MORNING UPDATE: PriceWatch Alerts for BBRY and More... for 2016-01-29 |
| PriceWatch Alerts for BBRY, AMZN, NKE, AVGO, LVS ,XON, WFM, FB, DOW, CRUS, EA, , , , and . Blackberry (NASDAQ: BBRY) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $6.87 while selling the April $6.00 call will produce a new covered call with a break-even point around $5.71. At that price, this position has a target return of 5.1 %. This trade will have roughly 16.9 % downside protection, while still aiming for a 5.1 % return in 77 days. It will lock in that return as long as Blackberry is above $6.00 on 4/15/2016. For comparison purposes only, this BBRY covered call aims for an annualized return rate of 24.0 %. Amazon (NASDAQ: AMZN) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $571.17 while simultaneously selling the February $570.00 call will result in a new position with a target return of 14.6 %. Based on recent prices, this position will cost about $497.22, which is also the trade?s breakeven point. At that level, this covered call has 12.9 % downside protection, while still providing a 14.6 % return in 21 days as long as AMZN is above $570.00 on 2/19/2016. For comparison purposes only, this Amazon covered call aims for an annualized return rate of 254.3 %. Nike (NYSE: NKE) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the April $60.00 call while at the same time buying NKE stock for $60.78 will produce a new covered call with a target return of 4.9 %. Based on recent data, this trade will cost about $57.18, which is also the covered call?s breakeven point. At that price, this covered call has 5.9 % downside protection, while seeking an assigned return of 4.9 % return in 77 days. If NKE is higher than $60.00 on 4/15/2016, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 23.4 %. Avago Technologies (NASDAQ: AVGO) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the April $125.00 call while at the same time buying AVGO stock for $126.43 will produce a new covered call with a target return of 7.6 %. Based on recent data, this trade will cost about $116.13, 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 7.6 % return in 77 days. If AVGO is higher than $125.00 on 4/15/2016, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 36.2 %. Intrexon (NYSE: XON) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the April $29.00 call while simultaneously buying XON stock for $29.00 will result in a new position with a break-even point around $25.30. At that price, this position has a target return of 14.6 %. This trade has 12.8 % downside protection, while still providing a 14.6 % return in 77 days as long as XON is above $29.00 on 4/15/2016. For comparison purposes only, this Intrexon covered call targets an annualized return rate of 69.3 %. Whole Foods (NASDAQ: WFM) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $28.84 while selling the February $28.50 call will produce a new covered call with a break-even point around $27.19. At that price, this position has a target return of 4.8 %. This trade will have roughly 5.7 % downside protection, while still aiming for a 4.8 % return in 21 days. It will lock in that return as long as Whole Foods is above $28.50 on 2/19/2016. For comparison purposes only, this WFM covered call aims for an annualized return rate of 83.6 %. Facebook (NASDAQ: FB) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $108.22 while simultaneously selling the March $108.00 call will result in a new position with a target return of 7.1 %. Based on recent prices, this position will cost about $100.82, which is also the trade?s breakeven point. At that level, this covered call has 6.8 % downside protection, while still providing a 7.1 % return in 49 days as long as FB is above $108.00 on 3/18/2016. For comparison purposes only, this Facebook covered call aims for an annualized return rate of 53.0 %. Dow Chemical (NYSE: DOW) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the March $41.00 call while at the same time buying DOW stock for $41.57 will produce a new covered call with a target return of 4.5 %. Based on recent data, this trade will cost about $39.24, which is also the covered call?s breakeven point. At that price, this covered call has 5.6 % downside protection, while seeking an assigned return of 4.5 % return in 49 days. If DOW is higher than $41.00 on 3/18/2016, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 33.4 %. Cirrus Logic (NASDAQ: CRUS) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the March $32.00 call while at the same time buying CRUS stock for $32.54 will produce a new covered call with a target return of 6.5 %. Based on recent data, this trade will cost about $30.04, which is also the covered call?s breakeven point. At that price, this covered call has 7.7 % downside protection, while seeking an assigned return of 6.5 % return in 49 days. If CRUS is higher than $32.00 on 3/18/2016, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 48.6 %. Electronic Arts (NASDAQ: EA) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the March $62.50 call while simultaneously buying EA stock for $64.00 will result in a new position with a break-even point around $55.35. At that price, this position has a target return of 12.9 %. This trade has 13.5 % downside protection, while still providing a 12.9 % return in 49 days as long as EA is above $62.50 on 3/18/2016. For comparison purposes only, this Electronic Arts covered call targets an annualized return rate of 96.2 %. 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 NetSuite (N), SanDisk (SNDK) and Computer Programs (CPSI) were upgraded by analysts this morning while InvestorsBancorp (ISBC), NTCT (NetScout Systems) and Synaptics (SYNA) were downgraded. Sony Corporation (SNE), Xerox Corporation (XRX), and Horizon Pharma plc (HZNP) are early risers, while Amazon.com, Inc. (AMZN), AbbVie Inc. (ABBV) and Electronic Arts Inc.(EA) are down. INTERNATIONAL MARKETS Asian markets closed higher Friday after The Bank of Japan announced a negative interest rate policy. The Shanghai Composite ended up 3.09%, and the Nikkei was up 2.80%. European stocks are up today though markets there are still on pace for a monthly loss. The FTSE is up 1.23%, while the DAX is up 0.71%. FUTURES & CURRENCIES Energy futures are mixed today. The price for West Texas Intermediate crude oil is up $0.32 to $33.54 per barrel, while natural gas is up $0.06 t o $2.24. Metals prices are up. Gold is down $3.10 to $1,115.90 per ounce and platinum is down $1.40 to $866.40 an ounce. The Dollar is up versus the Euro and the Yen. PUT/CALL RATIO Yesterday, 871,135 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 543,920 put contracts. The single-session put/call was 0.62 while the 20-day moving average is now at 0.76. TODAY'S ECONOMIC CALENDAR GDP-Adv. Q4 08:30 GDP Deflator Q4 08:30 Employment Cost Index Q4 08:30 Chicago PMI Jan 09:45 Michigan Sentiment - Final Jan 10:00 EARNINGS EXPECTED TODAY: AOS ABBV AJRD APD AAL ALV BRCM CVX CL CNX CTCT HON IDXX KCG MA NWL NS OSTK PCAR PSX PSXP PX PFS STX SWI TYC WHR XRX |
