MORNING UPDATE: PriceWatch Alerts for JBLU and More... for 2015-01-06 |
| MORNING UPDATE FOR JANUARY 6, 2015 PriceWatch Alerts for MBLY, KITE, SKUL, TRLA, GLD, JBLU, ISIS, GFI, WUBA and JOBS. Mobileye (NYSE: MBLY) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $40.90 while selling the March $41.00 call will produce a new covered call with a break-even point around $37.65. At that price, this position has a target return of 8.9%. This trade will have roughly 7.9% downside protection, while still aiming for a 8.9% return in 73 days. It will lock in that return as long as Mobileye is above $41.00 on 3/20/2015. For comparison purposes only, this MBLY covered call aims for an annualized return rate of 44.5%. Kite Pharma (NYSE: KITE) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $69.93 while simultaneously selling the February $70.00 call will result in a new position with a target return of 8.9%. Based on recent prices, this position will cost about $64.28, which is also the trade?s breakeven point. At that level, this covered call has 8.1% downside protection, while still providing a 8.9% return in 45 days as long as KITE is above $70.00 on 2/20/2015. For comparison purposes only, this Kite Pharma covered call aims for an annualized return rate of 72.1%. Skullcandy (NASDAQ: SKUL) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $9.92 while selling the June $10.00 call will produce a new covered call with a break-even point around $8.97. At that price, this position has a target return of 11.5%. This trade will have roughly 9.6% downside protection, while still aiming for a 11.5% return in 164 days. It will lock in that return as long as Skullcandy is above $10.00 on 6/19/2015. For comparison purposes only, this SKUL covered call aims for an annualized return rate of 25.6%. Trulia (NYSE: TRLA) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the February $43.00 call while at the same time buying TRLA stock for $42.16 will produce a new covered call with a target return of 9.4%. Based on recent data, this trade will cost about $39.31, which is also the covered call?s breakeven point. At that price, this covered call has 6.8% downside protection, while seeking an assigned return of 9.4% return in 45 days. If TRLA is higher than $43.00 on 2/20/2015, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 76.1%. Gold SPDR (AMEX: GLD) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the March $118.00 call while simultaneously buying GLD stock for $115.95 will result in a new position with a break-even point around $113.12. At that price, this position has a target return of 4.3%. This trade has 2.4% downside protection, while still providing a 4.3% return in 73 days as long as GLD is above $118.00 on 3/20/2015. For comparison purposes only, this Gold SPDR covered call targets an annualized return rate of 21.6%. JetBlue Airways (NASDAQ: JBLU) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $15.22 while selling the June $16.00 call will produce a new covered call with a break-even point around $13.78. At that price, this position has a target return of 16.1%. This trade will have roughly 9.5% downside protection, while still aiming for a 16.1% return in 164 days. It will lock in that return as long as JetBlue Airways is above $16.00 on 6/19/2015. For comparison purposes only, this JBLU covered call aims for an annualized return rate of 35.9%. Isis Pharmaceuticals (NASDAQ: ISIS) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $68.29 while simultaneously selling the February $70.00 call will result in a new position with a target return of 11.5%. Based on recent prices, this position will cost about $62.79, which is also the trade?s breakeven point. At that level, this covered call has 8.1% downside protection, while still providing a 11.5% return in 45 days as long as ISIS is above $70.00 on 2/20/2015. For comparison purposes only, this Isis Pharmaceuticals covered call aims for an annualized return rate of 93.1%. Gold Fields (NYSE: GFI) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $4.99 while selling the July $5.00 call will produce a new covered call with a break-even point around $4.24. At that price, this position has a target return of 17.9%. This trade will have roughly 15.0% downside protection, while still aiming for a 17.9% return in 192 days. It will lock in that return as long as Gold Fields is above $5.00 on 7/17/2015. For comparison purposes only, this GFI covered call aims for an annualized return rate of 34.1%. 58.Com (NYSE: WUBA) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the February $45.00 call while at the same time buying WUBA stock for $42.54 will produce a new covered call with a target return of 11.4%. Based on recent data, this trade will cost about $40.39, which is also the covered call?s breakeven point. At that price, this covered call has 5.1% downside protection, while seeking an assigned return of 11.4% return in 45 days. If WUBA is higher than $45.00 on 2/20/2015, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 92.5%. 51Job (NASDAQ: JOBS) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the April $40.00 call while simultaneously buying JOBS stock for $37.11 will result in a new position with a break-even point around $36.11. At that price, this position has a target return of 10.8%. This trade has 2.7% downside protection, while still providing a 10.8% return in 101 days as long as JOBS is above $40.00 on 4/17/2015. For comparison purposes only, this 51Job covered call targets an annualized return rate of 38.9%. *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? 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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 Micron (MU), Apollo Group (APOL) and Skullcandy (SKUL) are rising this morning, while JinkoSolar (JKS), Twitter (TWTR) and Automatic Data Processing (ADP) are falling. Apollo Group (APOL) and Rowan (RDC) were upgraded by analysts this morning, while Itron (ITRI) and Ambarella (AMBA) were downgraded. INTERNATIONAL MARKETS In Asia, stock markets continue to put in widely varied performance. Overnight, the spread between the best-performing indices and the worst in the region was more than 2%, with the Nikkei 225 gaining 0.8%, but the Mumbai Sensex falling 1.4%. Also counted among the gainers was the Taiwan TSEC up 0.2% while the Shanghai SEC lost 0.8%. European markets are currently posting gains nearly across the board, with all the major bourses in positive territory so far this morning. The Euronext 100 and French CAC 40 are each up 0.9%, while the German DAX is up 0.4% and the Swiss Market Index is leading the way higher gaining 1.2%. Europe's finalized October PMI was revised upward from the previous estimate and retail sales fell less than expected, both of which are positive signs for investors. FUTURES & CURRENCIES In futures, crude oil is bouncing back from a large decline yesterday with an advance of 0.6%, up $0.60 $93.98. Gasoline is up 1.5%, while natural gas and heating oil are up smaller amounts. Gold is just higher by 0.8%, while silver and copper are also higher and platinum is up 1.3%. The U.S. Dollar is slightly higher against the Yen, but lower versus the euro and other international currencies. Bitcoins have shrugged off a few attempted corrections and touched a new all-time high overnight at $270. TODAY'S ECONOMIC CALENDAR 07:00 AM 1/04 MBA Mortgage 08:15 AM Dec ADP Employment Change 10:30 AM 1/04 Crude Inventories 02:00 PM 12/18 FOMC 03:00 PM Nov Consumer Credit EARNINGS EXPECTED TODAY BBBY MON STZ 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 |
