MORNING UPDATE: PriceWatch Alerts for APA and More... for 2015-02-23 |
| MORNING UPDATE FOR FEBRUARY 23, 2015 PriceWatch Alerts for APA, PANW, VRX, BMY, CODE, SLXP, CBRL, CMCSA, XOM and LINE. Apache (NYSE: APA) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $66.22 while selling the April $70.00 call will produce a new covered call with a break-even point around $64.57. At that price, this position has a target return of 8.4%. This trade will have roughly 2.5% downside protection, while still aiming for a 8.4% return in 53 days. It will lock in that return as long as Apache is above $70.00 on 4/17/2015. For comparison purposes only, this APA covered call aims for an annualized return rate of 57.8%. Palo Alto Networks (NYSE: PANW) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $141.80 while simultaneously selling the June $140.00 call will result in a new position with a target return of 8.8%. Based on recent prices, this position will cost about $128.70, which is also the trade?s breakeven point. At that level, this covered call has 9.2% downside protection, while still providing a 8.8% return in 116 days as long as PANW is above $140.00 on 6/19/2015. For comparison purposes only, this Palo Alto Networks covered call aims for an annualized return rate of 27.6%. Valeant Pharmaceuticals. (NYSE: VRX) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $175.50 while selling the April $180.00 call will produce a new covered call with a break-even point around $170.70. At that price, this position has a target return of 5.4%. This trade will have roughly 2.7% downside protection, while still aiming for a 5.4% return in 53 days. It will lock in that return as long as Valeant Pharmaceuticals. is above $180.00 on 4/17/2015. For comparison purposes only, this VRX covered call aims for an annualized return rate of 37.5%. Bristol Myers (NYSE: BMY) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the June $62.50 call while at the same time buying BMY stock for $60.10 will produce a new covered call with a target return of 7.6%. Based on recent data, this trade will cost about $58.10, 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 7.6% return in 116 days. If BMY is higher than $62.50 on 6/19/2015, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 23.8%. Spansion (NYSE: CODE) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the March $37.00 call while simultaneously buying CODE stock for $36.60 will result in a new position with a break-even point around $35.35. At that price, this position has a target return of 4.7%. This trade has 3.4% downside protection, while still providing a 4.7% return in 25 days as long as CODE is above $37.00 on 3/20/2015. For comparison purposes only, this Spansion covered call targets an annualized return rate of 68.0%. Salix Pharmaceuticals (NASDAQ: SLXP) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $158.75 while selling the March $165.00 call will produce a new covered call with a break-even point around $157.15. At that price, this position has a target return of 5.0%. This trade will have roughly 1.0% downside protection, while still aiming for a 5.0% return in 25 days. It will lock in that return as long as Salix Pharmaceuticals is above $165.00 on 3/20/2015. For comparison purposes only, this SLXP covered call aims for an annualized return rate of 72.9%. Cracker Barrel Old Country Store (NASDAQ: CBRL) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $134.71 while simultaneously selling the June $140.00 call will result in a new position with a target return of 6.7%. Based on recent prices, this position will cost about $131.21, which is also the trade?s breakeven point. At that level, this covered call has 2.6% downside protection, while still providing a 6.7% return in 116 days as long as CBRL is above $140.00 on 6/19/2015. For comparison purposes only, this Cracker Barrel Old Country Store covered call aims for an annualized return rate of 21.1%. Comcast (NASDAQ: CMCSA) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $58.80 while selling the May $60.00 call will produce a new covered call with a break-even point around $57.25. At that price, this position has a target return of 4.8%. This trade will have roughly 2.6% downside protection, while still aiming for a 4.8% return in 81 days. It will lock in that return as long as Comcast is above $60.00 on 5/15/2015. For comparison purposes only, this CMCSA covered call aims for an annualized return rate of 21.6%. Exxon Mobil (NYSE: XOM) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the April $92.50 call while at the same time buying XOM stock for $89.88 will produce a new covered call with a target return of 4.5%. Based on recent data, this trade will cost about $88.50, which is also the covered call?s breakeven point. At that price, this covered call has 1.5% downside protection, while seeking an assigned return of 4.5% return in 53 days. If XOM is higher than $92.50 on 4/17/2015, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 31.1%. Linn Energy (NASDAQ: LINE) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the July $14.00 call while simultaneously buying LINE stock for $12.66 will result in a new position with a break-even point around $11.66. At that price, this position has a target return of 20.1%. This trade has 7.9% downside protection, while still providing a 20.1% return in 144 days as long as LINE is above $14.00 on 7/17/2015. For comparison purposes only, this Linn Energy covered call targets an annualized return rate of 50.8%. *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 Celldex Therapeutics (CLDX), Tower Semiconductor (TSEM) and Valeant Pharmaceuticals (VRX) are higher in pre-market trading, while HSBC (HSBC), Goodrich Petroleum and CyberArk Software (CYBR) are lower. Total SA (TOT) was upgraded by analysts this morning, while Royal Dutch Shell (RDS.A) and DIRECTV (DTV) were downgraded. INTERNATIONAL MARKETS Asian markets were higher Monday as Japanese stocks continued a four-day win streak. The Hang Seng was up 0.02% while the Nikkei rose 0.73%. In Europe, markets are mixed today after Eurozone officials reached an agreement on Greek debt issues. The FTSE is down 0.35% and the Dax is up 0.4%. FUTURES & CURRENCIES West Texas Intermediate crude oil is down $1.93 to $48.88 while NYMEX natural gas is up $0.04 to $2.99. In metals, gold is up $1 to $1,202, silver is up $0.23 to $16.52 and platinum is up $3 to $1,172. The US Dollar is higher vs the Euro and lower vs the Yen. PUT/CALL RATIO Friday, 1,365,182 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 727,169 put contracts. The single-session put/call was 0.53, while the 20-day moving average is now at 0.64. TODAY'S ECONOMIC CALENDAR 10:00 AM Jan Existing Home Sales EARNINGS EXPECTED TODAY DISH HSBC 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 |
