MORNING UPDATE: PriceWatch Alerts for KMI and More...
PriceWatch Alerts for KMI, SNDK, SDRL, RIG, PLNT ,MBLY, TRIP, COP, ILMN, SWKS, GILD, FMC, MU, ABMD, and ABBV.
Kinder Morgan (NYSE: KMI) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $31.48 while selling the March $30.00 call will produce a new covered call with a break-even point around $28.82. At that price, this position has a target return of 4.1 %. This trade will have roughly 8.4 % downside protection, while still aiming for a 4.1 % return in 155 days. It will lock in that return as long as Kinder Morgan is above $30.00 on 3/18/2016. For comparison purposes only, this KMI covered call aims for an annualized return rate of 9.6 %.
SanDisk (NASDAQ: SNDK) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $68.85 while simultaneously selling the November $67.50 call will result in a new position with a target return of 5.5 %. Based on recent prices, this position will cost about $64.00, which is also the trade?s breakeven point. At that level, this covered call has 7.0 % downside protection, while still providing a 5.5 % return in 36 days as long as SNDK is above $67.50 on 11/20/2015. For comparison purposes only, this SanDisk covered call aims for an annualized return rate of 55.4 %.
Seadrill (NYSE: SDRL) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the January $7.00 call while at the same time buying SDRL stock for $7.34 will produce a new covered call with a target return of 13.1 %. Based on recent data, this trade will cost about $6.19, which is also the covered call?s breakeven point. At that price, this covered call has 15.7 % downside protection, while seeking an assigned return of 13.1 % return in 92 days. If SDRL is higher than $7.00 on 1/15/2016, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 51.9 %.
Transocean (NYSE: RIG) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the November $16.00 call while at the same time buying RIG stock for $16.07 will produce a new covered call with a target return of 8.1 %. Based on recent data, this trade will cost about $14.80, which is also the covered call?s breakeven point. At that price, this covered call has 7.9 % downside protection, while seeking an assigned return of 8.1 % return in 36 days. If RIG is higher than $16.00 on 11/20/2015, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 82.1 %.
Planet Fitness (NYSE: PLNT) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the May $15.00 call while simultaneously buying PLNT stock for $15.90 will result in a new position with a break-even point around $14.00. At that price, this position has a target return of 7.1 %. This trade has 11.9 % downside protection, while still providing a 7.1 % return in 213 days as long as PLNT is above $15.00 on 5/15/2016. For comparison purposes only, this Planet Fitness covered call targets an annualized return rate of 12.2 %.
Mobileye (NYSE: MBLY) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $48.51 while selling the November $48.00 call will produce a new covered call with a break-even point around $45.11. At that price, this position has a target return of 6.4 %. This trade will have roughly 7.0 % downside protection, while still aiming for a 6.4 % return in 36 days. It will lock in that return as long as Mobileye is above $48.00 on 11/20/2015. For comparison purposes only, this MBLY covered call aims for an annualized return rate of 64.9 %.
Tripadvisor (NASDAQ: TRIP) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $81.70 while simultaneously selling the November $80.00 call will result in a new position with a target return of 7.0 %. Based on recent prices, this position will cost about $74.80, which is also the trade?s breakeven point. At that level, this covered call has 8.4 % downside protection, while still providing a 7.0 % return in 36 days as long as TRIP is above $80.00 on 11/20/2015. For comparison purposes only, this Tripadvisor covered call aims for an annualized return rate of 70.5 %.
ConocoPhillips (NYSE: COP) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the January $55.00 call while at the same time buying COP stock for $55.38 will produce a new covered call with a target return of 5.1 %. Based on recent data, this trade will cost about $52.33, which is also the covered call?s breakeven point. At that price, this covered call has 5.5 % downside protection, while seeking an assigned return of 5.1 % return in 92 days. If COP is higher than $55.00 on 1/15/2016, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 20.2 %.
Illumina (NASDAQ: ILMN) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the November $140.00 call while at the same time buying ILMN stock for $144.54 will produce a new covered call with a target return of 4.8 %. Based on recent data, this trade will cost about $133.54, which is also the covered call?s breakeven point. At that price, this covered call has 7.6 % downside protection, while seeking an assigned return of 4.8 % return in 36 days. If ILMN is higher than $140.00 on 11/20/2015, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 49.0 %.
Skyworks Solutions (NASDAQ: SWKS) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the November $75.00 call while simultaneously buying SWKS stock for $77.32 will result in a new position with a break-even point around $70.92. At that price, this position has a target return of 5.8 %. This trade has 8.3 % downside protection, while still providing a 5.8 % return in 36 days as long as SWKS is above $75.00 on 11/20/2015. For comparison purposes only, this Skyworks Solutions covered call targets an annualized return rate of 58.3 %.
