MORNING UPDATE: PriceWatch Alerts for KMI and More... for 2015-08-25 |
| PriceWatch Alerts for KMI, CELG, BABA, AAL, SCTY ,GILD, KITE, VLO, SBUX, NOK, NFLX, AMBA, JBLU, MBLY, and WFM. Kinder Morgan (NYSE: KMI) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $30.28 while selling the January $30.00 call will produce a new covered call with a break-even point around $27.92. At that price, this position has a target return of 7.4 %. This trade will have roughly 7.8 % downside protection, while still aiming for a 7.4 % return in 143 days. It will lock in that return as long as Kinder Morgan is above $30.00 on 1/15/2016. For comparison purposes only, this KMI covered call aims for an annualized return rate of 19.0 %. 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 $113.38 while simultaneously selling the October $110.00 call will result in a new position with a target return of 5.5 %. Based on recent prices, this position will cost about $104.23, which is also the trade?s breakeven point. At that level, this covered call has 8.1 % downside protection, while still providing a 5.5 % return in 52 days as long as CELG is above $110.00 on 10/16/2015. For comparison purposes only, this Celgene covered call aims for an annualized return rate of 38.8 %. Alibaba (NYSE: BABA) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $65.50 while simultaneously selling the October $65.00 call will result in a new position with a target return of 6.8 %. Based on recent prices, this position will cost about $60.85, which is also the trade?s breakeven point. At that level, this covered call has 7.1 % downside protection, while still providing a 6.8 % return in 52 days as long as BABA is above $65.00 on 10/16/2015. For comparison purposes only, this Alibaba covered call aims for an annualized return rate of 47.9 %. American Airlines (NASDAQ: AAL) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the October $37.00 call while at the same time buying AAL stock for $37.59 will produce a new covered call with a target return of 7.9 %. Based on recent data, this trade will cost about $34.29, which is also the covered call?s breakeven point. At that price, this covered call has 8.8 % downside protection, while seeking an assigned return of 7.9 % return in 52 days. If AAL is higher than $37.00 on 10/16/2015, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 55.5 %. SolarCity (NASDAQ: SCTY) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the December $43.00 call while simultaneously buying SCTY stock for $44.11 will result in a new position with a break-even point around $40.11. At that price, this position has a target return of 7.2 %. This trade has 9.1 % downside protection, while still providing a 7.2 % return in 115 days as long as SCTY is above $43.00 on 12/18/2015. For comparison purposes only, this SolarCity covered call targets an annualized return rate of 22.9 %. Gilead Sciences (NASDAQ: GILD) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $100.81 while selling the November $100.00 call will produce a new covered call with a break-even point around $93.11. At that price, this position has a target return of 7.4 %. This trade will have roughly 7.6 % downside protection, while still aiming for a 7.4 % return in 87 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 31.0 %. Kite Pharma (NYSE: KITe) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $49.06 while simultaneously selling the November $45.00 call will result in a new position with a target return of 14.3 %. Based on recent prices, this position will cost about $39.36, which is also the trade?s breakeven point. At that level, this covered call has 19.8 % downside protection, while still providing a 14.3 % return in 87 days as long as KITe is above $45.00 on 11/20/2015. For comparison purposes only, this Kite Pharma covered call aims for an annualized return rate of 60.1 %. Valero Energy (NYSE: VLO) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the November $58.00 call while at the same time buying VLO stock for $58.09 will produce a new covered call with a target return of 6.4 %. Based on recent data, this trade will cost about $54.49, 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 6.4 % return in 87 days. If VLO is higher than $58.00 on 11/20/2015, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 27.0 %. Starbucks (NASDAQ: SBUX) 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 SBUX stock for $50.36 will produce a new covered call with a target return of 5.4 %. Based on recent data, this trade will cost about $47.46, which is also the covered call?s breakeven point. At that price, this covered call has 5.8 % downside protection, while seeking an assigned return of 5.4 % return in 52 days. If SBUX 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 37.6 %. 