MORNING UPDATE: PriceWatch Alerts for AMZN and More... for 2015-09-03 |
| PriceWatch Alerts for AMZN, GLUU, ALDR, SWKS, ABMD ,FB, CAT, TASR, ABBV, MRVL, , , , , and . Amazon (NASDAQ: AMZN) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $510.55 while selling the October $510.00 call will produce a new covered call with a break-even point around $485.45. At that price, this position has a target return of 5.1 %. This trade will have roughly 4.9 % downside protection, while still aiming for a 5.1 % return in 43 days. It will lock in that return as long as Amazon is above $510.00 on 10/16/2015. For comparison purposes only, this AMZN covered call aims for an annualized return rate of 42.9 %. Glu Mobile (NASDAQ: GLUU) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $4.38 while simultaneously selling the March $4.00 call will result in a new position with a target return of 13.3 %. Based on recent prices, this position will cost about $3.53, which is also the trade?s breakeven point. At that level, this covered call has 19.4 % downside protection, while still providing a 13.3 % return in 197 days as long as GLUU is above $4.00 on 3/18/2016. For comparison purposes only, this Glu Mobile covered call aims for an annualized return rate of 24.7 %. Alder Biopharmaceuticals (NASDAQ: ALDR) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $40.83 while simultaneously selling the October $40.00 call will result in a new position with a target return of 8.9 %. Based on recent prices, this position will cost about $36.73, which is also the trade?s breakeven point. At that level, this covered call has 10.0 % downside protection, while still providing a 8.9 % return in 43 days as long as ALDR is above $40.00 on 10/16/2015. For comparison purposes only, this covered call aims for an annualized return rate of 75.5 %. Skyworks Solutions (NASDAQ: SWKS) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the October $85.00 call while at the same time buying SWKS stock for $85.74 will produce a new covered call with a target return of 6.6 %. Based on recent data, this trade will cost about $79.74, 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 6.6 % return in 43 days. If SWKS is higher than $85.00 on 10/16/2015, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 55.9 %. Abiomed (NASDAQ: ABMD) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the October $95.00 call while simultaneously buying ABMD stock for $94.96 will result in a new position with a break-even point around $87.96. At that price, this position has a target return of 8.0 %. This trade has 7.4 % downside protection, while still providing a 8.0 % return in 43 days as long as ABMD is above $95.00 on 10/16/2015. For comparison purposes only, this Abiomed covered call targets an annualized return rate of 67.9 %. Facebook (NASDAQ: FB) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $89.80 while selling the October $87.50 call will produce a new covered call with a break-even point around $83.80. At that price, this position has a target return of 4.4 %. This trade will have roughly 6.7 % downside protection, while still aiming for a 4.4 % return in 43 days. It will lock in that return as long as Facebook is above $87.50 on 10/16/2015. For comparison purposes only, this FB covered call aims for an annualized return rate of 37.4 %. Caterpillar (NYSE: CAT) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $75.96 while simultaneously selling the November $75.00 call will result in a new position with a target return of 4.9 %. Based on recent prices, this position will cost about $71.51, which is also the trade?s breakeven point. At that level, this covered call has 5.9 % downside protection, while still providing a 4.9 % return in 78 days as long as CAT is above $75.00 on 11/20/2015. For comparison purposes only, this Caterpillar covered call aims for an annualized return rate of 22.8 %. Taser International (NASDAQ: TASR) 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 TASR stock for $23.72 will produce a new covered call with a target return of 6.1 %. Based on recent data, this trade will cost about $21.67, which is also the covered call?s breakeven point. At that price, this covered call has 8.6 % downside protection, while seeking an assigned return of 6.1 % return in 43 days. If TASR 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 52.0 %. Abbvie (NYSE: ABBV) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the November $60.00 call while at the same time buying ABBV stock for $60.98 will produce a new covered call with a target return of 4.9 %. Based on recent data, this trade will cost about $57.18, which is also the covered call?s breakeven point. At that price, this covered call has 6.2 % downside protection, while seeking an assigned return of 4.9 % return in 78 days. If ABBV is higher than $60.00 on 11/20/2015, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 23.1 %. Marvell Technology (NASDAQ: MRVL) 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 MRVL stock for $11.02 will result in a new position with a break-even point around $10.02. At that price, this position has a target return of 9.8 %. This trade has 9.1 % downside protection, while still providing a 9.8 % return in 43 days as long as MRVL is above $11.00 on 10/16/2015. For comparison purposes only, this Marvell Technology covered call targets an annualized return rate of 83.0 %. 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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 Xylem (XYL), Polaris (PII) and Atlas Copco (ATLKY) were upgraded by analysts this morning, while Seagate Technology (STX) and Ambarella (AMBA) were 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 stocks finished mostly higher Thursday as Chinese markets closed for a holiday. The Mumbai Sensex was up 1.22%, while the Nikkei rose 0.48%. European shares are higher today with speculation growing that the European Central Bank is considering stimulus for the eurozone. The FTSE is up 1.35% and the DAX is up 1.65%. FUTURES & CURRENCIES Energy futures are mixed today. The price for West Texas Intermediate crude oil is down $0.15 to $46.10 per barrel, while natural gas is up $0.01 to $2.65. Metals prices are lower today. Gold is down $6.30 to $1,127.30 per ounce and platinum is down $5.10 at $1,008.50 an ounce. The Dollar is down versus the Euro and the Yen. PUT/CALL RATIO Yesterday, 663,121 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 481,877 put contracts. The single-session put/call was 0.73 while the 20-day moving average is now at 0.77. TODAY'S ECONOMIC CALENDAR Challenger Job Cuts Aug. 7:30 Initial Claims 8/29 8.30 Continuing Claims 8/22 8:30 Trade Balance July 8:30 ISM Services Aug 10:00 Natural Gas Investories 8/29 10:30 EARNINGS EXPECTED TODAY: CPB CIEN COO BLOX JOY LE MDT STRM PAY |
