MORNING UPDATE: PriceWatch Alerts for TSLA and More... for 2015-12-16 |
| PriceWatch Alerts for TSLA, QCOM, AA, ILMN, BP ,SKX, AAL, BABA, RMTI, AAP, FTR, GWPH, LL, SRPT, and RYLP. Tesla (NASDAQ: TSLA) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $221.09 while selling the January $220.00 call will produce a new covered call with a break-even point around $209.64. At that price, this position has a target return of 4.9 %. This trade will have roughly 5.2 % downside protection, while still aiming for a 4.9 % return in 30 days. It will lock in that return as long as Tesla is above $220.00 on 1/15/2016. For comparison purposes only, this TSLA covered call aims for an annualized return rate of 60.1 %. 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 $48.02 while simultaneously selling the February $48.00 call will result in a new position with a target return of 6.2 %. Based on recent prices, this position will cost about $45.21, which is also the trade?s breakeven point. At that level, this covered call has 5.9 % downside protection, while still providing a 6.2 % return in 65 days as long as QCOM is above $48.00 on 2/19/2016. For comparison purposes only, this Qualcomm covered call aims for an annualized return rate of 34.6 %. Alcoa (NYSE: AA) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the June $9.00 call while at the same time buying AA stock for $9.12 will produce a new covered call with a target return of 12.9 %. Based on recent data, this trade will cost about $7.97, which is also the covered call?s breakeven point. At that price, this covered call has 12.6 % downside protection, while seeking an assigned return of 12.9 % return in 184 days. If AA is higher than $9.00 on 6/17/2016, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 25.6 %. Illumina (NASDAQ: ILMN) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the January $185.00 call while at the same time buying ILMN stock for $186.28 will produce a new covered call with a target return of 4.4 %. Based on recent data, this trade will cost about $177.28, 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 4.4 % return in 30 days. If ILMN is higher than $185.00 on 1/15/2016, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 52.9 %. BP (NYSE: BP) 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 BP stock for $30.72 will result in a new position with a break-even point around $28.75. At that price, this position has a target return of 4.3 %. This trade has 6.4 % downside protection, while still providing a 4.3 % return in 65 days as long as BP is above $30.00 on 2/19/2016. For comparison purposes only, this BP covered call targets an annualized return rate of 24.4 %. Skechers USA (NYSE: SKX) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $29.84 while selling the April $28.33 call will produce a new covered call with a break-even point around $25.44. At that price, this position has a target return of 11.4 %. This trade will have roughly 14.7 % downside protection, while still aiming for a 11.4 % return in 121 days. It will lock in that return as long as Skechers USA is above $28.33 on 4/15/2016. For comparison purposes only, this SKX covered call aims for an annualized return rate of 34.3 %. American Airlines (NASDAQ: AAL) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $42.59 while simultaneously selling the January $42.00 call will result in a new position with a target return of 4.2 %. Based on recent prices, this position will cost about $40.32, which is also the trade?s breakeven point. At that level, this covered call has 5.3 % downside protection, while still providing a 4.2 % return in 30 days as long as AAL is above $42.00 on 1/15/2016. For comparison purposes only, this American Airlines covered call aims for an annualized return rate of 50.6 %. Alibaba (NYSE: BABA) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the January $82.50 call while at the same time buying BABA stock for $82.70 will produce a new covered call with a target return of 6.4 %. Based on recent data, this trade will cost about $77.55, which is also the covered call?s breakeven point. At that price, this covered call has 6.2 % downside protection, while seeking an assigned return of 6.4 % return in 30 days. If BABA is higher than $82.50 on 1/15/2016, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 77.6 %. Rockwell Medical (NASDAQ: RMTI) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the February $10.00 call while at the same time buying RMTI stock for $10.65 will produce a new covered call with a target return of 5.8 %. Based on recent data, this trade will cost about $9.45, which is also the covered call?s breakeven point. At that price, this covered call has 11.3 % downside protection, while seeking an assigned return of 5.8 % return in 65 days. If RMTI is higher than $10.00 on 2/19/2016, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 32.7 %. Advance Auto Parts (NYSE: AAP) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the March $155.00 call while simultaneously buying AAP stock for $157.79 will result in a new position with a break-even point around $146.99. At that price, this position has a target return of 5.4 %. This trade has 6.8 % downside protection, while still providing a 5.4 % return in 93 days as long as AAP is above $155.00 on 3/18/2016. For comparison purposes only, this Advance Auto Parts covered call targets an annualized return rate of 21.4 %. Frontier Communications (NYSE: FTR) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $4.55 while selling the May $4.50 call will produce a new covered call with a break-even point around $4.15. At that price, this position has a target return of 8.4 %. This trade will have roughly 8.8 % downside protection, while still aiming for a 8.4 % return in 151 days. It will lock in that return as long as Frontier Communications is above $4.50 on 5/15/2016. For comparison purposes only, this FTR covered call aims for an annualized return rate of 20.4 %. 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 $72.47 while simultaneously selling the January $70.00 call will result in a new position with a target return of 6.4 %. Based on recent prices, this position will cost about $65.77, which is also the trade?s breakeven point. At that level, this covered call has 9.2 % downside protection, while still providing a 6.4 % return in 30 days as long as GWPH is above $70.00 on 1/15/2016. For comparison purposes only, this GW Pharmaceuticals covered call aims for an annualized return rate of 78.2 %. Lumber Liquidators (NYSE: LL) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the January $17.00 call while at the same time buying LL stock for $17.56 will produce a new covered call with a target return of 7.5 %. Based on recent data, this trade will cost about $15.81, which is also the covered call?s breakeven point. At that price, this covered call has 10.0 % downside protection, while seeking an assigned return of 7.5 % return in 30 days. If LL is higher than $17.00 on 1/15/2016, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 91.5 %. Sarepta Therapeutics (NASDAQ: SRPT) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the January $36.00 call while at the same time buying SRPT stock for $36.57 will produce a new covered call with a target return of 6.4 %. Based on recent data, this trade will cost about $33.82, which is also the covered call?s breakeven point. At that price, this covered call has 7.5 % downside protection, while seeking an assigned return of 6.4 % return in 30 days. If SRPT is higher than $36.00 on 1/15/2016, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 78.4 %. Relypsa (NYSE: RLYP) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the January $25.00 call while simultaneously buying RLYP stock for $27.50 will result in a new position with a break-even point around $23.00. At that price, this position has a target return of 8.7 %. This trade has 16.4 % downside protection, while still providing a 8.7 % return in 30 days as long as RLYP is above $25.00 on 1/15/2016. For comparison purposes only, this Relypsa covered call targets an annualized return rate of 105.7 %. 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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STOCKS ON THE MOVE Meredith (MDP), Valero Energy (VLO) and Kimco Realty (KIM) were upgraded by analysts this morning, while Noble Energy (NE), RPX (RPXC) and Jarden (JAH were downgraded. Capital One Financial Corporation (COF), Trina Solar Limited(TSL), and KaloBios Pharmaceuticals, Inc. (KBIO) are early risers, while SeaDrill Limited (SDRL), AngloGold Ashanti Ltd. (AU) and Encana Corporation (ECA) are down. INTERNATIONAL MARKETS In Asia, stocks finished higher Wednesday ahead of the Federal Reserve decision. The Shanghai Composite was up 0.17%, and the Nikkei was up 2.61%. European markets are higher today after starting the morning slowly. The FTSE is up 0.81%, while the DAX is up 0.81%. FUTURES & CURRENCIES Energy futures are falling this morning. The price for West Texas Intermediate crude oil is down $0.27 to $37.08 per barrel, while natural gas is down $0.03 to $1.78. Metals prices are higher today. Gold is up $2.30 to $1,063.90 per ounce and platinum is up $10.70 to $866.50 an ounce. The Dollar is up versus the Euro and the Yen. PUT/CALL RATIO Yesterday, 828,132 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 548,624 put contracts. The single-session put/call was 0.66 while the 20-day moving average is now at 0.72. TODAY'S ECONOMIC CALENDAR MBA Mortgage Index 12/12 07:00 Building Permits Nov 08:30 Housing Starts Nov 08:30 Capacity Utilization Nov 09:15 Industrial Production Nov 09:15 Crude Inventories 12/12 10:30 FOMC Rate Decision Dec 14:00 EARNINGS EXPECTED TODAY: APOG FDX ISSC ORCL PIR WOR JBL JOY MLHR |