Gilead Sciences (NASDAQ: GILD) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $98.66 while selling the January $97.50 call will produce a new covered call with a break-even point around $91.96. At that price, this position has a target return of 6.0 %. This trade will have roughly 6.8 % downside protection, while still aiming for a 6.0 % return in 92 days. It will lock in that return as long as Gilead Sciences is above $97.50 on 1/15/2016. For comparison purposes only, this GILD covered call aims for an annualized return rate of 23.9 %.
FMC (NYSE: FMC) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $38.11 while simultaneously selling the April $35.00 call will result in a new position with a target return of 7.0 %. Based on recent prices, this position will cost about $32.71, which is also the trade?s breakeven point. At that level, this covered call has 14.2 % downside protection, while still providing a 7.0 % return in 183 days as long as FMC is above $35.00 on 4/15/2016. For comparison purposes only, this FMC covered call aims for an annualized return rate of 14.0 %.
Micron Technology (NASDAQ: MU) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the April $18.00 call while at the same time buying MU stock for $18.81 will produce a new covered call with a target return of 12.5 %. Based on recent data, this trade will cost about $16.00, which is also the covered call?s breakeven point. At that price, this covered call has 14.9 % downside protection, while seeking an assigned return of 12.5 % return in 183 days. If MU is higher than $18.00 on 4/15/2016, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 24.9 %.
Abiomed (NASDAQ: ABMD) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the November $85.00 call while at the same time buying ABMD stock for $84.20 will produce a new covered call with a target return of 9.1 %. Based on recent data, this trade will cost about $77.90, which is also the covered call?s breakeven point. At that price, this covered call has 7.5 % downside protection, while seeking an assigned return of 9.1 % return in 36 days. If ABMD is higher than $85.00 on 11/20/2015, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 92.4 %.
Abbvie (NYSE: ABBV) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the January $52.50 call while simultaneously buying ABBV stock for $53.94 will result in a new position with a break-even point around $50.04. At that price, this position has a target return of 4.9 %. This trade has 7.2 % downside protection, while still providing a 4.9 % return in 92 days as long as ABBV is above $52.50 on 1/15/2016. For comparison purposes only, this Abbvie covered call targets an annualized return rate of 19.5 %.
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. The RadioActive Home Study Kit teaches the proper limited risk trade setup and the 10 different Income Methods that are used to lower the initial risk, potentially bulletproof your stock positions and earn extra income. The RadioActive Home Study Kit comes with a money back guarantee and a free month of access to the patented PowerOptions Suite of Tools!
Can you back test these strategies? Yes, you can! PowerOptions offers a full back testing screener, SmartHistoryXL, to its subscribers. 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. Isis Pharmaceuticals, Inc. (ISIS), Kite Pharma, Inc. (KITE), and Exact Sciences Corporation (EXAS) are early risers, while The Manitowoc Company, Inc. (MTW), Netflix, Inc. (NFLX) and Allergan plc (AGN) are down.
INTERNATIONAL MARKETS
In Asia stocks climbed Thursday as news of reform for state owned firms in China encouraged investors. The Nikkei was up 1.15%, while the Shanghai Composite rose 2.32%. In Europe, markets are on the rise today following three straight days of losses. The FTSE is up 0.96%, while the DAX is up 1.56%.
FUTURES & CURRENCIES
Energy futures are mixed today. The price for West Texas Intermediate crude oil is down $0.48 to $46.16 per barrel, while natural gas is up $0.02 to $2.53. Metals prices are rising this morning. Gold is up $5.20 to $1,185.00 per ounce and platinum is up $4.30 at $997.70 an ounce. The Dollar is up versus the Euro and down against the Yen.
PUT/CALL RATIO
Yesterday, 691,344 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 518,053 put contracts. The single-session put/call was 0.75 while the 20-day moving average is now at 0.74.
TODAY'S ECONOMIC CALENDAR
Initial Claims 10/10 8:30
Continuing Claims 10/03 8:30
CPI Sept. 8:30
Empire Manufacturing Oct. 8:30
Philadelphia Fed Oct. 10:00
Nat. Gas Inventories 10/10 10:30
Treasury Budget Sept. 11:00
Crude Inventories 10/10 11:00
EARNINGS EXPECTED TODAY:
AMD
ASRV
ASB
BBT
BCBP
BX
BNK
CVCY
SCHW
C
MYCC
COBZ
CPSS
EGP
FCS
GS
GFED
KEY
MTB
VAR
MRG
PM
SLB
SKY
STAF
TZOO
USB
UNH
WDFC
WGO
WYNN
Kinder Morgan (NYSE: KMI) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $31.48 while selling the March $30.00 call will produce a new covered call with a break-even point around $28.82. At that price, this position has a target return of 4.1 %. This trade will have roughly 8.4 % downside protection, while still aiming for a 4.1 % return in 155 days. It will lock in that return as long as Kinder Morgan is above $30.00 on 3/18/2016. For comparison purposes only, this KMI covered call aims for an annualized return rate of 9.6 %.
