MORNING UPDATE: PriceWatch Alerts for ZNGA and More... for 2015-01-09 |
| MORNING UPDATE FOR JANUARY 9, 2015 PriceWatch Alerts for ZNGA, NBIX, YUM, EBAY, TRUE, RIG, ECYT, AAL, GS and NFLX. Zynga (NASDAQ: ZNGA) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $2.60 while selling the June $3.00 call will produce a new covered call with a break-even point around $2.29. At that price, this position has a target return of 31.0%. This trade will have roughly 11.9% downside protection, while still aiming for a 31.0% return in 161 days. It will lock in that return as long as Zynga is above $3.00 on 6/19/2015. For comparison purposes only, this ZNGA covered call aims for an annualized return rate of 70.3%. Neurocrine Biosciences (NASDAQ: NBIX) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $27.26 while selling the February $28.00 call will produce a new covered call with a break-even point around $25.51. At that price, this position has a target return of 9.8%. This trade will have roughly 6.4% downside protection, while still aiming for a 9.8% return in 42 days. It will lock in that return as long as Neurocrine Biosciences is above $28.00 on 2/20/2015. For comparison purposes only, this NBIX covered call aims for an annualized return rate of 84.8%. Yum Brands (NYSE: YUM) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the April $75.00 call while at the same time buying YUM stock for $73.59 will produce a new covered call with a target return of 5.4%. Based on recent data, this trade will cost about $71.17, which is also the covered call?s breakeven point. At that price, this covered call has 3.3% downside protection, while seeking an assigned return of 5.4% return in 98 days. If YUM is higher than $75.00 on 4/17/2015, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 20.0%. eBay (NASDAQ: EBAY) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $56.41 while selling the April $57.50 call will produce a new covered call with a break-even point around $54.11. At that price, this position has a target return of 6.3%. This trade will have roughly 4.1% downside protection, while still aiming for a 6.3% return in 98 days. It will lock in that return as long as eBay is above $57.50 on 4/17/2015. For comparison purposes only, this EBAY covered call aims for an annualized return rate of 23.3%. TrueCar (NASDAQ: TRUE) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the February $22.50 call while simultaneously buying TRUE stock for $20.23 will result in a new position with a break-even point around $19.03. At that price, this position has a target return of 18.2%. This trade has 5.9% downside protection, while still providing a 18.2% return in 42 days as long as TRUE is above $22.50 on 2/20/2015. For comparison purposes only, this TrueCar covered call targets an annualized return rate of 158.4%. Transocean (NYSE: RIG) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $16.39 while selling the February $17.00 call will produce a new covered call with a break-even point around $15.34. At that price, this position has a target return of 10.8%. This trade will have roughly 6.4% downside protection, while still aiming for a 10.8% return in 42 days. It will lock in that return as long as Transocean is above $17.00 on 2/20/2015. For comparison purposes only, this RIG covered call aims for an annualized return rate of 94.0%. Endocyte (NASDAQ: ECYT) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $6.07 while simultaneously selling the July $7.00 call will result in a new position with a target return of 39.4%. Based on recent prices, this position will cost about $5.02, which is also the trade?s breakeven point. At that level, this covered call has 17.3% downside protection, while still providing a 39.4% return in 189 days as long as ECYT is above $7.00 on 7/17/2015. For comparison purposes only, this Endocyte covered call aims for an annualized return rate of 76.2%. American Airlines (NASDAQ: AAL) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $53.59 while selling the March $55.00 call will produce a new covered call with a break-even point around $50.14. At that price, this position has a target return of 9.7%. This trade will have roughly 6.4% downside protection, while still aiming for a 9.7% return in 70 days. It will lock in that return as long as American Airlines is above $55.00 on 3/20/2015. For comparison purposes only, this AAL covered call aims for an annualized return rate of 50.5%. Goldman Sachs (NYSE: GS) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the April $200.00 call while at the same time buying GS stock for $190.27 will produce a new covered call with a target return of 7.6%. Based on recent data, this trade will cost about $185.82, which is also the covered call?s breakeven point. At that price, this covered call has 2.3% downside protection, while seeking an assigned return of 7.6% return in 98 days. If GS is higher than $200.00 on 4/17/2015, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 28.4%. Netflix (NASDAQ: NFLX) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the June $330.00 call while simultaneously buying NFLX stock for $334.50 will result in a new position with a break-even point around $295.75. At that price, this position has a target return of 11.6%. This trade has 11.6% downside protection, while still providing a 11.6% return in 161 days as long as NFLX is above $330.00 on 6/19/2015. For comparison purposes only, this Netflix covered call targets an annualized return rate of 26.3%. *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? 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'. 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STOCKS ON THE MOVE Arena Pharmaceuticals (ARNA) and Breitburn Energy (BBEP) are rising in pre-market trading, while Five Below (FIVE), Bed Bath & Beyond (BBBY) and Nuance Communications (NUAN) are falling. Exelon (EXC), Noble (NE) and American Eagle (AEO) were upgraded by analysts this morning while Xcel Energy (XEL) was downgraded. INTERNATIONAL MARKETS Asian markets were mixed Friday as Chinese economic data showed producer prices falling while consumer prices rose. The Shanghai Composite was down 0.24% while the Nikkei rose 0.18%. European markets are lower this morning as German industrial output fell slightly. The FTSE is down 0.67%, and the CAC 40 is down 0.63%. FUTURES & CURRENCIES West Texas Intermediate crude oil is down $0.24 to $48.55 while NYMEX natural gas is up $0.01 to $2.94. In metals, gold is up $5 to $1,214, silver is up $0.01 to $16.42 and platinum is trading at $1,228. The US Dollar flat vs the Euro and down vs the Yen. PUT/CALL RATIO Yesterday, 1,215,395 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 655,615 put contracts. The single-session put/call was 0.54, while the 20-day moving average is now at 0.65. TODAY'S ECONOMIC CALENDAR 08:30 AM Dec Nonfarm Payrolls 08:30 AM Dec Nonfarm Private Payrolls 08:30 AM Dec Unemployment Rate 08:30 AM Dec Hourly Earnings 08:30 AM Dec Average Workweek 10:00 AM Nov Wholesale Inventories EARNINGS EXPECTED TODAY There are no major earnings reports scheduled for today. 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 |
