MORNING UPDATE: PriceWatch Alerts for RAD and More... for 2015-11-30 |
| PriceWatch Alerts for RAD, CHK, WLL, LULU, SHAK ,DIS, EXEL, BBRY, NVDA and JBLU. Rite Aid (NYSE: RAD) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $7.86 while selling the July $8.00 call will produce a new covered call with a break-even point around $7.36. At that price, this position has a target return of 8.7 %. This trade will have roughly 6.4 % downside protection, while still aiming for a 8.7 % return in 228 days. It will lock in that return as long as Rite Aid is above $8.00 on 7/15/2016. For comparison purposes only, this RAD covered call aims for an annualized return rate of 13.9 %. Chesapeake Energy (NYSE: CHK) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $5.26 while simultaneously selling the April $5.00 call will result in a new position with a target return of 24.1 %. Based on recent prices, this position will cost about $4.03, which is also the trade?s breakeven point. At that level, this covered call has 23.4 % downside protection, while still providing a 24.1 % return in 137 days as long as CHK is above $5.00 on 4/15/2016. For comparison purposes only, this Chesapeake Energy covered call aims for an annualized return rate of 64.1 %. Whiting Petroleum (NYSE: WLL) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the March $15.00 call while at the same time buying WLL stock for $16.03 will produce a new covered call with a target return of 17.8 %. Based on recent data, this trade will cost about $12.73, which is also the covered call?s breakeven point. At that price, this covered call has 20.6 % downside protection, while seeking an assigned return of 17.8 % return in 109 days. If WLL is higher than $15.00 on 3/18/2016, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 59.7 %. Lululemon Athletica (NASDAQ: LULU) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the March $50.00 call while at the same time buying LULU stock for $52.50 will produce a new covered call with a target return of 7.9 %. Based on recent data, this trade will cost about $46.35, which is also the covered call?s breakeven point. At that price, this covered call has 11.7 % downside protection, while seeking an assigned return of 7.9 % return in 109 days. If LULU is higher than $50.00 on 3/18/2016, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 26.4 %. Shake Shack (NYSE: SHAK) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the March $42.50 call while simultaneously buying SHAK stock for $44.12 will result in a new position with a break-even point around $39.42. At that price, this position has a target return of 7.8 %. This trade has 10.7 % downside protection, while still providing a 7.8 % return in 109 days as long as SHAK is above $42.50 on 3/18/2016. For comparison purposes only, this Shake Shack covered call targets an annualized return rate of 26.2 %. Walt Disney (NYSE: DIS) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $115.08 while selling the March $115.00 call will produce a new covered call with a break-even point around $108.63. At that price, this position has a target return of 5.9 %. This trade will have roughly 5.6 % downside protection, while still aiming for a 5.9 % return in 109 days. It will lock in that return as long as Walt Disney is above $115.00 on 3/18/2016. For comparison purposes only, this DIS covered call aims for an annualized return rate of 19.6 %. Exelixis (NASDAQ: EXEL) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $5.47 while simultaneously selling the May $5.00 call will result in a new position with a target return of 13.1 %. Based on recent prices, this position will cost about $4.42, which is also the trade?s breakeven point. At that level, this covered call has 19.2 % downside protection, while still providing a 13.1 % return in 167 days as long as EXEL is above $5.00 on 5/15/2016. For comparison purposes only, this Exelixis covered call aims for an annualized return rate of 28.7 %. Blackberry (NASDAQ: BBRY) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the June $7.00 call while at the same time buying BBRY stock for $7.82 will produce a new covered call with a target return of 10.8 %. Based on recent data, this trade will cost about $6.32, which is also the covered call?s breakeven point. At that price, this covered call has 19.2 % downside protection, while seeking an assigned return of 10.8 % return in 200 days. If BBRY is higher than $7.00 on 6/17/2016, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 19.6 %. NVIDIA (NASDAQ: NVDA) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the February $31.00 call while at the same time buying NVDA stock for $31.39 will produce a new covered call with a target return of 6.3 %. Based on recent data, this trade will cost about $29.15, which is also the covered call?s breakeven point. At that price, this covered call has 7.1 % downside protection, while seeking an assigned return of 6.3 % return in 81 days. If NVDA is higher than $31.00 on 2/19/2016, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 28.6 %. JetBlue Airways (NASDAQ: JBLU) 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 JBLU stock for $25.22 will result in a new position with a break-even point around $23.82. At that price, this position has a target return of 5.0 %. This trade has 5.6 % downside protection, while still providing a 5.0 % return in 46 days as long as JBLU is above $25.00 on 1/15/2016. For comparison purposes only, this JetBlue Airways covered call targets an annualized return rate of 39.3 %. 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Back test over 20 different options strategies using your personal search criteria. 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 Heidrick & Struggles (HSII) and Parsley Energy (PE) were upgraded by analysts this morning, while Boulder Brands (BDBD), Starwood Hotels (HOT) and Lululemon Athletica (LULU) were downgraded. Mobile TeleSystems PJSC (MBT), Fitbit Inc.(FIT), and SunEdison, Inc.(SUNE) are early risers, while Vale S.A.(VALE), Lululemon Athletica Inc. (LULU) and BHP Billiton plc (BBL) are down. INTERNATIONAL MARKETS Asian stocks finished mixed Monday as the Chinese investigation into illegal trading activity expands. The Shanghai Composite was up 0.26%, and the Nikkei fell 0.69%. European stocks are higher today headed into a busy week of economic news. The FTSE is up 0.06%, while the DAX is up 1.08%. FUTURES & CURRENCIES Energy futures are up this morning. The price for West Texas Intermediate crude oil is up $0.15 to $41.86 per barrel, while natural gas is up less than a penny to $2.21. Metals prices are lower. Gold is down $0.20 to $1,056.00 per ounce and platinum is down $4.80 to $831.00 an ounce. The Dollar is up versus the Euro and the Yen. PUT/CALL RATIO Yesterday, 258,517 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 197,134 put contracts. The single-session put/call was 0.76 while the 20-day moving average is now at 0.71. TODAY'S ECONOMIC CALENDAR Chicago PMI Nov. 9:45 Pending Home Sales Oct. 10:00 EARNINGS EXPECTED TODAY: ALCO FSC GLNG BLOX NQ QIHU SCVL THO |
