MORNING UPDATE: PriceWatch Alerts for LINE and More... for 2015-09-28 |
| PriceWatch Alerts for LINE, NKE, CLNE, ABMD, PLNT ,OPK, JBL, COST, INVN 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 $2.83 while selling the April $2.50 call will produce a new covered call with a break-even point around $1.98. At that price, this position has a target return of 26.3 %. This trade will have roughly 30.0 % downside protection, while still aiming for a 26.3 % return in 200 days. It will lock in that return as long as Linn Energy is above $2.50 on 4/15/2016. For comparison purposes only, this LINE covered call aims for an annualized return rate of 47.9 %. Nike (NYSE: NKE) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $124.64 while simultaneously selling the January $120.00 call will result in a new position with a target return of 4.2 %. Based on recent prices, this position will cost about $115.19, which is also the trade?s breakeven point. At that level, this covered call has 7.6 % downside protection, while still providing a 4.2 % return in 109 days as long as NKE is above $120.00 on 1/15/2016. For comparison purposes only, this Nike covered call aims for an annualized return rate of 14.0 %. Clean Energy Fuels (NASDAQ: CLNE) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the March $4.00 call while at the same time buying CLNE stock for $4.82 will produce a new covered call with a target return of 15.3 %. Based on recent data, this trade will cost about $3.47, which is also the covered call?s breakeven point. At that price, this covered call has 28.0 % downside protection, while seeking an assigned return of 15.3 % return in 172 days. If CLNE is higher than $4.00 on 3/18/2016, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 32.4 %. Abiomed (NASDAQ: ABMD) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the November $95.00 call while at the same time buying ABMD stock for $95.11 will produce a new covered call with a target return of 9.1 %. Based on recent data, this trade will cost about $87.11, which is also the covered call?s breakeven point. At that price, this covered call has 8.4 % downside protection, while seeking an assigned return of 9.1 % return in 53 days. If ABMD is higher than $95.00 on 11/20/2015, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 62.3 %. 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 November $17.50 call while simultaneously buying PLNT stock for $18.06 will result in a new position with a break-even point around $16.31. At that price, this position has a target return of 7.3 %. This trade has 9.7 % downside protection, while still providing a 7.3 % return in 53 days as long as PLNT is above $17.50 on 11/20/2015. For comparison purposes only, this Planet Fitness covered call targets an annualized return rate of 50.2 %. Opko Health (NYSE: OPK) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $9.32 while selling the January $9.00 call will produce a new covered call with a break-even point around $8.27. At that price, this position has a target return of 8.8 %. This trade will have roughly 11.3 % downside protection, while still aiming for a 8.8 % return in 109 days. It will lock in that return as long as Opko Health is above $9.00 on 1/15/2016. For comparison purposes only, this OPK covered call aims for an annualized return rate of 29.5 %. Jabil Circuit (NYSE: JBL) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $21.88 while simultaneously selling the January $21.00 call will result in a new position with a target return of 5.1 %. Based on recent prices, this position will cost about $19.98, which is also the trade?s breakeven point. At that level, this covered call has 8.7 % downside protection, while still providing a 5.1 % return in 109 days as long as JBL is above $21.00 on 1/15/2016. For comparison purposes only, this Jabil Circuit covered call aims for an annualized return rate of 17.1 %. Costco Wholesale (NASDAQ: COST) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $145.85 while simultaneously selling the January $145.00 call will result in a new position with a target return of 4.1 %. Based on recent prices, this position will cost about $139.30, which is also the trade?s breakeven point. At that level, this covered call has 4.5 % downside protection, while still providing a 4.1 % return in 109 days as long as COST is above $145.00 on 1/15/2016. For comparison purposes only, this Costco Wholesale covered call aims for an annualized return rate of 13.7 %. Invensense (NYSE: INVN) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the January $9.00 call while at the same time buying INVN stock for $9.01 will produce a new covered call with a target return of 13.1 %. Based on recent data, this trade will cost about $7.96, which is also the covered call?s breakeven point. At that price, this covered call has 11.7 % downside protection, while seeking an assigned return of 13.1 % return in 109 days. If INVN is higher than $9.00 on 1/15/2016, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 43.7 %. 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 April $7.50 call while simultaneously buying EYES stock for $8.19 will result in a new position with a break-even point around $6.54. At that price, this position has a target return of 14.7 %. This trade has 20.1 % downside protection, while still providing a 14.7 % return in 200 days as long as EYES is above $7.50 on 4/15/2016. For comparison purposes only, this Second Sight covered call targets an annualized return rate of 26.8 %. 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 Ani Pharma (ANIP), Boston Scientific (BSX) and Vertex Pharma (VRTX) were upgraded by analysts this morning, while DSW (DSW), Qorvo (QRVO) and Stryker (SYK) were downgraded. Alcoa (AA), Comcast (CMCSA) and Autodesk (ADSK) are early risers, while Home Depot, Inc.(HD), Newmont Mining (NEM) and Williams Cos. (WMB) are down. INTERNATIONAL MARKETS Asian stocks finished mixed Monday as Japanese markets gave back much of the gains booked Friday. The Nikkei lost 1.3% on the day. The major Chinese indices both closed with modest gains. The Hang Seng led the way with a gain of 0.43%. Stocks in Europe fell as the worries about China combined with continued downward pressure on auto stocks in the wake of the Volkswagen emissions scandal. The FTSE lost 1.56% while the DAX is up 1.64%. The CAC 40 dropped 2.31%. FUTURES & CURRENCIES Energy futures are mixed today. The price for West Texas Intermediate crude oil is down $0.97 to $44.73 per barrel, while natural gas is up $0.06 to $2.62. Metals prices are lower this morning. Gold is down $14.60 to $1,131.00 per ounce and platinum is down $21.07 at $925.48 an ounce. The Dollar is up versus the Euro and down against the Yen. PUT/CALL RATIO Friday, 661,635 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 492,306 put contracts. The single-session put/call was 0.74 while the 20-day moving average is now at 0.75. TODAY'S ECONOMIC CALENDAR Personal Income Aug. 8:30 Personal Spending Aug. 8:30 PCE Prices Aug. 8:30 Pending Home Sales Aug. 10:00 EARNINGS EXPECTED TODAY: ARTW CALM FLUX SNX MTN |
