MORNING UPDATE: PriceWatch Alerts for KMI and More... for 2016-01-08 |
| PriceWatch Alerts for KMI, QRVO, CSX, GG, KERX ,GILD, SYNA, GPS, FIT and CMG. Kinder Morgan (NYSE: KMI) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $14.24 while selling the March $14.00 call will produce a new covered call with a break-even point around $12.92. At that price, this position has a target return of 8.4 %. This trade will have roughly 9.3 % downside protection, while still aiming for a 8.4 % return in 70 days. It will lock in that return as long as Kinder Morgan is above $14.00 on 3/18/2016. For comparison purposes only, this KMI covered call aims for an annualized return rate of 43.5 %. Qorvo (NASDAQ: QRVO) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $45.64 while simultaneously selling the February $45.00 call will result in a new position with a target return of 10.5 %. Based on recent prices, this position will cost about $40.74, which is also the trade?s breakeven point. At that level, this covered call has 10.7 % downside protection, while still providing a 10.5 % return in 42 days as long as QRVO is above $45.00 on 2/19/2016. For comparison purposes only, this Qorvo covered call aims for an annualized return rate of 90.8 %. CSX (NYSE: CSX) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the May $23.00 call while at the same time buying CSX stock for $23.86 will produce a new covered call with a target return of 5.8 %. Based on recent data, this trade will cost about $21.73, which is also the covered call?s breakeven point. At that price, this covered call has 8.9 % downside protection, while seeking an assigned return of 5.8 % return in 128 days. If CSX is higher than $23.00 on 5/15/2016, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 16.7 %. Goldcorp (NYSE: GG) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the April $12.00 call while at the same time buying GG stock for $12.78 will produce a new covered call with a target return of 7.5 %. Based on recent data, this trade will cost about $11.16, 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 7.5 % return in 98 days. If GG is higher than $12.00 on 4/15/2016, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 28.0 %. Keryx Biopharmaceuticals (NASDAQ: KERX) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the June $4.00 call while simultaneously buying KERX stock for $4.04 will result in a new position with a break-even point around $3.09. At that price, this position has a target return of 29.4 %. This trade has 23.5 % downside protection, while still providing a 29.4 % return in 161 days as long as KERX is above $4.00 on 6/17/2016. For comparison purposes only, this Keryx Biopharmaceuticals covered call targets an annualized return rate of 66.7 %. Gilead Sciences (NASDAQ: GILD) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $97.39 while selling the April $95.00 call will produce a new covered call with a break-even point around $90.84. At that price, this position has a target return of 4.6 %. This trade will have roughly 6.7 % downside protection, while still aiming for a 4.6 % return in 98 days. It will lock in that return as long as Gilead Sciences is above $95.00 on 4/15/2016. For comparison purposes only, this GILD covered call aims for an annualized return rate of 17.0 %. Synaptics (NASDAQ: SYNA) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $68.15 while simultaneously selling the March $65.00 call will result in a new position with a target return of 7.2 %. Based on recent prices, this position will cost about $60.65, which is also the trade?s breakeven point. At that level, this covered call has 11.0 % downside protection, while still providing a 7.2 % return in 70 days as long as SYNA is above $65.00 on 3/18/2016. For comparison purposes only, this Synaptics covered call aims for an annualized return rate of 37.4 %. Gap (NYSE: GPS) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $26.44 while simultaneously selling the March $26.00 call will result in a new position with a target return of 7.1 %. Based on recent prices, this position will cost about $24.28, which is also the trade?s breakeven point. At that level, this covered call has 8.2 % downside protection, while still providing a 7.1 % return in 70 days as long as GPS is above $26.00 on 3/18/2016. For comparison purposes only, this Gap covered call aims for an annualized return rate of 36.9 %. Fitbit (NYSE: FIT) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the February $21.00 call while at the same time buying FIT stock for $21.58 will produce a new covered call with a target return of 11.8 %. Based on recent data, this trade will cost about $18.78, which is also the covered call?s breakeven point. At that price, this covered call has 13.0 % downside protection, while seeking an assigned return of 11.8 % return in 42 days. If FIT is higher than $21.00 on 2/19/2016, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 102.7 %. Chipotle Mexican Grill (NYSE: CMG) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the February $415.00 call while simultaneously buying CMG stock for $416.00 will result in a new position with a break-even point around $387.70. At that price, this position has a target return of 7.0 %. This trade has 6.8 % downside protection, while still providing a 7.0 % return in 42 days as long as CMG is above $415.00 on 2/19/2016. For comparison purposes only, this Chipotle Mexican Grill covered call targets an annualized return rate of 61.2 %. 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)! 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NOTE: All stocks and options shown are examples only. These are not recommendations to buy or sell any security. STOCKS ON THE MOVE Calix Netowrks (CALX), ADTRAN (ADTN) and Cirrus Logic (CRUS) were upgraded by analysts this morning while A.O. Smith (AOS), Barracuda Netowrks (CUDA) and Keysight (KEYS) were downgraded. Exelixis, Inc. (EXEL), SolarEdge Technologies, Inc. (SEDG), and First Solar, Inc. (FSLR) are early risers, while Frontline Ltd. (FRO), Adamas Pharmaceuticals, Inc. (ADMS) and SeaDrill Limited(SDRL) are down. INTERNATIONAL MARKETS In Asia, markets finished mixed Friday after Chinese authorities suspended the circuit breaker system that many blamed for recent volatility in the Chinese market. The Shanghai Composite was up 1.97%, and the Nikkei was down 0.39%. European stocks are mixed today as markets took back some of their losses from earlier in the week. The FTSE is up 0.46%, while the french CAC 40 is down 0.32%. FUTURES & CURRENCIES Energy futures are rising today. The price for West Texas Intermediate crude oil is up $0.47 to $33.44 per barrel, while natural gas is up $0.01 to $2.39. Metals prices are down today. Gold is down $7.90 to $1,099.90 per ounce and platinum is down $2.00 to $875.50 an ounce. The Dollar is up versus the Euro and the Yen. PUT/CALL RATIO Yesterday, 936,704 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 832,730 put contracts. The single-session put/call was 0.89 while the 20-day moving average is now at 0.7. TODAY'S ECONOMIC CALENDAR Nonfarm Payrolls Dec. 8:30 Unemployment Rate Dec. 8:30 Wholesale Inventories Nov. 10:00 Consumer Credit Nov. 3:00 EARNINGS EXPECTED TODAY: AYI AZZ GPN |
