MORNING UPDATE: PriceWatch Alerts for LINE and More...
MORNING UPDATE FOR JANUARY 21, 2015
PriceWatch Alerts for LINE, AMD, AMBA, DIS, YY, GE, ACHN, DDD, APA and REGN.
Linn Energy (NASDAQ: LINE) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $9.22 while selling the April $9.00 call will produce a new covered call with a break-even point around $7.93. At that price, this position has a target return of 13.5%. This trade will have roughly 14.0% downside protection, while still aiming for a 13.5% return in 86 days. It will lock in that return as long as Linn Energy is above $9.00 on 4/17/2015. For comparison purposes only, this LINE covered call aims for an annualized return rate of 57.3%.
Advanced Micro Devices (NYSE: AMD) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $2.19 while simultaneously selling the January $3.00 call will result in a new position with a target return of 69.5%. Based on recent prices, this position will cost about $1.77, which is also the trade?s breakeven point. At that level, this covered call has 19.2% downside protection, while still providing a 69.5% return in 359 days as long as AMD is above $3.00 on 1/15/2016. For comparison purposes only, this Advanced Micro Devices covered call aims for an annualized return rate of 70.7%. (To avoid having your profit margin narrowed by transaction costs, consider making this trade with multiple contracts.)
Ambarella (NASDAQ: AMBA) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $59.22 while selling the March $60.00 call will produce a new covered call with a break-even point around $54.32. At that price, this position has a target return of 10.5%. This trade will have roughly 8.3% downside protection, while still aiming for a 10.5% return in 58 days. It will lock in that return as long as Ambarella is above $60.00 on 3/20/2015. For comparison purposes only, this AMBA covered call aims for an annualized return rate of 65.8%.
Walt Disney (NYSE: DIS) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the March $97.50 call while at the same time buying DIS stock for $94.76 will produce a new covered call with a target return of 4.6%. Based on recent data, this trade will cost about $93.24, 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 4.6% return in 58 days. If DIS is higher than $97.50 on 3/20/2015, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 28.7%.
YY (NASDAQ: YY) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the February $68.50 call while simultaneously buying YY stock for $68.01 will result in a new position with a break-even point around $64.81. At that price, this position has a target return of 5.7%. This trade has 4.7% downside protection, while still providing a 5.7% return in 30 days as long as YY is above $68.50 on 2/20/2015. For comparison purposes only, this YY covered call targets an annualized return rate of 69.2%.
General Electric (NYSE: GE) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $23.61 while selling the September $24.00 call will produce a new covered call with a break-even point around $22.54. At that price, this position has a target return of 6.5%. This trade will have roughly 4.5% downside protection, while still aiming for a 6.5% return in 240 days. It will lock in that return as long as General Electric is above $24.00 on 9/18/2015. For comparison purposes only, this GE covered call aims for an annualized return rate of 9.8%.
Achillion Pharmaceuticals (NASDAQ: ACHN) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $14.84 while simultaneously selling the February $15.00 call will result in a new position with a target return of 9.2%. Based on recent prices, this position will cost about $13.73, which is also the trade?s breakeven point. At that level, this covered call has 7.5% downside protection, while still providing a 9.2% return in 30 days as long as ACHN is above $15.00 on 2/20/2015. For comparison purposes only, this Achillion Pharmaceuticals covered call aims for an annualized return rate of 112.4%.
3D Systems (NYSE: DDD) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $29.40 while selling the March $30.00 call will produce a new covered call with a break-even point around $27.05. At that price, this position has a target return of 10.9%. This trade will have roughly 8.0% downside protection, while still aiming for a 10.9% return in 58 days. It will lock in that return as long as 3D Systems is above $30.00 on 3/20/2015. For comparison purposes only, this DDD covered call aims for an annualized return rate of 68.6%.
Apache (NYSE: APA) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the March $62.50 call while at the same time buying APA stock for $60.14 will produce a new covered call with a target return of 8.6%. Based on recent data, this trade will cost about $57.54, which is also the covered call?s breakeven point. At that price, this covered call has 4.3% downside protection, while seeking an assigned return of 8.6% return in 58 days. If APA is higher than $62.50 on 3/20/2015, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 54.2%.
