MORNING UPDATE: PriceWatch Alerts for AAL and More... for 2015-03-04 |
| MORNING UPDATE FOR MARCH 4, 2015 PriceWatch Alerts for AAL, OREX, UAL, WYNN, TJX, INO, DLTR, XON, HOG, AWAY, BOX, ACHN, KMI, MDLZ and BRCM. American Airlines (NASDAQ: AAL) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $48.75 while selling the April $49.00 call will produce a new covered call with a break-even point around $46.03. At that price, this position has a target return of 6.5%. This trade will have roughly 5.6% downside protection, while still aiming for a 6.5% return in 44 days. It will lock in that return as long as American Airlines is above $49.00 on 4/17/2015. For comparison purposes only, this AAL covered call aims for an annualized return rate of 53.5%. Orexigen Therapeutics (NASDAQ: OREX) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $7.73 while simultaneously selling the July $8.00 call will result in a new position with a target return of 19.8%. Based on recent prices, this position will cost about $6.68, which is also the trade?s breakeven point. At that level, this covered call has 13.6% downside protection, while still providing a 19.8% return in 135 days as long as OREX is above $8.00 on 7/17/2015. For comparison purposes only, this Orexigen Therapeutics covered call aims for an annualized return rate of 53.4%. United Continental (NYSE: UAL) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $68.85 while selling the April $70.00 call will produce a new covered call with a break-even point around $65.20. At that price, this position has a target return of 7.4%. This trade will have roughly 5.3% downside protection, while still aiming for a 7.4% return in 44 days. It will lock in that return as long as United Continental is above $70.00 on 4/17/2015. For comparison purposes only, this UAL covered call aims for an annualized return rate of 61.1%. Wynn Resorts (NASDAQ: WYNN) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the June $144.00 call while at the same time buying WYNN stock for $140.07 will produce a new covered call with a target return of 8.5%. Based on recent data, this trade will cost about $132.72, which is also the covered call?s breakeven point. At that price, this covered call has 5.2% downside protection, while seeking an assigned return of 8.5% return in 107 days. If WYNN is higher than $144.00 on 6/19/2015, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 29.0%. TJX (NYSE: TJX) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the July $70.00 call while simultaneously buying TJX stock for $68.61 will result in a new position with a break-even point around $66.01. At that price, this position has a target return of 6.0%. This trade has 3.8% downside protection, while still providing a 6.0% return in 135 days as long as TJX is above $70.00 on 7/17/2015. For comparison purposes only, this TJX covered call targets an annualized return rate of 16.3%. Inovio Pharmaceuticals (AMEX: INO) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $7.05 while selling the August $8.00 call will produce a new covered call with a break-even point around $6.05. At that price, this position has a target return of 32.2%. This trade will have roughly 14.2% downside protection, while still aiming for a 32.2% return in 170 days. It will lock in that return as long as Inovio Pharmaceuticals is above $8.00 on 8/21/2015. For comparison purposes only, this INO covered call aims for an annualized return rate of 69.2%. Dollar Tree (NASDAQ: DLTR) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $79.16 while simultaneously selling the August $80.00 call will result in a new position with a target return of 7.0%. Based on recent prices, this position will cost about $74.76, which is also the trade?s breakeven point. At that level, this covered call has 5.6% downside protection, while still providing a 7.0% return in 170 days as long as DLTR is above $80.00 on 8/21/2015. For comparison purposes only, this Dollar Tree covered call aims for an annualized return rate of 15.0%. Intrexon (NYSE: XON) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $48.55 while selling the April $50.00 call will produce a new covered call with a break-even point around $43.95. At that price, this position has a target return of 13.8%. This trade will have roughly 9.5% downside protection, while still aiming for a 13.8% return in 44 days. It will lock in that return as long as Intrexon is above $50.00 on 4/17/2015. For comparison purposes only, this XON covered call aims for an annualized return rate of 114.1%. Harley Davidson (NYSE: HOG) 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 HOG stock for $64.15 will produce a new covered call with a target return of 4.9%. Based on recent data, this trade will cost about $61.95, which is also the covered call?s breakeven point. At that price, this covered call has 3.4% downside protection, while seeking an assigned return of 4.9% return in 72 days. If HOG 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 24.9%. HomeAway (NASDAQ: