MORNING UPDATE: PriceWatch Alerts for SDRL and More... for 2015-09-04 |
| PriceWatch Alerts for SDRL, MEI, BAC, GRPN, FTR ,LINE, ACAD, CVX, GE and HPQ. Seadrill (NYSE: SDRL) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $7.27 while selling the January $7.00 call will produce a new covered call with a break-even point around $5.87. At that price, this position has a target return of 19.3 %. This trade will have roughly 19.3 % downside protection, while still aiming for a 19.3 % return in 133 days. It will lock in that return as long as Seadrill is above $7.00 on 1/15/2016. For comparison purposes only, this SDRL covered call aims for an annualized return rate of 52.8 %. Methode Electronics (NYSE: MEI) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $32.78 while simultaneously selling the October $30.00 call will result in a new position with a target return of 7.2 %. Based on recent prices, this position will cost about $27.98, which is also the trade?s breakeven point. At that level, this covered call has 14.6 % downside protection, while still providing a 7.2 % return in 42 days as long as MEI is above $30.00 on 10/16/2015. For comparison purposes only, this Methode Electronics covered call aims for an annualized return rate of 62.7 %. Bank of America (NYSE: BAC) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $15.99 while simultaneously selling the December $15.00 call will result in a new position with a target return of 4.0 %. Based on recent prices, this position will cost about $14.42, which is also the trade?s breakeven point. At that level, this covered call has 9.8 % downside protection, while still providing a 4.0 % return in 105 days as long as BAC is above $15.00 on 12/18/2015. For comparison purposes only, this Bank of America covered call aims for an annualized return rate of 14.0 %. Groupon (NASDAQ: GRPN) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the April $4.00 call while at the same time buying GRPN stock for $4.29 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 19.1 % downside protection, while seeking an assigned return of 15.3 % return in 224 days. If GRPN is higher than $4.00 on 4/15/2016, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 24.9 %. Frontier Communications (NYSE: FTR) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the February $5.50 call while simultaneously buying FTR stock for $5.52 will result in a new position with a break-even point around $5.12. At that price, this position has a target return of 7.4 %. This trade has 7.2 % downside protection, while still providing a 7.4 % return in 168 days as long as FTR is above $5.50 on 2/19/2016. For comparison purposes only, this Frontier Communications covered call targets an annualized return rate of 16.1 %. Linn Energy (NASDAQ: LINE) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $3.53 while selling the October $3.50 call will produce a new covered call with a break-even point around $3.13. At that price, this position has a target return of 11.8 %. This trade will have roughly 11.3 % downside protection, while still aiming for a 11.8 % return in 42 days. It will lock in that return as long as Linn Energy is above $3.50 on 10/16/2015. For comparison purposes only, this LINE covered call aims for an annualized return rate of 102.7 %. Acadia (NASDAQ: ACAD) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $39.13 while simultaneously selling the October $39.00 call will result in a new position with a target return of 7.5 %. Based on recent prices, this position will cost about $36.28, which is also the trade?s breakeven point. At that level, this covered call has 7.3 % downside protection, while still providing a 7.5 % return in 42 days as long as ACAD is above $39.00 on 10/16/2015. For comparison purposes only, this Acadia covered call aims for an annualized return rate of 65.1 %. Chevron (NYSE: CVX) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $78.58 while simultaneously selling the October $75.00 call will result in a new position with a target return of 4.3 %. Based on recent prices, this position will cost about $71.93, which is also the trade?s breakeven point. At that level, this covered call has 8.5 % downside protection, while still providing a 4.3 % return in 42 days as long as CVX is above $75.00 on 10/16/2015. For comparison purposes only, this Chevron covered call aims for an annualized return rate of 37.0 %. General Electric (NYSE: GE) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the January $25.00 call while at the same time buying GE stock for $24.64 will produce a new covered call with a target return of 5.4 %. Based on recent data, this trade will cost about $23.72, which is also the covered call?s breakeven point. At that price, this covered call has 3.7 % downside protection, while seeking an assigned return of 5.4 % return in 133 days. If GE is higher than $25.00 on 1/15/2016, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 14.8 %. Hewlett Packard (NYSE: HPQ) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the October $28.00 call while simultaneously buying HPQ stock for $28.30 will result in a new position with a break-even point around $26.61. At that price, this position has a target return of 5.2 %. This trade has 6.0 % downside protection, while still providing a 5.2 % return in 42 days as long as HPQ is above $28.00 on 10/16/2015. For comparison purposes only, this Hewlett Packard covered call targets an annualized return rate of 45.4 %. 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 Diodes (DIOD), Louisiana-Pacific (LPX) and SkyWest (SKYW) were upgraded by analysts this morning, while Caterpillar (CAT) was downgraded. Windstream Holdings, Inc. (WIN), Alkermes plc(ALKS) and Pan American Silver Corp. (PAAS) are early risers, while Peabody Energy Corporation (BTU), United Continental Holdings, Inc. (UAL) and Mobileye N.V. (MBLY) are down. INTERNATIONAL MARKETS Asian markets finished lower Friday as Japanese stocks fell for a fourth straight week. The Mumbai Sensex was down 2.18%, while the Nikkei fell 2.15%. European shares are down today as markets there are on pace to finish the week with a loss. The FTSE is down 1.67% and the DAX is down 2.00%. FUTURES & CURRENCIES Energy futures are lower this morning. The price for West Texas Intermediate crude oil is down $0.12 to $46.63 per barrel, while natural gas is down $0.03 to $2.69. Metals prices are lower today. Gold is down $1.00 to $1,123.50 per ounce and platinum is down $7.00 at $1,003.10 an ounce. The Dollar is down versus the Euro and the Yen. PUT/CALL RATIO Yesterday, 617,988 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 421,533 put contracts. The single-session put/call was 0.6821054778 while the 20-day moving average is now at 0.76. TODAY'S ECONOMIC CALENDAR Non-farm Payrolls Aug. 8:30 Unemployment Rate Aug. 8:30 Hourly Wages Aug. 8:30 EARNINGS EXPECTED TODAY: WMS LPTH |