SanDisk (NASDAQ: SNDK) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $68.85 while simultaneously selling the November $67.50 call will result in a new position with a target return of 5.5 %. Based on recent prices, this position will cost about $64.00, which is also the trade?s breakeven point. At that level, this covered call has 7.0 % downside protection, while still providing a 5.5 % return in 36 days as long as SNDK is above $67.50 on 11/20/2015. For comparison purposes only, this SanDisk covered call aims for an annualized return rate of 55.4 %.
Seadrill (NYSE: SDRL) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the January $7.00 call while at the same time buying SDRL stock for $7.34 will produce a new covered call with a target return of 13.1 %. Based on recent data, this trade will cost about $6.19, which is also the covered call?s breakeven point. At that price, this covered call has 15.7 % downside protection, while seeking an assigned return of 13.1 % return in 92 days. If SDRL is higher than $7.00 on 1/15/2016, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 51.9 %.
Transocean (NYSE: RIG) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the November $16.00 call while at the same time buying RIG stock for $16.07 will produce a new covered call with a target return of 8.1 %. Based on recent data, this trade will cost about $14.80, which is also the covered call?s breakeven point. At that price, this covered call has 7.9 % downside protection, while seeking an assigned return of 8.1 % return in 36 days. If RIG is higher than $16.00 on 11/20/2015, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 82.1 %.
Planet Fitness (NYSE: PLNT) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the May $15.00 call while simultaneously buying PLNT stock for $15.90 will result in a new position with a break-even point around $14.00. At that price, this position has a target return of 7.1 %. This trade has 11.9 % downside protection, while still providing a 7.1 % return in 213 days as long as PLNT is above $15.00 on 5/15/2016. For comparison purposes only, this Planet Fitness covered call targets an annualized return rate of 12.2 %.
Mobileye (NYSE: MBLY) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $48.51 while selling the November $48.00 call will produce a new covered call with a break-even point around $45.11. At that price, this position has a target return of 6.4 %. This trade will have roughly 7.0 % downside protection, while still aiming for a 6.4 % return in 36 days. It will lock in that return as long as Mobileye is above $48.00 on 11/20/2015. For comparison purposes only, this MBLY covered call aims for an annualized return rate of 64.9 %.
Tripadvisor (NASDAQ: TRIP) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $81.70 while simultaneously selling the November $80.00 call will result in a new position with a target return of 7.0 %. Based on recent prices, this position will cost about $74.80, which is also the trade?s breakeven point. At that level, this covered call has 8.4 % downside protection, while still providing a 7.0 % return in 36 days as long as TRIP is above $80.00 on 11/20/2015. For comparison purposes only, this Tripadvisor covered call aims for an annualized return rate of 70.5 %.
ConocoPhillips (NYSE: COP) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the January $55.00 call while at the same time buying COP stock for $55.38 will produce a new covered call with a target return of 5.1 %. Based on recent data, this trade will cost about $52.33, which is also the covered call?s breakeven point. At that price, this covered call has 5.5 % downside protection, while seeking an assigned return of 5.1 % return in 92 days. If COP is higher than $55.00 on 1/15/2016, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 20.2 %.
Illumina (NASDAQ: ILMN) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the November $140.00 call while at the same time buying ILMN stock for $144.54 will produce a new covered call with a target return of 4.8 %. Based on recent data, this trade will cost about $133.54, which is also the covered call?s breakeven point. At that price, this covered call has 7.6 % downside protection, while seeking an assigned return of 4.8 % return in 36 days. If ILMN is higher than $140.00 on 11/20/2015, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 49.0 %.
Skyworks Solutions (NASDAQ: SWKS) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the November $75.00 call while simultaneously buying SWKS stock for $77.32 will result in a new position with a break-even point around $70.92. At that price, this position has a target return of 5.8 %. This trade has 8.3 % downside protection, while still providing a 5.8 % return in 36 days as long as SWKS is above $75.00 on 11/20/2015. For comparison purposes only, this Skyworks Solutions covered call targets an annualized return rate of 58.3 %.
