MORNING UPDATE: PriceWatch Alerts for BLOX and More... for 2015-03-02 |
| MORNING UPDATE FOR MARCH 2, 2015 PriceWatch Alerts for CLF, AIRM, MNST, IRBT, VSLR, AMD, DGI, BLOX, BTU and AGIO. Cliffs Natural Resources (NYSE: CLF) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $6.84 while selling the July $7.00 call will produce a new covered call with a break-even point around $5.80. At that price, this position has a target return of 20.7%. This trade will have roughly 15.2% downside protection, while still aiming for a 20.7% return in 137 days. It will lock in that return as long as Cliffs Natural Resources is above $7.00 on 7/17/2015. For comparison purposes only, this CLF covered call aims for an annualized return rate of 55.1%. Air Methods (NASDAQ: AIRM) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $53.00 while simultaneously selling the July $55.00 call will result in a new position with a target return of 11.8%. Based on recent prices, this position will cost about $49.20, which is also the trade?s breakeven point. At that level, this covered call has 7.2% downside protection, while still providing a 11.8% return in 137 days as long as AIRM is above $55.00 on 7/17/2015. For comparison purposes only, this Air Methods covered call aims for an annualized return rate of 31.4%. Monster Beverage (NASDAQ: MNST) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $141.13 while selling the April $145.00 call will produce a new covered call with a break-even point around $137.83. At that price, this position has a target return of 5.2%. This trade will have roughly 2.3% downside protection, while still aiming for a 5.2% return in 46 days. It will lock in that return as long as Monster Beverage is above $145.00 on 4/17/2015. For comparison purposes only, this MNST covered call aims for an annualized return rate of 41.3%. iRobot (NASDAQ: IRBT) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the June $33.00 call while at the same time buying IRBT stock for $32.85 will produce a new covered call with a target return of 9.1%. Based on recent data, this trade will cost about $30.25, which is also the covered call?s breakeven point. At that price, this covered call has 7.9% downside protection, while seeking an assigned return of 9.1% return in 109 days. If IRBT is higher than $33.00 on 6/19/2015, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 30.4%. Vivint Solar (NYSE: VSLR) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the July $9.00 call while simultaneously buying VSLR stock for $8.07 will result in a new position with a break-even point around $7.07. At that price, this position has a target return of 27.3%. This trade has 12.4% downside protection, while still providing a 27.3% return in 137 days as long as VSLR is above $9.00 on 7/17/2015. For comparison purposes only, this Vivint Solar covered call targets an annualized return rate of 72.7%. Advanced Micro Devices (NASDAQ: AMD) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $3.11 while selling the January $3.00 call will produce a new covered call with a break-even point around $2.56. At that price, this position has a target return of 17.2%. This trade will have roughly 17.7% downside protection, while still aiming for a 17.2% return in 319 days. It will lock in that return as long as Advanced Micro Devices is above $3.00 on 1/15/2016. For comparison purposes only, this AMD covered call aims for an annualized return rate of 19.7%. (To avoid having your profit margin narrowed by transaction costs, consider making this trade with multiple contracts.) DigitalGlobe (NYSE: DGI) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $33.85 while simultaneously selling the September $32.50 call will result in a new position with a target return of 4.2%. Based on recent prices, this position will cost about $31.20, which is also the trade?s breakeven point. At that level, this covered call has 7.8% downside protection, while still providing a 4.2% return in 200 days as long as DGI is above $32.50 on 9/18/2015. For comparison purposes only, this DigitalGlobe covered call aims for an annualized return rate of 7.6%. Infoblox (NYSE: BLOX) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $23.25 while selling the July $25.00 call will produce a new covered call with a break-even point around $21.40. At that price, this position has a target return of 16.8%. This trade will have roughly 8.0% downside protection, while still aiming for a 16.8% return in 137 days. It will lock in that return as long as Infoblox is above $25.00 on 7/17/2015. For comparison purposes only, this BLOX covered call aims for an annualized return rate of 44.8%. Peabody Energy (NYSE: BTU) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the September $8.00 call while at the same time buying BTU stock for $7.90 will produce a new covered call with a target return of 19.9%. Based on recent data, this trade will cost about $6.67, which is also the covered call?s breakeven point. At that price, this covered call has 15.6% downside protection, while seeking an assigned return of 19.9% return in 200 days. If BTU is higher than $8.00 on 9/18/2015, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 36.4%. Agios Pharmaceuticals (NASDAQ: AGIO) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the March $110.00 call while simultaneously buying AGIO stock for $107.28 will result in a new position with a break-even point around $102.93. At that price, this position has a target return of 6.9%. This trade has 4.1% downside protection, while still providing a 6.9% return in 18 days as long as AGIO is above $110.00 on 3/20/2015. For comparison purposes only, this Agios Pharmaceuticals covered call targets an annualized return rate of 139.1%. *Annualized returns are shown for comparison purposes only 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 NXP Semiconductors (NXPI), Mastercard (MA) and Freescale Semiconductor (FSL) are higher this morning, while Pacira Pharmaceuticals (PCRX), Lumber Liquidators (LL) and Micron Technology (MU) are lower. CenturyLink (CTL) and Alaska Air (ALK) were upgraded by analysts this morning, while Time Warner Cable (TWC), Spirit Airlines (SAVE) and ISIS Pharmaceuticals (ISIS) were downgraded. INTERNATIONAL MARKETS Asian markets finished higher Monday after a rate cut by the Chinese central bank lifted stocks there higher. The Hang Seng was up 0.26% while the Nikkei rose 0.33%. European markets are lower today though manufacturing data showed modest growth in the region. The FTSE is down 0.23% and the DAX is down 0.28%. FUTURES & CURRENCIES West Texas Intermediate crude oil is down $0.92 to $48.84 while NYMEX natural gas is up $0.04 to $2.70. In metals, gold is up $6 to $1,220, silver is up $0.07 to $16.74 and platinum is up $8 to $1,198. The US Dollar is down vs the Euro and up vs the Yen. PUT/CALL RATIO Friday, 1,058,409 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 682,380 put contracts. The single-session put/call was 0.64, while the 20-day moving average is now at 0.62. TODAY'S ECONOMIC CALENDAR 08:30 AM Jan Personal Income 08:30 AM Jan Personal Spending 08:30 AM Jan PCE Prices - Core 10:00 AM Feb ISM Index 10:00 AM Jan Construction Spending EARNINGS EXPECTED TODAY ANV SLXP XON This Morning Update was prepared with data and information provided by: PowerOptionsPlus.com - The Best Way To Find, Compare, Analyze, and Make Money On Option Investments - Forbes Best of the Web |
