MORNING UPDATE: PriceWatch Alerts for AA and More... for 2015-09-11 |
| PriceWatch Alerts for AA, UA, ULTA, JUNO, NOK ,RAD, ZSPH, MU, LL and FCX. Alcoa (NYSE: AA) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $9.59 while selling the November $9.00 call will produce a new covered call with a break-even point around $8.49. At that price, this position has a target return of 6.0 %. This trade will have roughly 11.5 % downside protection, while still aiming for a 6.0 % return in 70 days. It will lock in that return as long as Alcoa is above $9.00 on 11/20/2015. For comparison purposes only, this AA covered call aims for an annualized return rate of 31.3 %. Under Armour (NYSE: UA) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $95.87 while simultaneously selling the October $95.00 call will result in a new position with a target return of 4.8 %. Based on recent prices, this position will cost about $90.67, which is also the trade?s breakeven point. At that level, this covered call has 5.4 % downside protection, while still providing a 4.8 % return in 35 days as long as UA is above $95.00 on 10/16/2015. For comparison purposes only, this Under Armour covered call aims for an annualized return rate of 49.7 %. Ulta Salon Cosmetics (NASDAQ: ULTA) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the October $160.00 call while at the same time buying ULTA stock for $164.50 will produce a new covered call with a target return of 6.0 %. Based on recent data, this trade will cost about $151.00, which is also the covered call?s breakeven point. At that price, this covered call has 8.2 % downside protection, while seeking an assigned return of 6.0 % return in 35 days. If ULTA is higher than $160.00 on 10/16/2015, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 62.2 %. Juno Therapeutics (NASDAQ: JUNO) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the October $40.00 call while at the same time buying JUNO stock for $40.43 will produce a new covered call with a target return of 7.7 %. Based on recent data, this trade will cost about $37.13, which is also the covered call?s breakeven point. At that price, this covered call has 8.2 % downside protection, while seeking an assigned return of 7.7 % return in 35 days. If JUNO is higher than $40.00 on 10/16/2015, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 80.5 %. Nokia (NYSE: NOK) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the April $6.00 call while simultaneously buying NOK stock for $6.55 will result in a new position with a break-even point around $5.55. At that price, this position has a target return of 8.1 %. This trade has 15.3 % downside protection, while still providing a 8.1 % return in 217 days as long as NOK is above $6.00 on 4/15/2016. For comparison purposes only, this Nokia covered call targets an annualized return rate of 13.6 %. Rite Aid (NYSE: RAD) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $8.50 while selling the January $8.00 call will produce a new covered call with a break-even point around $7.40. At that price, this position has a target return of 8.1 %. This trade will have roughly 12.9 % downside protection, while still aiming for a 8.1 % return in 126 days. It will lock in that return as long as Rite Aid is above $8.00 on 1/15/2016. For comparison purposes only, this RAD covered call aims for an annualized return rate of 23.5 %. ZS Pharma (NASDAQ: ZSPH) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $74.78 while simultaneously selling the October $70.00 call will result in a new position with a target return of 5.1 %. Based on recent prices, this position will cost about $66.58, which is also the trade?s breakeven point. At that level, this covered call has 11.0 % downside protection, while still providing a 5.1 % return in 35 days as long as ZSPH is above $70.00 on 10/16/2015. For comparison purposes only, this ZS Pharma covered call aims for an annualized return rate of 53.5 %. Micron Technology (NASDAQ: MU) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the October $17.00 call while at the same time buying MU stock for $16.85 will produce a new covered call with a target return of 9.7 %. Based on recent data, this trade will cost about $15.49, which is also the covered call?s breakeven point. At that price, this covered call has 8.1 % downside protection, while seeking an assigned return of 9.7 % return in 35 days. If MU is higher than $17.00 on 10/16/2015, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 101.6 %. Lumber Liquidators (NYSE: LL) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the October $15.00 call while at the same time buying LL stock for $15.34 will produce a new covered call with a target return of 7.6 %. Based on recent data, this trade will cost about $13.94, which is also the covered call?s breakeven point. At that price, this covered call has 9.1 % downside protection, while seeking an assigned return of 7.6 % return in 35 days. If LL is higher than $15.00 on 10/16/2015, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 79.3 %. Freeport McMoRan (NYSE: FCX) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the October $11.00 call while simultaneously buying FCX stock for $11.25 will result in a new position with a break-even point around $10.09. At that price, this position has a target return of 9.0 %. This trade has 10.3 % downside protection, while still providing a 9.0 % return in 35 days as long as FCX is above $11.00 on 10/16/2015. For comparison purposes only, this Freeport McMoRan covered call targets an annualized return rate of 94.0 %. 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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 lululemon athletica (LULU) and Interpublic Group (IPG) were upgraded by analysts this morning, while E.on AG (EONGY) was downgraded. TerraForm Power, Inc. (TERP), Box, Inc. (BOX) and Tata Motors Limited (TTM) are early risers, while Krispy Kreme Doughnuts, Inc. (KKD), Lululemon Athletica Inc. (LULU) and Banco Bradesco S.A. (BBD) are down. INTERNATIONAL MARKETS Asian markets ended mixed Friday with Chinese stocks closing out their first up week in nearly a month. The Shanghai Composite rose 0.07%, while the Nikkei fell 0.19%. European shares are down today though the region is on pace to finish with its biggest weekly gain since July. The FTSE is down 0.32% and the French CAC is off 0.71%. FUTURES & CURRENCIES Energy futures are down today. The price for West Texas Intermediate crude oil is down $1.07 to $44.85 per barrel, while natural gas is down $0.01 to $2.67. Metals prices are lower today. Gold is down $4.60 to $1,104.70 per ounce and platinum is down $5.80 at $975.40 an ounce. The Dollar is up versus the Euro and the Yen. PUT/CALL RATIO Yesterday, 633,412 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 488,693 put contracts. The single-session put/call was 0.77 while the 20-day moving average is now at 0.76. TODAY'S ECONOMIC CALENDAR PPI Aug. 8:30 Core PPI Aug. 8:30 Mich. Sentiment Sept. 10;00 Treasury Budget Aug. 2:00 EARNINGS EXPECTED TODAY: BOTA BRC KR OCC PTN GAME |
