MORNING UPDATE: PriceWatch Alerts for ACHN and More... for 2014-12-23 |
| MORNING UPDATE FOR DECEMBER 23, 2014 PriceWatch Alerts for ACHN, T, BTU, GILD and FB. Achillion Pharmaceuticals (NASDAQ: ACHN) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $15.63 while selling the January $16.00 call will produce a new covered call with a break-even point around $14.28. At that price, this position has a target return of 12.0%. This trade will have roughly 8.6% downside protection, while still aiming for a 12.0% return in 25 days. It will lock in that return as long as Achillion Pharmaceuticals is above $16.00 on 1/17/2015. For comparison purposes only, this ACHN covered call aims for an annualized return rate of 175.8%. AT&T (NYSE: T) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $33.88 while simultaneously selling the June $34.00 call will result in a new position with a target return of 4.0%. Based on recent prices, this position will cost about $32.69, which is also the trade?s breakeven point. At that level, this covered call has 3.5% downside protection, while still providing a 4.0% return in 178 days as long as T is above $34.00 on 6/19/2015. For comparison purposes only, this AT&T covered call aims for an annualized return rate of 8.2%. Peabody Energy (NYSE: BTU) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $7.91 while selling the June $8.00 call will produce a new covered call with a break-even point around $6.63. At that price, this position has a target return of 20.7%. This trade will have roughly 16.2% downside protection, while still aiming for a 20.7% return in 178 days. It will lock in that return as long as Peabody Energy is above $8.00 on 6/19/2015. For comparison purposes only, this BTU covered call aims for an annualized return rate of 42.4%. Gilead Sciences (NASDAQ: GILD) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the February $92.50 call while at the same time buying GILD stock for $92.91 will produce a new covered call with a target return of 7.4%. Based on recent data, this trade will cost about $86.16, which is also the covered call?s breakeven point. At that price, this covered call has 7.3% downside protection, while seeking an assigned return of 7.4% return in 59 days. If GILD is higher than $92.50 on 2/20/2015, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 45.5%. Facebook (NASDAQ: FB) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the February $82.50 call while simultaneously buying FB stock for $81.43 will result in a new position with a break-even point around $77.48. At that price, this position has a target return of 6.5%. This trade has 4.9% downside protection, while still providing a 6.5% return in 59 days as long as FB is above $82.50 on 2/20/2015. For comparison purposes only, this Facebook covered call targets an annualized return rate of 40.0%. *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 Vanda Pharmaceuticals (VNDA), Infiniti Pharmaceuticals (INFI) and NQ Mobile (NQ) are rising in pre-market trading this morning, while Keurig Green Mountain (GMCR) and Achillion Pharmaceuticals (ACHN) are lower. Breitburn Energy (BBEP) and Achillion Pharmaceuticals (ACHN) were downgraded this morning. INTERNATIONAL MARKETS In Asia, markets were mixed Tuesday as Chinese stocks took a fall. The Shanghai Composite was down 3.03% while the Nikkei rose 0.08%. European stocks are moving up this morning following U.S. markets upward. The FTSE is up 0.64%, and the DAX is up 0.28%. FUTURES & CURRENCIES West Texas Intermediate crude oil is up $0.72 to $55.98 while NYMEX natural gas is up $0.05 to $3.20. In metals, gold is up $1 to $1,178, silver is up $0.09 to $15.82 and platinum is trading at $1,190. The Dollar is up versus the Euro and the Yen. PUT/CALL RATIO Yesterday, 1,173,290 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 575,930 put contracts. The single-session put/call was 0.49, while the 20-day moving average is now at 0.65. TODAY'S ECONOMIC CALENDAR 08:30 AM Nov Durable Orders 08:30 AM Nov Durable Goods ?ex transportation 08:30 AM Q3 GDP - Third Estimate 08:30 AM Q3 GDP Deflator - Third Estimate 09:00 AM Oct FHFA Housing Price Index 09:55 AM Dec Michigan Sentiment - Final 10:00 AM Nov Personal Income 10:00 AM Nov Personal Spending 10:00 AM Nov PCE Prices - Core 10:00 AM Nov New Home Sales EARNINGS EXPECTED TODAY WAG 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 |
