MORNING UPDATE: PriceWatch Alerts for CHK and More... for 2016-02-10 |
| PriceWatch Alerts for CHK, MSFT, GILD, BIIB, JBLU ,FEYE, NXPI, RDN, CRM, AMZN, BAC, CERS, SDRL, JNJ, and FB. Chesapeake Energy (NYSE: CHK) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $1.95 while selling the July $2.00 call will produce a new covered call with a break-even point around $1.40. At that price, this position has a target return of 42.9 %. This trade will have roughly 28.2 % downside protection, while still aiming for a 42.9 % return in 156 days. It will lock in that return as long as Chesapeake Energy is above $2.00 on 7/15/2016. For comparison purposes only, this CHK covered call aims for an annualized return rate of 100.3 %.(To avoid having your profit margin narrowed by transaction costs, consider making this trade with multiple contracts.) 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 $49.28 while simultaneously selling the May $49.00 call will result in a new position with a target return of 6.5 %. Based on recent prices, this position will cost about $46.03, which is also the trade?s breakeven point. At that level, this covered call has 6.6 % downside protection, while still providing a 6.5 % return in 95 days as long as MSFT is above $49.00 on 5/15/2016. For comparison purposes only, this Microsoft covered call aims for an annualized return rate of 24.8 %. Gilead Sciences (NASDAQ: GILD) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the March $85.00 call while at the same time buying GILD stock for $86.57 will produce a new covered call with a target return of 4.3 %. Based on recent data, this trade will cost about $81.52, which is also the covered call?s breakeven point. At that price, this covered call has 5.8 % downside protection, while seeking an assigned return of 4.3 % return in 37 days. If GILD is higher than $85.00 on 3/18/2016, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 42.0 %. Biogen Idec (NASDAQ: BIIB) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the March $245.00 call while at the same time buying BIIB stock for $249.99 will produce a new covered call with a target return of 4.6 %. Based on recent data, this trade will cost about $234.29, which is also the covered call?s breakeven point. At that price, this covered call has 6.3 % downside protection, while seeking an assigned return of 4.6 % return in 37 days. If BIIB is higher than $245.00 on 3/18/2016, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 45.1 %. JetBlue Airways (NASDAQ: JBLU) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the June $19.00 call while simultaneously buying JBLU stock for $19.96 will result in a new position with a break-even point around $17.26. At that price, this position has a target return of 10.1 %. This trade has 13.5 % downside protection, while still providing a 10.1 % return in 128 days as long as JBLU is above $19.00 on 6/17/2016. For comparison purposes only, this JetBlue Airways covered call targets an annualized return rate of 28.7 %. FireEye (NASDAQ: FEYE) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $12.02 while selling the February $12.00 call will produce a new covered call with a break-even point around $10.85. At that price, this position has a target return of 10.6 %. This trade will have roughly 9.7 % downside protection, while still aiming for a 10.6 % return in 9 days. It will lock in that return as long as FireEye is above $12.00 on 2/19/2016. For comparison purposes only, this FEYE covered call aims for an annualized return rate of 429.5 %. NXP Semiconductors (NASDAQ: NXPI) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $65.50 while simultaneously selling the February $65.50 call will result in a new position with a target return of 4.1 %. Based on recent prices, this position will cost about $62.90, which is also the trade?s breakeven point. At that level, this covered call has 4.0 % downside protection, while still providing a 4.1 % return in 9 days as long as NXPI is above $65.50 on 2/19/2016. For comparison purposes only, this NXP Semiconductors covered call aims for an annualized return rate of 167.5 %. Radian Group (NYSE: RDN) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the May $10.00 call while at the same time buying RDN stock for $10.58 will produce a new covered call with a target return of 5.5 %. Based on recent data, this trade will cost about $9.48, which is also the covered call?s breakeven point. At that price, this covered call has 10.4 % downside protection, while seeking an assigned return of 5.5 % return in 95 days. If RDN is higher than $10.00 on 5/15/2016, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 21.1 %. Salesforce.com (NYSE: CRM) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the May $55.00 call while at the same time buying CRM stock for $56.78 will produce a new covered call with a target return of 10.9 %. Based on recent data, this trade will cost about $49.58, which is also the covered call?s breakeven point. At that price, this covered call has 12.7 % downside protection, while seeking an assigned return of 10.9 % return in 95 days. If CRM is higher than $55.00 on 5/15/2016, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 42.0 %. Amazon (NASDAQ: AMZN) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the March $480.00 call while simultaneously buying AMZN stock for $485.23 will result in a new position with a break-even point around $455.93. At that price, this position has a target return of 5.3 %. This trade has 6.0 % downside protection, while still providing a 5.3 % return in 37 days as long as AMZN is above $480.00 on 3/18/2016. For comparison purposes only, this Amazon covered call targets an annualized return rate of 52.0 %. 