MORNING UPDATE: PriceWatch Alerts for CELG and More... for 2015-04-08 |
| MORNING UPDATE FOR APRIL 8, 2015 PriceWatch Alerts for CELG, TWTR, CLVS, BHP, BF.B, ONVO, WBAI, CVX, DLPH and UNH. Celgene (NASDAQ: CELG) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $112.94 while selling the May $115.00 call will produce a new covered call with a break-even point around $108.79. At that price, this position has a target return of 5.7%. This trade will have roughly 3.7% downside protection, while still aiming for a 5.7% return in 37 days. It will lock in that return as long as Celgene is above $115.00 on 5/15/2015. For comparison purposes only, this CELG covered call aims for an annualized return rate of 56.2%. Twitter (NYSE: TWTR) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $52.89 while simultaneously selling the May $55.00 call will result in a new position with a target return of 9.8%. Based on recent prices, this position will cost about $50.07, which is also the trade?s breakeven point. At that level, this covered call has 5.3% downside protection, while still providing a 9.8% return in 37 days as long as TWTR is above $55.00 on 5/15/2015. For comparison purposes only, this Twitter covered call aims for an annualized return rate of 97.1%. Clovis Oncology (NASDAQ: CLVS) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $73.75 while selling the May $75.00 call will produce a new covered call with a break-even point around $68.50. At that price, this position has a target return of 9.5%. This trade will have roughly 7.1% downside protection, while still aiming for a 9.5% return in 37 days. It will lock in that return as long as Clovis Oncology is above $75.00 on 5/15/2015. For comparison purposes only, this CLVS covered call aims for an annualized return rate of 93.5%. BHP Billiton (NYSE: BHP) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the August $47.50 call while at the same time buying BHP stock for $46.72 will produce a new covered call with a target return of 8.6%. Based on recent data, this trade will cost about $43.72, which is also the covered call?s breakeven point. At that price, this covered call has 6.4% downside protection, while seeking an assigned return of 8.6% return in 135 days. If BHP is higher than $47.50 on 8/21/2015, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 23.4%. Brown-Forman (NYSE: BF.B) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the June $95.00 call while simultaneously buying BF.B stock for $92.90 will result in a new position with a break-even point around $91.15. At that price, this position has a target return of 4.2%. This trade has 1.9% downside protection, while still providing a 4.2% return in 72 days as long as BF.B is above $95.00 on 6/19/2015. For comparison purposes only, this Brown-Forman covered call targets an annualized return rate of 21.4%. Organovo (AMEX: ONVO) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $4.03 while selling the January $4.00 call will produce a new covered call with a break-even point around $3.13. At that price, this position has a target return of 27.8%. This trade will have roughly 22.3% downside protection, while still aiming for a 27.8% return in 282 days. It will lock in that return as long as Organovo is above $4.00 on 1/15/2016. For comparison purposes only, this ONVO covered call aims for an annualized return rate of 36.0%. 500.Com (NYSE: WBAI) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $14.50 while simultaneously selling the May $15.00 call will result in a new position with a target return of 22.0%. Based on recent prices, this position will cost about $12.30, which is also the trade?s breakeven point. At that level, this covered call has 15.2% downside protection, while still providing a 22.0% return in 37 days as long as WBAI is above $15.00 on 5/15/2015. For comparison purposes only, this 500.Com covered call aims for an annualized return rate of 216.5%. Chevron (NYSE: CVX) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $108.54 while selling the September $110.00 call will produce a new covered call with a break-even point around $104.56. At that price, this position has a target return of 5.2%. This trade will have roughly 3.7% downside protection, while still aiming for a 5.2% return in 163 days. It will lock in that return as long as Chevron is above $110.00 on 9/18/2015. For comparison purposes only, this CVX covered call aims for an annualized return rate of 11.6%. Delphi Automotive (NYSE: DLPH) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the August $85.00 call while at the same time buying DLPH stock for $83.37 will produce a new covered call with a target return of 6.4%. Based on recent data, this trade will cost about $79.87, which is also the covered call?s breakeven point. At that price, this covered call has 4.2% downside protection, while seeking an assigned return of 6.4% return in 135 days. If DLPH is higher than $85.00 on 8/21/2015, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 17.4%. UnitedHealth Group (NYSE: UNH) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the September $120.00 call while simultaneously buying UNH stock for $117.99 will result in a new position with a break-even point around $112.44. At that price, this position has a target return of 6.7%. This trade has 4.7% downside protection, while still providing a 6.7% return in 163 days as long as UNH is above $120.00 on 9/18/2015. For comparison purposes only, this UnitedHealth Group covered call targets an annualized return rate of 15.0%. *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 Yanzhou Coal Mining (YZC), China Southern Airlines (ZNH) and Aluminum Corp of China (ACH) are all higher in pre-market trading, while Lion's Gate Entertainment (LGF), Pentair (PNR) and Abengoa (ABGB) are lower. There were no major analyst upgrades this morning, while Catamaran (CTRX) was downgraded. INTERNATIONAL MARKETS In Asia, markets finished higher Wednesday, as Hong Kong stocks reached seven-year highs. The Hang Seng rose 3.74% while the Nikkei was up 0.76%. In Europe markets are mixed today as Royal Dutch Shell's purchase of BG Group is expected to set off further acquisitions. The FTSE is up 0.51% while the DAX is down 0.34%. FUTURES & CURRENCIES West Texas Intermediate crude oil is down $1.19 to $52.79 while NYMEX natural gas is down $0.04 to $2.64. In metals, gold is down $2 to $1,206, silver is down $0.05 to $16.85 and platinum is down $4 to $1,173. The US Dollar is down vs the Euro and the Yen. PUT/CALL RATIO Yesterday, 689,156 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 409,014 put contracts. The single-session put/call was 0.59, while the 20-day moving average is now at 0.66. TODAY'S ECONOMIC CALENDAR 07:00 AM 4/04 MBA Mortgage Index 10:30 AM 4/04 Crude Inventories 02:00 PM 3/18 FOMC Minutes EARNINGS EXPECTED TODAY AA BBBY FDO GPN LNCO RAD WDFC 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 |
