MORNING UPDATE: PriceWatch Alerts for MBLY and More... for 2015-09-18 |
| PriceWatch Alerts for MBLY, AERI, JBLU, AAL, SWKS ,GILD, CVC, SBUX, CELG and LLY. Mobileye (NYSE: MBLY) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $48.69 while selling the October $45.00 call will produce a new covered call with a break-even point around $43.19. At that price, this position has a target return of 4.2 %. This trade will have roughly 11.3 % downside protection, while still aiming for a 4.2 % return in 28 days. It will lock in that return as long as Mobileye is above $45.00 on 10/16/2015. For comparison purposes only, this MBLY covered call aims for an annualized return rate of 54.6 %. Aerie Pharmaceuticals (NASDAQ: AERI) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $30.16 while simultaneously selling the October $30.00 call will result in a new position with a target return of 9.6 %. Based on recent prices, this position will cost about $27.36, which is also the trade?s breakeven point. At that level, this covered call has 9.3 % downside protection, while still providing a 9.6 % return in 28 days as long as AERI is above $30.00 on 10/16/2015. For comparison purposes only, this Aerie Pharmaceuticals covered call aims for an annualized return rate of 125.7 %. JetBlue Airways (NASDAQ: JBLU) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $27.00 while simultaneously selling the October $27.00 call will result in a new position with a target return of 4.2 %. Based on recent prices, this position will cost about $25.90, which is also the trade?s breakeven point. At that level, this covered call has 4.1 % downside protection, while still providing a 4.2 % return in 28 days as long as JBLU is above $27.00 on 10/16/2015. For comparison purposes only, this JetBlue Airways covered call aims for an annualized return rate of 55.3 %. American Airlines (NASDAQ: AAL) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the November $43.00 call while at the same time buying AAL stock for $43.92 will produce a new covered call with a target return of 5.2 %. Based on recent data, this trade will cost about $40.87, 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 5.2 % return in 63 days. If AAL is higher than $43.00 on 11/20/2015, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 30.2 %. 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 $90.00 call while simultaneously buying SWKS stock for $90.72 will result in a new position with a break-even point around $83.32. At that price, this position has a target return of 8.0 %. This trade has 8.2 % downside protection, while still providing a 8.0 % return in 63 days as long as SWKS is above $90.00 on 11/20/2015. For comparison purposes only, this Skyworks Solutions covered call targets an annualized return rate of 46.4 %. Gilead Sciences (NASDAQ: GILD) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $111.59 while selling the November $110.00 call will produce a new covered call with a break-even point around $105.04. At that price, this position has a target return of 4.7 %. This trade will have roughly 5.9 % downside protection, while still aiming for a 4.7 % return in 63 days. It will lock in that return as long as Gilead Sciences is above $110.00 on 11/20/2015. For comparison purposes only, this GILD covered call aims for an annualized return rate of 27.3 %. Cablevision Systems (NYSE: CVC) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $32.55 while simultaneously selling the March $32.00 call will result in a new position with a target return of 4.0 %. Based on recent prices, this position will cost about $30.78, which is also the trade?s breakeven point. At that level, this covered call has 5.4 % downside protection, while still providing a 4.0 % return in 182 days as long as CVC is above $32.00 on 3/18/2016. For comparison purposes only, this Cablevision Systems covered call aims for an annualized return rate of 7.9 %. Starbucks (NASDAQ: SBUX) 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 SBUX stock for $57.11 will produce a new covered call with a target return of 4.6 %. Based on recent data, this trade will cost about $52.56, 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 4.6 % return in 119 days. If SBUX 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 14.2 %. Celgene (NASDAQ: CELG) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the January $125.00 call while at the same time buying CELG stock for $125.71 will produce a new covered call with a target return of 7.6 %. Based on recent data, this trade will cost about $116.16, 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 7.6 % return in 119 days. If CELG is higher than $125.00 on 1/15/2016, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 23.3 %. Eli Lilly (NYSE: LLY) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the January $87.50 call while simultaneously buying LLY stock for $89.98 will result in a new position with a break-even point around $84.08. At that price, this position has a target return of 4.1 %. This trade has 6.6 % downside protection, while still providing a 4.1 % return in 119 days as long as LLY is above $87.50 on 1/15/2016. For comparison purposes only, this Eli Lilly covered call targets an annualized return rate of 12.5 %. 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 Core Labs (CLB) and FMC Cor. (FMC) were upgraded by analysts this morning, while Lexicon Pharma (LXRX), Vanguard Natural Resources (VNR) and Wolverine (WWW) were downgraded. Linn Energy, LLC (LINE), SouFun Holdings Ltd. (SFUN) and Cheetah Mobile Inc. (CMCM) are early risers, while La Quinta Holdings Inc. (LQ), JinkoSolar Holding Co., Ltd. (JKS) and Anheuser-Busch InBev SA/NV (BUD) are down. INTERNATIONAL MARKETS Asian stocks finished mixed Friday with Japanese markets falling as the Yen grew stronger. The Shanghai Composite was up 0.38%, while the Nikkei was down 1.96%. European stocks are lower this morning with increasing concerns over global growth. The FTSE is down 2.22 while the DAX is down 2.71%. FUTURES & CURRENCIES Energy futures are mixed today. The price for West Texas Intermediate crude oil is down $0.52 to $46.68 per barrel, while natural gas is down a penny to $2.71. Metals prices are mixed. Gold is up $18.50 to $1,130.00 per ounce and platinum is down $11.60 at $980.00 an ounce. The Dollar is down versus the Euro and the Yen. PUT/CALL RATIO Yesterday, 877,049 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 651,203 put contracts. The single-session put/call was 0.74 while the 20-day moving average is now at 0.78. TODAY'S ECONOMIC CALENDAR Leading Indicators Aug. 10:00 EARNINGS EXPECTED TODAY: KUTV ROSG ZAYO |
