MORNING UPDATE: PriceWatch Alerts for AA and More... for 2015-04-17 |
| MORNING UPDATE FOR APRIL 17, 2015 PriceWatch Alerts for INVN, SEAS, PM, SPLK, MAT, TSLA, AA, HAL, ACHN and AMZN. Invensense (NYSE: INVN) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $16.13 while selling the June $17.00 call will produce a new covered call with a break-even point around $15.13. At that price, this position has a target return of 12.4%. This trade will have roughly 6.2% downside protection, while still aiming for a 12.4% return in 64 days. It will lock in that return as long as Invensense is above $17.00 on 6/19/2015. For comparison purposes only, this INVN covered call aims for an annualized return rate of 70.4%. SeaWorld Entertainment (NYSE: SEAS) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $20.44 while simultaneously selling the September $21.00 call will result in a new position with a target return of 8.6%. Based on recent prices, this position will cost about $19.34, which is also the trade?s breakeven point. At that level, this covered call has 5.4% downside protection, while still providing a 8.6% return in 155 days as long as SEAS is above $21.00 on 9/18/2015. For comparison purposes only, this SeaWorld Entertainment covered call aims for an annualized return rate of 20.2%. Philip Morris International (NYSE: PM) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $84.68 while selling the September $87.50 call will produce a new covered call with a break-even point around $82.93. At that price, this position has a target return of 5.5%. This trade will have roughly 2.1% downside protection, while still aiming for a 5.5% return in 155 days. It will lock in that return as long as Philip Morris International is above $87.50 on 9/18/2015. For comparison purposes only, this PM covered call aims for an annualized return rate of 13.0%. Splunk (NASDAQ: SPLK) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the May $65.00 call while at the same time buying SPLK stock for $63.25 will produce a new covered call with a target return of 7.0%. Based on recent data, this trade will cost about $60.75, which is also the covered call?s breakeven point. At that price, this covered call has 4.0% downside protection, while seeking an assigned return of 7.0% return in 29 days. If SPLK is higher than $65.00 on 5/15/2015, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 88.0%. Mattel (NASDAQ: MAT) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the October $27.00 call while simultaneously buying MAT stock for $26.66 will result in a new position with a break-even point around $25.61. At that price, this position has a target return of 5.4%. This trade has 3.9% downside protection, while still providing a 5.4% return in 183 days as long as MAT is above $27.00 on 10/16/2015. For comparison purposes only, this Mattel covered call targets an annualized return rate of 10.8%. Tesla (NASDAQ: TSLA) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $206.56 while selling the May $210.00 call will produce a new covered call with a break-even point around $196.71. At that price, this position has a target return of 6.8%. This trade will have roughly 4.8% downside protection, while still aiming for a 6.8% return in 28 days. It will lock in that return as long as Tesla is above $210.00 on 5/15/2015. For comparison purposes only, this TSLA covered call aims for an annualized return rate of 88.0%. 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 $13.48 while simultaneously selling the January $15.00 call will result in a new position with a target return of 18.3%. Based on recent prices, this position will cost about $12.68, which is also the trade?s breakeven point. At that level, this covered call has 5.9% downside protection, while still providing a 18.3% return in 273 days as long as AA is above $15.00 on 1/15/2016. For comparison purposes only, this Alcoa covered call aims for an annualized return rate of 24.5%. Halliburton (NYSE: HAL) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $48.17 while selling the June $48.00 call will produce a new covered call with a break-even point around $46.09. At that price, this position has a target return of 4.1%. This trade will have roughly 4.3% downside protection, while still aiming for a 4.1% return in 63 days. It will lock in that return as long as Halliburton is above $48.00 on 6/19/2015. For comparison purposes only, this HAL covered call aims for an annualized return rate of 24.0%. Achillion Pharmaceuticals (NASDAQ: ACHN) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the September $11.00 call while at the same time buying ACHN stock for $10.54 will produce a new covered call with a target return of 23.7%. Based on recent data, this trade will cost about $8.89, which is also the covered call?s breakeven point. At that price, this covered call has 15.7% downside protection, while seeking an assigned return of 23.7% return in 154 days. If ACHN is higher than $11.00 on 9/18/2015, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 56.2%. Amazon (NASDAQ: AMZN) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the October $395.00 call while simultaneously buying AMZN stock for $386.04 will result in a new position with a break-even point around $357.79. At that price, this position has a target return of 10.4%. This trade has 7.3% downside protection, while still providing a 10.4% return in 182 days as long as AMZN is above $395.00 on 10/16/2015. For comparison purposes only, this Amazon covered call targets an annualized return rate of 20.8%. *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. STOCKS ON THE MOVE Celanese (CE), Advanced Semiconductor Engineering (ASX) and Mattel (MAT) are higher in pre-market trading, while Teva Pharmaceuticals (TEVA), AMD (AMD) and ServiceNow (NOW) are lower. Xcel Energy (XEL) was upgraded by analysts this morning while Independent Bank (INDB) and Home Bancshares (HOMB) were downgraded. INTERNATIONAL MARKETS Asian markets finished mixed Friday as traders were discouraged by changes in Chinese trading rules. The Hang Seng rose 2.20% while the Nikkei was down 1.17%. In Europe markets are lower today as there is no sign of progress in Greek debt talks. The FTSE is down 0.91% while the CAC 40 is down 1.18%. FUTURES & CURRENCIES West Texas Intermediate crude oil is down $0.52 to $56.19 while NYMEX natural gas is down $0.02 to $2.67. In metals, gold is up $6 to $1,205, silver is up $0.37 to $16.44 and platinum is up $2 to $1,167. The US Dollar is lower vs the Euro and higher vs the Yen. PUT/CALL RATIO Yesterday, 1,062,271 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 708,283 put contracts. The single-session put/call was 0.67, while the 20-day moving average is now at 0.63. TODAY'S ECONOMIC CALENDAR 08:30 AM Mar CPI 08:30 AM Mar Core CPI 10:00 AM Apr Mich Sentiment 10:00 AM Mar Leading Indicators EARNINGS EXPECTED TODAY CHFC CMA FHN GE HON RAI STX SYF 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 |
