MORNING UPDATE: PriceWatch Alerts for SLB and More... for 2014-11-03 |
| MORNING UPDATE FOR NOVEMBER 3, 2014 PriceWatch Alerts for LNKD, IMPV, NSC, HAL, AGIO, MBLY, SLB, AMBA and WLT. LinkedIn (NYSE: LNKD) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $229.19 while selling the January $230.00 call will produce a new covered call with a break-even point around $215.84. At that price, this position has a target return of 6.6%. This trade will have roughly 5.8% downside protection, while still aiming for a 6.6% return in 75 days. It will lock in that return as long as LinkedIn is above $230.00 on 1/17/2015. For comparison purposes only, this LNKD covered call aims for an annualized return rate of 31.9%. Imperva (NYSE: IMPV) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $40.98 while simultaneously selling the December $40.00 call will result in a new position with a target return of 5.5%. Based on recent prices, this position will cost about $37.93, which is also the trade?s breakeven point. At that level, this covered call has 7.4% downside protection, while still providing a 5.5% return in 47 days as long as IMPV is above $40.00 on 12/20/2014. For comparison purposes only, this Imperva covered call aims for an annualized return rate of 42.3%. Norfolk Southern (NYSE: NSC) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $110.64 while selling the March $110.00 call will produce a new covered call with a break-even point around $104.89. At that price, this position has a target return of 4.9%. This trade will have roughly 5.2% downside protection, while still aiming for a 4.9% return in 137 days. It will lock in that return as long as Norfolk Southern is above $110.00 on 3/20/2015. For comparison purposes only, this NSC covered call aims for an annualized return rate of 13.0%. Halliburton (NYSE: HAL) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the January $55.00 call while at the same time buying HAL stock for $55.05 will produce a new covered call with a target return of 5.9%. Based on recent data, this trade will cost about $51.95, which is also the covered call?s breakeven point. At that price, this covered call has 5.6% downside protection, while seeking an assigned return of 5.9% return in 75 days. If HAL is higher than $55.00 on 1/17/2015, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 28.6%. Agios Pharmaceuticals (NASDAQ: AGIO) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the December $85.00 call while simultaneously buying AGIO stock for $83.75 will result in a new position with a break-even point around $75.75. At that price, this position has a target return of 12.2%. This trade has 9.6% downside protection, while still providing a 12.2% return in 47 days as long as AGIO is above $85.00 on 12/20/2014. For comparison purposes only, this Agios Pharmaceuticals covered call targets an annualized return rate of 94.8%. Mobileye (NYSE: MBLY) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $51.66 while selling the December $52.50 call will produce a new covered call with a break-even point around $48.31. At that price, this position has a target return of 8.7%. This trade will have roughly 6.5% downside protection, while still aiming for a 8.7% return in 47 days. It will lock in that return as long as Mobileye is above $52.50 on 12/20/2014. For comparison purposes only, this MBLY covered call aims for an annualized return rate of 67.3%. Schlumberger (NYSE: SLB) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $98.66 while simultaneously selling the February $100.00 call will result in a new position with a target return of 6.1%. Based on recent prices, this position will cost about $94.21, which is also the trade?s breakeven point. At that level, this covered call has 4.5% downside protection, while still providing a 6.1% return in 109 days as long as SLB is above $100.00 on 2/20/2015. For comparison purposes only, this Schlumberger covered call aims for an annualized return rate of 20.6%. Ambarella (NASDAQ: AMBA) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $44.27 while selling the January $44.00 call will produce a new covered call with a break-even point around $39.97. At that price, this position has a target return of 10.1%. This trade will have roughly 9.7% downside protection, while still aiming for a 10.1% return in 75 days. It will lock in that return as long as Ambarella is above $44.00 on 1/17/2015. For comparison purposes only, this AMBA covered call aims for an annualized return rate of 49.1%. Walter Energy (NYSE: WLT) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the June $3.00 call while at the same time buying WLT stock for $2.38 will produce a new covered call with a target return of 59.6%. Based on recent data, this trade will cost about $1.88, which is also the covered call?s breakeven point. At that price, this covered call has 21.0% downside protection, while seeking an assigned return of 59.6% return in 228 days. If WLT is higher than $3.00 on 6/19/2015, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 95.4%. (To avoid having your profit margin narrowed by transaction costs, consider making this trade with multiple contracts.) Inovio Pharmaceuticals (AMEX: INO) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the February $12.00 call while simultaneously buying INO stock for $11.36 will result in a new position with a break-even point around $10.21. At that price, this position has a target return of 17.5%. This trade has 10.1% downside protection, while still providing a 17.5% return in 109 days as long as INO is above $12.00 on 2/20/2015. For comparison purposes only, this Inovio Pharmaceuticals covered call targets an annualized return rate of 58.7%. *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 AngloGold Ashanti Ltd (AU), Covance Inc. (CVD) and FedEx Corporation (FDX), are rising, while American Realty Capital Properties, Inc.(ARCP), Sears Holdings Corporation (SHLD) and Novo Nordisk (NVO) are down. There were no major analyst upgrades or downgrades this morning. INTERNATIONAL MARKETS On Monday, Asian markets were mixed after low Chinese manufacturing data. The Nikkei jumped 4.83% while the Hang Seng fell 0.34%. European markets are down this morning after uninspiring Eurozone manufacturing reports. The FTSE is down 0.53%, and the DAX is down 0.52%. FUTURES & CURRENCIES West Texas Intermediate crude oil is up $0.42 to $80.96 while NYMEX natural gas is up $0.18 to $4.05. In metals, gold is down $3 to $1,169, silver is down $0.14 to $16.14 and platinum is up $2 to $1,242. The Dollar is up versus both the Euro and the Yen. PUT/CALL RATIO Friday, 1,611,418 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 810,601 put contracts. The single-session put/call was 0.5, while the 20-day moving average is now at 0.68. TODAY'S ECONOMIC CALENDAR 10:00 AM Oct ISM Index 10:00 AM Sep Construction Spending 02:00 PM Oct Auto Sales 02:00 PM Oct Truck Sales EARNINGS EXPECTED TODAY AIG AU HLF MNKD NBIX RKUS S SOHU SYY TA THC 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 |
