MORNING UPDATE: PriceWatch Alerts for AMBA and More... for 2015-09-08 |
| PriceWatch Alerts for AMBA, KMI, JBLI, SBUX, KITE ,GILD, CELG, MBLY, VLO and AAL. Ambarella (NASDAQ: AMBA) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $73.70 while selling the October $72.50 call will produce a new covered call with a break-even point around $66.90. At that price, this position has a target return of 8.4 %. This trade will have roughly 9.2 % downside protection, while still aiming for a 8.4 % return in 38 days. It will lock in that return as long as Ambarella is above $72.50 on 10/16/2015. For comparison purposes only, this AMBA covered call aims for an annualized return rate of 80.4 %. 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 $30.81 while simultaneously selling the December $30.00 call will result in a new position with a target return of 5.4 %. Based on recent prices, this position will cost about $28.45, which is also the trade?s breakeven point. At that level, this covered call has 7.7 % downside protection, while still providing a 5.4 % return in 101 days as long as KMI is above $30.00 on 12/18/2015. For comparison purposes only, this Kinder Morgan covered call aims for an annualized return rate of 19.7 %. JetBlue Airways (NASDAQ: JBLU) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the October $23.00 call while at the same time buying JBLU stock for $23.69 will produce a new covered call with a target return of 4.4 %. Based on recent data, this trade will cost about $22.04, which is also the covered call?s breakeven point. At that price, this covered call has 7.0 % downside protection, while seeking an assigned return of 4.4 % return in 38 days. If JBLU is higher than $23.00 on 10/16/2015, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 41.8 %. Starbucks (NASDAQ: SBUX) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the November $52.50 call while at the same time buying SBUX stock for $54.24 will produce a new covered call with a target return of 4.8 %. Based on recent data, this trade will cost about $50.09, which is also the covered call?s breakeven point. At that price, this covered call has 7.7 % downside protection, while seeking an assigned return of 4.8 % return in 73 days. If SBUX is higher than $52.50 on 11/20/2015, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 24.1 %. Kite Pharma (NYSE: KITE) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the October $50.00 call while simultaneously buying KITE stock for $53.79 will result in a new position with a break-even point around $48.09. At that price, this position has a target return of 4.0 %. This trade has 10.6 % downside protection, while still providing a 4.0 % return in 38 days as long as KITE is above $50.00 on 10/16/2015. For comparison purposes only, this Kite Pharma covered call targets an annualized return rate of 38.1 %. Gilead Sciences (NASDAQ: GILD) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $102.03 while selling the November $100.00 call will produce a new covered call with a break-even point around $94.38. At that price, this position has a target return of 6.0 %. This trade will have roughly 7.5 % downside protection, while still aiming for a 6.0 % return in 73 days. It will lock in that return as long as Gilead Sciences is above $100.00 on 11/20/2015. For comparison purposes only, this GILD covered call aims for an annualized return rate of 29.8 %. Celgene (NASDAQ: CELG) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $117.18 while simultaneously selling the October $115.00 call will result in a new position with a target return of 4.5 %. Based on recent prices, this position will cost about $110.08, which is also the trade?s breakeven point. At that level, this covered call has 6.1 % downside protection, while still providing a 4.5 % return in 38 days as long as CELG is above $115.00 on 10/16/2015. For comparison purposes only, this Celgene covered call aims for an annualized return rate of 42.8 %. Mobileye (NYSE: MBLY) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the October $50.00 call while at the same time buying MBLY stock for $50.96 will produce a new covered call with a target return of 6.9 %. Based on recent data, this trade will cost about $46.76, 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 6.9 % return in 38 days. If MBLY is higher than $50.00 on 10/16/2015, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 66.5 %. Valero Energy (NYSE: VLO) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the October $57.50 call while at the same time buying VLO stock for $58.46 will produce a new covered call with a target return of 5.1 %. Based on recent data, this trade will cost about $54.71, which is also the covered call?s breakeven point. At that price, this covered call has 6.4 % downside protection, while seeking an assigned return of 5.1 % return in 38 days. If VLO is higher than $57.50 on 10/16/2015, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 48.9 %. American Airlines (NASDAQ: AAL) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the October $40.00 call while simultaneously buying AAL stock for $40.60 will result in a new position with a break-even point around $37.96. At that price, this position has a target return of 5.4 %. This trade has 6.5 % downside protection, while still providing a 5.4 % return in 38 days as long as AAL is above $40.00 on 10/16/2015. For comparison purposes only, this American Airlines covered call targets an annualized return rate of 51.6 %. 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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 Calavo Growers (CVFW), Streamline Health (STRM) and Methode Eectronics (MEI) were upgraded by analysts this morning, while EV Energy (EVP), NetSuite (N) and Caterpillar (CAT) were downgraded. Fitbit Inc. (FIT), Achillion Pharmaceuticals, Inc.(ACHN) and JinkoSolar Holding Co., Ltd. (JKS) are early risers, while Sohu.com Inc. (SOHU), Groupon, Inc. (GRPN) and Infinera Corporation (INFN) are down. INTERNATIONAL MARKETS Asian markets finished mixed Monday as Japanese stocks continue to slide. The Shanghai Composite was up 2.92%, while the Nikkei fell 2.43%. European shares are mixed today as strong German trade data encouraged investors. The FTSE is up 1.55% and the French CAC is down 0.33%. FUTURES & CURRENCIES Energy futures are mixed this morning. The price for West Texas Intermediate crude oil is down $0.52 to $45.53 per barrel, while natural gas is up $0.03 to $2.69. Metals prices are lower today. Gold is down $0.20 to $1,121.20 per ounce and platinum is down $8.20 at $1,000.60 an ounce. The Dollar is up versus the Euro and the Yen. PUT/CALL RATIO Yesterday, 535,567 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 475,878 put contracts. The single-session put/call was 0.89 while the 20-day moving average is now at 0.77. TODAY'S ECONOMIC CALENDAR Consumer Credit July 3:00 EARNINGS EXPECTED TODAY: WMS CCG CASY JVA PLAY FCEL MANU MW PSUN TIVO |
