MORNING UPDATE: PriceWatch Alerts for AAPL and More... for 2015-10-19 |
| PriceWatch Alerts for AAPL, TFM, UA, ISIS, YUM ,KR, RMTI, AA, MAT and FPRX. Apple (NASDAQ: AAPL) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $111.00 while selling the December $110.00 call will produce a new covered call with a break-even point around $105.30. At that price, this position has a target return of 4.5 %. This trade will have roughly 5.1 % downside protection, while still aiming for a 4.5 % return in 60 days. It will lock in that return as long as Apple is above $110.00 on 12/18/2015. For comparison purposes only, this AAPL covered call aims for an annualized return rate of 27.1 %. The Fresh Market (NASDAQ: TFM) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $25.95 while simultaneously selling the December $25.00 call will result in a new position with a target return of 6.4 %. Based on recent prices, this position will cost about $23.50, which is also the trade?s breakeven point. At that level, this covered call has 9.4 % downside protection, while still providing a 6.4 % return in 60 days as long as TFM is above $25.00 on 12/18/2015. For comparison purposes only, this The Fresh Market covered call aims for an annualized return rate of 38.8 %. Under Armour (NYSE: UA) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the November $100.00 call while at the same time buying UA stock for $100.05 will produce a new covered call with a target return of 5.1 %. Based on recent data, this trade will cost about $95.15, which is also the covered call?s breakeven point. At that price, this covered call has 4.9 % downside protection, while seeking an assigned return of 5.1 % return in 32 days. If UA is higher than $100.00 on 11/20/2015, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 58.1 %. Isis Pharmaceuticals (NASDAQ: ISIS) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the November $44.00 call while at the same time buying ISIS stock for $44.45 will produce a new covered call with a target return of 6.2 %. Based on recent data, this trade will cost about $41.45, 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 6.2 % return in 32 days. If ISIS is higher than $44.00 on 11/20/2015, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 70.1 %. Yum Brands (NYSE: YUM) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the January $70.00 call while simultaneously buying YUM stock for $72.24 will result in a new position with a break-even point around $66.59. At that price, this position has a target return of 5.1 %. This trade has 7.8 % downside protection, while still providing a 5.1 % return in 88 days as long as YUM is above $70.00 on 1/15/2016. For comparison purposes only, this Yum Brands covered call targets an annualized return rate of 21.2 %. Kroger (NYSE: KR) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $37.51 while selling the January $37.50 call will produce a new covered call with a break-even point around $35.66. At that price, this position has a target return of 5.2 %. This trade will have roughly 4.9 % downside protection, while still aiming for a 5.2 % return in 88 days. It will lock in that return as long as Kroger is above $37.50 on 1/15/2016. For comparison purposes only, this KR covered call aims for an annualized return rate of 21.4 %. Rockwell Medical (NASDAQ: RMTI) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $13.46 while simultaneously selling the February $13.00 call will result in a new position with a target return of 12.5 %. Based on recent prices, this position will cost about $11.56, which is also the trade?s breakeven point. At that level, this covered call has 14.1 % downside protection, while still providing a 12.5 % return in 123 days as long as RMTI is above $13.00 on 2/19/2016. For comparison purposes only, this Rockwell Medical covered call aims for an annualized return rate of 36.9 %. Alcoa (NYSE: AA) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the April $9.00 call while at the same time buying AA stock for $9.54 will produce a new covered call with a target return of 9.1 %. Based on recent data, this trade will cost about $8.25, which is also the covered call?s breakeven point. At that price, this covered call has 13.5 % downside protection, while seeking an assigned return of 9.1 % return in 179 days. If AA is higher than $9.00 on 4/15/2016, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 18.5 %. Mattel (NASDAQ: MAT) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the April $23.00 call while at the same time buying MAT stock for $23.89 will produce a new covered call with a target return of 5.6 %. Based on recent data, this trade will cost about $21.79, which is also the covered call?s breakeven point. At that price, this covered call has 8.8 % downside protection, while seeking an assigned return of 5.6 % return in 179 days. If MAT is higher than $23.00 on 4/15/2016, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 11.3 %. Five Prime (NASDAQ: FPRX) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the December $30.00 call while simultaneously buying FPRX stock for $31.65 will result in a new position with a break-even point around $28.15. At that price, this position has a target return of 6.6 %. This trade has 11.1 % downside protection, while still providing a 6.6 % return in 60 days as long as FPRX is above $30.00 on 12/18/2015. For comparison purposes only, this Five Prime covered call targets an annualized return rate of 40.0 %. 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 Buffalo Wild Wings (BWLD), Darden Restaurants (DRI) and Beaxer Homes (BZH) were upgraded by analysts this morning while WD-40 (WDFC), Smith Micro Software (SMSI) and Compass Minerals (CMP) were downgraded by analysts this morning. Plug Power Inc. (PLUG), Hasbro Inc. (HAS), and Opko Health, Inc. (OPK) are early risers, while Vale S.A. (VALE), SolarCity Corporation (SCTY) and SeaDrill Limited (SDRL) are down. INTERNATIONAL MARKETS Asian stocks ended Monday mixed as Chinese growth slowed to its lowest rate since 2009. The Hang Seng was up 0.04%, while the Shanghai Composite fell 0.14%. In Europe, markets are mixed today as investors digest the news out of China. The FTSE is down 0.44%, while the DAX is up 0.39%. FUTURES & CURRENCIES Energy futures are mixed this morning. The price for West Texas Intermediate crude oil is down $0.56 to $47.16 per barrel, while natural gas is up $0.03 to $2.46. Metals prices are down this morning. Gold is down $10.50 to $1,172.50 per ounce and platinum is down $8.80 at $1014.90 an ounce. The Dollar is up versus the Euro and the Yen. PUT/CALL RATIO Yesterday, 1,363,144 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 830,396 put contracts. The single-session put/call was 0.61 while the 20-day moving average is now at 0.74. TODAY'S ECONOMIC CALENDAR NAHB Housing Market Index Oct. 10:00 EARNINGS EXPECTED TODAY: ASBI AWRE BMI BXS BBCN BRCM BRO CE CBI CCK ELZ FLEX GPC HAL HAS IBM MTB MS PETS RMBS SIX SONC STLD WASH ZION |
