MORNING UPDATE: PriceWatch Alerts for TSLA and More...
MORNING UPDATE FOR JANUARY 23, 2015
PriceWatch Alerts for GPRO, TSLA, FSLR, BIDU, WPRT, KMI, JOBS, BIG, SBUX and LULU.
GoPro (NASDAQ: GPRO) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $48.38 while selling the March $48.00 call will produce a new covered call with a break-even point around $43.48. At that price, this position has a target return of 10.4%. This trade will have roughly 10.1% downside protection, while still aiming for a 10.4% return in 56 days. It will lock in that return as long as GoPro is above $48.00 on 3/20/2015. For comparison purposes only, this GPRO covered call aims for an annualized return rate of 67.7%.
Tesla (NASDAQ: TSLA) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $201.62 while simultaneously selling the March $200.00 call will result in a new position with a target return of 5.5%. Based on recent prices, this position will cost about $189.57, which is also the trade?s breakeven point. At that level, this covered call has 6.0% downside protection, while still providing a 5.5% return in 56 days as long as TSLA is above $200.00 on 3/20/2015. For comparison purposes only, this Tesla covered call aims for an annualized return rate of 35.8%.
First Solar (NASDAQ: FSLR) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $41.79 while selling the March $45.00 call will produce a new covered call with a break-even point around $39.54. At that price, this position has a target return of 13.8%. This trade will have roughly 5.4% downside protection, while still aiming for a 13.8% return in 56 days. It will lock in that return as long as First Solar is above $45.00 on 3/20/2015. For comparison purposes only, this FSLR covered call aims for an annualized return rate of 89.9%.
Baidu.com (NASDAQ: BIDU) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the March $230.00 call while at the same time buying BIDU stock for $229.88 will produce a new covered call with a target return of 5.7%. Based on recent data, this trade will cost about $217.68, which is also the covered call?s breakeven point. At that price, this covered call has 5.3% downside protection, while seeking an assigned return of 5.7% return in 56 days. If BIDU is higher than $230.00 on 3/20/2015, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 36.8%.
Westport Innovations (NASDAQ: WPRT) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the January $3.00 call while simultaneously buying WPRT stock for $3.34 will result in a new position with a break-even point around $2.19. At that price, this position has a target return of 37.0%. This trade has 34.4% downside protection, while still providing a 37.0% return in 357 days as long as WPRT is above $3.00 on 1/15/2016. For comparison purposes only, this Westport Innovations covered call targets an annualized return rate of 37.8%.
Kinder Morgan (NYSE: KMI) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $42.07 while selling the May $42.50 call will produce a new covered call with a break-even point around $40.59. At that price, this position has a target return of 4.7%. This trade will have roughly 3.5% downside protection, while still aiming for a 4.7% return in 112 days. It will lock in that return as long as Kinder Morgan is above $42.50 on 5/15/2015. For comparison purposes only, this KMI covered call aims for an annualized return rate of 15.3%.
51Job (NASDAQ: JOBS) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $34.10 while simultaneously selling the April $35.00 call will result in a new position with a target return of 6.9%. Based on recent prices, this position will cost about $32.75, which is also the trade?s breakeven point. At that level, this covered call has 4.0% downside protection, while still providing a 6.9% return in 84 days as long as JOBS is above $35.00 on 4/17/2015. For comparison purposes only, this 51Job covered call aims for an annualized return rate of 29.9%.
Big Lots (NYSE: BIG) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $45.17 while selling the April $47.50 call will produce a new covered call with a break-even point around $43.12. At that price, this position has a target return of 10.2%. This trade will have roughly 4.5% downside protection, while still aiming for a 10.2% return in 84 days. It will lock in that return as long as Big Lots is above $47.50 on 4/17/2015. For comparison purposes only, this BIG covered call aims for an annualized return rate of 44.1%.
