MORNING UPDATE: PriceWatch Alerts for TSLA and More... for 2015-02-17 |
| MORNING UPDATE FOR FEBRUARY 17, 2015 PriceWatch Alerts for TSLA, CYBR, REGN, MSFT, ARWR, NFLX, WWE, VISN, QCOM and TRUE. Tesla (NASDAQ: TSLA) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $202.82 while selling the March $210.00 call will produce a new covered call with a break-even point around $196.40. At that price, this position has a target return of 6.9%. This trade will have roughly 3.2% downside protection, while still aiming for a 6.9% return in 31 days. It will lock in that return as long as Tesla is above $210.00 on 3/20/2015. For comparison purposes only, this TSLA covered call aims for an annualized return rate of 81.5%. CyberArk Software (NYSE: CYBR) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $52.49 while simultaneously selling the March $50.00 call will result in a new position with a target return of 6.7%. Based on recent prices, this position will cost about $46.84, which is also the trade?s breakeven point. At that level, this covered call has 10.8% downside protection, while still providing a 6.7% return in 31 days as long as CYBR is above $50.00 on 3/20/2015. For comparison purposes only, this CyberArk Software covered call aims for an annualized return rate of 79.4%. Regeneron Pharmaceuticals (NASDAQ: REGN) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $402.25 while selling the March $410.00 call will produce a new covered call with a break-even point around $391.00. At that price, this position has a target return of 4.9%. This trade will have roughly 2.8% downside protection, while still aiming for a 4.9% return in 31 days. It will lock in that return as long as Regeneron Pharmaceuticals is above $410.00 on 3/20/2015. For comparison purposes only, this REGN covered call aims for an annualized return rate of 57.1%. Microsoft (NASDAQ: MSFT) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the May $45.00 call while at the same time buying MSFT stock for $43.87 will produce a new covered call with a target return of 5.4%. Based on recent data, this trade will cost about $42.69, which is also the covered call?s breakeven point. At that price, this covered call has 2.7% downside protection, while seeking an assigned return of 5.4% return in 87 days. If MSFT is higher than $45.00 on 5/15/2015, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 22.7%. Arrowhead (NASDAQ: ARWR) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the May $7.00 call while simultaneously buying ARWR stock for $6.78 will result in a new position with a break-even point around $5.63. At that price, this position has a target return of 24.3%. This trade has 17.0% downside protection, while still providing a 24.3% return in 87 days as long as ARWR is above $7.00 on 5/15/2015. For comparison purposes only, this Arrowhead covered call targets an annualized return rate of 102.1%. Netflix (NASDAQ: NFLX) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $466.60 while selling the March $475.00 call will produce a new covered call with a break-even point around $453.15. At that price, this position has a target return of 4.8%. This trade will have roughly 2.9% downside protection, while still aiming for a 4.8% return in 31 days. It will lock in that return as long as Netflix is above $475.00 on 3/20/2015. For comparison purposes only, this NFLX covered call aims for an annualized return rate of 56.8%. World Wrestling Entertainment (NYSE: WWE) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $16.59 while simultaneously selling the April $17.00 call will result in a new position with a target return of 9.0%. Based on recent prices, this position will cost about $15.59, which is also the trade?s breakeven point. At that level, this covered call has 6.0% downside protection, while still providing a 9.0% return in 59 days as long as WWE is above $17.00 on 4/17/2015. For comparison purposes only, this World Wrestling Entertainment covered call aims for an annualized return rate of 55.9%. VisionChina (NASDAQ: VISN) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $12.90 while selling the September $12.50 call will produce a new covered call with a break-even point around $10.45. At that price, this position has a target return of 19.6%. This trade will have roughly 19.0% downside protection, while still aiming for a 19.6% return in 213 days. It will lock in that return as long as VisionChina is above $12.50 on 9/18/2015. For comparison purposes only, this VISN covered call aims for an annualized return rate of 33.6%. Qualcomm (NASDAQ: QCOM) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the July $72.50 call while at the same time buying QCOM stock for $70.85 will produce a new covered call with a target return of 6.4%. Based on recent data, this trade will cost about $68.12, which is also the covered call?s breakeven point. At that price, this covered call has 3.9% downside protection, while seeking an assigned return of 6.4% return in 150 days. If QCOM is higher than $72.50 on 7/17/2015, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 15.6%. TrueCar (NASDAQ: TRUE) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the April $20.00 call while simultaneously buying TRUE stock for $19.55 will result in a new position with a break-even point around $17.65. At that price, this position has a target return of 13.3%. This trade has 9.7% downside protection, while still providing a 13.3% return in 59 days as long as TRUE is above $20.00 on 4/17/2015. For comparison purposes only, this TrueCar covered call targets an annualized return rate of 82.3%. *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 Vipshop Holdings (VIPS), Sarepta Therapeutics (SRPT) and Goodrich Petroleum (GDP) are higher in the pre-market, while Gold Fields (GFI), Sothebys (BID) and Alliance Fiber Optic (AFOP) are lower. There were no analyst upgrades this morning, but Rayonier (RYN) and Freescale Semiconductor (FSL) were downgraded. INTERNATIONAL MARKETS Asian markets were mixed Tuesday as The Hang Seng rose for a fourth straight day and the Shanghai Composite continued a seven day rise. The Hang Seng was up 0.24% while the Nikkei fell 0.1%. In Europe, markets are mixed today as Greek debt talks broke down on Monday. The FTSE is up 0.28% and the Dax is down 0.11%. FUTURES & CURRENCIES West Texas Intermediate crude oil is up $0.15 to $52.93 while NYMEX natural gas is up $0.06 to $2.86. In metals, gold is down $8 to $1,223, silver is down $0.55 to $16.81 and platinum is up $6 to $1,201. The US Dollar is down vs the Euro and up vs the Yen. PUT/CALL RATIO Friday, 1,318,555 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 739,576 put contracts. The single-session put/call was 0.56, while the 20-day moving average is now at 0.66. TODAY'S ECONOMIC CALENDAR 08:30 AM Feb Empire Manufacturing 10:00 AM Feb NAHB Housing Market Index 04:00 PM Dec Net Long-Term TIC Flows EARNINGS EXPECTED TODAY ADI BXMT CLD DARA DVN FDP FOSL GEN GT HTA JACK MDT MGM NCLH PBPB PRGB RAIL VNOM 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 |
