MORNING UPDATE: PriceWatch Alerts for SUNE and More... for 2015-12-31 |
| PriceWatch Alerts for SUNE, ACHN, RACE, VRX, ATI ,SBUX, OLED, PSTG, CCL, and MU SunEdison (NYSE: SUNE) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $5.05 while selling the April $5.00 call will produce a new covered call with a break-even point around $3.80. At that price, this position has a target return of 31.6 %. This trade will have roughly 24.8 % downside protection, while still aiming for a 31.6 % return in 106 days. It will lock in that return as long as SunEdison is above $5.00 on 4/15/2016. For comparison purposes only, this SUNE covered call aims for an annualized return rate of 108.7 %. Achillion Pharmaceuticals (NASDAQ: ACHN) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $10.73 while simultaneously selling the February $10.00 call will result in a new position with a target return of 7.2 %. Based on recent prices, this position will cost about $9.33, which is also the trade?s breakeven point. At that level, this covered call has 13.0 % downside protection, while still providing a 7.2 % return in 50 days as long as ACHN is above $10.00 on 2/19/2016. For comparison purposes only, this Achillion Pharmaceuticals covered call aims for an annualized return rate of 52.4 %. Ferrari (NYSE: RACE) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the May $45.00 call while at the same time buying RACE stock for $48.50 will produce a new covered call with a target return of 4.2 %. Based on recent data, this trade will cost about $43.20, which is also the covered call?s breakeven point. At that price, this covered call has 10.9 % downside protection, while seeking an assigned return of 4.2 % return in 140 days. If RACE is higher than $45.00 on 5/19/2016, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 10.8 %. Valeant Pharmac. (NYSE: VRX) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the February $100.00 call while at the same time buying VRX stock for $102.29 will produce a new covered call with a target return of 9.2 %. Based on recent data, this trade will cost about $91.59, which is also the covered call?s breakeven point. At that price, this covered call has 10.5 % downside protection, while seeking an assigned return of 9.2 % return in 50 days. If VRX is higher than $100.00 on 2/19/2016, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 67.0 %. Allegheny Technologies (NYSE: ATI) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the June $12.50 call while simultaneously buying ATI stock for $12.77 will result in a new position with a break-even point around $11.77. At that price, this position has a target return of 6.2 %. This trade has 7.8 % downside protection, while still providing a 6.2 % return in 169 days as long as ATI is above $12.50 on 6/17/2016. For comparison purposes only, this Allegheny Technologies covered call targets an annualized return rate of 13.4 %. Starbucks (NASDAQ: SBUX) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $60.82 while selling the April $60.00 call will produce a new covered call with a break-even point around $57.32. At that price, this position has a target return of 4.7 %. This trade will have roughly 5.8 % downside protection, while still aiming for a 4.7 % return in 106 days. It will lock in that return as long as Starbucks is above $60.00 on 4/15/2016. For comparison purposes only, this SBUX covered call aims for an annualized return rate of 16.1 %. Universal Display (NASDAQ: OLED) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $55.67 while simultaneously selling the February $55.00 call will result in a new position with a target return of 6.4 %. Based on recent prices, this position will cost about $51.67, which is also the trade?s breakeven point. At that level, this covered call has 7.2 % downside protection, while still providing a 6.4 % return in 50 days as long as OLED is above $55.00 on 2/19/2016. For comparison purposes only, this Universal Display covered call aims for an annualized return rate of 47.0 %. Pure Storage (NYSE: PSTG) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the February $16.00 call while at the same time buying PSTG stock for $16.05 will produce a new covered call with a target return of 14.7 %. Based on recent data, this trade will cost about $13.95, which is also the covered call?s breakeven point. At that price, this covered call has 13.1 % downside protection, while seeking an assigned return of 14.7 % return in 50 days. If PSTG is higher than $16.00 on 2/19/2016, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 107.2 %. Carnival (NYSE: CCL) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the March $55.00 call while at the same time buying CCL stock for $55.04 will produce a new covered call with a target return of 4.5 %. Based on recent data, this trade will cost about $52.64, which is also the covered call?s breakeven point. At that price, this covered call has 4.4 % downside protection, while seeking an assigned return of 4.5 % return in 78 days. If CCL is higher than $55.00 on 3/18/2016, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 21.0 %. Micron Technology (NASDAQ: MU) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the April $14.00 call while simultaneously buying MU stock for $14.18 will result in a new position with a break-even point around $12.80. At that price, this position has a target return of 9.4 %. This trade has 9.7 % downside protection, while still providing a 9.4 % return in 106 days as long as MU is above $14.00 on 4/15/2016. For comparison purposes only, this Micron Technology covered call targets an annualized return rate of 32.3 %. 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 Universal Display Corp. (OLED), Lockheed Martin Corporation (LMT), and GW Pharmaceuticals plc (GWPH) are early risers, while FXCM Inc. (FXCM), SeaDrill Limited(SDRL) and American Airlines Group Inc. (AAL) are down. INTERNATIONAL MARKETS Asian stocks finished mixed Thursday as oil prices pulled down energy shares there. The Shanghai Composite was down 0.94%, and the Hang Seng was up 0.15%. European markets are lower today though the Stoxx Europe 600 index is on pace to finish 2015 with a gain. The DAX is down 1.08%, while the FTSE is down 0.51%. FUTURES & CURRENCIES Energy futures are mixed this morning. The price for West Texas Intermediate crude oil is down $0.32 to $36.28 per barrel, while natural gas is up $0.15 to $2.36. Metals prices are lower. Gold is down $1.80 to $1,058.00 per ounce and platinum is down $1.80 to $870.80 an ounce. The Dollar is up versus the Euro and down against the Yen. PUT/CALL RATIO Yesterday, 530,003 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 314,592 put contracts. The single-session put/call was 0.59while the 20-day moving average is now at 0.71. TODAY'S ECONOMIC CALENDAR EARNINGS EXPECTED TODAY: No major earnings expected |
