MORNING UPDATE: PriceWatch Alerts for AAPL and More... for 2016-01-26 |
| PriceWatch Alerts for AAPL, AA, SBUX, MCD, TYC ,GPRO, SCTY, VRX, NTES, CLVS, MU, BABA, GWPH, BTU, and MSFT. Apple (NASDAQ: AAPL) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $99.29 while selling the February $99.00 call will produce a new covered call with a break-even point around $94.99. At that price, this position has a target return of 4.2 %. This trade will have roughly 4.3 % downside protection, while still aiming for a 4.2 % return in 24 days. It will lock in that return as long as Apple is above $99.00 on 2/19/2016. For comparison purposes only, this AAPL covered call aims for an annualized return rate of 64.2 %. Alcoa (NYSE: AA) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $6.82 while simultaneously selling the June $6.00 call will result in a new position with a target return of 8.3 %. Based on recent prices, this position will cost about $5.54, which is also the trade?s breakeven point. At that level, this covered call has 18.8 % downside protection, while still providing a 8.3 % return in 143 days as long as AA is above $6.00 on 6/17/2016. For comparison purposes only, this Alcoa covered call aims for an annualized return rate of 21.2 %. Starbucks (NASDAQ: SBUX) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $57.74 while simultaneously selling the June $55.00 call will result in a new position with a target return of 4.8 %. Based on recent prices, this position will cost about $52.49, which is also the trade?s breakeven point. At that level, this covered call has 9.1 % downside protection, while still providing a 4.8 % return in 143 days as long as SBUX is above $55.00 on 6/17/2016. For comparison purposes only, this Starbucks covered call aims for an annualized return rate of 12.2 %. McDonald's (NYSE: MCD) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the April $115.00 call while at the same time buying MCD stock for $119.41 will produce a new covered call with a target return of 1.8 %. Based on recent data, this trade will cost about $112.96, which is also the covered call?s breakeven point. At that price, this covered call has 5.4 % downside protection, while seeking an assigned return of 1.8 % return in 80 days. If MCD is higher than $115.00 on 4/15/2016, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 8.2 %. Tyco International (NYSE: TYC) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the April $33.00 call while simultaneously buying TYC stock for $33.96 will result in a new position with a break-even point around $31.71. At that price, this position has a target return of 4.1 %. This trade has 6.6 % downside protection, while still providing a 4.1 % return in 80 days as long as TYC is above $33.00 on 4/15/2016. For comparison purposes only, this Tyco International covered call targets an annualized return rate of 18.5 %. GoPro (NASDAQ: GPRO) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $10.47 while selling the April $10.00 call will produce a new covered call with a break-even point around $8.52. At that price, this position has a target return of 17.4 %. This trade will have roughly 18.6 % downside protection, while still aiming for a 17.4 % return in 80 days. It will lock in that return as long as GoPro is above $10.00 on 4/15/2016. For comparison purposes only, this GPRO covered call aims for an annualized return rate of 79.3 %. 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 $30.62 while simultaneously selling the April $30.50 call will result in a new position with a target return of 13.1 %. Based on recent prices, this position will cost about $26.97, which is also the trade?s breakeven point. At that level, this covered call has 11.9 % downside protection, while still providing a 13.1 % return in 80 days as long as SCTY is above $30.50 on 4/15/2016. For comparison purposes only, this SolarCity covered call aims for an annualized return rate of 59.7 %. Valeant Pharmac. (NYSE: VRX) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $93.00 while simultaneously selling the February $92.50 call will result in a new position with a target return of 6.3 %. Based on recent prices, this position will cost about $87.05, which is also the trade?s breakeven point. At that level, this covered call has 6.4 % downside protection, while still providing a 6.3 % return in 24 days as long as VRX is above $92.50 on 2/19/2016. For comparison purposes only, this Valeant Pharmac. covered call aims for an annualized return rate of 95.2 %. Netease.com (NASDAQ: NTES) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the February $157.50 call while at the same time buying NTES stock for $158.61 will produce a new covered call with a target return of 4.3 %. Based on recent data, this trade will cost about $151.01, which is also the covered call?s breakeven point. At that price, this covered call has 4.8 % downside protection, while seeking an assigned return of 4.3 % return in 24 days. If NTES is higher than $157.50 on 