MORNING UPDATE: PriceWatch Alerts for NFLX and More... for 2015-11-25 |
| PriceWatch Alerts for NFLX, BAC, NXPI, HIMX, SCTY ,RACE, GLD, AVP, CYBR, DDD, FCX, CVX, JNJ, NBR, and HZNP. Netflix (NASDAQ: NFLX) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $123.29 while selling the January $122.86 call will produce a new covered call with a break-even point around $114.44. At that price, this position has a target return of 7.4 %. This trade will have roughly 7.2 % downside protection, while still aiming for a 7.4 % return in 51 days. It will lock in that return as long as Netflix is above $122.86 on 1/15/2016. For comparison purposes only, this NFLX covered call aims for an annualized return rate of 52.6 %. Bank of America (NYSE: BAC) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $17.47 while simultaneously selling the March $17.00 call will result in a new position with a target return of 4.4 %. Based on recent prices, this position will cost about $16.29, which is also the trade?s breakeven point. At that level, this covered call has 6.8 % downside protection, while still providing a 4.4 % return in 114 days as long as BAC is above $17.00 on 3/18/2016. For comparison purposes only, this Bank of America covered call aims for an annualized return rate of 13.9 %. NXP Semiconductors (NASDAQ: NXPI) 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 NXPI stock for $83.58 will produce a new covered call with a target return of 5.4 %. Based on recent data, this trade will cost about $78.28, which is also the covered call?s breakeven point. At that price, this covered call has 6.3 % downside protection, while seeking an assigned return of 5.4 % return in 51 days. If NXPI 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 38.6 %. Himax Technologies (NASDAQ: HIMX) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the March $7.00 call while at the same time buying HIMX stock for $7.74 will produce a new covered call with a target return of 7.9 %. Based on recent data, this trade will cost about $6.49, which is also the covered call?s breakeven point. At that price, this covered call has 16.1 % downside protection, while seeking an assigned return of 7.9 % return in 114 days. If HIMX is higher than $7.00 on 3/18/2016, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 25.1 %. SolarCity (NASDAQ: SCTY) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the January $28.00 call while simultaneously buying SCTY stock for $28.57 will result in a new position with a break-even point around $25.66. At that price, this position has a target return of 9.1 %. This trade has 10.2 % downside protection, while still providing a 9.1 % return in 51 days as long as SCTY is above $28.00 on 1/15/2016. For comparison purposes only, this SolarCity covered call targets an annualized return rate of 65.2 %. Ferrari (NYSE: RACE) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $46.00 while selling the January $45.00 call will produce a new covered call with a break-even point around $43.15. At that price, this position has a target return of 4.3 %. This trade will have roughly 6.2 % downside protection, while still aiming for a 4.3 % return in 51 days. It will lock in that return as long as Ferrari is above $45.00 on 1/15/2016. For comparison purposes only, this RACE covered call aims for an annualized return rate of 30.6 %. Gold SPDR (AMEX: GLD) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $102.95 while simultaneously selling the June $102.00 call will result in a new position with a target return of 4.5 %. Based on recent prices, this position will cost about $97.65, which is also the trade?s breakeven point. At that level, this covered call has 5.1 % downside protection, while still providing a 4.5 % return in 205 days as long as GLD is above $102.00 on 6/17/2016. For comparison purposes only, this Gold SPDR covered call aims for an annualized return rate of 7.9 %. Avon Products (NYSE: AVP) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the July $3.00 call while at the same time buying AVP stock for $3.34 will produce a new covered call with a target return of 28.2 %. Based on recent data, this trade will cost about $2.34, which is also the covered call?s breakeven point. At that price, this covered call has 29.9 % downside protection, while seeking an assigned return of 28.2 % return in 233 days. If AVP is higher than $3.00 on 7/15/2016, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 44.2 %. Cyberark Software (NYSE: CYBR) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the January $40.00 call while at the same time buying CYBR stock for $42.65 will produce a new covered call with a target return of 5.4 %. Based on recent data, this trade will cost about $37.95, which is also the covered call?s breakeven point. At that price, this covered call has 11.0 % downside protection, while seeking an assigned return of 5.4 % return in 51 days. If CYBR is higher than $40.00 on 1/15/2016, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 38.6 %. 