MORNING UPDATE: PriceWatch Alerts for AA and More... for 2016-02-18 |
| PriceWatch Alerts for AA, AVXL, RGLS, RRMS, PRU ,BABA, FSLR, CEMP, FOSL and SCTY. Alcoa (NYSE: AA) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $8.52 while selling the June $8.00 call will produce a new covered call with a break-even point around $7.35. At that price, this position has a target return of 8.8 %. This trade will have roughly 13.7 % downside protection, while still aiming for a 8.8 % return in 120 days. It will lock in that return as long as Alcoa is above $8.00 on 6/17/2016. For comparison purposes only, this AA covered call aims for an annualized return rate of 26.9 %. Anvex (NASDAQ: AVXL) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $3.81 while simultaneously selling the July $2.50 call will result in a new position with a target return of 21.4 %. Based on recent prices, this position will cost about $2.06, which is also the trade?s breakeven point. At that level, this covered call has 45.9 % downside protection, while still providing a 21.4 % return in 148 days as long as AVXL is above $2.50 on 7/15/2016. For comparison purposes only, this Anvex covered call aims for an annualized return rate of 52.7 %. Regulus Therapeutics (NASDAQ: RGLS) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the July $5.00 call while at the same time buying RGLS stock for $7.49 will produce a new covered call with a target return of 16.6 %. Based on recent data, this trade will cost about $4.29, which is also the covered call?s breakeven point. At that price, this covered call has 42.7 % downside protection, while seeking an assigned return of 16.6 % return in 148 days. If RGLS is higher than $5.00 on 7/15/2016, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 40.8 %. Rose Rock (NYSE: RRMS) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the July $10.00 call while at the same time buying RRMS stock for $11.84 will produce a new covered call with a target return of 6.5 %. Based on recent data, this trade will cost about $9.39, which is also the covered call?s breakeven point. At that price, this covered call has 20.7 % downside protection, while seeking an assigned return of 6.5 % return in 148 days. If RRMS is higher than $10.00 on 7/15/2016, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 16.0 %. Prudential Financial (NYSE: PRU) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the June $65.00 call while simultaneously buying PRU stock for $66.60 will result in a new position with a break-even point around $61.65. At that price, this position has a target return of 5.4 %. This trade has 7.4 % downside protection, while still providing a 5.4 % return in 120 days as long as PRU is above $65.00 on 6/17/2016. For comparison purposes only, this Prudential Financial covered call targets an annualized return rate of 16.5 %. Alibaba (NYSE: BABA) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $66.49 while selling the April $65.00 call will produce a new covered call with a break-even point around $61.49. At that price, this position has a target return of 5.7 %. This trade will have roughly 7.5 % downside protection, while still aiming for a 5.7 % return in 57 days. It will lock in that return as long as Alibaba is above $65.00 on 4/15/2016. For comparison purposes only, this BABA covered call aims for an annualized return rate of 36.5 %. First Solar (NASDAQ: FSLR) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $63.32 while simultaneously selling the March $62.50 call will result in a new position with a target return of 7.1 %. Based on recent prices, this position will cost about $58.37, which is also the trade?s breakeven point. At that level, this covered call has 7.8 % downside protection, while still providing a 7.1 % return in 29 days as long as FSLR is above $62.50 on 3/18/2016. For comparison purposes only, this First Solar covered call aims for an annualized return rate of 89.0 %. Cempra (NASDAQ: CEMP) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the April $17.50 call while at the same time buying CEMP stock for $19.08 will produce a new covered call with a target return of 7.8 %. Based on recent data, this trade will cost about $16.23, which is also the covered call?s breakeven point. At that price, this covered call has 14.9 % downside protection, while seeking an assigned return of 7.8 % return in 57 days. If CEMP is higher than $17.50 on 4/15/2016, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 50.1 %. Fossil (NASDAQ: FOSL) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the June $40.00 call while at the same time buying FOSL stock for $44.35 will produce a new covered call with a target return of 6.8 %. Based on recent data, this trade will cost about $37.45, which is also the covered call?s breakeven point. At that price, this covered call has 15.6 % downside protection, while seeking an assigned return of 6.8 % return in 120 days. If FOSL is higher than $40.00 on 6/17/2016, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 20.7 %. SolarCity (NASDAQ: SCTY) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the March $20.00 call while simultaneously buying SCTY stock for $20.79 will result in a new position with a break-even point around $18.24. At that price, this position has a target return of 9.6 %. This trade has 12.3 % downside protection, while still providing a 9.6 % return in 29 days as long as SCTY is above $20.00 on 3/18/2016. For comparison purposes only, this SolarCity covered call targets an annualized return rate of 121.3 %. 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 Healthstream (HSTM), IntercontinentalExchange (ICE) and DISH Network (DISH) were upgraded by analysts this morning while Rackspace (RAX), Genuine Parts (GPC) and ADT (ADT) were downgraded. NVIDIA Corporation (NVDA), AbbVie Inc. (ABBV), and Kite Pharma, Inc.(KITE) are early risers, while Jack in the Box Inc.(JACK), Perrigo Company Public Limited Company (PRGO) and Devon Energy Corporation (DVN)are down. INTERNATIONAL MARKETS Asian stocks finished mixed Thursday as oil prices moved higher. The Nikkei rose 2.28%, and the Shanghai was down 0.16%. European stocks are mixed today as commodities and banking shares continue to lift markets. The FTSE is down 0.44%, while the DAX is up 1.61%. FUTURES & CURRENCIES Energy futures are up today. The price for West Texas Intermediate crude oil is up $0.68 to $33.66 per barrel, while natural gas is down $0.03 to $1.98. Metals prices are mixed. Gold is down $5.40 to $1,246.00 per ounce and platinum is down $10.80 to $938.90 an ounce. The Dollar is up versus the Euro and down against the Yen. PUT/CALL RATIO Yesterday, 882,426 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 597,779 put contracts. The single-session put/call was 0.70 while the 20-day moving average is now at 0.73. TODAY'S ECONOMIC CALENDAR Initial Claims 02/13 08:30 Continuing Claims 02/06 08:30 Philadelphia Fed Feb 08:30 Natural Gas Inventories 02/13 10:30 Crude Inventories 02/13 11:00 EARNINGS EXPECTED TODAY: AAN AGIO ALE MDRX ARII AHS AMAT ANET AAWW BJRI SAM CAB CAA LNG CQH CHSP CHH CBB CPGX CPPL ED CUBE CVI CVRR DAN DISCA DISH DUK EIGI ETR EQIX FNGN FR FLS FLR GEL GOV HTA HII H IDA IDCC IRWD KEYS LH LHO MDCA MPEL MGM NHI NHC NI PRGO PCG POOL PRTA RS REXR SCG SIX HOT STFC SYNT TGP TTC TVPT TRN UFCS UEIC VAL VA WAGE WMT WRE WM HCN WST WAB This Morning Update was prepared with data and information provided by: |
