MORNING UPDATE: PriceWatch Alerts for DIS and More... for 2016-02-26 |
| PriceWatch Alerts for DIS, CSCO, TGT, JCP and CAR. Walt Disney (NYSE: DIS) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $95.65 while selling the May $95.00 call will produce a new covered call with a break-even point around $90.75. At that price, this position has a target return of 4.7 %. This trade will have roughly 5.1 % downside protection, while still aiming for a 4.7 % return in 79 days. It will lock in that return as long as Walt Disney is above $95.00 on 5/15/2016. For comparison purposes only, this DIS covered call aims for an annualized return rate of 21.6 %. Cisco Systems (NASDAQ: CSCO) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $26.33 while simultaneously selling the May $26.00 call will result in a new position with a target return of 4.6 %. Based on recent prices, this position will cost about $24.85, which is also the trade?s breakeven point. At that level, this covered call has 5.6 % downside protection, while still providing a 4.6 % return in 79 days as long as CSCO is above $26.00 on 5/15/2016. For comparison purposes only, this Cisco Systems covered call aims for an annualized return rate of 21.3 %. Target (NYSE: TGT) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the July $77.50 call while at the same time buying TGT stock for $77.94 will produce a new covered call with a target return of 5.8 %. Based on recent data, this trade will cost about $73.24, which is also the covered call?s breakeven point. At that price, this covered call has 6.0 % downside protection, while seeking an assigned return of 5.8 % return in 140 days. If TGT is higher than $77.50 on 7/15/2016, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 15.1 %. JC Penney (NYSE: JCP) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the August $8.00 call while at the same time buying JCP stock for $8.34 will produce a new covered call with a target return of 14.4 %. Based on recent data, this trade will cost about $6.99, which is also the covered call?s breakeven point. At that price, this covered call has 16.2 % downside protection, while seeking an assigned return of 14.4 % return in 175 days. If JCP is higher than $8.00 on 8/19/2016, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 30.1 %. Avis Budget (NYSE: CAR) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the April $23.00 call while simultaneously buying CAR stock for $23.76 will result in a new position with a break-even point around $21.41. At that price, this position has a target return of 7.4 %. This trade has 9.9 % downside protection, while still providing a 7.4 % return in 49 days as long as CAR is above $23.00 on 4/15/2016. For comparison purposes only, this Avis Budget covered call targets an annualized return rate of 55.3 %. 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 Insulet (PODD), Achillion Pharma (ACHN) and Fleetmatics (FLTX) were upgraded by analysts this morning while EMCOR Group (EME), California Water (CWT) and DigitalGlobe (DGI) were downgraded. SunEdison, Inc. (SUNE), J.C. Penney Company, Inc. (JCP), and Herbalife Ltd. (HLF) are early risers, while Weight Watchers International, Inc.(WTW), Universal Display Corp. (OLED) and Southwestern Energy Company (SWN)are down. INTERNATIONAL MARKETS Asian markets were up Friday as Chinese stocks finished higher after a day of up and down trading. The Nikkei rose 0.30%, and the Shanghai was up 0.95%. In Europe stocks are higher today as oil prices continue to move up. The FTSE is up 0.89%, while the DAX is up 1.22%. FUTURES & CURRENCIES Energy futures are mixed today. The price for West Texas Intermediate crude oil is up $0.54 to $33.61 per barrel, while natural gas is down less than a penny to $1.78. Metals prices are lower. Gold is down $2.60 to $1,236.20 per ounce and platinum is up $4.20 to $922.80 an ounce. The Dollar is up versus the Euro and the Yen. PUT/CALL RATIO Yesterday, 632,738 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 393,838 put contracts. The single-session put/call was 0.62 while the 20-day moving average is now at 0.75. TODAY'S ECONOMIC CALENDAR GDP - Second Estimate Q4 08:30 GDP Deflator - Second Estimate Q4 08:30 Personal Income Jan 08:30 Personal Spending Jan 08:30 Core PCE Prices Jan 08:30 Michigan Sentiment - Final Feb 10:00 EARNINGS EXPECTED TODAY: WUBA AMT FOLD CNP CLNY FL GNL GPT GTN HLT HMSY JCP KBR LBRDA QVCA LMCA MEG NYRT NSAM NRF NWN OGE PMC PNM PTLA REV RDC RHP SRE SHEN BID TPH WPG |
