MORNING UPDATE: PriceWatch Alerts for PYPL and More... for 2015-10-16 |
| PriceWatch Alerts for PYPL, KITE, NQ, SBUX, GE ,BTU, MSFT, ETSY, JBLU and TASR. Paypal Holdings (NASDAQ: PYPL) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $34.55 while selling the April $30.00 call will produce a new covered call with a break-even point around $28.15. At that price, this position has a target return of 6.6 %. This trade will have roughly 18.5 % downside protection, while still aiming for a 6.6 % return in 182 days. It will lock in that return as long as Paypal Holdings is above $30.00 on 4/15/2016. For comparison purposes only, this PYPL covered call aims for an annualized return rate of 13.2 %. Kite Pharma (NYSE: KITE) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $64.40 while simultaneously selling the January $60.00 call will result in a new position with a target return of 10.7 %. Based on recent prices, this position will cost about $54.20, which is also the trade?s breakeven point. At that level, this covered call has 15.8 % downside protection, while still providing a 10.7 % return in 91 days as long as KITE is above $60.00 on 1/15/2016. For comparison purposes only, this Kite Pharma covered call aims for an annualized return rate of 42.9 %. NQ Mobile (NYSE: NQ) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the March $3.50 call while at the same time buying NQ stock for $4.08 will produce a new covered call with a target return of 14.0 %. Based on recent data, this trade will cost about $3.07, which is also the covered call?s breakeven point. At that price, this covered call has 24.8 % downside protection, while seeking an assigned return of 14.0 % return in 154 days. If NQ is higher than $3.50 on 3/18/2016, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 33.2 %. Starbucks (NASDAQ: SBUX) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the January $57.50 call while at the same time buying SBUX stock for $58.97 will produce a new covered call with a target return of 4.7 %. Based on recent data, this trade will cost about $54.92, which is also the covered call?s breakeven point. At that price, this covered call has 6.9 % downside protection, while seeking an assigned return of 4.7 % return in 91 days. If SBUX is higher than $57.50 on 1/15/2016, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 18.8 %. General Electric (NYSE: GE) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the March $28.00 call while simultaneously buying GE stock for $27.98 will result in a new position with a break-even point around $26.89. At that price, this position has a target return of 4.1 %. This trade has 3.9 % downside protection, while still providing a 4.1 % return in 154 days as long as GE is above $28.00 on 3/18/2016. For comparison purposes only, this General Electric covered call targets an annualized return rate of 9.8 %. Peabody Energy (NYSE: BTU) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $23.58 while selling the November $23.00 call will produce a new covered call with a break-even point around $19.78. At that price, this position has a target return of 16.3 %. This trade will have roughly 16.1 % downside protection, while still aiming for a 16.3 % return in 35 days. It will lock in that return as long as Peabody Energy is above $23.00 on 11/20/2015. For comparison purposes only, this BTU covered call aims for an annualized return rate of 169.7 %. 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 $46.81 while simultaneously selling the November $47.00 call will result in a new position with a target return of 4.5 %. Based on recent prices, this position will cost about $44.96, which is also the trade?s breakeven point. At that level, this covered call has 4.0 % downside protection, while still providing a 4.5 % return in 35 days as long as MSFT is above $47.00 on 11/20/2015. For comparison purposes only, this Microsoft covered call aims for an annualized return rate of 47.2 %. Etsy Inc (NASDAQ: ETSY) 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 ETSY stock for $11.03 will produce a new covered call with a target return of 10.7 %. Based on recent data, this trade will cost about $9.03, which is also the covered call?s breakeven point. At that price, this covered call has 18.1 % downside protection, while seeking an assigned return of 10.7 % return in 154 days. If ETSY 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 25.5 %. JetBlue Airways (NASDAQ: JBLU) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the March $24.00 call while at the same time buying JBLU stock for $24.38 will produce a new covered call with a target return of 10.2 %. Based on recent data, this trade will cost about $21.78, which is also the covered call?s breakeven point. At that price, this covered call has 10.7 % downside protection, while seeking an assigned return of 10.2 % return in 154 days. If JBLU is higher than $24.00 on 3/18/2016, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 24.2 %. Taser International (NASDAQ: TASR) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the March $24.00 call while simultaneously buying TASR stock for $24.22 will result in a new position with a break-even point around $21.27. At that price, this position has a target return of 12.8 %. This trade has 12.2 % downside protection, while still providing a 12.8 % return in 154 days as long as TASR is above $24.00 on 3/18/2016. For comparison purposes only, this Taser International covered call targets an annualized return rate of 30.4 %. 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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 BofI Holdings (BOFI) and Facebook (FB) were upgraded by analysts this morning while Dunkin Brands (DNKN), Manitowoc (MTW) and Eaton (ETN) were downgraded by analysts this morning. Youku Tudou Inc. (YOKU), Weibo Corporation (WB), and Opko Health, Inc. (OPK) are early risers, while Wynn Resorts Ltd. (WYNN), Kite Pharma, Inc. (KITE) and Las Vegas Sands Corp. (LVS) are down. INTERNATIONAL MARKETS In Asia, stocks finished higher Friday as Chinese stocks recorded a second week of gains. The Nikkei was up 1.08%, while the Shanghai Composite rose 1.60%. In Europe, markets are higher today as rebounding oil prices lift energy shares. The FTSE is up 0.48%, while the DAX is up 0.22%. FUTURES & CURRENCIES Energy futures are mixed this morning. The price for West Texas Intermediate crude oil is up $0.30 to $47.17 per barrel, while natural gas is down $0.03 to $2.41. Metals prices are rising this morning. Gold is down $9.30 to $1,178.30 per ounce and platinum is down $9.00 at $998.00 an ounce. The Dollar is up versus the Euro and the Yen. PUT/CALL RATIO Yesterday, 945,970 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 818,784 put contracts. The single-session put/call was 0.87 while the 20-day moving average is now at 0.75. TODAY'S ECONOMIC CALENDAR Industrial Production Sept. 9:15 Capacity Utilization Sept. 9:15 JOLTS Aug. 10:00 Michigan Sentiment Oct. 10:00 EARNINGS EXPECTED TODAY: BMRC CMA CMTV FHN GE HON KSU PGT STU UNB GWW |
