MORNING UPDATE: PriceWatch Alerts for FB and More... for 2014-12-08 |
| MORNING UPDATE FOR DECEMBER 8, 2014 PriceWatch Alerts for INVN, FRAN, VSLR, FB, DISCA, YHOO, ESI, BKW, UA and AXP. Invensense (NYSE: INVN) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $15.05 while selling the March $16.00 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 16.8%. This trade will have roughly 9.0% downside protection, while still aiming for a 16.8% return in 102 days. It will lock in that return as long as Invensense is above $16.00 on 3/20/2015. For comparison purposes only, this INVN covered call aims for an annualized return rate of 60.0%. Francesca's (NASDAQ: FRAN) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $15.12 while simultaneously selling the March $15.00 call will result in a new position with a target return of 10.9%. Based on recent prices, this position will cost about $13.52, which is also the trade?s breakeven point. At that level, this covered call has 10.6% downside protection, while still providing a 10.9% return in 102 days as long as FRAN is above $15.00 on 3/20/2015. For comparison purposes only, this Francesca's covered call aims for an annualized return rate of 39.1%. Vivint Solar (NYSE: VSLR) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $10.23 while selling the April $10.00 call will produce a new covered call with a break-even point around $8.53. At that price, this position has a target return of 17.2%. This trade will have roughly 16.6% downside protection, while still aiming for a 17.2% return in 130 days. It will lock in that return as long as Vivint Solar is above $10.00 on 4/17/2015. For comparison purposes only, this VSLR covered call aims for an annualized return rate of 48.4%. Facebook (NASDAQ: FB) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the March $75.00 call while at the same time buying FB stock for $76.36 will produce a new covered call with a target return of 6.5%. Based on recent data, this trade will cost about $70.41, which is also the covered call?s breakeven point. At that price, this covered call has 7.8% downside protection, while seeking an assigned return of 6.5% return in 102 days. If FB is higher than $75.00 on 3/20/2015, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 23.3%. Discovery (NASDAQ: DISCA) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the April $35.00 call while simultaneously buying DISCA stock for $33.97 will result in a new position with a break-even point around $32.12. At that price, this position has a target return of 9.0%. This trade has 5.4% downside protection, while still providing a 9.0% return in 130 days as long as DISCA is above $35.00 on 4/17/2015. For comparison purposes only, this Discovery covered call targets an annualized return rate of 25.2%. Yahoo (NASDAQ: YHOO) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $51.02 while selling the February $50.00 call will produce a new covered call with a break-even point around $47.02. At that price, this position has a target return of 6.3%. This trade will have roughly 7.8% downside protection, while still aiming for a 6.3% return in 74 days. It will lock in that return as long as Yahoo is above $50.00 on 2/20/2015. For comparison purposes only, this YHOO covered call aims for an annualized return rate of 31.2%. ITT Educational Services (NYSE: ESI) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $10.05 while simultaneously selling the April $10.00 call will result in a new position with a target return of 29.9%. Based on recent prices, this position will cost about $7.70, which is also the trade?s breakeven point. At that level, this covered call has 23.4% downside protection, while still providing a 29.9% return in 130 days as long as ESI is above $10.00 on 4/17/2015. For comparison purposes only, this ITT Educational Services covered call aims for an annualized return rate of 83.9%. Burger King (NYSE: BKW) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $34.81 while selling the January $35.00 call will produce a new covered call with a break-even point around $33.46. At that price, this position has a target return of 4.6%. This trade will have roughly 3.9% downside protection, while still aiming for a 4.6% return in 40 days. It will lock in that return as long as Burger King is above $35.00 on 1/17/2015. For comparison purposes only, this BKW covered call aims for an annualized return rate of 42.0%. Under Armour (NYSE: UA) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the January $70.00 call while at the same time buying UA stock for $69.58 will produce a new covered call with a target return of 4.1%. Based on recent data, this trade will cost about $67.23, which is also the covered call?s breakeven point. At that price, this covered call has 3.4% downside protection, while seeking an assigned return of 4.1% return in 40 days. If UA is higher than $70.00 on 1/17/2015, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 37.6%. American Express (NYSE: AXP) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the July $95.00 call while simultaneously buying AXP stock for $92.65 will result in a new position with a break-even point around $88.75. At that price, this position has a target return of 7.0%. This trade has 4.2% downside protection, while still providing a 7.0% return in 221 days as long as AXP is above $95.00 on 7/17/2015. For comparison purposes only, this American Express covered call targets an annualized return rate of 11.6%. *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 Cubist Pharmaceuticals (CBST) is up 36% in pre-market trading, with Bristol-Myers Squib (BMY) and Agios Pharmaceuticals (AGIO) up in the 5% to 7% range. Occidental Petroleum (OXY), Infosys (INFY) and Seattle Genetics (SGEN) are all trading lower. EBay (EBAY) was upgraded by analysts this morning, while Nike (NKE) was downgraded. INTERNATIONAL MARKETS Asian markets were mostly higher Monday as Japanese stocks reached their highest level in seven years. The Shanghai Composite climbed 2.81% while the Nikkei was up 0.1%. In Europe, stocks are falling today after lower than expected industrial production data from Germany. The FTSE is down 0.82%, and the DAX is off 0.52%. FUTURES & CURRENCIES West Texas Intermediate crude oil is down $1.38 to $64.46 while NYMEX natural gas is down $0.10 to $3.71. In metals, gold is up $2 to $1,195, silver is up $0.03 to $16.28 and platinum is trading at $1,237. Dollar is up versus the Euro and down against the Yen. PUT/CALL RATIO On Friday, 1,329,311 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 663,258 put contracts. The single-session put/call was 0.5, while the 20-day moving average is now at 0.59. TODAY'S ECONOMIC CALENDAR There are no major economic reports scheduled for this morning. EARNINGS EXPECTED TODAY There are no major earnings reports scheduled for today. 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 |