Regeneron Pharmaceuticals (NASDAQ: REGN) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the March $425.00 call while simultaneously buying REGN stock for $421.11 will result in a new position with a break-even point around $399.66. At that price, this position has a target return of 6.3%. This trade has 5.1% downside protection, while still providing a 6.3% return in 58 days as long as REGN is above $425.00 on 3/20/2015. For comparison purposes only, this Regeneron Pharmaceuticals covered call targets an annualized return rate of 39.9%.
*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
Netflix is up 18% this morning after a great earnings report, Cree (Cree) is up as well. Arena Pharmaceuticals (ARNA), Teradata (TDC) and IBM (IBM) are down. Under Armour (UA) was upgraded by analysts this morning, while Affymetrix (AFFX) was downgraded.
INTERNATIONAL MARKETS
Asian markets finished Wednesday mixed as Chinese stocks made their biggest gains in nearly five years. The Shanghai Composite was up 4.74% and the Nikkei fell 0.49%. In Europe, markets are mixed today ahead of the European Central Bank?s Thursday meeting. The FTSE is down 0.63%, and the CAC 40 is up 0.46%.
FUTURES & CURRENCIES
West Texas Intermediate crude oil is unchanged at $46.39 while NYMEX natural gas is up $0.11 to $2.94. In metals, gold is up $9 to $1,304, silver is up $0.28 to $18.33 and platinum is up $4 to $1,292. The US Dollar is down against the Euro and the Yen.
PUT/CALL RATIO
Yesterday, 942,491 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 578,526 put contracts. The single-session put/call was 0.61, while the 20-day moving average is now at 0.64.
TODAY'S ECONOMIC CALENDAR
07:00 AM 1/17 MBA Mortgage Index
08:30 AM Dec Housing Starts
08:30 AM Dec Building Permits
EARNINGS EXPECTED TODAY
ASML
DFS
EBAY
KMI
LOGI
SNDK
UNH
USB
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 LINE, AMD, AMBA, DIS, YY, GE, ACHN, DDD, APA and REGN.
Linn Energy (NASDAQ: LINE) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $9.22 while selling the April $9.00 call will produce a new covered call with a break-even point around $7.93. At that price, this position has a target return of 13.5%. This trade will have roughly 14.0% downside protection, while still aiming for a 13.5% return in 86 days. It will lock in that return as long as Linn Energy is above $9.00 on 4/17/2015. For comparison purposes only, this LINE covered call aims for an annualized return rate of 57.3%.
Advanced Micro Devices (NYSE: AMD) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $2.19 while simultaneously selling the January $3.00 call will result in a new position with a target return of 69.5%. Based on recent prices, this position will cost about $1.77, which is also the trade?s breakeven point. At that level, this covered call has 19.2% downside protection, while still providing a 69.5% return in 359 days as long as AMD is above $3.00 on 1/15/2016. For comparison purposes only, this Advanced Micro Devices covered call aims for an annualized return rate of 70.7%. (To avoid having your profit margin narrowed by transaction costs, consider making this trade with multiple contracts.)
Ambarella (NASDAQ: AMBA) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $59.22 while selling the March $60.00 call will produce a new covered call with a break-even point around $54.32. At that price, this position has a target return of 10.5%. This trade will have roughly 8.3% downside protection, while still aiming for a 10.5% return in 58 days. It will lock in that return as long as Ambarella is above $60.00 on 3/20/2015. For comparison purposes only, this AMBA covered call aims for an annualized return rate of 65.8%.
Walt Disney (NYSE: DIS) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the March $97.50 call while at the same time buying DIS stock for $94.76 will produce a new covered call with a target return of 4.6%. Based on recent data, this trade will cost about $93.24, 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 4.6% return in 58 days. If DIS is higher than $97.50 on 3/20/2015, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 28.7%.
