MORNING UPDATE: PriceWatch Alerts for MBLY and More... for 2016-03-11 |
| PriceWatch Alerts for MBLY, GG, ATVI, ATVI and AVP. Mobileye (NYSE: MBLY) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $33.64 while selling the April $33.00 call will produce a new covered call with a break-even point around $30.79. At that price, this position has a target return of 7.2 %. This trade will have roughly 8.5 % downside protection, while still aiming for a 7.2 % return in 35 days. It will lock in that return as long as Mobileye is above $33.00 on 4/15/2016. For comparison purposes only, this MBLY covered call aims for an annualized return rate of 74.8 %. Ulta Salon Cosmetics (NASDAQ: ULTA) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $181.77 while simultaneously selling the September $180.00 call will result in a new position with a target return of 4.7 %. Based on recent prices, this position will cost about $171.87, which is also the trade?s breakeven point. At that level, this covered call has 5.4 % downside protection, while still providing a 4.7 % return in 188 days as long as ULTA is above $180.00 on 9/15/2016. For comparison purposes only, this Ulta Salon Cosmetics covered call aims for an annualized return rate of 9.2 %. Goldcorp (NYSE: GG) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the April $16.00 call while at the same time buying GG stock for $16.51 will produce a new covered call with a target return of 5.5 %. Based on recent data, this trade will cost about $15.16, which is also the covered call?s breakeven point. At that price, this covered call has 8.2 % downside protection, while seeking an assigned return of 5.5 % return in 35 days. If GG is higher than $16.00 on 4/15/2016, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 57.8 %. Activision (NASDAQ: ATVI) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the May $31.00 call while at the same time buying ATVI stock for $31.10 will produce a new covered call with a target return of 6.8 %. Based on recent data, this trade will cost about $29.02, which is also the covered call?s breakeven point. At that price, this covered call has 6.7 % downside protection, while seeking an assigned return of 6.8 % return in 65 days. If ATVI is higher than $31.00 on 5/15/2016, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 38.3 %. Avon Products (NYSE: AVP) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the October $4.00 call while simultaneously buying AVP stock for $4.22 will result in a new position with a break-even point around $3.02. At that price, this position has a target return of 32.5 %. This trade has 28.4 % downside protection, while still providing a 32.5 % return in 219 days as long as AVP is above $4.00 on 10/16/2016. For comparison purposes only, this Avon Products covered call targets an annualized return rate of 54.1 %. 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. 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STOCKS ON THE MOVE Royal Dutch Shell (RDS.A), Vericel (VCEL) and Symantec (SYMC) were upgraded by analysts this morning while Statoil ASA (STO), Mid-America Apartment (MAA) and Artic Cat (ACAT). Chesapeake Energy Corporation (CHK), SeaDrill Limited (SDRL), and Whiting Petroleum Corp. (WLL) are early risers, while Noble Corporation plc (NE), AK Steel Holding Corporation (AKS) and ArcelorMittal (RIG) are down. INTERNATIONAL MARKETS Asian markets finished higher Friday as stocks there regained losses from earlier in the week. The Nikkei was up 0.51% while the Shanghai was up 0.20%. European stocks are rising today as stimulus measures announced yesterday sink in with investors. The FTSE is up 0.66%, while the DAX is up 2.44%. FUTURES & CURRENCIES Energy futures are higher today. The price for West Texas Intermediate crude oil is up $0.76 to $38.60 per barrel, while natural gas is up $0.03 to $1.82. Metals prices are lower. Gold is down $6.10 to $1,266.70 per ounce and platinum is down $3.30 to $974.40 an ounce. The Dollar is up versus the Euro and the Yen. PUT/CALL RATIO Yesterday, 608,375 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 447,734 put contracts. The single-session put/call was 0.74 while the 20-day moving average is now at 0.7. TODAY'S ECONOMIC CALENDAR Export Prices ex-ag. Feb 08:30 Import Prices ex-oil Feb 08:30 EARNINGS EXPECTED TODAY: BKE GCO HIBB This Morning Update was prepared with data and information provided by: |
