MORNING UPDATE: PriceWatch Alerts for RAD and More... for 2015-02-27 |
| MORNING UPDATE FOR FEBRUARY 27, 2015 PriceWatch Alerts for RAD, BAC, AMZN, INFN, IBM, JUNO, LOCO, SSYS, SODA and OLED. Rite Aid (NYSE: RAD) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $8.15 while selling the October $8.00 call will produce a new covered call with a break-even point around $7.08. At that price, this position has a target return of 13.0%. This trade will have roughly 13.1% downside protection, while still aiming for a 13.0% return in 231 days. It will lock in that return as long as Rite Aid is above $8.00 on 10/16/2015. For comparison purposes only, this RAD covered call aims for an annualized return rate of 20.5%. 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 $16.04 while simultaneously selling the November $16.00 call will result in a new position with a target return of 8.0%. Based on recent prices, this position will cost about $14.81, which is also the trade?s breakeven point. At that level, this covered call has 7.7% downside protection, while still providing a 8.0% return in 266 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 11.0%. Amazon (NASDAQ: AMZN) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $384.30 while selling the May $400.00 call will produce a new covered call with a break-even point around $368.95. At that price, this position has a target return of 8.4%. This trade will have roughly 4.0% downside protection, while still aiming for a 8.4% return in 77 days. It will lock in that return as long as Amazon is above $400.00 on 5/15/2015. For comparison purposes only, this AMZN covered call aims for an annualized return rate of 39.9%. Infinera (NASDAQ: INFN) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the July $17.00 call while at the same time buying INFN stock for $17.36 will produce a new covered call with a target return of 10.7%. Based on recent data, this trade will cost about $15.36, which is also the covered call?s breakeven point. At that price, this covered call has 11.5% downside protection, while seeking an assigned return of 10.7% return in 140 days. If INFN is higher than $17.00 on 7/17/2015, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 27.8%. International Business Machines (NYSE: IBM) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the July $170.00 call while simultaneously buying IBM stock for $161.07 will result in a new position with a break-even point around $157.87. At that price, this position has a target return of 7.7%. This trade has 2.0% downside protection, while still providing a 7.7% return in 140 days as long as IBM is above $170.00 on 7/17/2015. For comparison purposes only, this International Business Machines covered call targets an annualized return rate of 20.0%. Juno Therapeutics (NASDAQ: JUNO) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $47.40 while selling the April $50.00 call will produce a new covered call with a break-even point around $43.90. At that price, this position has a target return of 13.9%. This trade will have roughly 7.4% downside protection, while still aiming for a 13.9% return in 49 days. It will lock in that return as long as Juno Therapeutics is above $50.00 on 4/17/2015. For comparison purposes only, this JUNO covered call aims for an annualized return rate of 103.5%. El Pollo Loco (NASDAQ: LOCO) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $24.86 while simultaneously selling the April $25.00 call will result in a new position with a target return of 7.5%. Based on recent prices, this position will cost about $23.26, which is also the trade?s breakeven point. At that level, this covered call has 6.4% downside protection, while still providing a 7.5% return in 49 days as long as LOCO is above $25.00 on 4/17/2015. For comparison purposes only, this El Pollo Loco covered call aims for an annualized return rate of 55.7%. Stratasys (NASDAQ: SSYS) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $61.25 while selling the June $65.00 call will produce a new covered call with a break-even point around $56.65. At that price, this position has a target return of 14.7%. This trade will have roughly 7.5% downside protection, while still aiming for a 14.7% return in 112 days. It will lock in that return as long as Stratasys is above $65.00 on 6/19/2015. For comparison purposes only, this SSYS covered call aims for an annualized return rate of 48.0%. SodaStream (NASDAQ: SODA) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the April $17.50 call while at the same time buying SODA stock for $17.23 will produce a new covered call with a target return of 8.2%. Based on recent data, this trade will cost about $16.18, which is also the covered call?s breakeven point. At that price, this covered call has 6.1% downside protection, while seeking an assigned return of 8.2% return in 49 days. If SODA is higher than $17.50 on 4/17/2015, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 60.7%. Universal Display (NASDAQ: OLED) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the April $38.00 call while simultaneously buying OLED stock for $34.90 will result in a new position with a break-even point around $33.10. At that price, this position has a target return of 14.8%. This trade has 5.2% downside protection, while still providing a 14.8% return in 49 days as long as OLED is above $38.00 on 4/17/2015. For comparison purposes only, this Universal Display covered call targets an annualized return rate of 110.2%. *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? 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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 Infoblox (BLOX), Monster Beverage (MNST) and Splunk (SPLK) are higher in pre-market trading, while JC Penney (JCP), Potbelly (PBPB) and Acadia Pharmaceuticals (ACAD) are lower. Kohl's (KSS) was upgraded by analysts this morning, while Ocwen Financial (OCN) was downgraded. INTERNATIONAL MARKETS Asian markets were mixed on Friday as Japanese stocks were lifted by domestic pension fund buying. The Hang Seng was down 0.29% while the Nikkei rose 0.06%. European markets are mixed this morning after the Stoxx Europe 600 reached a seven year high Thursday. The FTSE is down 0.20% and the DAX is up 0.13%. FUTURES & CURRENCIES West Texas Intermediate crude oil is up $0.79 to $48.96 while NYMEX natural gas is down $0.01 to $2.89. In metals, gold is flat at $1,210, silver is up $0.07 to $16.56and platinum is down $18 to $1,182. The US Dollar is down vs the Euro and the Yen. PUT/CALL RATIO Yesterday, 1,139,947 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 744,545 put contracts. The single-session put/call was 0.65, while the 20-day moving average is now at 0.63. TODAY'S ECONOMIC CALENDAR 08:30 AM Q4 GDP-Second Estimate 08:30 AM Q4 GDP Deflator ? Second Estimate 09:45 AM Feb Chicago PMI 10:00 AM Feb Michigan Sentiment - Final 10:00 AM Jan Pending Home Sales EARNINGS EXPECTED TODAY ESTE LOXO SWAY 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 |
