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 V, SLB, CBS, and More...
May 31, 8:30 AM ET - Before the open... PriceWatch Alerts for V,
SHLD, ADBE, TCK, TRMB, SLB, CBS, NKE, CTXS, MBT, Market Overview,
News Leaders and Laggards, Today's Economic Calendar, and Index
Support & Resistance Levels.
PriceWatch Alerts for V, SHLD, ADBE, TCK, TRMB, SLB, CBS, NKE,
CTXS, MBT
Adobe Systems (NASDAQ: ADBE) has been selected by InvestorsObserver
analysts as a stock that is an ideal candidate for a new covered
call today. Buying the stock for $31.29 while simultaneously
selling the July $31.00 call will result in a new position with a
target return of 5.2%. Based on recent prices, this position will
cost about $29.47, which is also the trade's breakeven point. At
that level, this covered call has 5.8% downside protection, while
still providing a 5.2% return in 51 days as long as ADBE is above
$31.00 on 7/21/2012. For comparison purposes only, this Adobe
Systems covered call aims for an annualized return rate of 36.5%.
Sears (NASDAQ: SHLD) has been selected by InvestorsObserver
analysts as a stock that is an ideal candidate for a new covered
call today. Buying the stock for $52.34 while simultaneously
selling the July $50.00 call will result in a new position with a
target return of 7.7%. Based on recent prices, this position will
cost about $46.44, which is also the trade's breakeven point. At
that level, this covered call has 11.3% downside protection, while
still providing a 7.7% return in 51 days as long as SHLD is above
$50.00 on 7/21/2012. For comparison purposes only, this Sears
covered call aims for an annualized return rate of 54.8%.
Teck Cominco (NYSE: TCK) has been chosen by InvestorsObserver
analysts as a candidate for a new covered call today. Selling the
July $30.00 call while at the same time buying TCK stock for $30.36
will produce a new covered call with a target return of 6.6%. Based
on recent data, this trade will cost about $28.14, which is also
the covered call's breakeven point. At that price, this covered
call has 7.3% downside protection, while seeking an assigned return
of 6.6% return in 51 days. If TCK is higher than $30.00 on
7/21/2012, we are assured that simple return. For comparison
purposes only, that equates to an annualized return rate of 43.8%.
Trimble Navigation (NASDAQ: TRMB) has been selected by
InvestorsObserver analysts as a stock that is a strong candidate
for a new covered call today. Selling the August $45.00 call while
simultaneously buying TRMB stock for $47.19 will result in a new
position with a break-even point around $43.29. At that price, this
position has a target return of 4.0%. This trade has 8.3% downside
protection, while still providing a 4.0% return in 79 days as long
as TRMB is above $45.00 on 8/18/2012. For comparison purposes only,
this Trimble Navigation covered call targets an annualized return
rate of 18.3%.
Visa (NYSE: V) has been identified by InvestorsObserver analysts as
being well-positioned for a new covered call today. Buying the
stock for $117.49 while selling the September $115.00 call will
produce a new covered call with a break-even point around $108.39.
At that price, this position has a target return of 6.1%. This
trade will have roughly 7.7% downside protection, while still
aiming for a 6.1% return in 114 days. It will lock in that return
as long as Visa is above $115.00 on 9/22/2012. For comparison
purposes only, this V covered call aims for an annualized return
rate of 18.3%.
CBS (NYSE: CBS) has been selected by InvestorsObserver analysts as
a stock that is an ideal candidate for a new covered call today.
Buying the stock for $31.54 while simultaneously selling the July
$31.00 call will result in a new position with a target return of
4.6%. Based on recent prices, this position will cost about $29.64,
which is also the trade's breakeven point. At that level, this
covered call has 6.0% downside protection, while still providing a
4.6% return in 51 days as long as CBS is above $31.00 on 7/21/2012.
For comparison purposes only, this CBS covered call aims for an
annualized return rate of 29.2%.
Citrix Systems (NASDAQ: CTXS) has been chosen by InvestorsObserver
analysts as a candidate for a new covered call today. Selling the
July $72.50 call while at the same time buying CTXS stock for
$73.96 will produce a new covered call with a target return of
5.9%. Based on recent data, this trade will cost about $68.46,
which is also the covered call's breakeven point. At that price,
this covered call has 7.4% downside protection, while seeking an
assigned return of 5.9% return in 51 days. If CTXS is higher than
$72.50 on 7/21/2012, we are assured that simple return. For
comparison purposes only, that equates to an annualized return rate
of 40.2%.
Mobile Telesystems OJSC (NYSE: MBT) has been selected by
InvestorsObserver analysts as a stock that is a strong candidate
for a new covered call today. Selling the September $17.00 call
while simultaneously buying MBT stock for $16.91 will result in a
new position with a break-even point around $15.81. At that price,
this position has a target return of 7.5%. This trade has 6.5%
downside protection, while still providing a 7.5% return in 114
days as long as MBT is above $17.00 on 9/22/2012. For comparison
purposes only, this Mobile Telesystems OJSC covered call targets an
annualized return rate of 21.9%.
