MORNING UPDATE: PriceWatch Alerts for GPRO and More... for 2016-02-08 |
| PriceWatch Alerts for GPRO, SCTY, T, GLD, SWN ,FTR, DDD, AGN, TSN and UA. GoPro (NASDAQ: GPRO) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $10.60 while selling the July $9.00 call will produce a new covered call with a break-even point around $8.20. At that price, this position has a target return of 9.8 %. This trade will have roughly 22.6 % downside protection, while still aiming for a 9.8 % return in 158 days. It will lock in that return as long as GoPro is above $9.00 on 7/15/2016. For comparison purposes only, this GPRO covered call aims for an annualized return rate of 22.5 %. SolarCity (NASDAQ: SCTY) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $29.58 while simultaneously selling the March $29.00 call will result in a new position with a target return of 15.9 %. Based on recent prices, this position will cost about $25.03, which is also the trade?s breakeven point. At that level, this covered call has 15.4 % downside protection, while still providing a 15.9 % return in 39 days as long as SCTY is above $29.00 on 3/18/2016. For comparison purposes only, this SolarCity covered call aims for an annualized return rate of 148.4 %. AT&T (NYSE: T) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the July $37.00 call while at the same time buying T stock for $36.74 will produce a new covered call with a target return of 4.3 %. Based on recent data, this trade will cost about $35.47, which is also the covered call?s breakeven point. At that price, this covered call has 3.5 % downside protection, while seeking an assigned return of 4.3 % return in 158 days. If T is higher than $37.00 on 7/15/2016, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 10.0 %. Gold SPDR (AMEX: GLD) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the June $112.00 call while at the same time buying GLD stock for $112.17 will produce a new covered call with a target return of 4.6 %. Based on recent data, this trade will cost about $107.12, which is also the covered call?s breakeven point. At that price, this covered call has 4.5 % downside protection, while seeking an assigned return of 4.6 % return in 130 days. If GLD is higher than $112.00 on 6/17/2016, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 12.8 %. Southwestern Energy (NYSE: SWN) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the March $9.00 call while simultaneously buying SWN stock for $9.29 will result in a new position with a break-even point around $7.69. At that price, this position has a target return of 17.0 %. This trade has 17.2 % downside protection, while still providing a 17.0 % return in 39 days as long as SWN is above $9.00 on 3/18/2016. For comparison purposes only, this Southwestern Energy covered call targets an annualized return rate of 159.4 %. Frontier Communications (NYSE: FTR) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $4.68 while selling the August $4.50 call will produce a new covered call with a break-even point around $4.10. At that price, this position has a target return of 9.8 %. This trade will have roughly 12.4 % downside protection, while still aiming for a 9.8 % return in 193 days. It will lock in that return as long as Frontier Communications is above $4.50 on 8/19/2016. For comparison purposes only, this FTR covered call aims for an annualized return rate of 18.4 %. 3D Systems (NYSE: DDD) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $8.95 while simultaneously selling the March $8.00 call will result in a new position with a target return of 6.2 %. Based on recent prices, this position will cost about $7.53, which is also the trade?s breakeven point. At that level, this covered call has 15.9 % downside protection, while still providing a 6.2 % return in 39 days as long as DDD is above $8.00 on 3/18/2016. For comparison purposes only, this 3D Systems covered call aims for an annualized return rate of 58.4 %. Allergan (NYSE: AGN) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the May $270.00 call while at the same time buying AGN stock for $273.80 will produce a new covered call with a target return of 5.5 %. Based on recent data, this trade will cost about $256.00, which is also the covered call?s breakeven point. At that price, this covered call has 6.5 % downside protection, while seeking an assigned return of 5.5 % return in 97 days. If AGN is higher than $270.00 on 5/15/2016, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 20.5 %. Tyson Foods (NYSE: TSN) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the July $55.00 call while at the same time buying TSN stock for $58.10 will produce a new covered call with a target return of 4.0 %. Based on recent data, this trade will cost about $52.90, which is also the covered call?s breakeven point. At that price, this covered call has 9.0 % downside protection, while seeking an assigned return of 4.0 % return in 158 days. If TSN is higher than $55.00 on 7/15/2016, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 9.1 %. Under Armour (NYSE: UA) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the March $75.00 call while simultaneously buying UA stock for $77.33 will result in a new position with a break-even point around $71.93. At that price, this position has a target return of 4.3 %. This trade has 7.0 % downside protection, while still providing a 4.3 % return in 39 days as long as UA is above $75.00 on 3/18/2016. For comparison purposes only, this Under Armour covered call targets an annualized return rate of 39.9 %. 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 Ultimate Software (ULTI), Big 5 Sports (BGFV) and American Campus Communities (ACC) were upgraded by analysts this morning while Tallgrass Energy (TEGP), Plains all American (PAA) and ONEOK (OKE) were downgraded. Lazard Ltd. (LAZ), CONSOL Energy Inc. (CNX), and Crocs, Inc. (CROX) are early risers, while Loews Corporation(L), SunEdison, Inc.(SUNE) and Wayfair Inc.(W) are down. INTERNATIONAL MARKETS Asian markets finished mixed Monday with some markets closed for the Lunar New Year Holiday. The Indian Sensex fell 1.34%, and the Nikkei was up 1.10%. European stocks are down this morning with no major economic data scheduled for release today. The FTSE is down 2.15%, while the DAX is down 2.88%. FUTURES & CURRENCIES Energy futures are mixed today. The price for West Texas Intermediate crude oil is down $1.12 to $29.77 per barrel, while natural gas is up $0.08 to $2.15. Metals prices are rising today. Gold is up $22.80 to $1,180.50 per ounce and platinum is up $5.80 to $909.50 an ounce. The Dollar is up versus the Euro and down against the Yen. PUT/CALL RATIO Yesterday, 759,650 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 701,507 put contracts. The single-session put/call was 0.92 while the 20-day moving average is now at 0.76. TODAY'S ECONOMIC CALENDAR Nothing major scheduled EARNINGS EXPECTED TODAY: AIN ALR ALSN AMKR AGII BWP BFAM BRX BKD CNA CTSH CMP BAP DO HAS HLI LII L MCY MOH NBIX NGL NAT ON OTTR OMI OI PKY PRE PAA PAGP PINC RBC SFUN TR FOXA VRTU WCN WEX YELP This Morning Update was prepared with data and information provided by: |
