MORNING UPDATE: PriceWatch Alerts for GPRO and More... for 2016-02-22 |
| PriceWatch Alerts for GPRO, PFE, WHR, UAL, JKS ,BAC, COP, AMAT, UA and ATVI. GoPro (NASDAQ: GPRO) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $12.39 while selling the March $12.00 call will produce a new covered call with a break-even point around $11.14. At that price, this position has a target return of 7.7 %. This trade will have roughly 10.1 % downside protection, while still aiming for a 7.7 % return in 25 days. It will lock in that return as long as GoPro is above $12.00 on 3/18/2016. For comparison purposes only, this GPRO covered call aims for an annualized return rate of 112.6 %. Pfizer (NYSE: PFE) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $29.44 while simultaneously selling the September $29.00 call will result in a new position with a target return of 6.0 %. Based on recent prices, this position will cost about $27.36, which is also the trade?s breakeven point. At that level, this covered call has 7.1 % downside protection, while still providing a 6.0 % return in 207 days as long as PFE is above $29.00 on 9/16/2016. For comparison purposes only, this Pfizer covered call aims for an annualized return rate of 10.6 %. Whirlpool (NYSE: WHR) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the June $140.00 call while at the same time buying WHR stock for $141.99 will produce a new covered call with a target return of 7.3 %. Based on recent data, this trade will cost about $130.49, 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 7.3 % return in 116 days. If WHR is higher than $140.00 on 6/17/2016, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 22.9 %. United Continental (NYSE: UAL) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the June $52.50 call while at the same time buying UAL stock for $53.88 will produce a new covered call with a target return of 8.3 %. Based on recent data, this trade will cost about $48.48, which is also the covered call?s breakeven point. At that price, this covered call has 10.0 % downside protection, while seeking an assigned return of 8.3 % return in 116 days. If UAL is higher than $52.50 on 6/17/2016, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 26.1 %. JinkoSolar (NYSE: JKS) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the March $21.00 call while simultaneously buying JKS stock for $21.20 will result in a new position with a break-even point around $19.35. At that price, this position has a target return of 8.5 %. This trade has 8.7 % downside protection, while still providing a 8.5 % return in 25 days as long as JKS is above $21.00 on 3/18/2016. For comparison purposes only, this JinkoSolar covered call targets an annualized return rate of 124.4 %. Bank of America (NYSE: BAC) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $12.13 while selling the August $12.00 call will produce a new covered call with a break-even point around $10.90. At that price, this position has a target return of 10.1 %. This trade will have roughly 10.1 % downside protection, while still aiming for a 10.1 % return in 179 days. It will lock in that return as long as Bank of America is above $12.00 on 8/19/2016. For comparison purposes only, this BAC covered call aims for an annualized return rate of 20.6 %. ConocoPhillips (NYSE: COP) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $32.58 while simultaneously selling the March $32.00 call will result in a new position with a target return of 6.0 %. Based on recent prices, this position will cost about $30.20, which is also the trade?s breakeven point. At that level, this covered call has 7.3 % downside protection, while still providing a 6.0 % return in 25 days as long as COP is above $32.00 on 3/18/2016. For comparison purposes only, this ConocoPhillips covered call aims for an annualized return rate of 87.0 %. Applied Materials (NASDAQ: AMAT) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $18.55 while simultaneously selling the July $18.00 call will result in a new position with a target return of 5.8 %. Based on recent prices, this position will cost about $17.02, which is also the trade?s breakeven point. At that level, this covered call has 8.2 % downside protection, while still providing a 5.8 % return in 144 days as long as AMAT is above $18.00 on 7/15/2016. For comparison purposes only, this Applied Materials covered call aims for an annualized return rate of 14.6 %. Under Armour (NYSE: UA) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the April $80.00 call while at the same time buying UA stock for $80.62 will produce a new covered call with a target return of 5.8 %. Based on recent data, this trade will cost about $75.62, which is also the covered call?s breakeven point. At that price, this covered call has 6.2 % downside protection, while seeking an assigned return of 5.8 % return in 53 days. If UA is higher than $80.00 on 4/15/2016, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 39.9 %. Activision (NASDAQ: ATVI) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the March $30.00 call while simultaneously buying ATVI stock for $30.19 will result in a new position with a break-even point around $28.79. At that price, this position has a target return of 4.2 %. This trade has 4.6 % downside protection, while still providing a 4.2 % return in 25 days as long as ATVI is above $30.00 on 3/18/2016. For comparison purposes only, this Activision covered call targets an annualized return rate of 61.3 %. Are you looking for a more conservative strategy that solves the pitfalls that come with covered calls investing? 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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. STOCKS ON THE MOVE Mentor Graphics (MENT), Wright Medical Group (WMGI) and IMAX (IMAX) were upgraded by analysts this morning while Flowserve (FLS), TripAdvisor (TRIP) and Expedia (EXPE) were downgraded. Radius Health, Inc. (RDUS), Marathon Oil Corporation (MRO), and Chesapeake Energy Corporation (CHK) are early risers, while Lumber Liquidators Holdings, Inc.(LL), Coeur Mining, Inc. (CDE) and NovaGold Resources Inc. (NG)are down. INTERNATIONAL MARKETS Asian stocks finished higher Monday after China replace the head of their stock regulatory commission. The Nikkei was up 0.90%, and the Shanghai rose 2.35%. In Europe, stocks are rising as oil prices bounced higher. The FTSE is up 1.26%, while the DAX is up 1.65%. FUTURES & CURRENCIES Energy futures are mixed. The price for West Texas Intermediate crude oil is up $1.31 to $33.06 per barrel, while natural gas is down $0.03 to $1.83. Metals prices are lower this morning. Gold is down $19.20 to $1,211.60 per ounce and platinum is down $16.70 to $928.90 an ounce. The Dollar is up versus the Euro and the Yen. PUT/CALL RATIO Yesterday, 1,140,734 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 998,046 put contracts. The single-session put/call was 0.87 while the 20-day moving average is now at 0.74. TODAY'S ECONOMIC CALENDAR Nothing major scheduled EARNINGS EXPECTED TODAY: ABY AGN LNT ACC ANAT AWI ATRI AGR CRZO CHMT CIE CPS DEPO DDS EDR ESRT EVHC EXPD FIT GLRE HURN IPXL IVR KOS LTC MIC MHLD MRC NLS NKTR NDSN OKE OKS PDCE PEB QTS RWT SBRA SSW SWC SUNE SHO SPN TMH THC TXRH UAM VVC VECO VRSK This Morning Update was prepared with data and information provided by: |
