MORNING UPDATE: PriceWatch Alerts for LINE and More... for 2015-10-12 |
| PriceWatch Alerts for LINE, ADSK, PANW, EXEL, MNKD ,FEYE, SWN, BIDU, OPK and EYES. Linn Energy (NASDAQ: LINE) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $3.45 while selling the April $3.00 call will produce a new covered call with a break-even point around $2.45. At that price, this position has a target return of 22.4 %. This trade will have roughly 29.0 % downside protection, while still aiming for a 22.4 % return in 186 days. It will lock in that return as long as Linn Energy is above $3.00 on 4/15/2016. For comparison purposes only, this LINE covered call aims for an annualized return rate of 44.0 %. Autodesk (NASDAQ: ADSK) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $51.57 while simultaneously selling the November $50.00 call will result in a new position with a target return of 4.1 %. Based on recent prices, this position will cost about $48.02, which is also the trade?s breakeven point. At that level, this covered call has 6.9 % downside protection, while still providing a 4.1 % return in 39 days as long as ADSK is above $50.00 on 11/20/2015. For comparison purposes only, this Autodesk covered call aims for an annualized return rate of 38.6 %. Palo Alto Networks (NYSE: PANW) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $170.72 while simultaneously selling the November $170.00 call will result in a new position with a target return of 5.5 %. Based on recent prices, this position will cost about $161.12, which is also the trade?s breakeven point. At that level, this covered call has 5.6 % downside protection, while still providing a 5.5 % return in 39 days as long as PANW is above $170.00 on 11/20/2015. For comparison purposes only, this Palo Alto Networks covered call aims for an annualized return rate of 51.6 %. Exelixis (NASDAQ: EXEL) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the January $5.50 call while at the same time buying EXEL stock for $5.91 will produce a new covered call with a target return of 14.3 %. Based on recent data, this trade will cost about $4.81, which is also the covered call?s breakeven point. At that price, this covered call has 18.6 % downside protection, while seeking an assigned return of 14.3 % return in 95 days. If EXEL is higher than $5.50 on 1/15/2016, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 55.1 %. MannKind (NASDAQ: MNKD) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the May $3.00 call while simultaneously buying MNKD stock for $3.05 will result in a new position with a break-even point around $2.45. At that price, this position has a target return of 22.4 %. This trade has 19.7 % downside protection, while still providing a 22.4 % return in 216 days as long as MNKD is above $3.00 on 5/15/2016. For comparison purposes only, this MannKind covered call targets an annualized return rate of 37.9 %. FireEye (NASDAQ: FEYE) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $31.79 while selling the November $31.00 call will produce a new covered call with a break-even point around $28.69. At that price, this position has a target return of 8.1 %. This trade will have roughly 9.8 % downside protection, while still aiming for a 8.1 % return in 39 days. It will lock in that return as long as FireEye is above $31.00 on 11/20/2015. For comparison purposes only, this FEYE covered call aims for an annualized return rate of 75.3 %. Southwestern Energy (NYSE: SWN) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $12.80 while simultaneously selling the November $12.00 call will result in a new position with a target return of 6.2 %. Based on recent prices, this position will cost about $11.30, which is also the trade?s breakeven point. At that level, this covered call has 11.7 % downside protection, while still providing a 6.2 % return in 39 days as long as SWN is above $12.00 on 11/20/2015. For comparison purposes only, this Southwestern Energy covered call aims for an annualized return rate of 57.9 %. Baidu.com (NASDAQ: BIDU) 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 BIDU stock for $143.54 will produce a new covered call with a target return of 6.0 %. Based on recent data, this trade will cost about $132.04, which is also the covered call?s breakeven point. At that price, this covered call has 8.0 % downside protection, while seeking an assigned return of 6.0 % return in 39 days. If BIDU 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 56.3 %. Opko Health (NYSE: OPK) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the January $8.00 call while at the same time buying OPK stock for $8.83 will produce a new covered call with a target return of 8.4 %. Based on recent data, this trade will cost about $7.38, which is also the covered call?s breakeven point. At that price, this covered call has 16.4 % downside protection, while seeking an assigned return of 8.4 % return in 95 days. If OPK is higher than $8.00 on 1/15/2016, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 32.3 %. Second Sight (NASDAQ: EYES) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the January $5.00 call while simultaneously buying EYES stock for $6.25 will result in a new position with a break-even point around $4.45. At that price, this position has a target return of 12.4 %. This trade has 28.8 % downside protection, while still providing a 12.4 % return in 95 days as long as EYES is above $5.00 on 1/15/2016. For comparison purposes only, this Second Sight covered call targets an annualized return rate of 47.5 %. 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 NetApp (NTAP) and Advisory Board (ABCO) were upgraded by analysts this morning while Statoil ASA (STO), Miuc-Con Energy Partners (MCEP) and Line Energy (LINE) were downgraded by analysts this morning. Qihoo 360 Technology Co. Ltd. (QIHU), AngloGold Ashanti Ltd. (AU), and The Laclede Group, Inc.(LG) are early risers, while Petr?leo Brasileiro S.A. - Petrobras (PBR), Southwest Airlines Co. (LUV) and Texas Instruments Inc. (TXN) are down. INTERNATIONAL MARKETS Markets in Asia closed higher Monday after the Chinese central bank announced plans to introduce economic stimulus. The Hang Seng was up 1.21%, while the Shanghai Composite rose 3.28%. In Europe, markets are mixed today as only the German Dax continued moving up. The FTSE is down 0.55%, while the DAX is up 0.20%. FUTURES & CURRENCIES Markets in Asia closed higher Monday after the Chinese central bank announced plans to introduce economic stimulus. The Hang Seng was up 1.21%, while the Shanghai Composite rose 3.28%. In Europe, markets are mixed today as only the German Dax continued moving up. The FTSE is down 0.55%, while the DAX is up 0.20%. PUT/CALL RATIO Yesterday, 720,690 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 461,592 put contracts. The single-session put/call was 0.64 while the 20-day moving average is now at 0.76. TODAY'S ECONOMIC CALENDAR No Major Reports for Today EARNINGS EXPECTED TODAY: ASRV ODC PACB STLY SXC |
