MORNING UPDATE: PriceWatch Alerts for DIS and More... for 2015-11-05 |
| PriceWatch Alerts for DIS, FB, GOOGL, GWPH, GILD ,FIT, MSFT, DOW, NVDA and AMZN. Walt Disney (NYSE: DIS) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $113.24 while selling the April $110.00 call will produce a new covered call with a break-even point around $104.09. At that price, this position has a target return of 5.7 %. This trade will have roughly 8.1 % downside protection, while still aiming for a 5.7 % return in 162 days. It will lock in that return as long as Walt Disney is above $110.00 on 4/15/2016. For comparison purposes only, this DIS covered call aims for an annualized return rate of 12.8 %. Facebook (NASDAQ: FB) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $106.93 while simultaneously selling the June $100.00 call will result in a new position with a target return of 6.4 %. Based on recent prices, this position will cost about $93.98, which is also the trade?s breakeven point. At that level, this covered call has 12.1 % downside protection, while still providing a 6.4 % return in 225 days as long as FB is above $100.00 on 6/17/2016. For comparison purposes only, this Facebook covered call aims for an annualized return rate of 10.4 %. Google (NASDAQ: GOOGL) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the March $755.00 call while at the same time buying GOOGL stock for $755.31 will produce a new covered call with a target return of 6.4 %. Based on recent data, this trade will cost about $709.31, which is also the covered call?s breakeven point. At that price, this covered call has 6.1 % downside protection, while seeking an assigned return of 6.4 % return in 134 days. If GOOGL is higher than $755.00 on 3/18/2016, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 17.5 %. GW Pharmaceuticals (NASDAQ: GWPH) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the December $85.00 call while at the same time buying GWPH stock for $85.62 will produce a new covered call with a target return of 9.8 %. Based on recent data, this trade will cost about $77.42, which is also the covered call?s breakeven point. At that price, this covered call has 9.6 % downside protection, while seeking an assigned return of 9.8 % return in 43 days. If GWPH is higher than $85.00 on 12/18/2015, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 83.1 %. Gilead Sciences (NASDAQ: GILD) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the February $105.00 call while simultaneously buying GILD stock for $108.55 will result in a new position with a break-even point around $100.15. At that price, this position has a target return of 4.8 %. This trade has 7.7 % downside protection, while still providing a 4.8 % return in 106 days as long as GILD is above $105.00 on 2/19/2016. For comparison purposes only, this Gilead Sciences covered call targets an annualized return rate of 16.7 %. Fitbit (NYSE: FIT) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $37.85 while selling the December $37.00 call will produce a new covered call with a break-even point around $35.20. At that price, this position has a target return of 5.1 %. This trade will have roughly 7.0 % downside protection, while still aiming for a 5.1 % return in 43 days. It will lock in that return as long as Fitbit is above $37.00 on 12/18/2015. For comparison purposes only, this FIT covered call aims for an annualized return rate of 43.4 %. Microsoft (NASDAQ: MSFT) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $54.40 while simultaneously selling the June $52.50 call will result in a new position with a target return of 4.9 %. Based on recent prices, this position will cost about $50.05, which is also the trade?s breakeven point. At that level, this covered call has 8.0 % downside protection, while still providing a 4.9 % return in 225 days as long as MSFT is above $52.50 on 6/17/2016. For comparison purposes only, this Microsoft covered call aims for an annualized return rate of 7.9 %. Dow Chemical (NYSE: DOW) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the February $50.00 call while at the same time buying DOW stock for $51.38 will produce a new covered call with a target return of 4.3 %. Based on recent data, this trade will cost about $47.93, which is also the covered call?s breakeven point. At that price, this covered call has 6.7 % downside protection, while seeking an assigned return of 4.3 % return in 106 days. If DOW is higher than $50.00 on 2/19/2016, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 14.8 %. NVIDIA (NASDAQ: NVDA) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the December $28.00 call while at the same time buying NVDA stock for $27.99 will produce a new covered call with a target return of 5.7 %. Based on recent data, this trade will cost about $26.49, which is also the covered call?s breakeven point. At that price, this covered call has 5.4 % downside protection, while seeking an assigned return of 5.7 % return in 43 days. If NVDA is higher than $28.00 on 12/18/2015, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 48.4 %. Amazon (NASDAQ: AMZN) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the January $640.00 call while simultaneously buying AMZN stock for $640.57 will result in a new position with a break-even point around $611.27. At that price, this position has a target return of 4.7 %. This trade has 4.6 % downside protection, while still providing a 4.7 % return in 71 days as long as AMZN is above $640.00 on 1/15/2016. For comparison purposes only, this Amazon covered call targets an annualized return rate of 24.2 %. Are you looking for a more conservative strategy that solves the pitfalls that come with covered calls investing? 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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 Gannett (GCI), Vivus (VVUS) and Cogentix Medical (CGNT) were upgraded by analysts this morning while Energy Focus (EFOI), Plains All American (PAA) and Dyax (DYAX) were downgraded by analysts this morning. The Chemours Company (CC), Expedia Inc. (EXPE), and Facebook, Inc. (FB) are early risers, while FireEye, Inc. (FEYE), Whole Foods Market, Inc. (WFM) and Molson Coors Brewing Company (TAP) are down. INTERNATIONAL MARKETS Asian stocks were mixed Thursday with mainland Chinese markets again posting gains. The Shanghai Composite rose 1.83%, while the Hang Seng was down 0.01%. In Europe, stocks are mixed today with data showing German manufacturing down in September. The FTSE is down 0.01%, while the DAX is up 0.94%. FUTURES & CURRENCIES Energy futures are higher today. The price for West Texas Intermediate crude oil is up $0.08 to $46.40 per barrel, while natural gas is up $0.04 to $2.30. Metals prices are mixed this morning. Gold is down $0.30 to $1,105.90 per ounce and platinum is up $0.20 to $955.00 an ounce. The Dollar is down versus the Euro and up against the Yen. PUT/CALL RATIO Yesterday, 832,515 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 605,926 put contracts. The single-session put/call was 0.73 while the 20-day moving average is now at 0.69. TODAY'S ECONOMIC CALENDAR Initial Claims 10/31 8:30 Continuing Claims 10/24 8:30 Productivity-preliminary Q3 8:30 Unit Labor Costs-Prelim. Oct. 10:00 Natural Gas Inventories 10/31 10:30 EARNINGS EXPECTED TODAY: ACAD ADMS ARS AL AMH APA AINV AMTG RATE BBG BMR NILE BR BRKS CCC CCG CASM CECE CLDX CC CPK CCO COTY CROX DMD DNR DWA DUK EOG FI CO IT GDOT HGG HFC SNAK KATE LUK LINE MSG MHR MEG MHK TAP MNST NAVG NL NROM NDLS NVDA OPK PBH RL SEAS SHAK SWKS JOE STMP SYMC TTWO TDC TRIP TRUE OLED DIS WIN |
