MORNING UPDATE: PriceWatch Alerts for BABA and More... for 2015-03-09 |
| MORNING UPDATE FOR MARCH 9, 2015 PriceWatch Alerts for AAPL, DIS, TSLA, BLDP, ONVO, MU, BABA, JCP, XONE, SCHW, TWC, DAL, ATHN, GLUU, COP and BIIB. Apple (NASDAQ: AAPL) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $127.05 while selling the April $128.57 call will produce a new covered call with a break-even point around $122.63. At that price, this position has a target return of 4.8%. This trade will have roughly 3.5% downside protection, while still aiming for a 4.8% return in 39 days. It will lock in that return as long as Apple is above $128.57 on 4/17/2015. For comparison purposes only, this AAPL covered call aims for an annualized return rate of 45.3%. Walt Disney (NYSE: DIS) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $103.85 while simultaneously selling the October $105.00 call will result in a new position with a target return of 7.2%. Based on recent prices, this position will cost about $97.93, which is also the trade?s breakeven point. At that level, this covered call has 5.7% downside protection, while still providing a 7.2% return in 221 days as long as DIS is above $105.00 on 10/16/2015. For comparison purposes only, this Walt Disney covered call aims for an annualized return rate of 11.9%. Tesla (NASDAQ: TSLA) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the April $195.00 call while at the same time buying TSLA stock for $194.75 will produce a new covered call with a target return of 5.3%. Based on recent data, this trade will cost about $185.20, which is also the covered call?s breakeven point. At that price, this covered call has 4.9% downside protection, while seeking an assigned return of 5.3% return in 39 days. If TSLA is higher than $195.00 on 4/17/2015, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 49.5%. Ballard Power Systems (NASDAQ: BLDP) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $2.29 while selling the January $2.50 call will produce a new covered call with a break-even point around $1.79. At that price, this position has a target return of 39.7%. This trade will have roughly 21.8% downside protection, while still aiming for a 39.7% return in 312 days. It will lock in that return as long as Ballard Power Systems is above $2.50 on 1/15/2016. For comparison purposes only, this BLDP covered call aims for an annualized return rate of 46.4%. (To avoid having your profit margin narrowed by transaction costs, consider making this trade with multiple contracts.) Organovo (AMEX: ONVO) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $5.64 while simultaneously selling the January $7.00 call will result in a new position with a target return of 41.7%. Based on recent prices, this position will cost about $4.94, which is also the trade?s breakeven point. At that level, this covered call has 12.4% downside protection, while still providing a 41.7% return in 312 days as long as ONVO is above $7.00 on 1/15/2016. For comparison purposes only, this Organovo covered call aims for an annualized return rate of 48.8%. (To avoid having your profit margin narrowed by transaction costs, consider making this trade with multiple contracts.) Micron Technology (NASDAQ: MU) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the April $29.00 call while at the same time buying MU stock for $28.59 will produce a new covered call with a target return of 6.3%. Based on recent data, this trade will cost about $27.28, which is also the covered call?s breakeven point. At that price, this covered call has 4.6% downside protection, while seeking an assigned return of 6.3% return in 39 days. If MU is higher than $29.00 on 4/17/2015, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 59.0%. Alibaba (NYSE: BABA) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $84.48 while selling the April $85.00 call will produce a new covered call with a break-even point around $81.23. At that price, this position has a target return of 4.6%. This trade will have roughly 3.8% downside protection, while still aiming for a 4.6% return in 39 days. It will lock in that return as long as Alibaba is above $85.00 on 4/17/2015. For comparison purposes only, this BABA covered call aims for an annualized return rate of 43.4%. JC Penney (NYSE: JCP) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $7.67 while simultaneously selling the January $7.00 call will result in a new position with a target return of 14.9%. Based on recent prices, this position will cost about $6.09, which is also the trade?s breakeven point. At that level, this covered call has 20.6% downside protection, while still providing a 14.9% return in 312 days as long as JCP is above $7.00 on 1/15/2016. For comparison purposes only, this JC Penney covered call aims for an annualized return rate of 17.5%. ExOne (NASDAQ: XONE) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $14.13 