MORNING UPDATE: PriceWatch Alerts for BABA and More... for 2015-05-12 |
| PriceWatch Alerts for BABA, VALE, GMCR, ARIA, AMBA, GILD, GWPH, T, PBR, and GE. Alibaba (NYSE: BABA) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $86.68 while selling the September $85.00 call will produce a new covered call with a break-even point around $80.13. At that price, this position has a target return of 6.1 %. This trade will have roughly 7.6 % downside protection, while still aiming for a 6.1 % return in 129 days. It will lock in that return as long as Alibaba is above $85.00 on 9/18/2015. For comparison purposes only, this BABA covered call aims for an annualized return rate of 17.2 %. Vale (NYSE: VALE) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $7.66 while simultaneously selling the September $7.00 call will result in a new position with a target return of 7.7 %. Based on recent prices, this position will cost about $6.50, which is also the trade?s breakeven point. At that level, this covered call has 15.1 % downside protection, while still providing a 7.7 % return in 129 days as long as VALE is above $7.00 on 9/18/2015. For comparison purposes only, this Vale covered call aims for an annualized return rate of 21.8 %. Keurig Green Mountain (NASDAQ: GMCR) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the September $100.00 call while at the same time buying GMCR stock for $101.49 will produce a new covered call with a target return of 8.5 %. Based on recent data, this trade will cost about $92.14, 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 8.5 % return in 129 days. If GMCR is higher than $100.00 on 9/18/2015, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 24.1 %. Ariad Pharmaceuticals (NASDAQ: ARIA) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the August $9.00 call while at the same time buying ARIA stock for $9.09 will produce a new covered call with a target return of 14.1 %. Based on recent data, this trade will cost about $7.89, which is also the covered call?s breakeven point. At that price, this covered call has 13.2 % downside protection, while seeking an assigned return of 14.1 % return in 101 days. If ARIA is higher than $9.00 on 8/21/2015, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 50.8 %. Ambarella (NASDAQ: AMBA) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the August $70.00 call while simultaneously buying AMBA stock for $73.44 will result in a new position with a break-even point around $66.14. At that price, this position has a target return of 5.8 %. This trade has 9.9 % downside protection, while still providing a 5.8 % return in 101 days as long as AMBA is above $70.00 on 8/21/2015. For comparison purposes only, this Ambarella covered call targets an annualized return rate of 21.1 %. Gilead Sciences (NASDAQ: GILD) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $104.76 while selling the November $100.00 call will produce a new covered call with a break-even point around $94.16. At that price, this position has a target return of 6.2 %. This trade will have roughly 10.1 % downside protection, while still aiming for a 6.2 % return in 192 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 11.8 %. GW Pharmaceuticals (NASDAQ: GWPH) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $112.00 while simultaneously selling the August $110.00 call will result in a new position with a target return of 9.8 %. Based on recent prices, this position will cost about $100.20, which is also the trade?s breakeven point. At that level, this covered call has 10.5 % downside protection, while still providing a 9.8 % return in 101 days as long as GWPH is above $110.00 on 8/21/2015. For comparison purposes only, this GW Pharmaceuticals covered call aims for an annualized return rate of 35.3 %. AT&T (NYSE: T) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the January $33.00 call while at the same time buying T stock for $33.50 will produce a new covered call with a target return of 4.1 %. Based on recent data, this trade will cost about $31.69, 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 4.1 % return in 248 days. If T is higher than $33.00 on 1/15/2016, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 6.1 %. Petroleo Brasileiro (NYSE: PBR) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the October $9.00 call while at the same time buying PBR stock for $9.62 will produce a new covered call with a target return of 11.9 %. Based on recent data, this trade will cost about $8.04, which is also the covered call?s breakeven point. At that price, this covered call has 16.4 % downside protection, while seeking an assigned return of 11.9 % return in 157 days. If PBR is higher than $9.00 on 10/16/2015, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 27.8 %. General Electric (NYSE: GE) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the August $26.00 call while simultaneously buying GE stock for $26.92 will result in a new position with a break-even point around $24.97. At that price, this position has a target return of 4.1 %. This trade has 7.2 % downside protection, while still providing a 4.1 % return in 101 days as long as GE is above $26.00 on 8/21/2015. For comparison purposes only, this General Electric covered call targets an annualized return rate of 14.9 %. 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 MercadoLibre (MELI) and The Gap (GPS) were downgraded. AOL Inc. (AOL), STMicroelectronics NV (STM) and SeaDrill Limited (SDRL) are early risers, while Rackspace Hosting, Inc. (RAX), YY Inc. (YY) and Hilton Worldwide Holdings Inc. (HLT) are down. INTERNATIONAL MARKETS Asian stocks were mixed Tuesday following Monday?s weak U.S. session. The Hang Seng fell 1.12%, while the Nikkei was up 0.02%. European markets are down today as a global bond selloff continues to take its toll. The FTSE is down 1.64% while the DAX is down 2.05%. FUTURES & CURRENCIES Energy futures are rising today. The price for West Texas Intermediate crude oil is up $1.14 to $60.39 per barrel, while natural gas is up $0.03 to $2.83. Metals prices are higher this morning. Gold is up $10.90 and platinum is up $9.20. The Dollar is down versus the Euro and the Yen. PUT/CALL RATIO Yesterday, 724288 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 439172 put contracts. The single-session put/call was 0.6063499602 while the 20-day moving average is now at 0.6435. TODAY'S ECONOMIC CALENDAR 10:00 AM Mar JOLTS ? Job openings 02:00 PM Apr Treasury Budget EARNINGS EXPECTED TODAY: AKRX ARES BLUE GDDY Z |
