by InvestorsObserver
analysts as a stock that is a strong candidate for a new covered
call today. Selling the September $10.00 call while simultaneously
buying LCC stock for $11.24 will result in a new position with a
break-even point around $8.69. At that price, this position has a
target return of 15.1 %. This trade has 22.7 % downside protection,
while still providing a 15.1 % return in 130 days as long as LCC
is above $10.00 on 9/22/2012. For comparison purposes only, this US
Airways covered call targets an annualized return rate of 40.2 %.
Mylan Laboratories (NASDAQ: MYL) has been chosen by
InvestorsObserver analysts as a candidate for a new covered call
today. Selling the October $21.00 call while at the same time
buying MYL stock for $21.42 will produce a new covered call with a
target return of 7.6 %. Based on recent data, this trade will cost
about $19.52, which is also the covered call�s breakeven point. At
that price, this covered call has 8.9 % downside protection, while
seeking an assigned return of 7.6 % return in 158 days. If MYL is
higher than $21.00 on 10/20/2012, we are assured that simple
return. For comparison purposes only, that equates to an annualized
return rate of 14.6 %.
Yahoo (NASDAQ: YHOO) has been selected by InvestorsObserver
analysts as a stock that is an ideal candidate for a new covered
call today. Buying the stock for $15.50 while simultaneously
selling the October $15.00 call will result in a new position with
a target return of 8.2 %. Based on recent prices, this position
will cost about $13.86, which is also the trade�s breakeven point.
At that level, this covered call has 10.6 % downside protection,
while still providing a 8.2 % return in 158 days as long as YHOO
is above $15.00 on 10/20/2012. For comparison purposes only, this
Yahoo covered call aims for an annualized return rate of 18.3 %.
Abercrombie and Fitch (NYSE: ANF) has been identified by
InvestorsObserver analysts as being well-positioned for a new
covered call today. Buying the stock for $45.91 while selling the
August $40.00 call will produce a new covered call with a break-
even point around $37.56. At that price, this position has a target
return of 6.5 %. This trade will have roughly 18.2 % downside
protection, while still aiming for a 6.5 % return in 95 days. It
will lock in that return as long as Abercrombie and Fitch is above
$40.00 on 8/18/2012. For comparison purposes only, this ANF covered
call aims for an annualized return rate of 21.9 %.
Best Buy (NYSE: BBY) has been selected by InvestorsObserver
analysts as a stock that is an ideal candidate for a new covered
call today. Buying the stock for $19.56 while simultaneously
selling the September $18.00 call will result in a new position
with a target return of 8.2 %. Based on recent prices, this
position will cost about $16.64, which is also the trade�s
breakeven point. At that level, this covered call has 14.9 %
downside protection, while still providing a 8.2 % return in 130
days as long as BBY is above $18.00 on 9/22/2012. For comparison
purposes only, this Best Buy covered call aims for an annualized
return rate of 21.9 %.
Limited Brands (NYSE: LTD) has been chosen by InvestorsObserver
analysts as a candidate for a new covered call today. Selling the
November $46.00 call while at the same time buying LTD stock for
$48.00 will produce a new covered call with a target return of 7.2
%. Based on recent data, this trade will cost about $42.90, which
is also the covered call�s breakeven point. At that price, this
covered call has 10.6 % downside protection, while seeking an
assigned return of 7.2 % return in 186 days. If LTD is higher than
$46.00 on 11/17/2012, we are assured that simple return. For
comparison purposes only, that equates to an annualized return rate
of 11.0 %.
Oracle (NASDAQ: ORCL) has been selected by InvestorsObserver
analysts as a stock that is a strong candidate for a new covered
call today. Selling the September $26.00 call while simultaneously
buying ORCL stock for $26.96 will result in a new position with a
break-even point around $24.48. At that price, this position has a
target return of 6.2 %. This trade has 9.2 % downside protection,
while still providing a 6.2 % return in 130 days as long as ORCL
is above $26.00 on 9/22/2012. For comparison purposes only, this
Oracle covered call targets an annualized return rate of 14.6 %.
Staples (NASDAQ: SPLS) has been selected by InvestorsObserver
analysts as a stock that is an ideal candidate for a new covered
call today. Buying the stock for $15.09 while simultaneously
selling the September $15.00 call will result in a new position
with a target return of 7.2 %. Based on recent prices, this
position will cost about $13.99, which is also the trade�s
breakeven point. At that level, this covered call has 7.3 %
downside protection, while still providing a 7.2 % return in 130
days as long as SPLS is above $15.00 on 9/22/2012. For comparison
purposes only, this Staples covered call aims for an annualized
return rate of 18.3 %.
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NEWS LEADERS AND LAGGARDS-----------------------------------------
Stocks pointed higher this morning include Juniper Networks (JNPR),
Intuitive Surgical (ISRG) and Wynn Resorts (WYNN). Pointed lower
this morning are Avon Products (AVP), Home Depot (HD) and Lowe�s
Companies (LOW). Analyst upgrades this morning include MIPS
Technology (MIPS), Gentiva Health Services (GTIV) and Amedsys
(AMED). Downgrades this morning include Thermo Fisher (TMO), Life
Technologies (LIFE) and Nova Measuring (NVMI).
MARKET OVERVIEW---------------------------------------------------
Asian markets ended mostly lower today, as traders took their cues
from Wall Street's bearish start to the week. Equities with heavy
exposure to Europe were among the most notable decliners, despite
reassurances from euro-zone finance ministers that there are no
immediate plans for Greece to break away from the 17-nation bloc.
However, Internet heavyweight Tencent Holdings bucked the selling
trend in Hong Kong, with investors pricing in some optimism ahead
of Facebook's forthcoming IPO pricing. By the close, Japan's Nikkei
and South Korea's Kospi each fell 0.8%, China's Shanghai Composite
lost 0.3%, and Hong Kong's Hang Seng added 0.8%.
Stocks in Europe have climbed out of the basement at midday, after
a report showed that Germany's economy expanded by 0.5% in the
first quarter. The solid showing helped the broader euro-zone dodge
a contraction, with the region's composite GDP remaining flat for
the three-month period. At last look, the French CAC 40 is up 0.6%,
the German DAX has gained 0.3%, and London's FTSE 100 is off 0.02%.
The U.S. dollar index is holding steady this morning, with the
greenback last seen flat at $80.61. Crude oil is pointed just shy
of breakeven to trade 0.03% lower at $95.10 per barrel. Gold
futures continue to slide, with the front-month contract down 0.2%
at $1,558.40 an ounce.
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PUT/CALL RATIO ---------------------------------------------------
Equity option activity on the Chicago Board Options Exchange (CBOE)
saw 971,488 call contracts traded on Monday, compared to 831,844
put contracts. The resultant single-session put/call ratio arrived
at 0.86, while the 21-day moving average was 0.71.
SUPPORT & RESISTANCE LEVELS --------------------------------------
The S&P Depository Receipts (SPY) show support in the neighborhood
of $134.49 with resistance near $136.87. The Nasdaq 100 (QQQ) has
shown support around $63.48 and resistance around $64.86.
TODAY'S ECONOMIC CALENDAR ----------------------------------------
8:30 a.m. April Retail Sales
8:30 a.m. April Retail Sales ex-Auto
8:30 a.m. April CPI
8:30 a.m. April Core CPI
8:30 a.m. April Empire State Manufacturing Index
10:00 a.m. March Business Inventories
10:00 a.m. May NAHB Housing Market Index
EARNINGS EXPECTED TODAY ------------------------------------------
HD
JCP
TJX
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