Starbucks (NASDAQ: SBUX) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the April $87.50 call while at the same time buying SBUX stock for $85.35 will produce a new covered call with a target return of 4.2%. Based on recent data, this trade will cost about $83.98, which is also the covered call?s breakeven point. At that price, this covered call has 1.6% downside protection, while seeking an assigned return of 4.2% return in 84 days. If SBUX is higher than $87.50 on 4/17/2015, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 18.2%.
Lululemon Athletica (NASDAQ: LULU) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the March $65.00 call while simultaneously buying LULU stock for $63.76 will result in a new position with a break-even point around $61.16. At that price, this position has a target return of 6.3%. This trade has 4.1% downside protection, while still providing a 6.3% return in 56 days as long as LULU is above $65.00 on 3/20/2015. For comparison purposes only, this Lululemon Athletica covered call targets an annualized return rate of 40.9%.
*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
Infinera (INFN), Starbucks (SBUX) and E*Trade (ETFC) are higher in pre-market trading, while Dreamworks Animation (DWA), Altera (ALTR) and Applied Materials are lower. Michael Kors (KORS), ResMed (RMD) and Church & Dwight (CHD) were upgraded by analysts this morning, while Avon (AVP) was downgraded.
INTERNATIONAL MARKETS
Asian markets were higher Friday as investors reacted favorably to the European Central Bank?s decision to buy bonds. The Shanghai Composite was up 0.25% and the Nikkei rose 1.05%. In Europe, markets are climbing this morning after the European Central Bank announced that it will buy $58 billion in bonds per month.
FUTURES & CURRENCIES
West Texas Intermediate crude oil is up $0.10 to $46.41 while NYMEX natural gas is up $0.10 to $2.94. In metals, gold is down $5 to $1,297, silver is down $0.04 to $18.35 and platinum is down $13 to $1,277. The US Dollar is higher against the Euro and lower against the Yen.
PUT/CALL RATIO
Yesterday, 1,121,261 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 649,877 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
10:00 AM Dec Existing Home Sales
10:00 AM Dec Leading Indicators
EARNINGS EXPECTED TODAY
BK
BNCN
FCZA
FHN
GE
HON
IMS
KMB
MCD
RFIL
STT
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
PriceWatch Alerts for GPRO, TSLA, FSLR, BIDU, WPRT, KMI, JOBS, BIG, SBUX and LULU.
GoPro (NASDAQ: GPRO) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $48.38 while selling the March $48.00 call will produce a new covered call with a break-even point around $43.48. At that price, this position has a target return of 10.4%. This trade will have roughly 10.1% downside protection, while still aiming for a 10.4% return in 56 days. It will lock in that return as long as GoPro is above $48.00 on 3/20/2015. For comparison purposes only, this GPRO covered call aims for an annualized return rate of 67.7%.
Tesla (NASDAQ: TSLA) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $201.62 while simultaneously selling the March $200.00 call will result in a new position with a target return of 5.5%. Based on recent prices, this position will cost about $189.57, which is also the trade?s breakeven point. At that level, this covered call has 6.0% downside protection, while still providing a 5.5% return in 56 days as long as TSLA is above $200.00 on 3/20/2015. For comparison purposes only, this Tesla covered call aims for an annualized return rate of 35.8%.
First Solar (NASDAQ: FSLR) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $41.79 while selling the March $45.00 call will produce a new covered call with a break-even point around $39.54. At that price, this position has a target return of 13.8%. This trade will have roughly 5.4% downside protection, while still aiming for a 13.8% return in 56 days. It will lock in that return as long as First Solar is above $45.00 on 3/20/2015. For comparison purposes only, this FSLR covered call aims for an annualized return rate of 89.9%.
Baidu.com (NASDAQ: BIDU) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the March $230.00 call while at the same time buying BIDU stock for $229.88 will produce a new covered call with a target return of 5.7%. Based on recent data, this trade will cost about $217.68, which is also the covered call?s breakeven point. At that price, this covered call has 5.3% downside protection, while seeking an assigned return of 5.7% return in 56 days. If BIDU is higher than $230.00 on 3/20/2015, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 36.8%.