Nike (NYSE: NKE) has been selected by InvestorsObserver analysts as
a stock that is an ideal candidate for a new covered call today.
Buying the stock for $108.61 while simultaneously selling the
October $105.00 call will result in a new position with a target
return of 5.6%. Based on recent prices, this position will cost
about $99.41, which is also the trade's breakeven point. At that
level, this covered call has 8.5% downside protection, while still
providing a 5.6% return in 142 days as long as NKE is above $105.00
on 10/20/2012. For comparison purposes only, this Nike covered call
aims for an annualized return rate of 11.0%.
Schlumberger (NYSE: SLB) has been identified by InvestorsObserver
analysts as being well-positioned for a new covered call today.
Buying the stock for $64.18 while selling the August $62.50 call
will produce a new covered call with a break-even point around
$58.78. At that price, this position has a target return of 6.3%.
This trade will have roughly 8.4% downside protection, while still
aiming for a 6.3% return in 79 days. It will lock in that return as
long as Schlumberger is above $62.50 on 8/18/2012. For comparison
purposes only, this SLB covered call aims for an annualized return
rate of 29.2%.
*Annualized returns are shown for comparison purposes only
Are you looking for a more conservative strategy that solves the
pitfalls that come with covered calls investing? Check out our
RadioActive Home Study Kit
(http://www.poweropt.com/psDetails.asp?pid=25)! Learn how to limit
your risks in any trade and keep your upside open � 'Cut your
losers short and let your winners run'. These limited risk
techniques have saved investors thousands of dollars during
unexpected market downturns and Black Swan events. The RadioActive
Home Study Kit teaches the proper limited risk trade setup and the
10 different Income Methods that are used to lower the initial
risk, potentially bulletproof your stock positions and earn extra
income. The RadioActive Home Study Kit comes with a money back
guarantee and a free month of access to the patented PowerOptions
Suite of Tools!
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!
NOTE: All stocks and options shown are examples only. These are not
recommendations to buy or sell any security.
NEWS LEADERS AND LAGGARDS
Stocks pointed toward a higher open this morning include Frontier
Communications (FTR), Cognizant Technology (CTSH) and Target (TGT).
Pointed lower this morning are F5 Networks (FFIV), Joy Global (JOY)
and Perrigo (PRGO). Analyst upgrades this morning include Renren
(RENN), Ubiquiti Networks (UBNT) and Vocus (VOCS). This morning's
downgrades include Amlyn Pharmaceuticals (AMLN), C.H. Robinson
(CHRW) and Cliffs Natural Resources (CLF).
MARKET OVERVIEW
Stocks in Asia ended lower again today, as escalating concerns
about European debt and a weaker Japanese yen weighed on exporters.
Furthermore, resource-related stocks fell in parity with commodity
prices, while disappointing data on industrial production dragged
on construction concerns in Tokyo. By the close, Japan's Nikkei
shed 1.1% -- its worst month in two years -- Hong Kong's Hang Seng
fell 0.3%, China's Shanghai Composite dropped 0.5%, and South
Korea's Kospi edged 0.1% lower. On the other hand, stocks in Europe
are on the rebound at midday, with Telefonica and Bankia SA paving
the path higher in Spain. The telecom firm last night said it's
considering curbing debt by listing its German unit and some of its
Latin American businesses, while the banking concern is on the rise
after soliciting a bailout from the Spanish government. Meanwhile,
investors are celebrating a round of data from Germany's Federal
Statistical Office, which showed that employment improved a
sequential 0.4% in April. In London, however, the shares of Admiral
Group are weighing on stocks, after the Office of Fair Trading
decided to refer the private motor insurance market to the
Competition Commission, MarketWatch reported. At last check,
London's FTSE has added 0.7%, the French CAC is up 0.5%, and
Germany's DAX has added 0.3%.
The U.S. dollar index is pointed lower this morning, with the
greenback down 0.2% at $82.84. Ahead of weekly inventories, crude
oil is on the rebound, with crude for July delivery up 0.3% at
$88.06 per barrel. Gold futures are seeking out a win, as well,
with the malleable metal 0.1% higher at $1,567.70 an ounce.
PUT/CALL RATIO
Equity option activity on the Chicago Board Options Exchange (CBOE)
saw 764,942 call contracts traded on Wednesday, compared to 592,520
put contracts. The resultant single-session put/call ratio arrived
at 0.77, while the 21-day moving average was 0.79.
SUPPORT & RESISTANCE LEVELS
The S&P Depository Receipts (SPY) show support in the neighborhood
of $131.15 with resistance near $132.85. The Nasdaq 100 (QQQ) has
shown support around $61.90 and resistance around $62.70.
TODAY'S ECONOMIC CALENDAR
7:30 a.m. May Challenger Job Cuts
8:15 a.m. May ADP Employment Change
8:30 a.m. 5/26 Initial Claims
8:30 a.m. 5/19 Continuing Claims
8:30 a.m. Q1 GDP - Second Estimate
9:45 a.m. May Chicago PMI
11:00 a.m. 5/26 Crude Inventories
EARNINGS EXPECTED TODAY
CIEN
JOSB
JOY
SAI
VRA
|
