MORNING UPDATE: PriceWatch Alerts for MU and More... for 2015-02-11 |
| MORNING UPDATE FOR FEBRUARY 11, 2015 PriceWatch Alerts for MU, XONE, ARO, MOH, AU, AAPL, RGLS, XON, TPX and SINA. Micron Technology (NASDAQ: MU) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $31.05 while selling the April $31.00 call will produce a new covered call with a break-even point around $28.89. At that price, this position has a target return of 7.3%. This trade will have roughly 7.0% downside protection, while still aiming for a 7.3% return in 65 days. It will lock in that return as long as Micron Technology is above $31.00 on 4/17/2015. For comparison purposes only, this MU covered call aims for an annualized return rate of 41.0%. ExOne (NASDAQ: XONE) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $15.53 while simultaneously selling the May $17.50 call will result in a new position with a target return of 21.4%. Based on recent prices, this position will cost about $14.42, which is also the trade?s breakeven point. At that level, this covered call has 7.1% downside protection, while still providing a 21.4% return in 93 days as long as XONE is above $17.50 on 5/15/2015. For comparison purposes only, this ExOne covered call aims for an annualized return rate of 83.8%. Aeropostale (NYSE: ARO) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $3.08 while selling the June $3.00 call will produce a new covered call with a break-even point around $2.25. At that price, this position has a target return of 33.3%. This trade will have roughly 26.9% downside protection, while still aiming for a 33.3% return in 128 days. It will lock in that return as long as Aeropostale is above $3.00 on 6/19/2015. For comparison purposes only, this ARO covered call aims for an annualized return rate of 95.0%. Molina Healthcare (NYSE: MOH) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the June $50.00 call while at the same time buying MOH stock for $50.60 will produce a new covered call with a target return of 13.3%. Based on recent data, this trade will cost about $44.15, which is also the covered call?s breakeven point. At that price, this covered call has 12.7% downside protection, while seeking an assigned return of 13.3% return in 128 days. If MOH is higher than $50.00 on 6/19/2015, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 37.8%. AngloGold Ashanti (NYSE: AU) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the July $13.00 call while simultaneously buying AU stock for $12.22 will result in a new position with a break-even point around $10.82. At that price, this position has a target return of 20.1%. This trade has 11.5% downside protection, while still providing a 20.1% return in 156 days as long as AU is above $13.00 on 7/17/2015. For comparison purposes only, this AngloGold Ashanti covered call targets an annualized return rate of 47.1%. Apple (NASDAQ: AAPL) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $122.07 while selling the May $125.00 call will produce a new covered call with a break-even point around $116.92. At that price, this position has a target return of 6.9%. This trade will have roughly 4.2% downside protection, while still aiming for a 6.9% return in 93 days. It will lock in that return as long as Apple is above $125.00 on 5/15/2015. For comparison purposes only, this AAPL covered call aims for an annualized return rate of 27.1%. Regulus Therapeutics (NASDAQ: RGLS) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $16.49 while simultaneously selling the May $17.50 call will result in a new position with a target return of 22.5%. Based on recent prices, this position will cost about $14.29, which is also the trade?s breakeven point. At that level, this covered call has 13.3% downside protection, while still providing a 22.5% return in 93 days as long as RGLS is above $17.50 on 5/15/2015. For comparison purposes only, this Regulus Therapeutics covered call aims for an annualized return rate of 88.1%. Intrexon (NYSE: XON) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $34.05 while selling the March $35.00 call will produce a new covered call with a break-even point around $31.60. At that price, this position has a target return of 10.8%. This trade will have roughly 7.2% downside protection, while still aiming for a 10.8% return in 37 days. It will lock in that return as long as Intrexon is above $35.00 on 3/20/2015. For comparison purposes only, this XON covered call aims for an annualized return rate of 106.0%. Tempur-Pedic (NYSE: TPX) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the July $55.00 call while at the same time buying TPX stock for $53.56 will produce a new covered call with a target return of 9.6%. Based on recent data, this trade will cost about $50.16, which is also the covered call?s breakeven point. At that price, this covered call has 6.3% downside protection, while seeking an assigned return of 9.6% return in 156 days. If TPX is higher than $55.00 on 7/17/2015, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 22.6%. SINA com (NASDAQ: SINA) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the June $37.50 call while simultaneously buying SINA stock for $36.99 will result in a new position with a break-even point around $34.21. At that price, this position has a target return of 9.6%. This trade has 7.5% downside protection, while still providing a 9.6% return in 128 days as long as SINA is above $37.50 on 6/19/2015. For comparison purposes only, this SINA com covered call targets an annualized return rate of 27.4%. *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 Interxion (INXN), Chicos Fas (CHS) and Paycom Software (PAYC) are higher in morning trading, while Pier 1 Imports (PIR), Achillion (ACHN) and LifeLock (LOCK) are falling. Dun & Bradstreet (DNB) and Insperity (NSP) were upgraded by analysts this morning, while Pier 1 Imports (PIR) and Crane (CR) were downgraded. INTERNATIONAL MARKETS Asian markets finished mixed Tuesday as the Chinese Central Bank injected liquidity into that economy. The Hang Seng was up 0.03% while the Nikkei fell 0.35%. In Europe, markets are mixed today as Greece has asked the Eurozone for an $11 billion bridge loan. The FTSE is down 0.19% and the French CAC 40 is up 1.15%. FUTURES & CURRENCIES West Texas Intermediate crude oil is up $0.03 to $49.99 while NYMEX natural gas is up $0.18 to $2.86. In metals, gold is up $1 to $1,235, silver is even at $16.97 and platinum is up $8 to $1,206. The US Dollar is up against the Euro and the Yen. PUT/CALL RATIO Yesterday, 897,029 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 590,045 put contracts. The single-session put/call was 0.66, while the 20-day moving average is now at 0.67. TODAY'S ECONOMIC CALENDAR 07:00 AM 2/07 MBA Mortgage Index 10:30 AM 2/07 Crude Inventories 02:00 PM Jan Treasury Budget EARNINGS EXPECTED TODAY AOL ARMK BIDU CAKE CSCO HSIC MET NVDA PEP PNRA TWX TRIP TSLA WFM 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 |
