MORNING UPDATE: PriceWatch Alerts for ICPT and More... for 2014-12-18 |
| MORNING UPDATE FOR DECEMBER 18, 2014 PriceWatch Alerts for GPRO, ARO, MGA, CLF and ICPT. GoPro (NASDAQ: GPRO) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $59.60 while selling the January $60.00 call will produce a new covered call with a break-even point around $55.35. At that price, this position has a target return of 8.4%. This trade will have roughly 7.1% downside protection, while still aiming for a 8.4% return in 30 days. It will lock in that return as long as GoPro is above $60.00 on 1/17/2015. For comparison purposes only, this GPRO covered call aims for an annualized return rate of 102.2%. Aeropostale (NYSE: ARO) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $2.29 while simultaneously selling the July $2.50 call will result in a new position with a target return of 39.7%. Based on recent prices, this position will cost about $1.79, which is also the trade?s breakeven point. At that level, this covered call has 21.8% downside protection, while still providing a 39.7% return in 211 days as long as ARO is above $2.50 on 7/17/2015. For comparison purposes only, this Aeropostale covered call aims for an annualized return rate of 68.6%. (To avoid having your profit margin narrowed by transaction costs, consider making this trade with multiple contracts.) Magna (NYSE: MGA) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $104.33 while selling the January $110.00 call will produce a new covered call with a break-even point around $103.33. At that price, this position has a target return of 6.5%. This trade will have roughly 1.0% downside protection, while still aiming for a 6.5% return in 30 days. It will lock in that return as long as Magna is above $110.00 on 1/17/2015. For comparison purposes only, this MGA covered call aims for an annualized return rate of 78.5%. Cliffs Natural Resources (NYSE: CLF) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the April $6.00 call while at the same time buying CLF stock for $6.35 will produce a new covered call with a target return of 21.2%. Based on recent data, this trade will cost about $4.95, which is also the covered call?s breakeven point. At that price, this covered call has 22.0% downside protection, while seeking an assigned return of 21.2% return in 120 days. If CLF is higher than $6.00 on 4/17/2015, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 64.5%. Intercept Pharmaceuticals (NASDAQ: ICPT) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the January $145.00 call while simultaneously buying ICPT stock for $141.00 will result in a new position with a break-even point around $133.55. At that price, this position has a target return of 8.6%. This trade has 5.3% downside protection, while still providing a 8.6% return in 30 days as long as ICPT is above $145.00 on 1/17/2015. For comparison purposes only, this Intercept Pharmaceuticals covered call targets an annualized return rate of 104.3%. *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 NQ Mobile (NQ), VimpelCom (VIP) and Linn Energy (LINE) are higher in pre-market trading, while Dunkin Brands (DNKN) and Coca-Cola Enterprises (CCE) are lower. There were no major analyst upgrades or downgrades this morning. INTERNATIONAL MARKETS Asian markets were mixed Thursday as investors were encouraged by the word that U.S. interest rates would remain low for a "considerable time." The Shanghai Composite was down 0.11% while the Nikkei rose 2.32%. In Europe, markets are moving higher today after German business sentiment improved. The FTSE is up 0.97%, and the DAX has gained 2.01%. FUTURES & CURRENCIES West Texas Intermediate crude oil is up $1.66 to $58.13 while NYMEX natural gas is up $0.05 to $3.75. In metals, gold is up $14 to $1,204, silver is up $0.30 to $16.10 and platinum is trading at $1,211. The US Dollar is up vs the Euro and down vs the Yen. PUT/CALL RATIO Yesterday, 1,091,917 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 772,942 put contracts. The single-session put/call was 0.71, while the 20-day moving average is now at 0.65. TODAY'S ECONOMIC CALENDAR 08:30 AM 12/13 Initial Claims 08:30 AM 12/6 Continuing Claims 10:00 AM Dec Philadelphia Fed 10:00 AM Nov Leading Indicators 10:30 AM 12/13 Natural Gas Inventories EARNINGS EXPECTED TODAY ACN CAG ESI RAD 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 |
