MORNING UPDATE: PriceWatch Alerts for GILD and More... for 2014-12-10 |
| MORNING UPDATE FOR DECEMBER 10, 2014 PriceWatch Alerts for AAPL, ZNGA, GDP, INO, SCTY, ANF, WFM, GILD, JCP and ATVI. Apple (NASDAQ: AAPL) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $114.03 while selling the February $115.00 call will produce a new covered call with a break-even point around $108.65. At that price, this position has a target return of 5.8%. This trade will have roughly 4.7% downside protection, while still aiming for a 5.8% return in 72 days. It will lock in that return as long as Apple is above $115.00 on 2/20/2015. For comparison purposes only, this AAPL covered call aims for an annualized return rate of 29.6%. Zynga (NASDAQ: ZNGA) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $2.54 while simultaneously selling the January $3.00 call will result in a new position with a target return of 47.1%. Based on recent prices, this position will cost about $2.04, which is also the trade?s breakeven point. At that level, this covered call has 19.7% downside protection, while still providing a 47.1% return in 401 days as long as ZNGA is above $3.00 on 1/15/2016. For comparison purposes only, this Zynga covered call aims for an annualized return rate of 42.8%. Goodrich Petroleum (NYSE: GDP) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $4.03 while selling the June $5.00 call will produce a new covered call with a break-even point around $3.03. At that price, this position has a target return of 65.0%. This trade will have roughly 24.8% downside protection, while still aiming for a 65.0% return in 191 days. It will lock in that return as long as Goodrich Petroleum is above $5.00 on 6/19/2015. For comparison purposes only, this GDP covered call aims for an annualized return rate of 124.2%. Inovio Pharmaceuticals (AMEX: INO) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the January $9.00 call while at the same time buying INO stock for $8.28 will produce a new covered call with a target return of 23.6%. Based on recent data, this trade will cost about $7.28, which is also the covered call?s breakeven point. At that price, this covered call has 12.1% downside protection, while seeking an assigned return of 23.6% return in 38 days. If INO is higher than $9.00 on 1/17/2015, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 226.9%. SolarCity (NASDAQ: SCTY) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the January $52.50 call while simultaneously buying SCTY stock for $51.72 will result in a new position with a break-even point around $48.82. At that price, this position has a target return of 7.5%. This trade has 5.6% downside protection, while still providing a 7.5% return in 38 days as long as SCTY is above $52.50 on 1/17/2015. For comparison purposes only, this SolarCity covered call targets an annualized return rate of 72.3%. Abercrombie and Fitch (NYSE: ANF) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $28.46 while selling the January $29.00 call will produce a new covered call with a break-even point around $27.26. At that price, this position has a target return of 6.4%. This trade will have roughly 4.2% downside protection, while still aiming for a 6.4% return in 38 days. It will lock in that return as long as Abercrombie and Fitch is above $29.00 on 1/17/2015. For comparison purposes only, this ANF covered call aims for an annualized return rate of 61.3%. Whole Foods (NASDAQ: WFM) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $48.15 while simultaneously selling the February $49.00 call will result in a new position with a target return of 5.9%. Based on recent prices, this position will cost about $46.25, which is also the trade?s breakeven point. At that level, this covered call has 3.9% downside protection, while still providing a 5.9% return in 72 days as long as WFM is above $49.00 on 2/20/2015. For comparison purposes only, this Whole Foods covered call aims for an annualized return rate of 30.1%. Gilead Sciences (NASDAQ: GILD) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $106.10 while selling the February $105.00 call will produce a new covered call with a break-even point around $98.90. At that price, this position has a target return of 6.2%. This trade will have roughly 6.8% downside protection, while still aiming for a 6.2% return in 72 days. It will lock in that return as long as Gilead Sciences is above $105.00 on 2/20/2015. For comparison purposes only, this GILD covered call aims for an annualized return rate of 31.2%. JC Penney (NYSE: JCP) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the May $6.00 call while at the same time buying JCP stock for $6.36 will produce a new covered call with a target return of 16.7%. Based on recent data, this trade will cost about $5.14, which is also the covered call?s breakeven point. At that price, this covered call has 19.2% downside protection, while seeking an assigned return of 16.7% return in 156 days. If JCP is higher than $6.00 on 5/15/2015, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 39.1%. Activision (NASDAQ: ATVI) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the May $20.00 call while simultaneously buying ATVI stock for $20.91 will result in a new position with a break-even point around $18.68. At that price, this position has a target return of 7.1%. This trade has 10.7% downside protection, while still providing a 7.1% return in 156 days as long as ATVI is above $20.00 on 5/15/2015. For comparison purposes only, this Activision covered call targets an annualized return rate of 16.5%. *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'. 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STOCKS ON THE MOVE NRG Energy (NRG), Rockwell Media (RMTI) and Yamana Gold (AUY) are rising in early morning action while Breitburn Energy (BBEP), Goodrich Petroleum (GDP) Yum! Brands (YUM) and Francesca's (FRAN) are falling. Silicon Graphics (SGI) and Burger King (BKW) were upgraded by analysts this morning, while Sprint (S) and Disney (DIS) were downgraded. INTERNATIONAL MARKETS Asian markets were mixed Wednesday as the Yen grew stronger versus the dollar. The Shanghai Composite recovered much of its Monday loss, rising 2.93% while the Nikkei was down 2.25%. European markets are rising this morning with the German DAX leading the way. The FTSE is up 0.06%, and the DAX is up 0.55%. FUTURES & CURRENCIES West Texas Intermediate crude oil is down $1.31 to $62.51 while NYMEX natural gas is even at $3.65. In metals, gold is up $1 to $1,233, silver is up $0.11 to $17.26 and platinum is trading at $1,250. The Dollar is down versus the Euro and the Yen. PUT/CALL RATIO Yesterday, 1,145,218 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 638,659 put contracts. The single-session put/call was 0.56, while the 20-day moving average is now at 0.63. TODAY'S ECONOMIC CALENDAR 07:00 AM Oct Wholesale Inventories 10:30 AM 12/6 Crude Inventories 02:00 PM Nov Treasury Budget EARNINGS EXPECTED TODAY LE VRA FRAN 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 |