Gilead Sciences (NASDAQ: GILD) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $98.66 while selling the January $97.50 call will produce a new covered call with a break-even point around $91.96. At that price, this position has a target return of 6.0 %. This trade will have roughly 6.8 % downside protection, while still aiming for a 6.0 % return in 92 days. It will lock in that return as long as Gilead Sciences is above $97.50 on 1/15/2016. For comparison purposes only, this GILD covered call aims for an annualized return rate of 23.9 %.
FMC (NYSE: FMC) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $38.11 while simultaneously selling the April $35.00 call will result in a new position with a target return of 7.0 %. Based on recent prices, this position will cost about $32.71, which is also the trade?s breakeven point. At that level, this covered call has 14.2 % downside protection, while still providing a 7.0 % return in 183 days as long as FMC is above $35.00 on 4/15/2016. For comparison purposes only, this FMC covered call aims for an annualized return rate of 14.0 %.
Micron Technology (NASDAQ: MU) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the April $18.00 call while at the same time buying MU stock for $18.81 will produce a new covered call with a target return of 12.5 %. Based on recent data, this trade will cost about $16.00, which is also the covered call?s breakeven point. At that price, this covered call has 14.9 % downside protection, while seeking an assigned return of 12.5 % return in 183 days. If MU is higher than $18.00 on 4/15/2016, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 24.9 %.
Abiomed (NASDAQ: ABMD) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the November $85.00 call while at the same time buying ABMD stock for $84.20 will produce a new covered call with a target return of 9.1 %. Based on recent data, this trade will cost about $77.90, which is also the covered call?s breakeven point. At that price, this covered call has 7.5 % downside protection, while seeking an assigned return of 9.1 % return in 36 days. If ABMD is higher than $85.00 on 11/20/2015, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 92.4 %.
Abbvie (NYSE: ABBV) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the January $52.50 call while simultaneously buying ABBV stock for $53.94 will result in a new position with a break-even point around $50.04. At that price, this position has a target return of 4.9 %. This trade has 7.2 % downside protection, while still providing a 4.9 % return in 92 days as long as ABBV is above $52.50 on 1/15/2016. For comparison purposes only, this Abbvie covered call targets an annualized return rate of 19.5 %.
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. The RadioActive Home Study Kit teaches the proper limited risk trade setup and the 10 different Income Methods that are used to lower the initial risk, potentially bulletproof your stock positions and earn extra income. The RadioActive Home Study Kit comes with a money back guarantee and a free month of access to the patented PowerOptions Suite of Tools!
Can you back test these strategies? Yes, you can! PowerOptions offers a full back testing screener, SmartHistoryXL, to its subscribers. 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. Isis Pharmaceuticals, Inc. (ISIS), Kite Pharma, Inc. (KITE), and Exact Sciences Corporation (EXAS) are early risers, while The Manitowoc Company, Inc. (MTW), Netflix, Inc. (NFLX) and Allergan plc (AGN) are down.
INTERNATIONAL MARKETS
In Asia stocks climbed Thursday as news of reform for state owned firms in China encouraged investors. The Nikkei was up 1.15%, while the Shanghai Composite rose 2.32%. In Europe, markets are on the rise today following three straight days of losses. The FTSE is up 0.96%, while the DAX is up 1.56%.
FUTURES & CURRENCIES
Energy futures are mixed today. The price for West Texas Intermediate crude oil is down $0.48 to $46.16 per barrel, while natural gas is up $0.02 to $2.53. Metals prices are rising this morning. Gold is up $5.20 to $1,185.00 per ounce and platinum is up $4.30 at $997.70 an ounce. The Dollar is up versus the Euro and down against the Yen.
PUT/CALL RATIO
Yesterday, 691,344 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 518,053 put contracts. The single-session put/call was 0.75 while the 20-day moving average is now at 0.74.
TODAY'S ECONOMIC CALENDAR
Initial Claims 10/10 8:30
Continuing Claims 10/03 8:30
CPI Sept. 8:30
Empire Manufacturing Oct. 8:30
Philadelphia Fed Oct. 10:00
Nat. Gas Inventories 10/10 10:30
Treasury Budget Sept. 11:00
Crude Inventories 10/10 11:00
EARNINGS EXPECTED TODAY:
AMD
ASRV
ASB
BBT
BCBP
BX
BNK
CVCY
SCHW
C
MYCC
COBZ
CPSS
EGP
FCS
GS
GFED
KEY
MTB
VAR
MRG
PM
SLB
SKY
STAF
TZOO
USB
UNH
WDFC
WGO
WYNN