Westport Innovations (NASDAQ: WPRT) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the January $3.00 call while simultaneously buying WPRT stock for $3.34 will result in a new position with a break-even point around $2.19. At that price, this position has a target return of 37.0%. This trade has 34.4% downside protection, while still providing a 37.0% return in 357 days as long as WPRT is above $3.00 on 1/15/2016. For comparison purposes only, this Westport Innovations covered call targets an annualized return rate of 37.8%.
Kinder Morgan (NYSE: KMI) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $42.07 while selling the May $42.50 call will produce a new covered call with a break-even point around $40.59. At that price, this position has a target return of 4.7%. This trade will have roughly 3.5% downside protection, while still aiming for a 4.7% return in 112 days. It will lock in that return as long as Kinder Morgan is above $42.50 on 5/15/2015. For comparison purposes only, this KMI covered call aims for an annualized return rate of 15.3%.
51Job (NASDAQ: JOBS) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $34.10 while simultaneously selling the April $35.00 call will result in a new position with a target return of 6.9%. Based on recent prices, this position will cost about $32.75, which is also the trade?s breakeven point. At that level, this covered call has 4.0% downside protection, while still providing a 6.9% return in 84 days as long as JOBS is above $35.00 on 4/17/2015. For comparison purposes only, this 51Job covered call aims for an annualized return rate of 29.9%.
Big Lots (NYSE: BIG) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $45.17 while selling the April $47.50 call will produce a new covered call with a break-even point around $43.12. At that price, this position has a target return of 10.2%. This trade will have roughly 4.5% downside protection, while still aiming for a 10.2% return in 84 days. It will lock in that return as long as Big Lots is above $47.50 on 4/17/2015. For comparison purposes only, this BIG covered call aims for an annualized return rate of 44.1%.
Starbucks (NASDAQ: SBUX) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the April $87.50 call while at the same time buying SBUX stock for $85.35 will produce a new covered call with a target return of 4.2%. Based on recent data, this trade will cost about $83.98, which is also the covered call?s breakeven point. At that price, this covered call has 1.6% downside protection, while seeking an assigned return of 4.2% return in 84 days. If SBUX is higher than $87.50 on 4/17/2015, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 18.2%.
Lululemon Athletica (NASDAQ: LULU) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the March $65.00 call while simultaneously buying LULU stock for $63.76 will result in a new position with a break-even point around $61.16. At that price, this position has a target return of 6.3%. This trade has 4.1% downside protection, while still providing a 6.3% return in 56 days as long as LULU is above $65.00 on 3/20/2015. For comparison purposes only, this Lululemon Athletica covered call targets an annualized return rate of 40.9%.
*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
Infinera (INFN), Starbucks (SBUX) and E*Trade (ETFC) are higher in pre-market trading, while Dreamworks Animation (DWA), Altera (ALTR) and Applied Materials are lower. Michael Kors (KORS), ResMed (RMD) and Church & Dwight (CHD) were upgraded by analysts this morning, while Avon (AVP) was downgraded.
INTERNATIONAL MARKETS
Asian markets were higher Friday as investors reacted favorably to the European Central Bank?s decision to buy bonds. The Shanghai Composite was up 0.25% and the Nikkei rose 1.05%. In Europe, markets are climbing this morning after the European Central Bank announced that it will buy $58 billion in bonds per month.
FUTURES & CURRENCIES
West Texas Intermediate crude oil is up $0.10 to $46.41 while NYMEX natural gas is up $0.10 to $2.94. In metals, gold is down $5 to $1,297, silver is down $0.04 to $18.35 and platinum is down $13 to $1,277. The US Dollar is higher against the Euro and lower against the Yen.
PUT/CALL RATIO
Yesterday, 1,121,261 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 649,877 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
10:00 AM Dec Existing Home Sales
10:00 AM Dec Leading Indicators
EARNINGS EXPECTED TODAY
BK
BNCN
FCZA
FHN
GE
HON
IMS
KMB
MCD
RFIL
STT
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
