MORNING UPDATE: PriceWatch Alerts for TWTR and More... for 2015-10-01 |
| PriceWatch Alerts for TWTR, ESPR, WDC, NVDA, PAY ,TSLA, KMI, CAT, NWSA and CELG. Twitter (NYSE: TWTR) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $26.94 while selling the November $28.00 call will produce a new covered call with a break-even point around $24.90. At that price, this position has a target return of 12.4 %. This trade will have roughly 7.6 % downside protection, while still aiming for a 12.4 % return in 50 days. It will lock in that return as long as Twitter is above $28.00 on 11/20/2015. For comparison purposes only, this TWTR covered call aims for an annualized return rate of 90.8 %. Esperion Therapeutics (NASDAQ: ESPR) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $23.59 while simultaneously selling the December $25.00 call will result in a new position with a target return of 21.4 %. Based on recent prices, this position will cost about $20.59, which is also the trade?s breakeven point. At that level, this covered call has 12.7 % downside protection, while still providing a 21.4 % return in 78 days as long as ESPR is above $25.00 on 12/18/2015. For comparison purposes only, this Esperion Therapeutics covered call aims for an annualized return rate of 100.2 %. Western Digital (NASDAQ: WDC) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $79.40 while selling the November $80.00 call will produce a new covered call with a break-even point around $74.85. At that price, this position has a target return of 6.9 %. This trade will have roughly 5.7 % downside protection, while still aiming for a 6.9 % return in 50 days. It will lock in that return as long as Western Digital is above $80.00 on 11/20/2015. For comparison purposes only, this WDC covered call aims for an annualized return rate of 50.2 %. NVIDIA (NASDAQ: NVDA) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the November $25.00 call while at the same time buying NVDA stock for $24.64 will produce a new covered call with a target return of 7.0 %. Based on recent data, this trade will cost about $23.36, which is also the covered call?s breakeven point. At that price, this covered call has 5.2 % downside protection, while seeking an assigned return of 7.0 % return in 50 days. If NVDA is higher than $25.00 on 11/20/2015, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 51.2 %. Verifone (NYSE: PAY) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the November $28.00 call while simultaneously buying PAY stock for $27.74 will result in a new position with a break-even point around $26.49. At that price, this position has a target return of 5.7 %. This trade has 4.5 % downside protection, while still providing a 5.7 % return in 50 days as long as PAY is above $28.00 on 11/20/2015. For comparison purposes only, this Verifone covered call targets an annualized return rate of 41.6 %. Tesla (NASDAQ: TSLA) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $248.40 while selling the November $250.00 call will produce a new covered call with a break-even point around $231.50. At that price, this position has a target return of 8.0 %. This trade will have roughly 6.8 % downside protection, while still aiming for a 8.0 % return in 50 days. It will lock in that return as long as Tesla is above $250.00 on 11/20/2015. For comparison purposes only, this TSLA covered call aims for an annualized return rate of 58.3 %. Kinder Morgan (NYSE: KMI) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $27.68 while simultaneously selling the March $30.00 call will result in a new position with a target return of 13.1 %. Based on recent prices, this position will cost about $26.53, which is also the trade?s breakeven point. At that level, this covered call has 4.2 % downside protection, while still providing a 13.1 % return in 169 days as long as KMI is above $30.00 on 3/18/2016. For comparison purposes only, this Kinder Morgan covered call aims for an annualized return rate of 28.2 %. Caterpillar (NYSE: CAT) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $65.00 while selling the November $65.00 call will produce a new covered call with a break-even point around $61.78. At that price, this position has a target return of 5.2 %. This trade will have roughly 5.0 % downside protection, while still aiming for a 5.2 % return in 50 days. It will lock in that return as long as Caterpillar is above $65.00 on 11/20/2015. For comparison purposes only, this CAT covered call aims for an annualized return rate of 38.0 %. News Corp. (NASDAQ: NWSA) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the April $13.00 call while at the same time buying NWSA stock for $12.62 will produce a new covered call with a target return of 11.9 %. Based on recent data, this trade will cost about $11.62, 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 11.9 % return in 197 days. If NWSA is higher than $13.00 on 4/15/2016, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 22.0 %. Celgene (NASDAQ: CELG) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the January $110.00 call while simultaneously buying CELG stock for $108.17 will result in a new position with a break-even point around $99.92. At that price, this position has a target return of 10.1 %. This trade has 7.6 % downside protection, while still providing a 10.1 % return in 106 days as long as CELG is above $110.00 on 1/15/2016. For comparison purposes only, this Celgene covered call targets an annualized return rate of 34.7 %. 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)! 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NOTE: All stocks and options shown are examples only. These are not recommendations to buy or sell any security. STOCKS ON THE MOVE Newell Rubbermaid (NWL), Western Digital (WDC) and HeartWare (HTWR) were upgraded by analysts this morning. Celgene (CELG), SanDisk (SNDK) and Marathon Oil (MRO) are early risers, while Netflix (NFLX), American Airlines Group (AAL) and Skyworks Solutions (SWKS) are down. INTERNATIONAL MARKETS Two manufacturing purchasing managers indices in China pointed in the opposite directions this morning, which one showing an increase, and one showing a slight decline indicate the country?s slowdown may be nearing a bottom. The Nikkei gained 1.91% on the day while the Shanghai Composite added 0.48%. The Hang Seng gained 1.41%. Mining stocks again led the way in Europe after being battered in recent sessions. The FTSE is up 0.83% while the Dax is down 0.28%. FUTURES & CURRENCIES Energy futures are mixed today. The price for West Texas Intermediate crude oil is down $0.84 to $45.93 per barrel, while natural gas is down $0.02 to $2.51. Metals prices are lower this morning. Gold is down $1.10 to $1,114.10 per ounce and platinum is down $3.50 at $9.03.75 an ounce. The Dollar is up versus the Euro and down against the Yen. PUT/CALL RATIO Yesterday, 595,452 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 416,425 put contracts. The single-session put/call was 0.70 while the 20-day moving average is now at 0.78. TODAY'S ECONOMIC CALENDAR Challenger Job Cuts Sept. 7:30 Initial Claims 9/26 8:30 Continuing Claims 9/19 8:30 ISM Index Sept. 10:00 Construction Spending Aug. 10:00 Natural Gas Inventories 9/26 10:30 Auto/Truck Sales Sept. 5:00 EARNINGS EXPECTED TODAY: ARTW ADAT AVNW CAMP LODE MKC MU PKE PRGS ROSG SMIT |
