MORNING UPDATE: PriceWatch Alerts for KMI and More... for 2016-01-22 |
| PriceWatch Alerts for KMI, XOM, SKX, GOOGL, MDCO ,TSLA, QCOM, PYPL, CNX and CSX. Kinder Morgan (NYSE: KMI) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $13.84 while selling the March $12.50 call will produce a new covered call with a break-even point around $11.74. At that price, this position has a target return of 6.5 %. This trade will have roughly 15.2 % downside protection, while still aiming for a 6.5 % return in 56 days. It will lock in that return as long as Kinder Morgan is above $12.50 on 3/18/2016. For comparison purposes only, this KMI covered call aims for an annualized return rate of 42.2 %. Exxon Mobil (NYSE: XOM) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $73.95 while simultaneously selling the March $72.50 call will result in a new position with a target return of 4.1 %. Based on recent prices, this position will cost about $69.65, which is also the trade?s breakeven point. At that level, this covered call has 5.8 % downside protection, while still providing a 4.1 % return in 56 days as long as XOM is above $72.50 on 3/18/2016. For comparison purposes only, this Exxon Mobil covered call aims for an annualized return rate of 26.7 %. Skechers USA (NYSE: SKX) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the March $28.00 call while at the same time buying SKX stock for $28.02 will produce a new covered call with a target return of 9.1 %. Based on recent data, this trade will cost about $25.67, which is also the covered call?s breakeven point. At that price, this covered call has 8.4 % downside protection, while seeking an assigned return of 9.1 % return in 56 days. If SKX is higher than $28.00 on 3/18/2016, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 59.1 %. Google (NASDAQ: GOOGL) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the March $725.00 call while at the same time buying GOOGL stock for $727.16 will produce a new covered call with a target return of 5.4 %. Based on recent data, this trade will cost about $688.06, 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 5.4 % return in 56 days. If GOOGL is higher than $725.00 on 3/18/2016, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 34.9 %. Medicines (NASDAQ: MDCO) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the March $35.00 call while simultaneously buying MDCO stock for $35.79 will result in a new position with a break-even point around $32.39. At that price, this position has a target return of 8.1 %. This trade has 9.5 % downside protection, while still providing a 8.1 % return in 56 days as long as MDCO is above $35.00 on 3/18/2016. For comparison purposes only, this Medicines covered call targets an annualized return rate of 52.5 %. Tesla (NASDAQ: TSLA) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $200.00 while selling the March $195.00 call will produce a new covered call with a break-even point around $183.00. At that price, this position has a target return of 6.6 %. This trade will have roughly 8.5 % downside protection, while still aiming for a 6.6 % return in 56 days. It will lock in that return as long as Tesla is above $195.00 on 3/18/2016. For comparison purposes only, this TSLA covered call aims for an annualized return rate of 42.7 %. Qualcomm (NASDAQ: QCOM) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $45.93 while simultaneously selling the February $45.00 call will result in a new position with a target return of 5.8 %. Based on recent prices, this position will cost about $42.53, which is also the trade?s breakeven point. At that level, this covered call has 7.4 % downside protection, while still providing a 5.8 % return in 28 days as long as QCOM is above $45.00 on 2/19/2016. For comparison purposes only, this Qualcomm covered call aims for an annualized return rate of 75.6 %. Paypal Holdings (NASDAQ: PYPL) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the April $30.00 call while at the same time buying PYPL stock for $31.61 will produce a new covered call with a target return of 4.9 %. Based on recent data, this trade will cost about $28.61, which is also the covered call?s breakeven point. At that price, this covered call has 9.5 % downside protection, while seeking an assigned return of 4.9 % return in 84 days. If PYPL is higher than $30.00 on 4/15/2016, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 21.1 %. CONSOL Energy (NYSE: CNX) 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 CNX stock for $5.99 will produce a new covered call with a target return of 20.8 %. Based on recent data, this trade will cost about $4.14, which is also the covered call?s breakeven point. At that price, this covered call has 30.9 % downside protection, while seeking an assigned return of 20.8 % return in 175 days. If CNX 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 43.3 %. CSX (NYSE: CSX) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the May $22.00 call while simultaneously buying CSX stock for $22.36 will result in a new position with a break-even point around $20.45. At that price, this position has a target return of 7.6 %. This trade has 8.5 % downside protection, while still providing a 7.6 % return in 114 days as long as CSX is above $22.00 on 5/15/2016. For comparison purposes only, this CSX covered call targets an annualized return rate of 24.2 %. 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 ADTRAN (ADTN), Progressive Waste (BIN) and Zafgen (ZFGN) were upgraded by analysts this morning while Oil States (OIS) and Campus Crest Comunities (CCG) were downgraded. FireEye, Inc.(FEYE), Oracle Corporation (ORCL), and Adobe Systems Incorporated(ADBE) are early risers, while Deutsche Bank AG(DB), Petr?leo Brasileiro S.A. - Petrobras (PBR) and JD.com, Inc. (JD) are down. INTERNATIONAL MARKETS In Asia, markets rallied Friday with investors hopeful for more economic stimulus from central banks. The Shanghai Composite was up 1.25%, and the Nikkei climbed 5.88%. European stocks are rising today as markets there move toward breaking a weekly losing streak. The FTSE is up 2.38%, while the DAX is up 2.28%. FUTURES & CURRENCIES Energy futures are higher today. The price for West Texas Intermediate crude oil is up $1.69 to $31.22 per barrel, while natural gas is up less than one cent to $2.14. Metals prices are mixed. Gold is down $0.70 to $1,097.50 per ounce and platinum is up $12.60 to $832.10 an ounce. The Dollar is up versus the Euro and the Yen. PUT/CALL RATIO Yesterday, 742,255 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 515,502 put contracts. The single-session put/call was 0.69 while the 20-day moving average is now at 0.76. TODAY'S ECONOMIC CALENDAR Existing Home Sales Dec 10:00 Leading Indicators Dec 10:00 EARNINGS EXPECTED TODAY: GE KSU LM STI This Morning Update was prepared with data and information provided by: |