AWAY) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the July $32.00 call while simultaneously buying AWAY stock for $31.80 will result in a new position with a break-even point around $29.15. At that price, this position has a target return of 9.8%. This trade has 8.3% downside protection, while still providing a 9.8% return in 135 days as long as AWAY is above $32.00 on 7/17/2015. For comparison purposes only, this HomeAway covered call targets an annualized return rate of 26.4%. Box (NYSE: BOX) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $18.58 while selling the June $19.00 call will produce a new covered call with a break-even point around $16.58. At that price, this position has a target return of 14.6%. This trade will have roughly 10.8% downside protection, while still aiming for a 14.6% return in 107 days. It will lock in that return as long as Box is above $19.00 on 6/19/2015. For comparison purposes only, this BOX covered call aims for an annualized return rate of 49.8%. Achillion Pharmaceuticals (NASDAQ: ACHN) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $11.76 while simultaneously selling the June $13.00 call will result in a new position with a target return of 28.0%. Based on recent prices, this position will cost about $10.16, which is also the trade?s breakeven point. At that level, this covered call has 13.6% downside protection, while still providing a 28.0% return in 107 days as long as ACHN is above $13.00 on 6/19/2015. For comparison purposes only, this Achillion Pharmaceuticals covered call aims for an annualized return rate of 95.3%. Kinder Morgan (NYSE: KMI) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $41.09 while selling the September $42.50 call will produce a new covered call with a break-even point around $40.04. At that price, this position has a target return of 6.1%. This trade will have roughly 2.6% downside protection, while still aiming for a 6.1% return in 198 days. It will lock in that return as long as Kinder Morgan is above $42.50 on 9/18/2015. For comparison purposes only, this KMI covered call aims for an annualized return rate of 11.3%. Mondelez (NASDAQ: MDLZ) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the June $37.00 call while at the same time buying MDLZ stock for $36.64 will produce a new covered call with a target return of 4.4%. Based on recent data, this trade will cost about $35.44, which is also the covered call?s breakeven point. At that price, this covered call has 3.3% downside protection, while seeking an assigned return of 4.4% return in 107 days. If MDLZ is higher than $37.00 on 6/19/2015, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 15.0%. Broadcom (NASDAQ: BRCM) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the May $46.00 call while simultaneously buying BRCM stock for $45.43 will result in a new position with a break-even point around $43.71. At that price, this position has a target return of 5.2%. This trade has 3.8% downside protection, while still providing a 5.2% return in 72 days as long as BRCM is above $46.00 on 5/15/2015. 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Can you back test these strategies? Yes, you can! PowerOptions offers a full back testing screener, SmartHistoryXL, to its subscribers. Back test over 20 different options strategies using your personal search criteria. Check out PowerOptions SmartHistoryXL (http://www.poweropt.com/optionsbacktesting-instructions.asp) and start back testing today! NOTE: All stocks and options shown are examples only. These are not recommendations to buy or sell any security. STOCKS ON THE MOVE Smith and Wesson (SWHC), Ambarella (AMBA) and Orexigen Therapeutics (OREX) are higher in pre-market trading, while Bob Evans Farms (BOBE), Veeva Systems (VEEV) and Abercrombie & Fitch (ANF) are lower. McDonald's (MCD) was upgraded by analysts this morning, while Baker Hughes (BHI) and Dick's Sporting Goods (DKS) were downgraded. INTERNATIONAL MARKETS Asian markets finished mixed Tuesday as investors wait for China to announce its economic goals for the year on Thursday. The Shanghai Composite moved up 0.51% while the Nikkei fell 0.59%. In Europe, markets are little moved, wavering after mixed economic reports in the region. The FTSE is down 0.19% and the DAX is up 0.08%. FUTURES & CURRENCIES West Texas Intermediate crude oil is up $0.50 to $51.02 while NYMEX natural gas is up $0.02 to $2.74. In metals, gold is up $1 to $1,205, silver is up $0.01 to $16.34 and platinum is down $5 to $1,187. The US Dollar is higher against the Euro and lower against the Yen. PUT/CALL RATIO Yesterday, 830,818 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 545,030 put contracts. The single-session put/call was 0.66, while the 20-day moving average is now at 0.61. TODAY'S ECONOMIC CALENDAR 07:00 AM 2/28 MBA Mortgage Index 08:15 AM Feb ADP Employment Change 10:00 AM Feb ISM Services 10:30 AM 2/28 Crude Inventories 02:00 PM Mar Fed?s Beige Book EARNINGS EXPECTED TODAY BF-B COKE ERJ HRB INXN LMOS PETM VLCCF VTAE 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 |
