MORNING UPDATE: PriceWatch Alerts for TGT and More... for 2014-11-20 |
| MORNING UPDATE FOR NOVEMBER 20, 2014 PriceWatch Alerts for AGIO, TGT, DG, LULU, COST, DISH, LOW, NUAN, MYL and V. Agios Pharmaceuticals (NASDAQ: AGIO) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $95.94 while selling the January $95.00 call will produce a new covered call with a break-even point around $87.44. At that price, this position has a target return of 8.6%. This trade will have roughly 8.9% downside protection, while still aiming for a 8.6% return in 58 days. It will lock in that return as long as Agios Pharmaceuticals is above $95.00 on 1/17/2015. For comparison purposes only, this AGIO covered call aims for an annualized return rate of 54.4%. Target (NYSE: TGT) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $72.68 while simultaneously selling the April $75.00 call will result in a new position with a target return of 6.7%. Based on recent prices, this position will cost about $70.30, which is also the trade?s breakeven point. At that level, this covered call has 3.3% downside protection, while still providing a 6.7% return in 148 days as long as TGT is above $75.00 on 4/17/2015. For comparison purposes only, this Target covered call aims for an annualized return rate of 16.5%. Dollar General (NYSE: DG) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $66.45 while selling the January $67.50 call will produce a new covered call with a break-even point around $63.30. At that price, this position has a target return of 6.6%. This trade will have roughly 4.7% downside protection, while still aiming for a 6.6% return in 58 days. It will lock in that return as long as Dollar General is above $67.50 on 1/17/2015. For comparison purposes only, this DG covered call aims for an annualized return rate of 41.7%. Lululemon Athletica (NASDAQ: LULU) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the January $47.50 call while at the same time buying LULU stock for $45.62 will produce a new covered call with a target return of 10.2%. Based on recent data, this trade will cost about $43.09, which is also the covered call?s breakeven point. At that price, this covered call has 5.5% downside protection, while seeking an assigned return of 10.2% return in 58 days. If LULU is higher than $47.50 on 1/17/2015, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 64.4%. Costco Wholesale (NASDAQ: COST) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the April $145.00 call while simultaneously buying COST stock for $140.28 will result in a new position with a break-even point around $137.28. At that price, this position has a target return of 5.6%. This trade has 2.1% downside protection, while still providing a 5.6% return in 148 days as long as COST is above $145.00 on 4/17/2015. For comparison purposes only, this Costco Wholesale covered call targets an annualized return rate of 13.9%. Dish Network (NASDAQ: DISH) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $74.80 while selling the March $75.00 call will produce a new covered call with a break-even point around $68.95. At that price, this position has a target return of 8.8%. This trade will have roughly 7.8% downside protection, while still aiming for a 8.8% return in 120 days. It will lock in that return as long as Dish Network is above $75.00 on 3/20/2015. For comparison purposes only, this DISH covered call aims for an annualized return rate of 26.7%. Lowe's (NYSE: LOW) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $62.35 while simultaneously selling the April $62.50 call will result in a new position with a target return of 5.0%. Based on recent prices, this position will cost about $59.55, which is also the trade?s breakeven point. At that level, this covered call has 4.5% downside protection, while still providing a 5.0% return in 148 days as long as LOW is above $62.50 on 4/17/2015. For comparison purposes only, this Lowe's covered call aims for an annualized return rate of 12.2%. Nuance Communications (NASDAQ: NUAN) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $15.18 while selling the April $16.00 call will produce a new covered call with a break-even point around $14.13. At that price, this position has a target return of 13.2%. This trade will have roughly 6.9% downside protection, while still aiming for a 13.2% return in 148 days. It will lock in that return as long as Nuance Communications is above $16.00 on 4/17/2015. For comparison purposes only, this NUAN covered call aims for an annualized return rate of 32.6%. Mylan Laboratories (NASDAQ: MYL) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the January $57.50 call while at the same time buying MYL stock for $55.67 will produce a new covered call with a target return of 6.3%. Based on recent data, this trade will cost about $54.07, which is also the covered call?s breakeven point. At that price, this covered call has 2.9% downside protection, while seeking an assigned return of 6.3% return in 58 days. If MYL is higher than $57.50 on 1/17/2015, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 39.9%. Visa (NYSE: V) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the March $250.00 call while simultaneously buying V stock for $249.53 will result in a new position with a break-even point around $238.88. At that price, this position has a target return of 4.7%. This trade has 4.3% downside protection, while still providing a 4.7% return in 120 days as long as V is above $250.00 on 3/20/2015. For comparison purposes only, this Visa covered call targets an annualized return rate of 14.1%. *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)! 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NOTE: All stocks and options shown are examples only. These are not recommendations to buy or sell any security. STOCKS ON THE MOVE Caesar's Entertainment (CZR), (Best Buy (BBY) and Williams-Sonoma (WSM) are climbing this morning, while El Pollo Loco (LOCO), Groupon (GPRO) and Rockwell Medical (RMTI) are sinking. Rayonier (RYN) and TrueCar (TRUE) were upgraded by analysts this morning, while Boston Properties (BXP) was downgraded. INTERNATIONAL MARKETS In Asia, markets were mixed Thursday. Japanese stocks edged higher while Chinese economic data pulled markets there down. The Hang Seng fell 0.10% while the Nikkei was up 0.07%. European markets are falling today, pulled down by negative economic data for the region. The FTSE is down 0.70%, and the DAX is down 0.75%. FUTURES & CURRENCIES West Texas Intermediate crude oil is up $0.05 to $74.63 while NYMEX natural gas is up $0.05 to $4.42. In metals, gold is up $12 to $1,191, silver is up $0.01 to $16.23 and platinum is trading at $1,207. The Dollar is up versus the Euro and the Yen. PUT/CALL RATIO Yesterday, 1,059,306 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 632,848put contracts. The single-session put/call was 0.6, while the 20-day moving average is now at 0.61. TODAY'S ECONOMIC CALENDAR 08:30 AM 11/08 Continuing Claims 08:30 AM Oct CPI 08:30 AM Oct Core CPI 10:00 AM Oct Existing Home Sales 10:00 AM Nov Philadelphia Fed 10:00 AM Oct Leading Indicators 10:30 AM 11/15 Natural Gas Inventories EARNINGS EXPECTED TODAY BBY DLTR GME JKS MBLY ROST 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 |