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 $12.20 while selling the April $12.00 call will produce a new covered call with a break-even point around $11.20. At that price, this position has a target return of 7.1 %. This trade will have roughly 8.2 % downside protection, while still aiming for a 7.1 % return in 65 days. It will lock in that return as long as Bank of America is above $12.00 on 4/15/2016. For comparison purposes only, this BAC covered call aims for an annualized return rate of 40.1 %. Cerus (NASDAQ: CERS) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $6.02 while simultaneously selling the August $6.00 call will result in a new position with a target return of 19.5 %. Based on recent prices, this position will cost about $5.02, which is also the trade?s breakeven point. At that level, this covered call has 16.6 % downside protection, while still providing a 19.5 % return in 191 days as long as CERS is above $6.00 on 8/19/2016. For comparison purposes only, this Cerus covered call aims for an annualized return rate of 37.3 %. Seadrill (NYSE: SDRL) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the July $1.50 call while at the same time buying SDRL stock for $1.72 will produce a new covered call with a target return of 33.9 %. Based on recent data, this trade will cost about $1.12, which is also the covered call?s breakeven point. At that price, this covered call has 34.9 % downside protection, while seeking an assigned return of 33.9 % return in 156 days. If SDRL is higher than $1.50 on 7/15/2016, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 79.4 %.(To avoid having your profit margin narrowed by transaction costs, consider making this trade with multiple contracts.) Johnson and Johnson (NYSE: JNJ) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the July $100.00 call while at the same time buying JNJ stock for $102.07 will produce a new covered call with a target return of 4.0 %. Based on recent data, this trade will cost about $96.17, which is also the covered call?s breakeven point. At that price, this covered call has 5.8 % downside protection, while seeking an assigned return of 4.0 % return in 156 days. If JNJ is higher than $100.00 on 7/15/2016, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 9.3 %. Facebook (NASDAQ: FB) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the April $97.50 call while simultaneously buying FB stock for $99.48 will result in a new position with a break-even point around $91.63. At that price, this position has a target return of 6.4 %. This trade has 7.9 % downside protection, while still providing a 6.4 % return in 65 days as long as FB is above $97.50 on 4/15/2016. For comparison purposes only, this Facebook covered call targets an annualized return rate of 35.9 %. 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'. 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STOCKS ON THE MOVE Trimble Navigation (TRMB), Press Ganey (PGND) and Transdigm Group (TDG) were upgraded by analysts this morning while Parkway Properties (PKY), CTI BioPharma (CTIC) and Tahoe Resources (TAHO) were downgraded. Square, Inc. (SQ), Fitbit Inc. (FIT), and CONSOL Energy Inc. (CNX) are early risers, while SolarCity Corporation(SCTY), SunPower Corporation(SPWR) and SunEdison, Inc.(SUNE) are down. INTERNATIONAL MARKETS Asian markets were mixed Wednesday with Japanese markets surrendering gains made after the central bank there expanded easing measures. The Hang Seng rose 0.55%, and the Nikkei was down 2.31%. In Europe, stocks are on the rise today with bank shares lifting markets . The FTSE is up 1.15%, while the DAX is up 2.49%. FUTURES & CURRENCIES Energy futures are mixed today. The price for West Texas Intermediate crude oil is up $0.64 to $28.58 per barrel, while natural gas is down $0.04 to $2.05. Metals prices are lower today. Gold is down $15.40 to $1,183.20 per ounce and platinum is down $14.20 to $925.20 an ounce. The Dollar is down versus the Euro and the Yen. PUT/CALL RATIO Yesterday, 686,451 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 523,896 put contracts. The single-session put/call was 0.76 while the 20-day moving average is now at 0.75. TODAY'S ECONOMIC CALENDAR MBA Mortgage Index 02/06 07:00 Crude Inventories 02/06 10:30 Treasury Budget Jan 14:00 EARNINGS EXPECTED TODAY: GAS AEL AFSI ARMK AXTA BERY BGCP BKFS BRKR CSTE CG CTL CRL CSCO CNO CGNX CSOD CXW CUZ CRTO CSRA CYS DTE ENSG EFX EEFT EXPE FNF FLO FMC HSIC HNI HUM IFF IRBT JCOM JAH KING LBTYA LOCK LGND MKL MRKT MFA MIICF MYL NAVG NXTM ORLY OII OHI ORBK OC PPC PXD PRI PRU RYN O REG SEE SCI SKX LNCE SCTY TARO TCO TSLA TWX TR TWTR VOYA WFM ZNGA This Morning Update was prepared with data and information provided by: |
