MORNING UPDATE: PriceWatch Alerts for RHT and More... for 2015-03-27 |
| MORNING UPDATE FOR MARCH 27, 2015 PriceWatch Alerts for LINE, RHT, VJET, TASR, SWHC, BAC, NVO, INFN, JCP and O. Linn Energy (NASDAQ: LINE) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $11.75 while selling the October $12.00 call will produce a new covered call with a break-even point around $10.60. At that price, this position has a target return of 13.2%. This trade will have roughly 9.8% downside protection, while still aiming for a 13.2% return in 203 days. It will lock in that return as long as Linn Energy is above $12.00 on 10/16/2015. For comparison purposes only, this LINE covered call aims for an annualized return rate of 23.7%. Red Hat (NYSE: RHT) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $75.39 while simultaneously selling the June $77.50 call will result in a new position with a target return of 7.1%. Based on recent prices, this position will cost about $72.39, which is also the trade?s breakeven point. At that level, this covered call has 4.0% downside protection, while still providing a 7.1% return in 84 days as long as RHT is above $77.50 on 6/19/2015. For comparison purposes only, this Red Hat covered call aims for an annualized return rate of 30.6%. Voxeljet (NYSE: VJET) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $9.16 while selling the January $10.00 call will produce a new covered call with a break-even point around $8.16. At that price, this position has a target return of 22.5%. This trade will have roughly 10.9% downside protection, while still aiming for a 22.5% return in 294 days. It will lock in that return as long as Voxeljet is above $10.00 on 1/15/2016. For comparison purposes only, this VJET covered call aims for an annualized return rate of 28.0%. Taser International (NASDAQ: TASR) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the June $25.00 call while at the same time buying TASR stock for $24.10 will produce a new covered call with a target return of 12.1%. Based on recent data, this trade will cost about $22.30, which is also the covered call?s breakeven point. At that price, this covered call has 7.5% downside protection, while seeking an assigned return of 12.1% return in 84 days. If TASR is higher than $25.00 on 6/19/2015, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 52.6%. Smith and Wesson (NASDAQ: SWHC) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the September $13.00 call while simultaneously buying SWHC stock for $13.00 will result in a new position with a break-even point around $11.70. At that price, this position has a target return of 11.1%. This trade has 10.0% downside protection, while still providing a 11.1% return in 175 days as long as SWHC is above $13.00 on 9/18/2015. For comparison purposes only, this Smith and Wesson covered call targets an annualized return rate of 23.2%. Bank of America (NYSE: BAC) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $15.45 while simultaneously selling the November $16.00 call will result in a new position with a target return of 9.4%. Based on recent prices, this position will cost about $14.62, which is also the trade?s breakeven point. At that level, this covered call has 5.4% downside protection, while still providing a 9.4% return in 238 days as long as BAC is above $16.00 on 11/20/2015. For comparison purposes only, this Bank of America covered call aims for an annualized return rate of 14.5%. Novo Nordisk (NYSE: NVO) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $53.50 while selling the June $55.00 call will produce a new covered call with a break-even point around $51.50. At that price, this position has a target return of 6.8%. This trade will have roughly 3.7% downside protection, while still aiming for a 6.8% return in 84 days. It will lock in that return as long as Novo Nordisk is above $55.00 on 6/19/2015. For comparison purposes only, this NVO covered call aims for an annualized return rate of 29.5%. Infinera (NASDAQ: INFN) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $18.60 while simultaneously selling the May $19.00 call will result in a new position with a target return of 10.5%. Based on recent prices, this position will cost about $17.20, which is also the trade?s breakeven point. At that level, this covered call has 7.5% downside protection, while still providing a 10.5% return in 49 days as long as INFN is above $19.00 on 5/15/2015. For comparison purposes only, this Infinera covered call aims for an annualized return rate of 77.9%. JC Penney (NYSE: JCP) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the November $8.00 call while at the same time buying JCP stock for $7.62 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 12.5% downside protection, while seeking an assigned return of 19.9% return in 238 days. If JCP is higher than $8.00 on 11/20/2015, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 30.6%. Realty Income (NYSE: O) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the September $55.00 call while simultaneously buying O stock for $51.25 will result in a new position with a break-even point around $50.15. At that price, this position has a target return of 9.7%. This trade has 2.1% downside protection, while still providing a 9.7% return in 175 days as long as O is above $55.00 on 9/18/2015. 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European markets are mixed this morning as the regions benchmark, the Stoxx Europe 600, broke a seven-week win streak. The FTSE is down 0.26% while the DAX is down 0.62%. FUTURES & CURRENCIES West Texas Intermediate crude oil is down $0.52 to $50.91 while NYMEX natural gas is down $0.02 to $2.65. In metals, gold is down $3 to $1,202, silver is up $0.07 to $17.23 and platinum is down $6 to $1,153. The US Dollar is up against the Euro and down against the Yen. PUT/CALL RATIO Yesterday, 994,232 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 581,586 put contracts. The single-session put/call was 0.58, while the 20-day moving average is now at 0.65. TODAY'S ECONOMIC CALENDAR 08:30 AM Q4 GDP ? Third Estimate 08:30 AM Q4 GDP Deflator ? Third Estimate 10:00 AM Mar Michigan Sentiment - Final EARNINGS EXPECTED TODAY BBRY CCL ESTE LOXO 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 |
