MORNING UPDATE: PriceWatch Alerts for JCP and More... for 2015-02-18 |
| MORNING UPDATE FOR February 18, 2015 PriceWatch Alerts for JCP, TTS, SRPT, GDP, BLUE, GE, KNDI, VIPS, WAC and TASR. JC Penney (NYSE: JCP) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $8.16 while selling the January $10.00 call will produce a new covered call with a break-even point around $7.36. At that price, this position has a target return of 35.9%. This trade will have roughly 9.8% downside protection, while still aiming for a 35.9% return in 331 days. It will lock in that return as long as JC Penney is above $10.00 on 1/15/2016. For comparison purposes only, this JCP covered call aims for an annualized return rate of 39.5%. Tile Shop (NASDAQ: TTS) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the August $10.00 call while simultaneously buying TTS stock for $10.10 will result in a new position with a break-even point around $8.55. At that price, this position has a target return of 17.0%. This trade has 15.3% downside protection, while still providing a 17.0% return in 184 days as long as TTS is above $10.00 on 8/21/2015. For comparison purposes only, this Tile Shop covered call targets an annualized return rate of 33.6%. Sarepta Therapeutics (NASDAQ: SRPT) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the May $15.00 call while simultaneously buying SRPT stock for $14.86 will result in a new position with a break-even point around $13.06. At that price, this position has a target return of 14.9%. This trade has 12.1% downside protection, while still providing a 14.9% return in 86 days as long as SRPT is above $15.00 on 5/15/2015. For comparison purposes only, this Sarepta Therapeutics covered call targets an annualized return rate of 63.0%. Goodrich Petroleum (NYSE: GDP) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the January $4.50 call while simultaneously buying GDP stock for $4.09 will result in a new position with a break-even point around $3.29. At that price, this position has a target return of 36.8%. This trade has 19.6% downside protection, while still providing a 36.8% return in 331 days as long as GDP is above $4.50 on 1/15/2016. For comparison purposes only, this Goodrich Petroleum covered call targets an annualized return rate of 40.5%. Bluebird Bio (NASDAQ: BLUE) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the May $90.00 call while simultaneously buying BLUE stock for $90.22 will result in a new position with a break-even point around $75.22. At that price, this position has a target return of 19.6%. This trade has 16.6% downside protection, while still providing a 19.6% return in 86 days as long as BLUE is above $90.00 on 5/15/2015. For comparison purposes only, this Bluebird Bio covered call targets an annualized return rate of 83.4%. General Electric (NYSE: GE) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $25.20 while selling the January $25.00 call will produce a new covered call with a break-even point around $23.90. At that price, this position has a target return of 4.6%. This trade will have roughly 5.2% downside protection, while still aiming for a 4.6% return in 331 days. It will lock in that return as long as General Electric is above $25.00 on 1/15/2016. For comparison purposes only, this GE covered call aims for an annualized return rate of 5.1%. Kandi Technologies (NASDAQ: KNDI) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $13.97 while simultaneously selling the June $15.00 call will result in a new position with a target return of 17.0%. Based on recent prices, this position will cost about $12.82, which is also the trade?s breakeven point. At that level, this covered call has 8.2% downside protection, while still providing a 17.0% return in 121 days as long as KNDI is above $15.00 on 6/19/2015. For comparison purposes only, this Kandi Technologies covered call aims for an annualized return rate of 51.3%. Vipshop (NYSE: VIPS) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $25.25 while selling the May $26.00 call will produce a new covered call with a break-even point around $23.40. At that price, this position has a target return of 11.1%. This trade will have roughly 7.3% downside protection, while still aiming for a 11.1% return in 86 days. It will lock in that return as long as Vipshop is above $26.00 on 5/15/2015. For comparison purposes only, this VIPS covered call aims for an annualized return rate of 47.2%. Walter Investment Management (AMEX: WAC) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the September $24.00 call while at the same time buying WAC stock for $23.20 will produce a new covered call with a target return of 21.8%. Based on recent data, this trade will cost about $19.70, which is also the covered call?s breakeven point. At that price, this covered call has 15.1% downside protection, while seeking an assigned return of 21.8% return in 212 days. If WAC is higher than $24.00 on 9/18/2015, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 37.6%. Taser International (NASDAQ: TASR) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the June $26.00 call while simultaneously buying TASR stock for $26.87 will result in a new position with a break-even point around $23.27. At that price, this position has a target return of 11.7%. This trade has 13.4% downside protection, while still providing a 11.7% return in 121 days as long as TASR is above $26.00 on 6/19/2015. For comparison purposes only, this Taser International covered call targets an annualized return rate of 35.4%. *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 Angie's List (ANGI), Potbelly (PBPB) and Yandex (YNDX) are headed higher in the pre-market, while MedAssets (MDAS), Fossil Group (FOSL) and Garmin (GRMN) are falling. There were no major analyst upgrades or downgrades this morning. INTERNATIONAL MARKETS Asian markets finished higher Monday as talks of a major merger in China's oil sector boosted Hong Kong stocks. The Hang Seng was up 0.19% while the Nikkei rose 1.18%. In Europe, markets are mixed today as sentiment on Greek debt talks turned optimistic. The FTSE is down 0.1% and the Dax is up 0.4%. FUTURES & CURRENCIES West Texas Intermediate crude oil is down $1.03 to $52.50 while NYMEX natural gas is up $0.01 to $2.77. In metals, gold is down $2 to $1,207, silver is flat at $16.56 and platinum is down $6 to $1,175. The US Dollar is up vs the Euro and the Yen. PUT/CALL RATIO Friday, 1,008,659 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 586,234 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 07:00 AM 02/14 MBA Mortgage Index 08:30 AM Jan Housing Starts 08:30 AM Jan Building Permits 08:30 AM Jan PPI 08:30 AM Jan Core PPI 09:15 AM Jan Industrial Production 09:15 AM Jan Capacity Utilization 02:00 PM 1/28 FOMC Minutes EARNINGS EXPECTED TODAY DENN GRMN MAR VA 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 |
