MORNING UPDATE: PriceWatch Alerts for F and More... for 2014-12-15 |
| MORNING UPDATE FOR MARCH 18, 2014 PriceWatch Alerts for F, ADBE, AA, DISH, TRUE, BABA, ZOES, RFMD, INTC and BITA. Ford Motor (NYSE: F) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $14.98 while selling the September $15.00 call will produce a new covered call with a break-even point around $13.70. At that price, this position has a target return of 9.5%. This trade will have roughly 8.5% downside protection, while still aiming for a 9.5% return in 277 days. It will lock in that return as long as Ford Motor is above $15.00 on 9/18/2015. For comparison purposes only, this F covered call aims for an annualized return rate of 12.5%. Adobe Systems (NASDAQ: ADBE) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $76.02 while simultaneously selling the April $77.50 call will result in a new position with a target return of 7.9%. Based on recent prices, this position will cost about $71.82, which is also the trade?s breakeven point. At that level, this covered call has 5.5% downside protection, while still providing a 7.9% return in 123 days as long as ADBE is above $77.50 on 4/17/2015. For comparison purposes only, this Adobe Systems covered call aims for an annualized return rate of 23.4%. Alcoa (NYSE: AA) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $14.87 while selling the February $15.00 call will produce a new covered call with a break-even point around $13.88. At that price, this position has a target return of 8.1%. This trade will have roughly 6.7% downside protection, while still aiming for a 8.1% return in 67 days. It will lock in that return as long as Alcoa is above $15.00 on 2/20/2015. For comparison purposes only, this AA covered call aims for an annualized return rate of 43.9%. Dish Network (NASDAQ: DISH) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the March $72.50 call while at the same time buying DISH stock for $70.83 will produce a new covered call with a target return of 9.7%. Based on recent data, this trade will cost about $66.08, which is also the covered call?s breakeven point. At that price, this covered call has 6.7% downside protection, while seeking an assigned return of 9.7% return in 95 days. If DISH is higher than $72.50 on 3/20/2015, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 37.3%. TrueCar (NASDAQ: TRUE) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the April $22.50 call while simultaneously buying TRUE stock for $21.35 will result in a new position with a break-even point around $18.60. At that price, this position has a target return of 21.0%. This trade has 12.9% downside protection, while still providing a 21.0% return in 123 days as long as TRUE is above $22.50 on 4/17/2015. For comparison purposes only, this TrueCar covered call targets an annualized return rate of 62.2%. Alibaba (NYSE: BABA) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $105.06 while selling the January $105.00 call will produce a new covered call with a break-even point around $100.06. At that price, this position has a target return of 4.9%. This trade will have roughly 4.8% downside protection, while still aiming for a 4.9% return in 33 days. It will lock in that return as long as Alibaba is above $105.00 on 1/17/2015. For comparison purposes only, this BABA covered call aims for an annualized return rate of 54.5%. Zoe's Kitchen (NYSE: ZOES) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $30.31 while simultaneously selling the March $35.00 call will result in a new position with a target return of 21.1%. Based on recent prices, this position will cost about $28.91, which is also the trade?s breakeven point. At that level, this covered call has 4.6% downside protection, while still providing a 21.1% return in 95 days as long as ZOES is above $35.00 on 3/20/2015. For comparison purposes only, this Zoe's Kitchen covered call aims for an annualized return rate of 80.9%. RF Micro Devices (NASDAQ: RFMD) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $15.52 while selling the February $16.00 call will produce a new covered call with a break-even point around $14.47. At that price, this position has a target return of 10.6%. This trade will have roughly 6.8% downside protection, while still aiming for a 10.6% return in 67 days. It will lock in that return as long as RF Micro Devices is above $16.00 on 2/20/2015. For comparison purposes only, this RFMD covered call aims for an annualized return rate of 57.6%. Intel (NASDAQ: INTC) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the February $37.00 call while at the same time buying INTC stock for $36.20 will produce a new covered call with a target return of 6.0%. Based on recent data, this trade will cost about $34.92, which is also the covered call?s breakeven point. At that price, this covered call has 3.5% downside protection, while seeking an assigned return of 6.0% return in 67 days. If INTC is higher than $37.00 on 2/20/2015, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 32.4%. BitAuto (NYSE: BITA) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the January $70.00 call while simultaneously buying BITA stock for $69.18 will result in a new position with a break-even point around $63.98. At that price, this position has a target return of 9.4%. This trade has 7.5% downside protection, while still providing a 9.4% return in 33 days as long as BITA is above $70.00 on 1/17/2015. For comparison purposes only, this BitAuto covered call targets an annualized return rate of 104.0%. *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? 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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 PetSmart (PETM), Opko Health (OPK) and Peabody Coal (BTU) are higher in pre-market trading, while NSP Pharmaceuticals (NSPS) is lower. Darden Restaurants (DRI) was upgraded, while RF Micro Devices (RFMD) was downgraded. INTERNATIONAL MARKETS Asian markets were mixed Monday as Japanese stocks fell to their lowest point in three weeks. The Shanghai Composite was up 0.52% while the Nikkei fell 1.57%. In Europe, stocks are mixed today as the energy stocks moved up from their worst week in three years. The FTSE is up 0.27%, and the DAX is down 2.27%. FUTURES & CURRENCIES West Texas Intermediate crude oil is up $0.06 to $57.87 while NYMEX natural gas is up $0.05 to $3.85. In metals, gold is down $5 to $1,212, silver is down $0.12 to $16.97 and platinum is trading at $1,219. The Dollar is up versus the Euro and the Yen. PUT/CALL RATIO Friday, 1,086,847 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 855,211 put contracts. The single-session put/call was 0.79, while the 20-day moving average is now at 0.62. TODAY'S ECONOMIC CALENDAR 08:30 AM Dec Empire Manufacturing 09:15 AM Nov Industrial Production 09:15 AM Nov Capacity Utilization 10:00 AM Dec NAHB Housing Market Index 04:00 AM Oct Net Long-Term TIC Flows EARNINGS EXPECTED TODAY FCEL PAY RICK 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 |