2/19/2016, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 65.2 %. Clovis Oncology (NASDAQ: CLVS) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the February $22.50 call while simultaneously buying CLVS stock for $22.99 will result in a new position with a break-even point around $20.84. At that price, this position has a target return of 8.0 %. This trade has 9.4 % downside protection, while still providing a 8.0 % return in 24 days as long as CLVS is above $22.50 on 2/19/2016. For comparison purposes only, this Clovis Oncology covered call targets an annualized return rate of 121.1 %. Micron Technology (NASDAQ: MU) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $10.57 while selling the March $10.00 call will produce a new covered call with a break-even point around $9.32. At that price, this position has a target return of 7.3 %. This trade will have roughly 11.8 % downside protection, while still aiming for a 7.3 % return in 52 days. It will lock in that return as long as Micron Technology is above $10.00 on 3/18/2016. For comparison purposes only, this MU covered call aims for an annualized return rate of 51.2 %. Alibaba (NYSE: BABA) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $69.72 while simultaneously selling the March $67.50 call will result in a new position with a target return of 5.7 %. Based on recent prices, this position will cost about $63.87, which is also the trade?s breakeven point. At that level, this covered call has 8.4 % downside protection, while still providing a 5.7 % return in 52 days as long as BABA is above $67.50 on 3/18/2016. For comparison purposes only, this Alibaba covered call aims for an annualized return rate of 39.9 %. GW Pharmaceuticals (NASDAQ: GWPH) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $56.77 while simultaneously selling the March $55.00 call will result in a new position with a target return of 19.6 %. Based on recent prices, this position will cost about $45.97, which is also the trade?s breakeven point. At that level, this covered call has 19.0 % downside protection, while still providing a 19.6 % return in 52 days as long as GWPH is above $55.00 on 3/18/2016. For comparison purposes only, this GW Pharmaceuticals covered call aims for an annualized return rate of 137.9 Peabody Energy (NYSE: BTU) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the June $3.50 call while at the same time buying BTU stock for $3.76 will produce a new covered call with a target return of 14.4 %. Based on recent data, this trade will cost about $3.06, which is also the covered call?s breakeven point. At that price, this covered call has 18.6 % downside protection, while seeking an assigned return of 14.4 % return in 143 days. If BTU is higher than $3.50 on 6/17/2016, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 36.7 %. Microsoft (NASDAQ: MSFT) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the June $50.00 call while simultaneously buying MSFT stock for $51.70 will result in a new position with a break-even point around $47.40. At that price, this position has a target return of 5.5 %. This trade has 8.3 % downside protection, while still providing a 5.5 % return in 143 days as long as MSFT is above $50.00 on 6/17/2016. For comparison purposes only, this Microsoft covered call targets an annualized return rate of 14.0 %. 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'. These limited risk techniques have saved investors thousands of dollars during unexpected market downturns and Black Swan events. 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Sprint Corporation (S), Relypsa, Inc. (RLYP), and Freeport-McMoRan Inc.(FCX) are early risers, while Canadian Pacific Railway Limited (CP), Anavex Life Sciences Corp. (AVXL) and Stratasys Ltd. (SSYS) are down. INTERNATIONAL MARKETS In Asia, markets fell Tuesday as Chinese markets suffered their biggest loss since authorities removed market ?circuit breakers?. The Shanghai Composite was down 6.42%, and the Nikkei fell 2.35%. European stocks are mixed today as crude oil prices bounced back after falling below $30 per barrel. The FTSE is down 0.35%, while the French CAC 40 is up 0.12%. FUTURES & CURRENCIES Energy futures are higher today. The price for West Texas Intermediate crude oil is up $0.03 to $30.26 per barrel, while natural gas is up $0.03 t o $2.19. Metals prices are higher. Gold is up $7.10 to $1,112.40 per ounce and platinum is up $0.70 to $862.70 an ounce. The Dollar is up versus the Euro and the Yen. PUT/CALL RATIO Yesterday, 655,665 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 453,984 put contracts. The single-session put/call was 0.69 while the 20-day moving average is now at 0.77. TODAY'S ECONOMIC CALENDAR Case-Shiller 20-city Index Nov 09:00 FHFA Housing Price Index Nov 09:00 Consumer Confidence Jan 10:00 EARNINGS EXPECTED TODAY: MMM AMG AAPL T AVX COF CB COH GLW DHR DOV DD FMER FCX GK JNJ LCI LMT MNRO NAVI NVR NORD PRK PH PII PLCM BPOP PCP PG PLD S SYK TSS TRMK X VMW GWW WAT WSBC This Morning Update was prepared with data and information provided by: |
