MORNING UPDATE: PriceWatch Alerts for C and More... for 2015-04-16 |
| MORNING UPDATE FOR APRIL 16, 2015 PriceWatch Alerts for RIG, SDRL, SWHC, YNDX, SUNE, AAPL, PBR, DDD, C and RAD. Transocean (NYSE: RIG) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $18.75 while selling the August $19.00 call will produce a new covered call with a break-even point around $17.00. At that price, this position has a target return of 11.8%. This trade will have roughly 9.3% downside protection, while still aiming for a 11.8% return in 127 days. It will lock in that return as long as Transocean is above $19.00 on 8/21/2015. For comparison purposes only, this RIG covered call aims for an annualized return rate of 33.8%. Seadrill (NYSE: SDRL) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $12.63 while simultaneously selling the July $13.00 call will result in a new position with a target return of 13.9%. Based on recent prices, this position will cost about $11.41, which is also the trade?s breakeven point. At that level, this covered call has 9.7% downside protection, while still providing a 13.9% return in 92 days as long as SDRL is above $13.00 on 7/17/2015. For comparison purposes only, this Seadrill covered call aims for an annualized return rate of 55.3%. Smith and Wesson (NASDAQ: SWHC) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $14.97 while selling the September $15.00 call will produce a new covered call with a break-even point around $13.77. At that price, this position has a target return of 8.9%. This trade will have roughly 8.0% downside protection, while still aiming for a 8.9% return in 155 days. It will lock in that return as long as Smith and Wesson is above $15.00 on 9/18/2015. For comparison purposes only, this SWHC covered call aims for an annualized return rate of 21.0%. Yandex (NASDAQ: YNDX) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the August $21.00 call while at the same time buying YNDX stock for $20.50 will produce a new covered call with a target return of 12.0%. Based on recent data, this trade will cost about $18.75, which is also the covered call?s breakeven point. At that price, this covered call has 8.5% downside protection, while seeking an assigned return of 12.0% return in 127 days. If YNDX is higher than $21.00 on 8/21/2015, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 34.5%. SunEdison (NYSE: SUNE) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the May $27.00 call while simultaneously buying SUNE stock for $26.67 will result in a new position with a break-even point around $25.39. At that price, this position has a target return of 6.3%. This trade has 4.8% downside protection, while still providing a 6.3% return in 29 days as long as SUNE is above $27.00 on 5/15/2015. For comparison purposes only, this SunEdison covered call targets an annualized return rate of 79.8%. Apple (NASDAQ: AAPL) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $126.86 while selling the May $135.00 call will produce a new covered call with a break-even point around $124.21. At that price, this position has a target return of 8.7%. This trade will have roughly 2.1% downside protection, while still aiming for a 8.7% return in 29 days. It will lock in that return as long as Apple is above $135.00 on 5/15/2015. For comparison purposes only, this AAPL covered call aims for an annualized return rate of 109.2%. Petroleo Brasileiro (NYSE: PBR) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $8.86 while simultaneously selling the October $9.00 call will result in a new position with a target return of 19.5%. Based on recent prices, this position will cost about $7.53, which is also the trade?s breakeven point. At that level, this covered call has 15.0% downside protection, while still providing a 19.5% return in 183 days as long as PBR is above $9.00 on 10/16/2015. For comparison purposes only, this Petroleo Brasileiro covered call aims for an annualized return rate of 38.9%. 3D Systems (NYSE: DDD) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $31.97 while selling the May $32.00 call will produce a new covered call with a break-even point around $30.27. At that price, this position has a target return of 5.7%. This trade will have roughly 5.3% downside protection, while still aiming for a 5.7% return in 29 days. It will lock in that return as long as 3D Systems is above $32.00 on 5/15/2015. For comparison purposes only, this DDD covered call aims for an annualized return rate of 71.9%. Citigroup (NYSE: C) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the July $55.00 call while at the same time buying C stock for $53.25 will produce a new covered call with a target return of 5.9%. Based on recent data, this trade will cost about $51.93, which is also the covered call?s breakeven point. At that price, this covered call has 2.5% downside protection, while seeking an assigned return of 5.9% return in 92 days. If C is higher than $55.00 on 7/17/2015, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 23.4%. Rite Aid (NYSE: RAD) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the October $8.00 call while simultaneously buying RAD stock for $8.29 will result in a new position with a break-even point around $7.12. At that price, this position has a target return of 12.4%. This trade has 14.1% downside protection, while still providing a 12.4% return in 183 days as long as RAD is above $8.00 on 10/16/2015. For comparison purposes only, this Rite Aid covered call targets an annualized return rate of 24.6%. *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)! Learn how to limit your risks in any trade and keep your upside open ? 'Cut your losers short and let your winners run'. These limited risk techniques have saved investors thousands of dollars during unexpected market downturns and Black Swan events. 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STOCKS ON THE MOVE Netflix (NFLX), McDermott (MDR) and Unilever (UL) are rising in pre-market trading, while Diplomat Pharmacy (DPLO), SanDisk (SNDK) and Capital Product Partners are falling. Netflix (NFLX) was upgraded by analysts this morning while Washington Federal (WAFD), Thomson Reuters (TRI) and Nokia(NOK) were downgraded. INTERNATIONAL MARKETS Asian markets finished higher Thursday as Hong Kong stocks continued to climb. The Hang Seng rose 0.45% while the Nikkei was up 0.08%. In Europe markets are slipping today as investors? concern over Greek debt resurfaces. The FTSE is down 0.39% while the CAC 40 is down 0.47%. FUTURES & CURRENCIES West Texas Intermediate crude oil is down $0.87 to $55.52 while NYMEX natural gas is even at $2.61. In metals, gold is up $3 to $1,206, silver is up $0.45 to $16.50 and platinum is up $10 to $1,177. The US Dollar is lower vs the Euro and higher vs the Yen. PUT/CALL RATIO Yesterday, 1,066,847 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 631,818 put contracts. The single-session put/call was 0.59, while the 20-day moving average is now at 0.63. TODAY'S ECONOMIC CALENDAR 08:30 AM 04/11 Initial Claims 08:30 AM 04/04 Continuing Claims 08:30 AM Mar Housing Starts 08:30 AM Mar Building Permits 10:00 AM Apr Philadelphia Fed 10:30 AM 04/11 Natural Gas Inventories EARNINGS EXPECTED TODAY ADS AXP BLK BX C CCK CE CY GS GWW MAT PM SHW SLB SON SYNT UNH WBS 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 |