while selling the May $15.00 call will produce a new covered call with a break-even point around $13.08. At that price, this position has a target return of 14.7%. This trade will have roughly 7.4% downside protection, while still aiming for a 14.7% return in 67 days. It will lock in that return as long as ExOne is above $15.00 on 5/15/2015. For comparison purposes only, this XONE covered call aims for an annualized return rate of 79.9%. Schwab (NYSE: SCHW) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the June $32.00 call while simultaneously buying SCHW stock for $31.04 will result in a new position with a break-even point around $29.71. At that price, this position has a target return of 7.7%. This trade has 4.3% downside protection, while still providing a 7.7% return in 102 days as long as SCHW is above $32.00 on 6/19/2015. For comparison purposes only, this Schwab covered call targets an annualized return rate of 27.6%. Time Warner Cable Inc. (NYSE: TWC) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the April $160.00 call while simultaneously buying TWC stock for $159.02 will result in a new position with a break-even point around $152.92. At that price, this position has a target return of 4.6%. This trade has 3.8% downside protection, while still providing a 4.6% return in 39 days as long as TWC is above $160.00 on 4/17/2015. For comparison purposes only, this Time Warner Cable Inc. covered call targets an annualized return rate of 43.2%. Delta Air Lines (NYSE: DAL) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $44.00 while selling the April $43.00 call will produce a new covered call with a break-even point around $41.30. At that price, this position has a target return of 4.1%. This trade will have roughly 6.1% downside protection, while still aiming for a 4.1% return in 39 days. It will lock in that return as long as Delta Air Lines is above $43.00 on 4/17/2015. For comparison purposes only, this DAL covered call aims for an annualized return rate of 38.5%. Athenahealth (NASDAQ: ATHN) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $121.72 while simultaneously selling the April $125.00 call will result in a new position with a target return of 6.0%. Based on recent prices, this position will cost about $117.97, which is also the trade?s breakeven point. At that level, this covered call has 3.1% downside protection, while still providing a 6.0% return in 39 days as long as ATHN is above $125.00 on 4/17/2015. For comparison purposes only, this Athenahealth covered call aims for an annualized return rate of 55.7%. Glu Mobile (NASDAQ: GLUU) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $4.96 while selling the January $5.00 call will produce a new covered call with a break-even point around $3.96. At that price, this position has a target return of 26.3%. This trade will have roughly 20.2% downside protection, while still aiming for a 26.3% return in 312 days. It will lock in that return as long as Glu Mobile is above $5.00 on 1/15/2016. For comparison purposes only, this GLUU covered call aims for an annualized return rate of 30.7%. ConocoPhillips (NYSE: COP) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the April $65.00 call while at the same time buying COP stock for $62.85 will produce a new covered call with a target return of 5.2%. Based on recent data, this trade will cost about $61.77, which is also the covered call?s breakeven point. At that price, this covered call has 1.7% downside protection, while seeking an assigned return of 5.2% return in 39 days. If COP is higher than $65.00 on 4/17/2015, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 48.9%. Biogen Idec (NASDAQ: BIIB) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the April $415.00 call while simultaneously buying BIIB stock for $417.50 will result in a new position with a break-even point around $398.00. At that price, this position has a target return of 4.3%. This trade has 4.7% downside protection, while still providing a 4.3% return in 39 days as long as BIIB is above $415.00 on 4/17/2015. 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In Europe, stocks are lower as markets there follow U.S. stocks' Friday move down. The FTSE is down 0.66% and the DAX is down 0.11%. FUTURES & CURRENCIES West Texas Intermediate crude oil is up $0.13 to $49.74 while NYMEX natural gas is down $0.10 to $2.74. In metals, gold is up $5 to $1,174, silver is down one cent to $15.93 and platinum is down $3 to $1,162. The US Dollar is weaker vs. the Euro and stronger vs the Yen. PUT/CALL RATIO Friday, 1,116,602 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 743,627 put contracts. The single-session put/call was 0.67, while the 20-day moving average is now at 0.62. TODAY'S ECONOMIC CALENDAR There is no economic data to be released today. EARNINGS EXPECTED TODAY APP LITB URBN 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 |
