MORNING UPDATE: PriceWatch Alerts for NFLX and More... for 2015-01-22 |
| MORNING UPDATE FOR JANUARY 22, 2015 PriceWatch Alerts for NFLX, PXLW, NSP, MA, BA, AAPL, VJET, CELG, TASR and FNSR. Netflix (NASDAQ: NFLX) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $409.00 while selling the March $405.00 call will produce a new covered call with a break-even point around $386.05. At that price, this position has a target return of 4.9%. This trade will have roughly 5.6% downside protection, while still aiming for a 4.9% return in 57 days. It will lock in that return as long as Netflix is above $405.00 on 3/20/2015. For comparison purposes only, this NFLX covered call aims for an annualized return rate of 31.4%. Pixelworks (NASDAQ: PXLW) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $4.85 while simultaneously selling the August $5.00 call will result in a new position with a target return of 28.2%. Based on recent prices, this position will cost about $3.90, which is also the trade?s breakeven point. At that level, this covered call has 19.6% downside protection, while still providing a 28.2% return in 211 days as long as PXLW is above $5.00 on 8/21/2015. For comparison purposes only, this Pixelworks covered call aims for an annualized return rate of 48.8%. Insperity (NYSE: NSP) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $40.59 while selling the April $43.00 call will produce a new covered call with a break-even point around $39.34. At that price, this position has a target return of 9.3%. This trade will have roughly 3.1% downside protection, while still aiming for a 9.3% return in 85 days. It will lock in that return as long as Insperity is above $43.00 on 4/17/2015. For comparison purposes only, this NSP covered call aims for an annualized return rate of 39.9%. MasterCard (NYSE: MA) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the March $85.00 call while at the same time buying MA stock for $83.72 will produce a new covered call with a target return of 4.9%. Based on recent data, this trade will cost about $81.02, which is also the covered call?s breakeven point. At that price, this covered call has 3.2% downside protection, while seeking an assigned return of 4.9% return in 57 days. If MA is higher than $85.00 on 3/20/2015, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 31.4%. Boeing (NYSE: BA) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the April $135.00 call while simultaneously buying BA stock for $132.41 will result in a new position with a break-even point around $129.23. At that price, this position has a target return of 4.5%. This trade has 2.4% downside protection, while still providing a 4.5% return in 85 days as long as BA is above $135.00 on 4/17/2015. For comparison purposes only, this Boeing covered call targets an annualized return rate of 19.2%. Apple (NASDAQ: AAPL) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $109.56 while selling the April $110.00 call will produce a new covered call with a break-even point around $103.48. At that price, this position has a target return of 6.3%. This trade will have roughly 5.5% downside protection, while still aiming for a 6.3% return in 85 days. It will lock in that return as long as Apple is above $110.00 on 4/17/2015. For comparison purposes only, this AAPL covered call aims for an annualized return rate of 27.1%. Voxeljet (NYSE: VJET) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $8.60 while simultaneously selling the May $9.00 call will result in a new position with a target return of 19.2%. Based on recent prices, this position will cost about $7.55, which is also the trade?s breakeven point. At that level, this covered call has 12.2% downside protection, while still providing a 19.2% return in 113 days as long as VJET is above $9.00 on 5/15/2015. For comparison purposes only, this Voxeljet covered call aims for an annualized return rate of 62.0%. Celgene (NASDAQ: CELG) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $122.22 while selling the March $125.00 call will produce a new covered call with a break-even point around $117.22. At that price, this position has a target return of 6.6%. This trade will have roughly 4.1% downside protection, while still aiming for a 6.6% return in 57 days. It will lock in that return as long as Celgene is above $125.00 on 3/20/2015. For comparison purposes only, this CELG covered call aims for an annualized return rate of 42.5%. Taser International (NASDAQ: TASR) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the March $27.00 call while at the same time buying TASR stock for $26.80 will produce a new covered call with a target return of 9.8%. Based on recent data, this trade will cost about $24.60, which is also the covered call?s breakeven point. At that price, this covered call has 8.2% downside protection, while seeking an assigned return of 9.8% return in 57 days. If TASR is higher than $27.00 on 3/20/2015, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 62.4%. Finisar (NASDAQ: FNSR) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the March $19.00 call while simultaneously buying FNSR stock for $18.89 will result in a new position with a break-even point around $17.59. At that price, this position has a target return of 8.0%. This trade has 6.9% downside protection, while still providing a 8.0% return in 57 days as long as FNSR is above $19.00 on 3/20/2015. For comparison purposes only, this Finisar covered call targets an annualized return rate of 51.3%. *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 Logitech (LOGI), Blackberry (BBRY) and Transocean (RIG) are rising in pre-market trading, while F5 Networks (FFIV), SanDisk (SNDK) and Xilinx (XLNX) are falling. Church & Dwight (CHD) and SodaStream (SODA) were upgraded by analysts this morning, while Avon (AVP) and F5 Investments (FFIV). INTERNATIONAL MARKETS Asian markets finished higher on Thursday as China?s Central Bank injected cash into that country's economy. The Shanghai Composite was up 0.59% and the Nikkei rose 0.28%. In Europe, markets are mixed this morning after the European Central Bank decided to keep interest rates the same. Further announcements regarding bond buying plans are expected The FTSE is up 0.53%, and the CAC 40 is down 0.14%. FUTURES & CURRENCIES West Texas Intermediate crude oil is up $0.92 to $48.70 while NYMEX natural gas is up $0.07 to $2.91. In metals, gold is up $4 to $1,297, silver is up $0.22 to $18.39 and platinum is up $6 to $1,284. The US Dollar is up vs the Euro and down slightly vs the Yen. PUT/CALL RATIO Yesterday, 865,632 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 519,089 put contracts. The single-session put/call was 0.6, while the 20-day moving average is now at 0.64. TODAY'S ECONOMIC CALENDAR 8:30 AM 1/17 Initial Claims 8:30 AM 1/10 Continual Claims 9:00 AM Nov FHFA Housing Price Index 10:30 AM 1/17 Natural Gas Inventories 11:00 AM 1/17 Crude Inventories EARNINGS EXPECTED TODAY ALTR BBT COF COV JCI LUV MCD NOK UAL VZ 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 |
