MORNING UPDATE: PriceWatch Alerts for NFLX and More... for 2015-11-13 |
| PriceWatch Alerts for NFLX, RACE, VA, QIHU, JCP ,FCX, FTK, OPK, IGT and BABA. Netflix (NASDAQ: NFLX) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $108.30 while selling the December $108.57 call will produce a new covered call with a break-even point around $101.90. At that price, this position has a target return of 6.5 %. This trade will have roughly 5.9 % downside protection, while still aiming for a 6.5 % return in 35 days. It will lock in that return as long as Netflix is above $108.57 on 12/18/2015. For comparison purposes only, this NFLX covered call aims for an annualized return rate of 68.2 %. Ferrari (NYSE: RACE) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $54.05 while simultaneously selling the May $50.00 call will result in a new position with a target return of 5.8 %. Based on recent prices, this position will cost about $47.25, which is also the trade?s breakeven point. At that level, this covered call has 12.6 % downside protection, while still providing a 5.8 % return in 184 days as long as RACE is above $50.00 on 5/15/2016. For comparison purposes only, this Ferrari covered call aims for an annualized return rate of 11.5 %. Virgin America (NASDAQ: VA) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the March $35.00 call while at the same time buying VA stock for $37.22 will produce a new covered call with a target return of 6.0 %. Based on recent data, this trade will cost about $33.02, 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 6.0 % return in 126 days. If VA is higher than $35.00 on 3/18/2016, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 17.4 %. Qihoo 360 Technology (NYSE: QIHU) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the December $62.50 call while at the same time buying QIHU stock for $63.32 will produce a new covered call with a target return of 5.4 %. Based on recent data, this trade will cost about $59.32, 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 35 days. If QIHU is higher than $62.50 on 12/18/2015, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 55.9 %. JC Penney (NYSE: JCP) 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 JCP stock for $8.79 will result in a new position with a break-even point around $7.42. At that price, this position has a target return of 7.8 %. This trade has 15.6 % downside protection, while still providing a 7.8 % return in 63 days as long as JCP is above $8.00 on 1/15/2016. For comparison purposes only, this JC Penney covered call targets an annualized return rate of 45.2 %. Freeport McMoRan (NYSE: FCX) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $8.77 while selling the January $8.00 call will produce a new covered call with a break-even point around $7.29. At that price, this position has a target return of 9.7 %. This trade will have roughly 16.9 % downside protection, while still aiming for a 9.7 % return in 63 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 56.4 %. Flotek Industries (NYSE: FTK) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $9.59 while simultaneously selling the January $9.00 call will result in a new position with a target return of 14.8 %. Based on recent prices, this position will cost about $7.84, which is also the trade?s breakeven point. At that level, this covered call has 18.2 % downside protection, while still providing a 14.8 % return in 63 days as long as FTK is above $9.00 on 1/15/2016. For comparison purposes only, this Flotek Industries covered call aims for an annualized return rate of 85.7 %. Opko Health (NYSE: OPK) 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 OPK stock for $10.98 will produce a new covered call with a target return of 9.5 %. Based on recent data, this trade will cost about $9.13, which is also the covered call?s breakeven point. At that price, this covered call has 16.8 % downside protection, while seeking an assigned return of 9.5 % return in 126 days. If OPK 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 27.6 %. International Game Technology (NYSE: IGT) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the April $15.00 call while at the same time buying IGT stock for $16.39 will produce a new covered call with a target return of 4.1 %. Based on recent data, this trade will cost about $14.41, which is also the covered call?s breakeven point. At that price, this covered call has 12.1 % downside protection, while seeking an assigned return of 4.1 % return in 154 days. If IGT is higher than $15.00 on 4/15/2016, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 9.7 %. Alibaba (NYSE: BABA) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the January $77.50 call while at the same time buying BABA stock for $78.75 will produce a new covered call with a target return of 5.6 %. Based on recent data, this trade will cost about $73.40, 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 5.6 % return in 63 days. If BABA is higher than $77.50 on 1/15/2016, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 32.3 %. 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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 Yelp (YELP) and Amtrust Financial (AFSI) were upgraded by analysts this morning while NetApp (NTAP), MaxPoint Ingeractive (MXPT) and GameStop (GME) were downgraded by analysts this morning. Mylan N.V. (MYL), Toll Brothers Inc. (TOL), and SouFun Holdings Ltd. (SFUN) are early risers, while Nordstrom Inc. (JWN), Freescale Semiconductor, Ltd. (FSL) and El Pollo Loco Holdings, Inc. (LOCO) are down. INTERNATIONAL MARKETS Asian stocks fell Friday as investors there focus on a potential U.S. interest rate increase. The Shanghai Composite fell 1.43%, and the Hang Seng fell 2.15%. In Europe, markets are lower today with slowing global growth weighing on investors. The FTSE is down 0.87%, while the DAX is down 0.76%. FUTURES & CURRENCIES Energy futures are higher today. The price for West Texas Intermediate crude oil is up $0.04 to $41.79 per barrel, while natural gas is up $0.03 to $2.48. Metals prices are mixed this morning. Gold is up $0.80 to $1,081.80 per ounce and platinum is down $2.60 to $874.30 an ounce. The Dollar is up versus the Euro and the Yen. PUT/CALL RATIO Yesterday, 936,647 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 775,492 put contracts. The single-session put/call was 0.83 while the 20-day moving average is now at 0.68. TODAY'S ECONOMIC CALENDAR PPI Oct. 8:30 Retail Sales Oct. 8:30 Mich. Sentiment Nov. 10:00 Business Inventories Sept. 10:00 Natural Gas Inventories 11/7 10:30 Treasury Budget Oct. 2:00 EARNINGS EXPECTED TODAY: ARL BDR BONA CDTI CLNT TIPT TYC |
