MORNING UPDATE: PriceWatch Alerts for SDRL and More... for 2015-05-01 |
| MORNING UPDATE FOR MAY 1, 2015 PriceWatch Alerts for INVN, GDP, TWTR, KRFT, OREX, SDRL, AA, CYBR, SONC and LOW. Invensense (NYSE: INVN) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $14.92 while selling the June $15.00 call will produce a new covered call with a break-even point around $13.82. At that price, this position has a target return of 8.5%. This trade will have roughly 7.4% downside protection, while still aiming for a 8.5% return in 49 days. It will lock in that return as long as Invensense is above $15.00 on 6/19/2015. For comparison purposes only, this INVN covered call aims for an annualized return rate of 63.5%. Goodrich Petroleum (NYSE: GDP) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $3.87 while simultaneously selling the January $4.00 call will result in a new position with a target return of 28.2%. Based on recent prices, this position will cost about $3.12, which is also the trade?s breakeven point. At that level, this covered call has 19.4% downside protection, while still providing a 28.2% return in 259 days as long as GDP is above $4.00 on 1/15/2016. For comparison purposes only, this Goodrich Petroleum covered call aims for an annualized return rate of 39.7%. Twitter (NYSE: TWTR) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $38.96 while selling the May $39.50 call will produce a new covered call with a break-even point around $37.78. At that price, this position has a target return of 4.6%. This trade will have roughly 3.0% downside protection, while still aiming for a 4.6% return in 14 days. It will lock in that return as long as Twitter is above $39.50 on 5/15/2015. For comparison purposes only, this TWTR covered call aims for an annualized return rate of 118.6%. Kraft (NASDAQ: KRFT) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the September $87.50 call while at the same time buying KRFT stock for $84.75 will produce a new covered call with a target return of 5.6%. Based on recent data, this trade will cost about $82.85, which is also the covered call?s breakeven point. At that price, this covered call has 2.2% downside protection, while seeking an assigned return of 5.6% return in 140 days. If KRFT is higher than $87.50 on 9/18/2015, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 14.6%. Orexigen Therapeutics (NASDAQ: OREX) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the October $7.00 call while simultaneously buying OREX stock for $6.57 will result in a new position with a break-even point around $5.72. At that price, this position has a target return of 22.4%. This trade has 12.9% downside protection, while still providing a 22.4% return in 168 days as long as OREX is above $7.00 on 10/16/2015. For comparison purposes only, this Orexigen Therapeutics covered call targets an annualized return rate of 48.6%. Seadrill (NYSE: SDRL) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $13.09 while selling the June $13.00 call will produce a new covered call with a break-even point around $11.34. At that price, this position has a target return of 14.6%. This trade will have roughly 13.4% downside protection, while still aiming for a 14.6% return in 49 days. It will lock in that return as long as Seadrill is above $13.00 on 6/19/2015. For comparison purposes only, this SDRL covered call aims for an annualized return rate of 109.0%. Alcoa (NYSE: AA) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $13.42 while simultaneously selling the January $13.00 call will result in a new position with a target return of 9.3%. Based on recent prices, this position will cost about $11.89, which is also the trade?s breakeven point. At that level, this covered call has 11.4% downside protection, while still providing a 9.3% return in 259 days as long as AA is above $13.00 on 1/15/2016. For comparison purposes only, this Alcoa covered call aims for an annualized return rate of 13.1%. CyberArk Software (NYSE: CYBR) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $62.95 while selling the May $60.00 call will produce a new covered call with a break-even point around $54.95. At that price, this position has a target return of 9.2%. This trade will have roughly 12.7% downside protection, while still aiming for a 9.2% return in 14 days. It will lock in that return as long as CyberArk Software is above $60.00 on 5/15/2015. For comparison purposes only, this CYBR covered call aims for an annualized return rate of 239.6%. Sonic (NASDAQ: SONC) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the September $30.00 call while at the same time buying SONC stock for $28.65 will produce a new covered call with a target return of 10.9%. Based on recent data, this trade will cost about $27.05, which is also the covered call?s breakeven point. At that price, this covered call has 5.6% downside protection, while seeking an assigned return of 10.9% return in 140 days. If SONC is higher than $30.00 on 9/18/2015, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 28.4%. Lowe's (NYSE: LOW) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the October $70.00 call while simultaneously buying LOW stock for $68.86 will result in a new position with a break-even point around $66.46. At that price, this position has a target return of 5.3%. This trade has 3.5% downside protection, while still providing a 5.3% return in 168 days as long as LOW is above $70.00 on 10/16/2015. For comparison purposes only, this Lowe's covered call targets an annualized return rate of 11.6%. *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? 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. INTERNATIONAL MARKETS Asian markets were mixed Friday as Japanese stocks were helped by several strong earnings reports. The Hang Seng dropped 0.94%, while the Nikkei was up 0.06%. In Europe, stocks are higher today as U.K. mining interests posted strong earnings results. The FTSE is up 0.18% while the DAX is up 0.19%. FUTURES & CURRENCIES West Texas Intermediate crude oil is down $0.09 to $59.54 while NYMEX natural gas is even at $2.075. In metals, gold is down $8 to $1,178, silver is down $0.05 to $16.15 and platinum is down $8 to $1,141. The US Dollar is down vs the Euro and up vs the Yen. PUT/CALL RATIO Yesterday, 1,037,691 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 751,906 put contracts. The single-session put/call was .72 while the 20-day moving average is now at 0.63. TODAY'S ECONOMIC CALENDAR 10:00 AM Apr ISM Index 10:00 AM Mar Construction Spending 10:00 AM Apr Michigan Sentiment ? Final 05:00 PM Apr Auto Sales 05:00 PM Apr Truck Sales EARNINGS EXPECTED TODAY BRK.A CLX CVS CVX DUK ZEUS 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 |