YY (NASDAQ: YY) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the February $68.50 call while simultaneously buying YY stock for $68.01 will result in a new position with a break-even point around $64.81. At that price, this position has a target return of 5.7%. This trade has 4.7% downside protection, while still providing a 5.7% return in 30 days as long as YY is above $68.50 on 2/20/2015. For comparison purposes only, this YY covered call targets an annualized return rate of 69.2%.
General Electric (NYSE: GE) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $23.61 while selling the September $24.00 call will produce a new covered call with a break-even point around $22.54. At that price, this position has a target return of 6.5%. This trade will have roughly 4.5% downside protection, while still aiming for a 6.5% return in 240 days. It will lock in that return as long as General Electric is above $24.00 on 9/18/2015. For comparison purposes only, this GE covered call aims for an annualized return rate of 9.8%.
Achillion Pharmaceuticals (NASDAQ: ACHN) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $14.84 while simultaneously selling the February $15.00 call will result in a new position with a target return of 9.2%. Based on recent prices, this position will cost about $13.73, which is also the trade?s breakeven point. At that level, this covered call has 7.5% downside protection, while still providing a 9.2% return in 30 days as long as ACHN is above $15.00 on 2/20/2015. For comparison purposes only, this Achillion Pharmaceuticals covered call aims for an annualized return rate of 112.4%.
3D Systems (NYSE: DDD) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $29.40 while selling the March $30.00 call will produce a new covered call with a break-even point around $27.05. At that price, this position has a target return of 10.9%. This trade will have roughly 8.0% downside protection, while still aiming for a 10.9% return in 58 days. It will lock in that return as long as 3D Systems is above $30.00 on 3/20/2015. For comparison purposes only, this DDD covered call aims for an annualized return rate of 68.6%.
Apache (NYSE: APA) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the March $62.50 call while at the same time buying APA stock for $60.14 will produce a new covered call with a target return of 8.6%. Based on recent data, this trade will cost about $57.54, which is also the covered call?s breakeven point. At that price, this covered call has 4.3% downside protection, while seeking an assigned return of 8.6% return in 58 days. If APA is higher than $62.50 on 3/20/2015, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 54.2%.
Regeneron Pharmaceuticals (NASDAQ: REGN) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the March $425.00 call while simultaneously buying REGN stock for $421.11 will result in a new position with a break-even point around $399.66. At that price, this position has a target return of 6.3%. This trade has 5.1% downside protection, while still providing a 6.3% return in 58 days as long as REGN is above $425.00 on 3/20/2015. For comparison purposes only, this Regeneron Pharmaceuticals covered call targets an annualized return rate of 39.9%.
*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
Netflix is up 18% this morning after a great earnings report, Cree (Cree) is up as well. Arena Pharmaceuticals (ARNA), Teradata (TDC) and IBM (IBM) are down. Under Armour (UA) was upgraded by analysts this morning, while Affymetrix (AFFX) was downgraded.
INTERNATIONAL MARKETS
Asian markets finished Wednesday mixed as Chinese stocks made their biggest gains in nearly five years. The Shanghai Composite was up 4.74% and the Nikkei fell 0.49%. In Europe, markets are mixed today ahead of the European Central Bank?s Thursday meeting. The FTSE is down 0.63%, and the CAC 40 is up 0.46%.
FUTURES & CURRENCIES
West Texas Intermediate crude oil is unchanged at $46.39 while NYMEX natural gas is up $0.11 to $2.94. In metals, gold is up $9 to $1,304, silver is up $0.28 to $18.33 and platinum is up $4 to $1,292. The US Dollar is down against the Euro and the Yen.
PUT/CALL RATIO
Yesterday, 942,491 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 578,526 put contracts. The single-session put/call was 0.61, while the 20-day moving average is now at 0.64.
TODAY'S ECONOMIC CALENDAR
07:00 AM 1/17 MBA Mortgage Index
08:30 AM Dec Housing Starts
08:30 AM Dec Building Permits
EARNINGS EXPECTED TODAY
ASML
DFS
EBAY
KMI
LOGI
SNDK
UNH
USB
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
