MORNING UPDATE: PriceWatch Alerts for AMZN and More... for 2015-07-27 |
| PriceWatch Alerts for AMZN, ETSY, GRPN, LVS, FCX ,ONVO, FB, BBRY, GWPH and SSYS. Amazon (NASDAQ: AMZN) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $529.90 while selling the September $530.00 call will produce a new covered call with a break-even point around $507.75. At that price, this position has a target return of 4.4 %. This trade will have roughly 4.2 % downside protection, while still aiming for a 4.4 % return in 53 days. It will lock in that return as long as Amazon is above $530.00 on 9/18/2015. For comparison purposes only, this AMZN covered call aims for an annualized return rate of 30.2 %. Etsy Inc (NASDAQ: ETSY) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $19.31 while simultaneously selling the September $17.50 call will result in a new position with a target return of 7.3 %. Based on recent prices, this position will cost about $16.31, which is also the trade?s breakeven point. At that level, this covered call has 15.5 % downside protection, while still providing a 7.3 % return in 53 days as long as ETSY is above $17.50 on 9/18/2015. For comparison purposes only, this Etsy Inc covered call aims for an annualized return rate of 50.2 %. Groupon (NASDAQ: GRPN) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the January $4.50 call while at the same time buying GRPN stock for $4.96 will produce a new covered call with a target return of 13.6 %. Based on recent data, this trade will cost about $3.96, which is also the covered call?s breakeven point. At that price, this covered call has 20.2 % downside protection, while seeking an assigned return of 13.6 % return in 172 days. If GRPN is higher than $4.50 on 1/15/2016, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 28.9 %. Las Vegas Sands (NYSE: LVS) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the January $52.50 call while at the same time buying LVS stock for $54.98 will produce a new covered call with a target return of 5.8 %. Based on recent data, this trade will cost about $49.63, which is also the covered call?s breakeven point. At that price, this covered call has 9.7 % downside protection, while seeking an assigned return of 5.8 % return in 172 days. If LVS is higher than $52.50 on 1/15/2016, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 12.3 %. Freeport McMoRan (NYSE: FCX) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the September $12.00 call while simultaneously buying FCX stock for $12.29 will result in a new position with a break-even point around $10.95. At that price, this position has a target return of 9.6 %. This trade has 10.9 % downside protection, while still providing a 9.6 % return in 53 days as long as FCX is above $12.00 on 9/18/2015. For comparison purposes only, this Freeport McMoRan covered call targets an annualized return rate of 66.0 %. Organovo (AMEX: ONVO) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $3.47 while selling the January $3.00 call will produce a new covered call with a break-even point around $2.62. At that price, this position has a target return of 14.5 %. This trade will have roughly 24.5 % downside protection, while still aiming for a 14.5 % return in 172 days. It will lock in that return as long as Organovo is above $3.00 on 1/15/2016. For comparison purposes only, this ONVO covered call aims for an annualized return rate of 30.8 %. Facebook (NASDAQ: FB) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $97.01 while simultaneously selling the January $95.00 call will result in a new position with a target return of 9.5 %. Based on recent prices, this position will cost about $86.76, which is also the trade?s breakeven point. At that level, this covered call has 10.6 % downside protection, while still providing a 9.5 % return in 172 days as long as FB is above $95.00 on 1/15/2016. For comparison purposes only, this Facebook covered call aims for an annualized return rate of 20.1 %. Blackberry (NASDAQ: BBRY) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the January $7.00 call while at the same time buying BBRY stock for $7.33 will produce a new covered call with a target return of 11.5 %. Based on recent data, this trade will cost about $6.28, which is also the covered call?s breakeven point. At that price, this covered call has 14.3 % downside protection, while seeking an assigned return of 11.5 % return in 172 days. If BBRY is higher than $7.00 on 1/15/2016, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 24.3 %. GW Pharmaceuticals (NASDAQ: GWPH) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the November $115.00 call while at the same time buying GWPH stock for $119.00 will produce a new covered call with a target return of 7.6 %. Based on recent data, this trade will cost about $106.90, which is also the covered call?s breakeven point. At that price, this covered call has 10.2 % downside protection, while seeking an assigned return of 7.6 % return in 116 days. If GWPH is higher than $115.00 on 11/20/2015, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 23.8 %. Stratasys (NASDAQ: SSYS) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the September $30.00 call while simultaneously buying SSYS stock for $34.48 will result in a new position with a break-even point around $28.68. At that price, this position has a target return of 4.6 %. This trade has 16.8 % downside protection, while still providing a 4.6 % return in 53 days as long as SSYS is above $30.00 on 9/18/2015. For comparison purposes only, this Stratasys covered call targets an annualized return rate of 31.7 %. 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 Quality Systems (QSII) and Stratasys (SSYS) were upgraded by analysts this morning, while SFX Entertainment (SFXE) and Biogen (BIIB) were downgraded. Teva Pharmaceutical Industries Limited (TEVA), Magellan Health, Inc. (MGLN) and Allergan plc (AGN) are early risers, while Alaska Air Group, Inc (ALK), Weibo Corporation (WB) and Mylan N.V. (MYL) are down. INTERNATIONAL MARKETS Asian markets were down Monday with Chinese stocks endured their biggest drop since 2007. The Shanghai Composite fell 8.48%, while the Nikkei was down 0.95%. European stocks are falling today as investors cautiously eye the Chinese markets. The FTSE is down 0.51% and the DAX is down 1.71%. FUTURES & CURRENCIES Energy futures are lower today. The price for West Texas Intermediate crude oil is down $0.57 to $47.57 per barrel, while natural gas is down less than a penny to $2.77. Metals prices are mixed this morning. Gold is up $6.92 to $1,092.40 per ounce and platinum is down $1.00 to $979.70 an ounce. The Dollar is down versus the Euro and the Yen. PUT/CALL RATIO Friday, 877,490 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 754,525 put contracts. The single-session put/call was 0.86 while the 20-day moving average is now at 0.71. TODAY'S ECONOMIC CALENDAR 08:30 AM Jun Durable Orders 08:30 AM Jun Durable Goods ?ex transportation EARNINGS EXPECTED TODAY: ACC ADVS AGNC AHL ALSN AMKR ARE ASR AVB AVX BIDU BOH BRX CAJ CDNS CMP CNL CR CROX CYOU DBOEY EMN ENI EOC GLPEY GWB HAE HIG IPHS JBT JJSF KN LECO LUX MGLN MPWR MRH MSTR NBTB NCLH NSC OMI ONB OPB PCL PHG PLT POL PRAH PRE PRK QSR RCII RE ROP RPM RYAAY SFG SOHU STL SWFT SWN TMK UDR VLRS VRTS WAL WCN WRB |
