MORNING UPDATE: PriceWatch Alerts for NFLX and More... for 2015-12-03 |
| PriceWatch Alerts for NFLX, PYPL, QCOM, SBUX, TYL ,TSLA, YHOO, UA, AGN, BOX, , , , , and . Netflix (NASDAQ: NFLX) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $129.02 while selling the January $128.57 call will produce a new covered call with a break-even point around $121.02. At that price, this position has a target return of 6.2 %. This trade will have roughly 6.2 % downside protection, while still aiming for a 6.2 % return in 43 days. It will lock in that return as long as Netflix is above $128.57 on 1/15/2016. For comparison purposes only, this NFLX covered call aims for an annualized return rate of 52.9 %. Paypal Holdings (NASDAQ: PYPL) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $35.15 while simultaneously selling the January $35.00 call will result in a new position with a target return of 4.8 %. Based on recent prices, this position will cost about $33.40, which is also the trade?s breakeven point. At that level, this covered call has 5.0 % downside protection, while still providing a 4.8 % return in 43 days as long as PYPL is above $35.00 on 1/15/2016. For comparison purposes only, this Paypal Holdings covered call aims for an annualized return rate of 40.7 %. Qualcomm (NASDAQ: QCOM) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the April $50.00 call while at the same time buying QCOM stock for $51.99 will produce a new covered call with a target return of 5.0 %. Based on recent data, this trade will cost about $47.64, 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 5.0 % return in 134 days. If QCOM is higher than $50.00 on 4/15/2016, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 13.5 %. Starbucks (NASDAQ: SBUX) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the April $60.00 call while at the same time buying SBUX stock for $61.41 will produce a new covered call with a target return of 4.8 %. Based on recent data, this trade will cost about $57.26, which is also the covered call?s breakeven point. At that price, this covered call has 6.8 % downside protection, while seeking an assigned return of 4.8 % return in 134 days. If SBUX is higher than $60.00 on 4/15/2016, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 13.0 %. Tyler Technologies (NYSE: TYL) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the March $175.00 call while simultaneously buying TYL stock for $178.71 will result in a new position with a break-even point around $164.61. At that price, this position has a target return of 6.3 %. This trade has 7.9 % downside protection, while still providing a 6.3 % return in 106 days as long as TYL is above $175.00 on 3/18/2016. For comparison purposes only, this Tyler Technologies covered call targets an annualized return rate of 21.7 %. Tesla (NASDAQ: TSLA) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $232.03 while selling the March $230.00 call will produce a new covered call with a break-even point around $210.48. At that price, this position has a target return of 9.3 %. This trade will have roughly 9.3 % downside protection, while still aiming for a 9.3 % return in 106 days. It will lock in that return as long as Tesla is above $230.00 on 3/18/2016. For comparison purposes only, this TSLA covered call aims for an annualized return rate of 31.9 %. Yahoo (NASDAQ: YHOO) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $35.65 while simultaneously selling the January $35.00 call will result in a new position with a target return of 4.9 %. Based on recent prices, this position will cost about $33.36, which is also the trade?s breakeven point. At that level, this covered call has 6.4 % downside protection, while still providing a 4.9 % return in 43 days as long as YHOO is above $35.00 on 1/15/2016. For comparison purposes only, this Yahoo covered call aims for an annualized return rate of 41.7 %. Under Armour (NYSE: UA) 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 UA stock for $87.38 will produce a new covered call with a target return of 8.4 %. Based on recent data, this trade will cost about $78.38, which is also the covered call?s breakeven point. At that price, this covered call has 10.3 % downside protection, while seeking an assigned return of 8.4 % return in 134 days. If UA 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 23.0 %. Allergan (NYSE: AGN) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the February $315.00 call while at the same time buying AGN stock for $317.46 will produce a new covered call with a target return of 4.4 %. Based on recent data, this trade will cost about $301.66, which is also the covered call?s breakeven point. At that price, this covered call has 5.0 % downside protection, while seeking an assigned return of 4.4 % return in 78 days. If AGN is higher than $315.00 on 2/19/2016, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 20.7 %. Box (NYSE: BOX) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the January $13.00 call while simultaneously buying BOX stock for $13.85 will result in a new position with a break-even point around $12.15. At that price, this position has a target return of 7.0 %. This trade has 12.3 % downside protection, while still providing a 7.0 % return in 43 days as long as BOX is above $13.00 on 1/15/2016. For comparison purposes only, this Box covered call targets an annualized return rate of 59.3 %. 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'. 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STOCKS ON THE MOVE Starwood Properties Trust (STWD), Himax Technologies (HIMX) was upgraded by analysts this morning, while Kinder Morgan (KMI) was downgraded. Avago Technologies Limited (AVGO), Avon Products Inc. (AVP), and Skyworks Solutions Inc. (SWKS) are early risers, while Peabody Energy Corporation(BTU), Pandora Media, Inc. (P) and BHP Billiton plc (BBL) are down. INTERNATIONAL MARKETS Asian stocks finished mixed Thursday as oil prices fell overnight. The Shanghai Composite was up 1.35%, and the Hang Seng was down 0.38%. European stocks are mixed today as the European Central Bank lowered the deposit rate and left the refinancing rate unchanged. The FTSE is down 0.16%, while the DAX is up 0.04%. FUTURES & CURRENCIES Energy futures are lower today. The price for West Texas Intermediate crude oil is up $0.63 to $40.57 per barrel, while natural gas is down less than a penny to $2.15. Metals prices are higher. Gold is up $0.20 to $1,054.00 per ounce and platinum is up $6.60 to $839.00 an ounce. The Dollar is down versus the Euro and up against the Yen. PUT/CALL RATIO Yesterday, 658,852 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 442,130 put contracts. The single-session put/call was 0.67 while the 20-day moving average is now at 0.72. TODAY'S ECONOMIC CALENDAR Challenger Job Cuts Nov. 8:30 Initial Claims 11/28 8:30 Factory Orders Oct. 10:00 ISM Services Nov. 10:00 Natural Gas Inventories 11/28 10:30 EARNINGS EXPECTED TODAY: AMBA BKS COO DLA DG EXPR FIVE IDT KR LE OVTI QIHU SHLD ULTA ZUMZ |
