MORNING UPDATE: PriceWatch Alerts for KMI and More... for 2016-03-10 |
| PriceWatch Alerts for KMI, HIMX, X, YHOO and CERS. Kinder Morgan (NYSE: KMI) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $18.00 while selling the June $17.50 call will produce a new covered call with a break-even point around $16.02. At that price, this position has a target return of 9.2 %. This trade will have roughly 11.0 % downside protection, while still aiming for a 9.2 % return in 99 days. It will lock in that return as long as Kinder Morgan is above $17.50 on 6/17/2016. For comparison purposes only, this KMI covered call aims for an annualized return rate of 34.0 %. Himax Technologies (NASDAQ: HIMX) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $10.07 while simultaneously selling the June $10.00 call will result in a new position with a target return of 12.1 %. Based on recent prices, this position will cost about $8.92, which is also the trade?s breakeven point. At that level, this covered call has 11.4 % downside protection, while still providing a 12.1 % return in 99 days as long as HIMX is above $10.00 on 6/17/2016. For comparison purposes only, this Himax Technologies covered call aims for an annualized return rate of 44.6 %. US Steel (NYSE: X) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the May $12.00 call while at the same time buying X stock for $12.53 will produce a new covered call with a target return of 16.3 %. Based on recent data, this trade will cost about $10.32, which is also the covered call?s breakeven point. At that price, this covered call has 17.6 % downside protection, while seeking an assigned return of 16.3 % return in 66 days. If X is higher than $12.00 on 5/15/2016, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 90.0 %. Yahoo (NASDAQ: YHOO) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the May $33.00 call while at the same time buying YHOO stock for $33.51 will produce a new covered call with a target return of 7.1 %. Based on recent data, this trade will cost about $30.80, which is also the covered call?s breakeven point. At that price, this covered call has 8.1 % downside protection, while seeking an assigned return of 7.1 % return in 66 days. If YHOO is higher than $33.00 on 5/15/2016, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 39.5 %. Cerus (NASDAQ: CERS) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the August $5.00 call while simultaneously buying CERS stock for $5.66 will result in a new position with a break-even point around $4.50. At that price, this position has a target return of 11.1 %. This trade has 20.5 % downside protection, while still providing a 11.1 % return in 162 days as long as CERS is above $5.00 on 8/19/2016. For comparison purposes only, this Cerus covered call targets an annualized return rate of 25.0 %. 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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(VALE) were downgraded. Chesapeake Energy Corporation (CHK), Anavex Life Sciences Corp. (AVXL), and SolarCity Corporation (SCTY) are early risers, while Allergan plc (AGN), Yelp Inc. (YELP) and Transocean Ltd. (RIG) are down. INTERNATIONAL MARKETS Asian markets finished a mixed day on Thursday after an unexpected interest rate cut by New Zealand. The Nikkei was up 1.26% while the Shanghai was down 2.02%. European stocks are rising as the European Central Bank announced cuts to interest rates and further bond purchases. 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 $0.02 to $38.31 per barrel, while natural gas is up a penny to $1.76. Metals prices are lower. Gold is down $11.60 to $1,245.80 per ounce and platinum is down $4.80 to $978.00 an ounce. The Dollar is up versus the Euro and the Yen. PUT/CALL RATIO Yesterday, 606,850 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 411,459 put contracts. The single-session put/call was 0.68 while the 20-day moving average is now at 0.71. TODAY'S ECONOMIC CALENDAR Initial Claims 03/05 08:30 Continuing Claims 02/27 08:30 Natural Gas Inventories 03/05 10:30 Treasury Budget Feb 14:00 EARNINGS EXPECTED TODAY: VNET BOJA CSIQ CMN CCP HTHT IMOS DG LOCO ERI FGP FNSR FPRX FCPT FTD FF IRET MMI FIZZ PRTY RAVN SMRT RUN SGRY ULTA MTN PAY This Morning Update was prepared with data and information provided by: |
