MORNING UPDATE: PriceWatch Alerts for GE and More... for 2014-12-22 |
| MORNING UPDATE FOR DECEMBER 22, 2014 PriceWatch Alerts for INVN, FEYE, GE, TWTR and CELG. Invensense (NYSE: INVN) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $15.32 while selling the March $15.00 call will produce a new covered call with a break-even point around $13.22. At that price, this position has a target return of 13.5%. This trade will have roughly 13.7% downside protection, while still aiming for a 13.5% return in 88 days. It will lock in that return as long as Invensense is above $15.00 on 3/20/2015. For comparison purposes only, this INVN covered call aims for an annualized return rate of 55.8%. FireEye (NASDAQ: FEYE) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $32.82 while simultaneously selling the March $32.00 call will result in a new position with a target return of 11.8%. Based on recent prices, this position will cost about $28.62, which is also the trade?s breakeven point. At that level, this covered call has 12.8% downside protection, while still providing a 11.8% return in 88 days as long as FEYE is above $32.00 on 3/20/2015. For comparison purposes only, this FireEye covered call aims for an annualized return rate of 48.9%. General Electric (NYSE: GE) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $25.60 while selling the September $26.00 call will produce a new covered call with a break-even point around $24.50. At that price, this position has a target return of 6.1%. This trade will have roughly 4.3% downside protection, while still aiming for a 6.1% return in 270 days. It will lock in that return as long as General Electric is above $26.00 on 9/18/2015. For comparison purposes only, this GE covered call aims for an annualized return rate of 8.3%. Twitter (NYSE: TWTR) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the March $39.00 call while at the same time buying TWTR stock for $37.17 will produce a new covered call with a target return of 14.6%. Based on recent data, this trade will cost about $34.02, which is also the covered call?s breakeven point. At that price, this covered call has 8.5% downside protection, while seeking an assigned return of 14.6% return in 88 days. If TWTR is higher than $39.00 on 3/20/2015, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 60.7%. Celgene (NASDAQ: CELG) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the January $120.00 call while simultaneously buying CELG stock for $117.18 will result in a new position with a break-even point around $114.48. At that price, this position has a target return of 4.8%. This trade has 2.3% downside protection, while still providing a 4.8% return in 26 days as long as CELG is above $120.00 on 1/17/2015. For comparison purposes only, this Celgene covered call targets an annualized return rate of 67.7%. *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. 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The Nikkei ended up 0.08% while the Hang Seng rose 1.26%. In Europe, stocks are rising for the fifth straight session, led higher by energy shares. The FTSE 100 is up 0.87% and the DAX is up 1.2%. FUTURES & CURRENCIES West Texas Intermediate crude oil is down $0.48 to $56.65 while NYMEX natural gas is down $0.20 to $3.27. In metals, gold is up $1 to $1,196, silver is down $0.05 to $16.09 and platinum is trading at $1,203. The US Dollar is down vs the Euro and the Yen. PUT/CALL RATIO On Friday, 1,425,468 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 835,661 put contracts. The single-session put/call was 0.59, while the 20-day moving average is now at 0.62. TODAY'S ECONOMIC CALENDAR 10:00 AM Nov Existing Home Sales EARNINGS EXPECTED TODAY There are no major earnings reports scheduled for today. 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