MORNING UPDATE: PriceWatch Alerts for AA and More... for 2015-08-17 |
| PriceWatch Alerts for AA, SHAK, MU, JWN, ABBV ,PYPL, MNKD, SYY, RIG and SRPT. Alcoa (NYSE: AA) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $9.42 while selling the January $9.00 call will produce a new covered call with a break-even point around $8.25. At that price, this position has a target return of 9.1 %. This trade will have roughly 12.4 % downside protection, while still aiming for a 9.1 % return in 151 days. It will lock in that return as long as Alcoa is above $9.00 on 1/15/2016. For comparison purposes only, this AA covered call aims for an annualized return rate of 22.0 %. Shake Shack (NYSE: SHAK) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $55.57 while simultaneously selling the October $55.00 call will result in a new position with a target return of 7.1 %. Based on recent prices, this position will cost about $51.37, which is also the trade?s breakeven point. At that level, this covered call has 7.6 % downside protection, while still providing a 7.1 % return in 60 days as long as SHAK is above $55.00 on 10/16/2015. For comparison purposes only, this Shake Shack covered call aims for an annualized return rate of 42.9 %. Micron Technology (NASDAQ: MU) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the October $16.00 call while at the same time buying MU stock for $16.94 will produce a new covered call with a target return of 7.5 %. Based on recent data, this trade will cost about $14.89, which is also the covered call?s breakeven point. At that price, this covered call has 12.1 % downside protection, while seeking an assigned return of 7.5 % return in 60 days. If MU is higher than $16.00 on 10/16/2015, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 45.3 %. Nordstrom (NYSE: JWN) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the January $77.50 call while at the same time buying JWN stock for $77.99 will produce a new covered call with a target return of 5.0 %. Based on recent data, this trade will cost about $73.79, which is also the covered call?s breakeven point. At that price, this covered call has 5.4 % downside protection, while seeking an assigned return of 5.0 % return in 151 days. If JWN is higher than $77.50 on 1/15/2016, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 12.1 %. Abbvie (NYSE: ABBV) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the October $67.50 call while simultaneously buying ABBV stock for $68.68 will result in a new position with a break-even point around $64.18. At that price, this position has a target return of 5.2 %. This trade has 6.6 % downside protection, while still providing a 5.2 % return in 60 days as long as ABBV is above $67.50 on 10/16/2015. For comparison purposes only, this Abbvie covered call targets an annualized return rate of 31.5 %. Paypal Holdings (NASDAQ: PYPL) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $38.12 while selling the October $35.00 call will produce a new covered call with a break-even point around $33.12. At that price, this position has a target return of 5.7 %. This trade will have roughly 13.1 % downside protection, while still aiming for a 5.7 % return in 60 days. It will lock in that return as long as Paypal Holdings is above $35.00 on 10/16/2015. For comparison purposes only, this PYPL covered call aims for an annualized return rate of 34.5 %. MannKind (NASDAQ: MNKD) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $4.08 while simultaneously selling the November $4.00 call will result in a new position with a target return of 14.6 %. Based on recent prices, this position will cost about $3.49, which is also the trade?s breakeven point. At that level, this covered call has 14.5 % downside protection, while still providing a 14.6 % return in 95 days as long as MNKD is above $4.00 on 11/20/2015. For comparison purposes only, this MannKind covered call aims for an annualized return rate of 56.1 %. Sysco (NYSE: SYY) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $41.22 while simultaneously selling the November $41.00 call will result in a new position with a target return of 4.4 %. Based on recent prices, this position will cost about $39.27, which is also the trade?s breakeven point. At that level, this covered call has 4.7 % downside protection, while still providing a 4.4 % return in 95 days as long as SYY is above $41.00 on 11/20/2015. For comparison purposes only, this Sysco covered call aims for an annualized return rate of 16.9 %. Transocean (NYSE: RIG) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the November $13.00 call while at the same time buying RIG stock for $13.74 will produce a new covered call with a target return of 9.4 %. Based on recent data, this trade will cost about $11.88, which is also the covered call?s breakeven point. At that price, this covered call has 13.5 % downside protection, while seeking an assigned return of 9.4 % return in 95 days. If RIG is higher than $13.00 on 11/20/2015, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 36.2 %. Sarepta Therapeutics (NASDAQ: SRPT) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the March $35.00 call while simultaneously buying SRPT stock for $35.48 will result in a new position with a break-even point around $33.63. At that price, this position has a target return of 4.1 %. This trade has 5.2 % downside protection, while still providing a 4.1 % return in 214 days as long as SRPT is above $35.00 on 3/18/2016. For comparison purposes only, this Sarepta Therapeutics covered call targets an annualized return rate of 6.9 %. 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)! 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NOTE: All stocks and options shown are examples only. These are not recommendations to buy or sell any security. STOCKS ON THE MOVE Invitae (NVTA) and Whole Foods (WFM) were upgraded by analysts this morning, while Vista Outdoor (VSTO), Paylocity (PCTY), Ceragon (CRNT), Forbes Energy Services (FES) and Identiv (INVE) were downgraded. AngloGold Ashanti Ltd. (AU), Tesla Motors, Inc.(TSLA) and Kite Pharma, Inc. (KITE) are early risers, while Lumber Liquidators Holdings, Inc. (LL), Organovo Holdings, Inc. (ONVO) and KKR & Co. L.P. (KKR) are down. INTERNATIONAL MARKETS Asian stocks finished mixed Monday as the yuan stabilizes. The Shanghai Composite was up 0.71%, while the Hang Seng was down 0.74%. European markets are mixed today as eurozone authorities approved the Greek bailout deal. The FTSE is down 0.09% and the French CAC is up 0.46%. FUTURES & CURRENCIES Energy futures are down this morning. The price for West Texas Intermediate crude oil is down $0.79 to $41.71 per barrel, while natural gas is down $0.04 to $2.76. Metals prices are rising. Gold is up $4.70 to $1,117.40 per ounce and platinum is up $0.80 at $994.80 an ounce. The Dollar is up versus the Euro and the Yen. PUT/CALL RATIO Yesterday, 647,314 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 436,409 put contracts. The single-session put/call was 0.67 while the 20-day moving average is now at 0.71. TODAY'S ECONOMIC CALENDAR 08:30 AM Aug Empire Manufacturing 10:00 AM Aug NAHB Housing Market Index 04:00 PM Jun Net Long-Term TIC Flows EARNINGS EXPECTED TODAY: A EL FN FNBC GBCS KMNS LWAY PWRD URBN |
