MORNING UPDATE: PriceWatch Alerts for NVO and More... for 2014-12-30 |
| MORNING UPDATE FOR DECEMBER 30, 2014 PriceWatch Alerts for AMD, NVO, TKMR, ESI and WDAY. Advanced Micro Devices (NYSE: AMD) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $2.65 while selling the July $3.00 call will produce a new covered call with a break-even point around $2.40. At that price, this position has a target return of 25.0%. This trade will have roughly 9.4% downside protection, while still aiming for a 25.0% return in 199 days. It will lock in that return as long as Advanced Micro Devices is above $3.00 on 7/17/2015. For comparison purposes only, this AMD covered call aims for an annualized return rate of 45.9%. (To avoid having your profit margin narrowed by transaction costs, consider making this trade with multiple contracts.) Novo Nordisk (NYSE: NVO) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $43.23 while simultaneously selling the June $45.00 call will result in a new position with a target return of 8.5%. Based on recent prices, this position will cost about $41.48, which is also the trade?s breakeven point. At that level, this covered call has 4.0% downside protection, while still providing a 8.5% return in 171 days as long as NVO is above $45.00 on 6/19/2015. For comparison purposes only, this Novo Nordisk covered call aims for an annualized return rate of 18.1%. Tekmira Pharmaceuticals (NASDAQ: TKMR) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $13.88 while selling the June $15.00 call will produce a new covered call with a break-even point around $12.28. At that price, this position has a target return of 22.1%. This trade will have roughly 11.5% downside protection, while still aiming for a 22.1% return in 171 days. It will lock in that return as long as Tekmira Pharmaceuticals is above $15.00 on 6/19/2015. For comparison purposes only, this TKMR covered call aims for an annualized return rate of 47.3%. ITT Educational Services (NYSE: ESI) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the July $11.00 call while at the same time buying ESI stock for $10.04 will produce a new covered call with a target return of 39.4%. Based on recent data, this trade will cost about $7.89, which is also the covered call?s breakeven point. At that price, this covered call has 21.4% downside protection, while seeking an assigned return of 39.4% return in 199 days. If ESI is higher than $11.00 on 7/17/2015, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 72.3%. Workday (NYSE: WDAY) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the March $85.00 call while simultaneously buying WDAY stock for $83.69 will result in a new position with a break-even point around $78.54. At that price, this position has a target return of 8.2%. This trade has 6.2% downside protection, while still providing a 8.2% return in 80 days as long as WDAY is above $85.00 on 3/20/2015. For comparison purposes only, this Workday covered call targets an annualized return rate of 37.5%. *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. 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STOCKS ON THE MOVE Kandi Technologies (KNDI), Xenoport (XNPT) and Repros Therapeutics (RPRX) are higher in pre-market trading, while Target (TGT) and Juno Therapeutics (JUNO) are lower. There were no major analyst upgrades or downgrades today. INTERNATIONAL MARKETS Asian markets were mostly lower on Tuesday as Japanese stocks fell. The Shanghai Composite was down 0.07% while the Nikkei fell 1.57%. European stocks are moving down with negative economic news from Greece and Spain continuing to weigh on markets. The FTSE is down 0.95%, and the CAC 40 is down 0.86%. FUTURES & CURRENCIES West Texas Intermediate crude oil is down $0.42 to $53.19 while NYMEX natural gas is up $0.18 to $3.19. In metals, gold is up $54 to $1,201, silver is up $0.27 to $16.13 and platinum is trading at $1,215. The US Dollar is up vs the Euro and down vs the Yen. PUT/CALL RATIO Yesterday, 715,893 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 460,147 put contracts. The single-session put/call was 0.64, while the 20-day moving average is now at 0.65. TODAY'S ECONOMIC CALENDAR 09:00 AM Oct Case-Shiller 20-city Index 10:00 AM Dec Consumer Confidence 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 |
