MORNING UPDATE: PriceWatch Alerts for GILD and More... for 2014-12-31 |
| MORNING UPDATE FOR DECEMBER 31, 2014 PriceWatch Alerts for KNDI, AG, EOG, MU and APA. Kandi Technologies (NASDAQ: KNDI) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $14.24 while selling the March $15.00 call will produce a new covered call with a break-even point around $12.99. At that price, this position has a target return of 15.5%. This trade will have roughly 8.8% downside protection, while still aiming for a 15.5% return in 79 days. It will lock in that return as long as Kandi Technologies is above $15.00 on 3/20/2015. For comparison purposes only, this KNDI covered call aims for an annualized return rate of 71.5%. First Majestic Silver (NYSE: AG) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $5.05 while simultaneously selling the July $5.00 call will result in a new position with a target return of 23.2%. Based on recent prices, this position will cost about $4.06, which is also the trade?s breakeven point. At that level, this covered call has 19.6% downside protection, while still providing a 23.2% return in 198 days as long as AG is above $5.00 on 7/17/2015. For comparison purposes only, this First Majestic Silver covered call aims for an annualized return rate of 42.7%. EOG Resources (NYSE: EOG) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $92.70 while selling the February $95.00 call will produce a new covered call with a break-even point around $88.80. At that price, this position has a target return of 7.0%. This trade will have roughly 4.2% downside protection, while still aiming for a 7.0% return in 51 days. It will lock in that return as long as EOG Resources is above $95.00 on 2/20/2015. For comparison purposes only, this EOG covered call aims for an annualized return rate of 50.0%. Micron Technology (NASDAQ: MU) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the April $36.00 call while at the same time buying MU stock for $35.40 will produce a new covered call with a target return of 10.2%. Based on recent data, this trade will cost about $32.67, which is also the covered call?s breakeven point. At that price, this covered call has 7.7% downside protection, while seeking an assigned return of 10.2% return in 107 days. If MU is higher than $36.00 on 4/17/2015, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 34.8%. Apache (NYSE: APA) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the February $65.00 call while simultaneously buying APA stock for $62.95 will result in a new position with a break-even point around $60.35. At that price, this position has a target return of 7.7%. This trade has 4.1% downside protection, while still providing a 7.7% return in 51 days as long as APA is above $65.00 on 2/20/2015. For comparison purposes only, this Apache covered call targets an annualized return rate of 55.1%. *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 Juno Therapeutics (JUNO), Grifols SA (GRFS) and Kandi Technologies (KNDI) are higher in pre-market trading, while Kellogg (K), Haliburton (HAL) and NewLink Genetics (NLNK) are lower. There are no major analyst upgrades or downgrades this morning. INTERNATIONAL MARKETS Asian markets were mixed on Wednesday as Chinese manufacturing numbers were revised upward. The Shanghai Composite was up 2.18% while the Nikkei fell 1.57%. European stocks are mixed today with some markets closing early for New Years Eve. The FTSE closed up 0.42%, and the DAX finished down 1.22%. FUTURES & CURRENCIES West Texas Intermediate crude oil is down $1.12 to $53 while NYMEX natural gas is up $0.04 to $3.06. In metals, gold is down $2 to $1,199, silver is up $0.23 to $16.08 and platinum is trading at $1,219. The US Dollar is up vs the Euro and the Yen. PUT/CALL RATIO Yesterday, 659,330 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 437,283 put contracts. The single-session put/call was 0.66, while the 20-day moving average is now at 0.65. TODAY'S ECONOMIC CALENDAR 08:30 AM 12/27 Initial Claims 08:30 AM 12/22 Continuing Claims 09:45 AM Dec Chicago PMI 10:00 AM Nov Pending Home Sales 10:30 AM 12/27 Crude Inventories 12:00 PM 12/27 Natural Gas Inventories EARNINGS EXPECTED TODAY There are no major reports expected 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 |
