MORNING UPDATE: PriceWatch Alerts for YHOO and More... for 2015-01-28 |
| MORNING UPDATE FOR JANUARY 28, 2015 PriceWatch Alerts for JUNO, RMBS, WWE, T, AMAT, GE, WBMD, TER, FEYE and YHOO. Juno Therapeutics (NASDAQ: JUNO) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $45.75 while selling the March $50.00 call will produce a new covered call with a break-even point around $42.30. At that price, this position has a target return of 18.2%. This trade will have roughly 7.5% downside protection, while still aiming for a 18.2% return in 51 days. It will lock in that return as long as Juno Therapeutics is above $50.00 on 3/20/2015. For comparison purposes only, this JUNO covered call aims for an annualized return rate of 130.3%. Rambus (NASDAQ: RMBS) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $10.51 while simultaneously selling the May $11.00 call will result in a new position with a target return of 17.3%. Based on recent prices, this position will cost about $9.38, which is also the trade?s breakeven point. At that level, this covered call has 10.8% downside protection, while still providing a 17.3% return in 107 days as long as RMBS is above $11.00 on 5/15/2015. For comparison purposes only, this Rambus covered call aims for an annualized return rate of 58.9%. World Wrestling Entertainment (NYSE: WWE) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $12.38 while selling the July $12.00 call will produce a new covered call with a break-even point around $10.98. At that price, this position has a target return of 9.3%. This trade will have roughly 11.3% downside protection, while still aiming for a 9.3% return in 170 days. It will lock in that return as long as World Wrestling Entertainment is above $12.00 on 7/17/2015. For comparison purposes only, this WWE covered call aims for an annualized return rate of 19.9%. AT&T (NYSE: T) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the October $34.00 call while at the same time buying T stock for $32.81 will produce a new covered call with a target return of 6.9%. Based on recent data, this trade will cost about $31.81, which is also the covered call?s breakeven point. At that price, this covered call has 3.0% downside protection, while seeking an assigned return of 6.9% return in 261 days. If T is higher than $34.00 on 10/16/2015, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 9.6%. Applied Materials (NASDAQ: AMAT) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the March $24.00 call while simultaneously buying AMAT stock for $23.67 will result in a new position with a break-even point around $22.60. At that price, this position has a target return of 6.2%. This trade has 4.5% downside protection, while still providing a 6.2% return in 51 days as long as AMAT is above $24.00 on 3/20/2015. For comparison purposes only, this Applied Materials covered call targets an annualized return rate of 44.3%. General Electric (NYSE: GE) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $24.50 while selling the September $25.00 call will produce a new covered call with a break-even point around $23.62. At that price, this position has a target return of 5.8%. This trade will have roughly 3.6% downside protection, while still aiming for a 5.8% return in 234 days. It will lock in that return as long as General Electric is above $25.00 on 9/18/2015. For comparison purposes only, this GE covered call aims for an annualized return rate of 9.1%. WebMD Health (NASDAQ: WBMD) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $40.81 while simultaneously selling the March $45.00 call will result in a new position with a target return of 13.0%. Based on recent prices, this position will cost about $39.81, which is also the trade?s breakeven point. At that level, this covered call has 2.5% downside protection, while still providing a 13.0% return in 52 days as long as WBMD is above $45.00 on 3/20/2015. For comparison purposes only, this WebMD Health covered call aims for an annualized return rate of 91.5%. Teradyne (NYSE: TER) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $18.88 while selling the April $19.00 call will produce a new covered call with a break-even point around $16.98. At that price, this position has a target return of 11.9%. This trade will have roughly 10.1% downside protection, while still aiming for a 11.9% return in 80 days. It will lock in that return as long as Teradyne is above $19.00 on 4/17/2015. For comparison purposes only, this TER covered call aims for an annualized return rate of 54.2%. FireEye (NASDAQ: FEYE) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the February $35.00 call while at the same time buying FEYE stock for $34.96 will produce a new covered call with a target return of 7.0%. Based on recent data, this trade will cost about $32.71, which is also the covered call?s breakeven point. At that price, this covered call has 6.4% downside protection, while seeking an assigned return of 7.0% return in 24 days. If FEYE is higher than $35.00 on 2/20/2015, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 106.5%. Yahoo (NASDAQ: YHOO) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the April $55.00 call while simultaneously buying YHOO stock for $51.82 will result in a new position with a break-even point around $50.72. At that price, this position has a target return of 8.4%. This trade has 2.1% downside protection, while still providing a 8.4% return in 80 days as long as YHOO is above $55.00 on 4/17/2015. For comparison purposes only, this Yahoo covered call targets an annualized return rate of 38.5%. *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? Check out our RadioActive Home Study Kit (http://www.poweropt.com/psDetails.asp?pid=25)! Learn how to limit your risks in any trade and keep your upside open ? 'Cut your losers short and let your winners run'. These limited risk techniques have saved investors thousands of dollars during unexpected market downturns and Black Swan events. The RadioActive Home Study Kit teaches the proper limited risk trade setup and the 10 different Income Methods that are used to lower the initial risk, potentially bulletproof your stock positions and earn extra income. The RadioActive Home Study Kit comes with a money back guarantee and a free month of access to the patented PowerOptions Suite of Tools! Can you back test these strategies? Yes, you can! PowerOptions offers a full back testing screener, SmartHistoryXL, to its subscribers. Back test over 20 different options strategies using your personal search criteria. 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 Apple (AAPL), Juniper Networks (JNPR), Yahoo (YHOO) and US Steel (X) are rising in pre-market trading, while Petrobras (PBR) and Agios Pharmaceuticals (AGIO) are falling. Packaging Corp (PKG) was upgraded by analysts this morning, while VMware (VMW) was downgraded. INTERNATIONAL MARKETS Asian markets were mixed Tuesday as Japanese stocks rose to a one month high. The Shanghai Composite was down 1.41% while the Nikkei rose 0.15%. In Europe, markets are mixed this morning as Greek stocks fell for a third day. The FTSE is up 0.15% and the German Dax is up 0.17% FUTURES & CURRENCIES West Texas Intermediate crude oil is down $0.73 to $45.50 while NYMEX natural gas is down $0.09 to $2.90. In metals, gold is down $8 to $1,289, silver is down $0.04 to $18.08 and platinum is down $4 to $1,265. The US Dollar is higher against the Euro and the Yen. PUT/CALL RATIO Yesterday, 945,523 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 716,428 put contracts. The single-session put/call was 0.76, while the 20-day moving average is now at 0.67. TODAY'S ECONOMIC CALENDAR 07:00 AM 1/24 MBA Mortgage Index 10:30 AM 1/17 Crude Inventories 02:00 PM Jan FOMC Rate Decision EARNINGS EXPECTED TODAY BA BIIB CTXS EMC FB GD LVS PX QCOM TSCO VRTX 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 |
