MORNING UPDATE: PriceWatch Alerts for INVN and More... for 2015-05-19 |
| PriceWatch Alerts for INVN, RAD, ACHN, CSX, QIHU, SDRL, SWKS, ANN, REGN and DOW. Invensense (NYSE: INVN) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $14.39 while selling the September $15.00 call will produce a new covered call with a break-even point around $12.79. At that price, this position has a target return of 17.3 %. This trade will have roughly 11.1 % downside protection, while still aiming for a 17.3 % return in 122 days. It will lock in that return as long as Invensense is above $15.00 on 9/18/2015. For comparison purposes only, this INVN covered call aims for an annualized return rate of 51.7 %. Rite Aid (NYSE: RAD) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $8.43 while simultaneously selling the January $9.00 call will result in a new position with a target return of 18.0 %. Based on recent prices, this position will cost about $7.63, which is also the trade?s breakeven point. At that level, this covered call has 9.5 % downside protection, while still providing a 18.0 % return in 241 days as long as RAD is above $9.00 on 1/15/2016. For comparison purposes only, this Rite Aid covered call aims for an annualized return rate of 27.2 %. Achillion Pharmaceuticals (NASDAQ: ACHN) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $11.03 while selling the July $11.00 call will produce a new covered call with a break-even point around $9.88. At that price, this position has a target return of 11.3 %. This trade will have roughly 10.4 % downside protection, while still aiming for a 11.3 % return in 59 days. It will lock in that return as long as Achillion Pharmaceuticals is above $11.00 on 7/17/2015. For comparison purposes only, this ACHN covered call aims for an annualized return rate of 70.1 %. CSX (NYSE: CSX) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the November $36.00 call while at the same time buying CSX stock for $35.73 will produce a new covered call with a target return of 7.2 %. Based on recent data, this trade will cost about $33.58, which is also the covered call?s breakeven point. At that price, this covered call has 6.0 % downside protection, while seeking an assigned return of 7.2 % return in 185 days. If CSX is higher than $36.00 on 11/20/2015, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 14.2 %. Qihoo 360 Technology (NYSE: QIHU) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the June $57.50 call while simultaneously buying QIHU stock for $57.98 will result in a new position with a break-even point around $54.13. At that price, this position has a target return of 6.2 %. This trade has 6.6 % downside protection, while still providing a 6.2 % return in 31 days as long as QIHU is above $57.50 on 6/19/2015. For comparison purposes only, this Qihoo 360 Technology covered call targets an annualized return rate of 73.2 %. Seadrill (NYSE: SDRL) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $13.41 while selling the July $14.00 call will produce a new covered call with a break-even point around $12.06. At that price, this position has a target return of 16.1 %. This trade will have roughly 10.1 % downside protection, while still aiming for a 16.1 % return in 59 days. It will lock in that return as long as Seadrill is above $14.00 on 7/17/2015. For comparison purposes only, this SDRL covered call aims for an annualized return rate of 99.5 %. Skyworks Solutions (NASDAQ: SWKS) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $103.30 while simultaneously selling the November $100.00 call will result in a new position with a target return of 10.1 %. Based on recent prices, this position will cost about $90.85, which is also the trade?s breakeven point. At that level, this covered call has 12.1 % downside protection, while still providing a 10.1 % return in 185 days as long as SWKS is above $100.00 on 11/20/2015. For comparison purposes only, this Skyworks Solutions covered call aims for an annualized return rate of 19.9 %. Ann Taylor Stores (NYSE: ANN) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $46.40 while selling the January $48.00 call will produce a new covered call with a break-even point around $45.50. At that price, this position has a target return of 5.5 %. This trade will have roughly 1.9 % downside protection, while still aiming for a 5.5 % return in 241 days. It will lock in that return as long as Ann Taylor Stores is above $48.00 on 1/15/2016. For comparison purposes only, this ANN covered call aims for an annualized return rate of 8.3 %. Regeneron Pharmaceuticals (NASDAQ: REGN) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the July $500.00 call while at the same time buying REGN stock for $496.74 will produce a new covered call with a target return of 5.4 %. Based on recent data, this trade will cost about $474.24, which is also the covered call?s breakeven point. At that price, this covered call has 4.5 % downside protection, while seeking an assigned return of 5.4 % return in 59 days. If REGN is higher than $500.00 on 7/17/2015, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 33.6 %. Dow Chemical (NYSE: DOW) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the December $52.50 call while simultaneously buying DOW stock for $51.00 will result in a new position with a break-even point around $48.72. At that price, this position has a target return of 7.8 %. This trade has 4.5 % downside protection, while still providing a 7.8 % return in 213 days as long as DOW is above $52.50 on 12/18/2015. For comparison purposes only, this Dow Chemical covered call targets an annualized return rate of 13.3 %. 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 Ascena Retail Group (ASNA) was upgraded by analysts this morning while Plains GP Holdings (PAGP) was downgraded. Momo Inc.(MOMO), Flextronics International Ltd. (FLEX) and Turquoise Hill Resources Ltd. (TRQ) are early risers, while Urban Outfitters Inc. (URBN), Linn Energy, LLC (LINE) and Dick's Sporting Goods Inc. (DKS) are down. INTERNATIONAL MARKETS Asian stocks finished higher Tuesday after the Chinese government unveiled plans to further ease restrictions on capital markets. The Hang Seng rose 0.37%, while the Nikkei was up 0.68%. European markets are also higher today as the euro slipped back against the dollar. The FTSE is up 0.42% while the DAX is up 1.88%. FUTURES & CURRENCIES Energy futures are mixed today. The price for West Texas Intermediate crude oil is down $0.63 to $59.61 per barrel, while natural gas is up $0.06 to $3.11. Metals prices are lower. Gold is down $8.30 to $1,219.30 per ounce and platinum is down $12.20 to $1,166.30 an ounce. The Dollar is up versus the Euro and the Yen. PUT/CALL RATIO Yesterday, 922,192 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 608,786 put contracts. The single-session put/call ratio was 0.66 while the 20-day moving average is now at 0.63. TODAY'S ECONOMIC CALENDAR 08:30 AM Apr Housing Starts 08:30 AM Apr Building Permits EARNINGS EXPECTED TODAY: ADI BLBD CLDN CSC DKS ETSY GPRK HD HNR OXYS RRGB STVI TJX VIAS VOD WMT |