3D Systems (NYSE: DDD) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the January $8.00 call while simultaneously buying DDD stock for $8.78 will result in a new position with a break-even point around $7.60. At that price, this position has a target return of 5.3 %. This trade has 13.4 % downside protection, while still providing a 5.3 % return in 51 days as long as DDD is above $8.00 on 1/15/2016. For comparison purposes only, this 3D Systems covered call targets an annualized return rate of 37.6 %. Freeport McMoRan (NYSE: FCX) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $8.30 while selling the January $8.00 call will produce a new covered call with a break-even point around $7.27. At that price, this position has a target return of 10.0 %. This trade will have roughly 12.4 % downside protection, while still aiming for a 10.0 % return in 51 days. It will lock in that return as long as Freeport McMoRan is above $8.00 on 1/15/2016. For comparison purposes only, this FCX covered call aims for an annualized return rate of 71.9 %. Chevron (NYSE: CVX) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $91.56 while simultaneously selling the February $90.00 call will result in a new position with a target return of 4.5 %. Based on recent prices, this position will cost about $86.16, which is also the trade?s breakeven point. At that level, this covered call has 5.9 % downside protection, while still providing a 4.5 % return in 86 days as long as CVX is above $90.00 on 2/19/2016. For comparison purposes only, this Chevron covered call aims for an annualized return rate of 18.9 %. Johnson and Johnson (NYSE: JNJ) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $102.04 while simultaneously selling the July $100.00 call will result in a new position with a target return of 4.1 %. Based on recent prices, this position will cost about $96.09, which is also the trade?s breakeven point. At that level, this covered call has 5.8 % downside protection, while still providing a 4.1 % return in 233 days as long as JNJ is above $100.00 on 7/15/2016. For comparison purposes only, this Johnson and Johnson covered call aims for an annualized return rate of 6.4 %. Nabors Industries (NYSE: NBR) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the March $10.00 call while at the same time buying NBR stock for $10.27 will produce a new covered call with a target return of 12.4 %. Based on recent data, this trade will cost about $8.90, which is also the covered call?s breakeven point. At that price, this covered call has 13.3 % downside protection, while seeking an assigned return of 12.4 % return in 114 days. If NBR is higher than $10.00 on 3/18/2016, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 39.5 %. Horizon Pharma (NASDAQ: HZNP) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the January $21.00 call while simultaneously buying HZNP stock for $21.32 will result in a new position with a break-even point around $18.62. At that price, this position has a target return of 12.8 %. This trade has 12.7 % downside protection, while still providing a 12.8 % return in 51 days as long as HZNP is above $21.00 on 1/15/2016. For comparison purposes only, this Horizon Pharma covered call targets an annualized return rate of 91.5 %. 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 Analyst upgrades this morning include Cubic (CUB) and BG Group (BG) while Cracker Barrel (CBRL), HP (HPQ) and Valspar (VAL) were downgraded by analysts this morning. Deere & Co. (DE), Hewlett Packard Enterprises (HPE), and Baxalta(BXLT) are early risers, while HP (HPQ), Freeport-McMoRan (FCX) and Transocean (RIG) are down. INTERNATIONAL MARKETS Asian stocks finished mixed Wednesday as an overnight rise in oil prices lifted energy shares there. The Shanghai Composite was up 0.88%, and the Nikkei fell 0.32%. In Europe, stocks are higher today as travel shares recovered from a difficult Tuesday. The FTSE is up 0.52%, while the DAX is up 1.59%. FUTURES & CURRENCIES Energy futures are lower this morning. The price for West Texas Intermediate crude oil is down $0.72 to $42.55 per barrel, while natural gas is down $0.01 to $2.30. Metals prices are lower. Gold is down $1.20 to $1,072.60 per ounce and platinum is down $1.10 to $840.60 an ounce. The Dollar is up versus the Euro and the Yen. PUT/CALL RATIO Yesterday, 618,712 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 414,932 put contracts. The single-session put/call was 0.67 while the 20-day moving average is now at 0.7. TODAY'S ECONOMIC CALENDAR MBA Mortgage Index 11/21 7:00 Initial Claims 11/21 8:30 Personal Income Oct. 8:30 Personal Spending Oct. 8:30 PCE Prices Oct. 8:30 Durable Orders Oct. 8:30 FHFA Housing Prices Sept. 9:00 Michigan Sentiment Nov. 10:00 New Home Sales Oct. 10:00 Crude Inventories 11/21 10:30 Natural Gas Inventories 11/21 12:00 EARNINGS EXPECTED TODAY: BONA NPD DE IEC DATE |
