MORNING UPDATE: PriceWatch Alerts for INO and More... for 2015-05-13 |
| PriceWatch Alerts for INO, TRUE, HSTM, NUAN, KMI, AAPL, ADM, LL, CLF and EBAY. Inovio Pharmaceuticals (AMEX: INO) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $8.10 while selling the November $8.00 call will produce a new covered call with a break-even point around $7.05. At that price, this position has a target return of 13.5 %. This trade will have roughly 13.0 % downside protection, while still aiming for a 13.5 % return in 191 days. It will lock in that return as long as Inovio Pharmaceuticals is above $8.00 on 11/20/2015. For comparison purposes only, this INO covered call aims for an annualized return rate of 25.7 %. TrueCar (NASDAQ: TRUE) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $13.86 while simultaneously selling the July $12.50 call will result in a new position with a target return of 5.4 %. Based on recent prices, this position will cost about $11.86, which is also the trade?s breakeven point. At that level, this covered call has 14.4 % downside protection, while still providing a 5.4 % return in 65 days as long as TRUE is above $12.50 on 7/17/2015. For comparison purposes only, this TrueCar covered call aims for an annualized return rate of 30.3 %. Healthstream (NASDAQ: HSTM) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the September $25.00 call while at the same time buying HSTM stock for $27.11 will produce a new covered call with a target return of 5.4 %. Based on recent data, this trade will cost about $23.71, which is also the covered call?s breakeven point. At that price, this covered call has 12.5 % downside protection, while seeking an assigned return of 5.4 % return in 128 days. If HSTM is higher than $25.00 on 9/18/2015, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 15.5 %. Nuance Communications (NASDAQ: NUAN) 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 NUAN stock for $16.76 will produce a new covered call with a target return of 5.2 %. Based on recent data, this trade will cost about $15.21, which is also the covered call?s breakeven point. At that price, this covered call has 9.2 % downside protection, while seeking an assigned return of 5.2 % return in 156 days. If NUAN 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 12.1 %. Kinder Morgan (NYSE: KMI) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the December $42.50 call while simultaneously buying KMI stock for $42.70 will result in a new position with a break-even point around $40.63. At that price, this position has a target return of 4.6 %. This trade has 4.8 % downside protection, while still providing a 4.6 % return in 219 days as long as KMI is above $42.50 on 12/18/2015. For comparison purposes only, this Kinder Morgan covered call targets an annualized return rate of 7.7 %. Apple (NASDAQ: AAPL) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $125.91 while selling the October $125.00 call will produce a new covered call with a break-even point around $117.26. At that price, this position has a target return of 6.6 %. This trade will have roughly 6.9 % downside protection, while still aiming for a 6.6 % return in 156 days. It will lock in that return as long as Apple is above $125.00 on 10/16/2015. For comparison purposes only, this AAPL covered call aims for an annualized return rate of 15.4 %. Archer Daniels Midland (NYSE: ADM) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $51.92 while simultaneously selling the September $50.00 call will result in a new position with a target return of 4.3 %. Based on recent prices, this position will cost about $47.92, which is also the trade?s breakeven point. At that level, this covered call has 7.7 % downside protection, while still providing a 4.3 % return in 128 days as long as ADM is above $50.00 on 9/18/2015. For comparison purposes only, this Archer Daniels Midland covered call aims for an annualized return rate of 12.4 %. Lumber Liquidators (NYSE: LL) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the November $26.00 call while at the same time buying LL stock for $26.60 will produce a new covered call with a target return of 18.2 %. Based on recent data, this trade will cost about $22.00, which is also the covered call?s breakeven point. At that price, this covered call has 17.3 % downside protection, while seeking an assigned return of 18.2 % return in 191 days. If LL is higher than $26.00 on 11/20/2015, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 34.7 %. Cliffs Natural Resources (NYSE: CLF) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the October $5.00 call while at the same time buying CLF stock for $5.92 will produce a new covered call with a target return of 12.4 %. Based on recent data, this trade will cost about $4.45, which is also the covered call?s breakeven point. At that price, this covered call has 24.8 % downside protection, while seeking an assigned return of 12.4 % return in 156 days. If CLF is higher than $5.00 on 10/16/2015, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 28.9 %. eBay (NASDAQ: EBAY) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the October $57.50 call while simultaneously buying EBAY stock for $58.30 will result in a new position with a break-even point around $54.45. At that price, this position has a target return of 5.6 %. This trade has 6.6 % downside protection, while still providing a 5.6 % return in 156 days as long as EBAY is above $57.50 on 10/16/2015. For comparison purposes only, this eBay covered call targets an annualized return rate of 13.1 %. 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 There were no major equities upgraded by analysts this morning while America Online (AOL) and Encana Corporation (ECA) were downgraded. HomeAway, Inc. (AWAY), Williams Companies, Inc. (WMB) and Danaher Corp. (DHR) are early risers, while Rice Energy Inc. (RICE), Jazz Pharmaceuticals Public Limited Company (JAZZ) and The AES Corporation (AES) are down. INTERNATIONAL MARKETS Asian stocks were mixed Wednesday with markets there stabilizing after Tuesday?s bond selloff. The Hang Seng fell 0.58%, while the Nikkei was up 0.61%. European markets are higher today as investors digest a round of new economic data. The FTSE is up 0.35% while the DAX is up 0.59%. FUTURES & CURRENCIES Energy futures are rising today. The price for West Texas Intermediate crude oil is up $0.45 to $61.20 per barrel, while natural gas is up $0.02 to $2.91. Metals prices are higher. Gold is up $3.80 and platinum is up $4.10. The Dollar is down versus the Euro and the Yen. PUT/CALL RATIO Yesterday, 695793 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 445738 put contracts. The single-session put/call was 0.6406186898 while the 20-day moving average is now at 0.6425. TODAY'S ECONOMIC CALENDAR 07:00 AM 05/09 MBA Mortgage Index 08:30 AM Apr Retail Sales 08:30 AM Apr Retail Sales ex-auto 08:30 AM Apr Export Prices ex-ag. 08:30 AM Apr Import Prices ex-oil 10:00 AM Mar Business Inventories 10:30 AM 05/09 Crude Inventories EARNINGS EXPECTED TODAY: ARMK BOOT CELP CSCO JACK M RL SHAK |
