MORNING UPDATE: PriceWatch Alerts for AAPL and More... for 2015-12-22 |
| PriceWatch Alerts for AAPL, LLY, BAC, SWKS, THC ,OPK, AVP, NXPI, AGN and OKE. Apple (NASDAQ: AAPL) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $107.28 while selling the April $105.00 call will produce a new covered call with a break-even point around $99.53. At that price, this position has a target return of 5.5 %. This trade will have roughly 7.2 % downside protection, while still aiming for a 5.5 % return in 115 days. It will lock in that return as long as Apple is above $105.00 on 4/15/2016. For comparison purposes only, this AAPL covered call aims for an annualized return rate of 17.4 %. Eli Lilly (NYSE: LLY) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $86.04 while simultaneously selling the April $85.00 call will result in a new position with a target return of 4.8 %. Based on recent prices, this position will cost about $81.14, which is also the trade?s breakeven point. At that level, this covered call has 5.7 % downside protection, while still providing a 4.8 % return in 115 days as long as LLY is above $85.00 on 4/15/2016. For comparison purposes only, this Eli Lilly covered call aims for an annualized return rate of 15.1 %. Bank of America (NYSE: BAC) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the May $16.00 call while at the same time buying BAC stock for $16.97 will produce a new covered call with a target return of 4.8 %. Based on recent data, this trade will cost about $15.26, which is also the covered call?s breakeven point. At that price, this covered call has 10.1 % downside protection, while seeking an assigned return of 4.8 % return in 145 days. If BAC is higher than $16.00 on 5/15/2016, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 12.2 %. Skyworks Solutions (NASDAQ: SWKS) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the February $75.00 call while at the same time buying SWKS stock for $78.42 will produce a new covered call with a target return of 5.3 %. Based on recent data, this trade will cost about $71.22, which is also the covered call?s breakeven point. At that price, this covered call has 9.2 % downside protection, while seeking an assigned return of 5.3 % return in 59 days. If SWKS is higher than $75.00 on 2/19/2016, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 32.8 %. Tenet Healthcare (NYSE: THC) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the February $30.00 call while simultaneously buying THC stock for $30.59 will result in a new position with a break-even point around $27.94. At that price, this position has a target return of 7.4 %. This trade has 8.7 % downside protection, while still providing a 7.4 % return in 59 days as long as THC is above $30.00 on 2/19/2016. For comparison purposes only, this Tenet Healthcare covered call targets an annualized return rate of 45.6 %. Opko Health (NYSE: OPK) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $10.20 while selling the June $10.00 call will produce a new covered call with a break-even point around $9.10. At that price, this position has a target return of 9.9 %. This trade will have roughly 10.8 % downside protection, while still aiming for a 9.9 % return in 178 days. It will lock in that return as long as Opko Health is above $10.00 on 6/17/2016. For comparison purposes only, this OPK covered call aims for an annualized return rate of 20.3 %. Avon Products (NYSE: AVP) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $4.00 while simultaneously selling the April $3.00 call will result in a new position with a target return of 11.1 %. Based on recent prices, this position will cost about $2.70, which is also the trade?s breakeven point. At that level, this covered call has 32.5 % downside protection, while still providing a 11.1 % return in 115 days as long as AVP is above $3.00 on 4/15/2016. For comparison purposes only, this Avon Products covered call aims for an annualized return rate of 35.3 %. NXP Semiconductors (NASDAQ: NXPI) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the April $85.00 call while at the same time buying NXPI stock for $85.06 will produce a new covered call with a target return of 10.2 %. Based on recent data, this trade will cost about $77.16, which is also the covered call?s breakeven point. At that price, this covered call has 9.3 % downside protection, while seeking an assigned return of 10.2 % return in 115 days. If NXPI is higher than $85.00 on 4/15/2016, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 32.2 %. Allergan (NYSE: AGN) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the May $310.00 call while at the same time buying AGN stock for $310.37 will produce a new covered call with a target return of 6.9 %. Based on recent data, this trade will cost about $289.87, which is also the covered call?s breakeven point. At that price, this covered call has 6.6 % downside protection, while seeking an assigned return of 6.9 % return in 145 days. If AGN is higher than $310.00 on 5/15/2016, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 17.5 %. ONEOK (NYSE: OKE) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the January $20.00 call while simultaneously buying OKE stock for $21.85 will result in a new position with a break-even point around $18.65. At that price, this position has a target return of 7.2 %. This trade has 14.6 % downside protection, while still providing a 7.2 % return in 24 days as long as OKE is above $20.00 on 1/15/2016. For comparison purposes only, this ONEOK covered call targets an annualized return rate of 110.0 %. 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 Intrexon Corporation (XON), Relypsa, Inc. (RLYP), and Spirit Airlines, Inc. (SAVE) are early risers, while NetApp, Inc. (NTAP), Peabody Energy Corporation (BTU) and SunEdison, Inc. (SUNE) are down. INTERNATIONAL MARKETS In Asia, stocks finished mixed Tuesday with buying by insurance companies lifting markets. The Shanghai Composite was up 0.26%, and the Nikkei was down 0.16%. European markets are mixed today as energy shares enjoy a slight bounce. The FTSE is up 0.76%, while the DAX is down 0.09%. FUTURES & CURRENCIES Energy futures are mixed this morning. The price for West Texas Intermediate crude oil is up $0.20 to $36.01 per barrel, while natural gas is down $0.03 to $1.95. Metals prices are down. Gold is down $1.50 to $1,079.10 per ounce and platinum is down $5.90 to $875.40 an ounce. The Dollar is down versus the Euro and the Yen. PUT/CALL RATIO Yesterday, 654,244 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 418,672 put contracts. The single-session put/call was 0.64 while the 20-day moving average is now at 0.71. TODAY'S ECONOMIC CALENDAR GDP - Third Estimate Q3 08:30 GDP Deflator - Third Estimate Q3 08:30 FHFA Housing Price Index Oct 09:00 Existing Home Sales Nov 10:00 EARNINGS EXPECTED TODAY: CAG MU NKE PAYX |
