MORNING UPDATE: PriceWatch Alerts for GOOGL and More... for 2016-03-09 |
| PriceWatch Alerts for GOOGL, MSFT, URBN, DKS, COST ,, , , , , , , , , and . Google (NASDAQ: GOOGL) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $712.10 while selling the May $710.00 call will produce a new covered call with a break-even point around $674.60. At that price, this position has a target return of 5.2 %. This trade will have roughly 5.3 % downside protection, while still aiming for a 5.2 % return in 67 days. It will lock in that return as long as Google is above $710.00 on 5/15/2016. For comparison purposes only, this GOOGL covered call aims for an annualized return rate of 28.5 %. Microsoft (NASDAQ: MSFT) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $51.75 while simultaneously selling the July $50.00 call will result in a new position with a target return of 4.3 %. Based on recent prices, this position will cost about $47.95, which is also the trade?s breakeven point. At that level, this covered call has 7.3 % downside protection, while still providing a 4.3 % return in 128 days as long as MSFT is above $50.00 on 7/15/2016. For comparison purposes only, this Microsoft covered call aims for an annualized return rate of 12.2 %. Urban Outfitters (NASDAQ: URBN) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the April $32.00 call while at the same time buying URBN stock for $32.29 will produce a new covered call with a target return of 4.8 %. Based on recent data, this trade will cost about $30.54, which is also the covered call?s breakeven point. At that price, this covered call has 5.4 % downside protection, while seeking an assigned return of 4.8 % return in 37 days. If URBN is higher than $32.00 on 4/15/2016, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 47.2 %. Dicks Sporting Goods (NYSE: DKS) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the June $44.00 call while at the same time buying DKS stock for $44.34 will produce a new covered call with a target return of 7.0 %. Based on recent data, this trade will cost about $41.14, which is also the covered call?s breakeven point. At that price, this covered call has 7.2 % downside protection, while seeking an assigned return of 7.0 % return in 100 days. If DKS is higher than $44.00 on 6/17/2016, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 25.4 %. Costco Wholesale (NASDAQ: COST) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the July $150.00 call while simultaneously buying COST stock for $151.14 will result in a new position with a break-even point around $143.99. At that price, this position has a target return of 4.2 %. This trade has 4.7 % downside protection, while still providing a 4.2 % return in 128 days as long as COST is above $150.00 on 7/15/2016. For comparison purposes only, this Costco Wholesale covered call targets an annualized return rate of 11.9 %. 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 Shopify (SHOP) and Biomarin Pharmaceuticals (BMRN) was upgraded by analysts this morning while Actuant (ATU), Starwood Hotels (HOT) and Calpine (CPN) were downgraded. SunEdison, Inc. (SUNE), TerraForm Power, Inc. (TERP), and Linn Energy, LLC (LINE) are early risers, while Shake Shack Inc.(SHAK), SeaDrill Limited (SDRL) and Dick's Sporting Goods Inc. (DKS)are down. INTERNATIONAL MARKETS Asian markets finished lower Wednesday as Chinese markets broke a six session win streak. The Nikkei was down 0.84% while the Shanghai was down 1.34%. European stocks are higher today as rising crude oil prices lift energy shares. The FTSE is up 0.70%, while the DAX is up 1.39. FUTURES & CURRENCIES Energy futures are rising today. The price for West Texas Intermediate crude oil is up $0.68 to $37.18 per barrel, while natural gas is up $0.01 to $1.73. Metals prices are lower. Gold is down $5.70 to $1,257.20 per ounce and platinum is down $3.30 to $986.10 an ounce. The Dollar is up versus the Euro and down against the Yen. PUT/CALL RATIO Yesterday, 539,457 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 484,756 put contracts. The single-session put/call was 0.89 while the 20-day moving average is now at 0.71. TODAY'S ECONOMIC CALENDAR MBA Mortgage Index 03/05 07:00 Wholesale Inventories Jan 10:00 Crude Inventories 03/05 10:30 EARNINGS EXPECTED TODAY: BOX EXPR GTY KFY OME ORBC SFS ONCE SQ TLRD TBPH TRVN UBA VRA |