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 January $5.00 call while simultaneously buying NOK stock for $5.91 will result in a new position with a break-even point around $4.80. At that price, this position has a target return of 4.2 %. This trade has 18.8 % downside protection, while still providing a 4.2 % return in 143 days as long as NOK is above $5.00 on 1/15/2016. For comparison purposes only, this Nokia covered call targets an annualized return rate of 10.6 %. Netflix (NASDAQ: NFLX) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $97.30 while selling the October $95.00 call will produce a new covered call with a break-even point around $84.10. At that price, this position has a target return of 13.0 %. This trade will have roughly 13.6 % downside protection, while still aiming for a 13.0 % return in 52 days. It will lock in that return as long as Netflix is above $95.00 on 10/16/2015. For comparison purposes only, this NFLX covered call aims for an annualized return rate of 91.0 %. Ambarella (NASDAQ: AMBA) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $87.57 while simultaneously selling the October $87.50 call will result in a new position with a target return of 14.0 %. Based on recent prices, this position will cost about $76.77, which is also the trade?s breakeven point. At that level, this covered call has 12.3 % downside protection, while still providing a 14.0 % return in 52 days as long as AMBA is above $87.50 on 10/16/2015. For comparison purposes only, this Ambarella covered call aims for an annualized return rate of 98.1 %. Ambarella (NASDAQ: AMBA) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $87.57 while simultaneously selling the October $87.50 call will result in a new position with a target return of 14.0 %. Based on recent prices, this position will cost about $76.77, which is also the trade?s breakeven point. At that level, this covered call has 12.3 % downside protection, while still providing a 14.0 % return in 52 days as long as AMBA is above $87.50 on 10/16/2015. For comparison purposes only, this Ambarella covered call aims for an annualized return rate of 98.1 %. Mobileye (NYSE: MBLY) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the November $50.00 call while at the same time buying MBLY stock for $52.46 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 10.9 % downside protection, while seeking an assigned return of 6.9 % return in 87 days. If MBLY is higher than $50.00 on 11/20/2015, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 29.0 %. Whole Foods (NASDAQ: WFM) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the October $31.00 call while simultaneously buying WFM stock for $31.73 will result in a new position with a break-even point around $29.58. At that price, this position has a target return of 4.8 %. This trade has 6.8 % downside protection, while still providing a 4.8 % return in 52 days as long as WFM is above $31.00 on 10/16/2015. For comparison purposes only, this Whole Foods covered call targets an annualized return rate of 33.7 %. Are you looking for a more conservative strategy that solves the pitfalls that come with covered calls investing? Check out our RadioActive Home Study Kit (http://www.poweropt.com/psDetails.asp?pid=25)! Learn how to limit your risks in any trade and keep your upside open ? 'Cut your losers short and let your winners run'. These limited risk techniques have saved investors thousands of dollars during unexpected market downturns and Black Swan events. The RadioActive Home Study Kit teaches the proper limited risk trade setup and the 10 different Income Methods that are used to lower the initial risk, potentially bulletproof your stock positions and earn extra income. 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INTERNATIONAL MARKETS Asian markets finished mixed Tuesday as Chinese stocks continue to tumble. The Shanghai Composite fell 7.63%, while the Hang Seng was up 0.76%. European markets are mixed today as bargain hunters emerge after yesterday?s selling. The FTSE is up 3.42% and the French CAC is down 1.27%. FUTURES & CURRENCIES Energy futures are rising this morning. The price for West Texas Intermediate crude oil is up $1.20 to $39.44 per barrel, while natural gas is up $0.04 to $2.70. Metals prices are mixed. Gold is down $5.50 to $1,148.10 per ounce and platinum is up $0.40 at $991.90 an ounce. The Dollar is up versus the Euro and the Yen. PUT/CALL RATIO Yesterday, 1,002,932 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 876,166 put contracts. The single-session put/call was 0.87 while the 20-day moving average is now at 0.75. TODAY'S ECONOMIC CALENDAR Case-Shiller 20-city Index June 9:00 FHFA Housing Price Index June 9:00 New Home Sales July 10:00 Consumer Confidence Aug. 10:00 EARNINGS EXPECTED TODAY: BBY CCG PLCE DSW LCI SAFM TOL VAL |
