MORNING UPDATE: PriceWatch Alerts for SWI and More... for 2014-10-30 |
| MORNING UPDATE FOR OCOTBER 30, 2014 PriceWatch Alerts for GE, AMED, RFMD, JCP, SCTY, T, SWI, WFM, FEYE and ISIS. General Electric (NYSE: GE) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $25.64 while selling the June $26.00 call will produce a new covered call with a break-even point around $24.69. At that price, this position has a target return of 5.3%. This trade will have roughly 3.7% downside protection, while still aiming for a 5.3% return in 232 days. It will lock in that return as long as General Electric is above $26.00 on 6/19/2015. For comparison purposes only, this GE covered call aims for an annualized return rate of 8.3%. Amedisys (NASDAQ: AMED) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $25.83 while simultaneously selling the March $26.00 call will result in a new position with a target return of 9.8%. Based on recent prices, this position will cost about $23.68, which is also the trade?s breakeven point. At that level, this covered call has 8.3% downside protection, while still providing a 9.8% return in 141 days as long as AMED is above $26.00 on 3/20/2015. For comparison purposes only, this Amedisys covered call aims for an annualized return rate of 25.3%. 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 $12.00 while selling the February $12.00 call will produce a new covered call with a break-even point around $10.75. At that price, this position has a target return of 11.6%. This trade will have roughly 10.4% downside protection, while still aiming for a 11.6% return in 113 days. It will lock in that return as long as RF Micro Devices is above $12.00 on 2/20/2015. For comparison purposes only, this RFMD covered call aims for an annualized return rate of 37.5%. JC Penney (NYSE: JCP) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the May $8.00 call while at the same time buying JCP stock for $7.59 will produce a new covered call with a target return of 22.5%. Based on recent data, this trade will cost about $6.53, which is also the covered call?s breakeven point. At that price, this covered call has 14.0% downside protection, while seeking an assigned return of 22.5% return in 197 days. If JCP is higher than $8.00 on 5/15/2015, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 41.7%. 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 November $55.00 call while simultaneously buying SCTY stock for $54.05 will result in a new position with a break-even point around $50.80. At that price, this position has a target return of 8.3%. This trade has 6.0% downside protection, while still providing a 8.3% return in 23 days as long as SCTY is above $55.00 on 11/22/2014. For comparison purposes only, this SolarCity covered call targets an annualized return rate of 131.1%. AT&T (NYSE: T) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $34.40 while selling the June $35.00 call will produce a new covered call with a break-even point around $33.31. At that price, this position has a target return of 5.1%. This trade will have roughly 3.2% downside protection, while still aiming for a 5.1% return in 232 days. It will lock in that return as long as AT&T is above $35.00 on 6/19/2015. For comparison purposes only, this T covered call aims for an annualized return rate of 8.0%. SolarWinds (NYSE: SWI) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $47.20 while simultaneously selling the January $47.50 call will result in a new position with a target return of 5.3%. Based on recent prices, this position will cost about $45.10, which is also the trade?s breakeven point. At that level, this covered call has 4.4% downside protection, while still providing a 5.3% return in 79 days as long as SWI is above $47.50 on 1/17/2015. For comparison purposes only, this SolarWinds covered call aims for an annualized return rate of 24.6%. Whole Foods (NASDAQ: WFM) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $38.60 while selling the November $39.50 call will produce a new covered call with a break-even point around $37.55. At that price, this position has a target return of 5.2%. This trade will have roughly 2.7% downside protection, while still aiming for a 5.2% return in 23 days. It will lock in that return as long as Whole Foods is above $39.50 on 11/22/2014. For comparison purposes only, this WFM covered call aims for an annualized return rate of 82.4%. FireEye (NASDAQ: FEYE) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the December $32.00 call while at the same time buying FEYE stock for $32.70 will produce a new covered call with a target return of 8.7%. Based on recent data, this trade will cost about $29.45, which is also the covered call?s breakeven point. At that price, this covered call has 9.9% downside protection, while seeking an assigned return of 8.7% return in 51 days. If FEYE is higher than $32.00 on 12/20/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 61.9%. Isis Pharmaceuticals (NASDAQ: ISIS) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the December $46.00 call while simultaneously buying ISIS stock for $44.99 will result in a new position with a break-even point around $41.99. At that price, this position has a target return of 9.5%. This trade has 6.7% downside protection, while still providing a 9.5% return in 51 days as long as ISIS is above $46.00 on 12/20/2014. For comparison purposes only, this Isis Pharmaceuticals covered call targets an annualized return rate of 68.3%. *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 Grand Canyon Education (LOPE), Novavax (NVAX) and TASER International (TASR) are higher in pre-market trading, while Weight Watchers (WTW), Sturm Ruger (RGR) and Alliance Fiber Optic Cable (AFOP) are lower. There were no major analyst upgrades or downgrades today. INTERNATIONAL MARKETS In Asia, markets were mixed Thursday as it was announced that a trading connection with Hong Kong was ready to be retried. The Nikkei climbed 0.67% while the Hang Seng fell 0.49%. European markets are declining Thursday for the first time in three days. The FTSE is off 0.98%, and the DAX is down 1.69%. FUTURES & CURRENCIES West Texas Intermediate crude oil is down $0.85 to $81.35 while NYMEX natural gas is up a penny to $3.80. In metals, gold is down $24 to $1,200, silver is down $0.65 to $16.57 and platinum is trading at $1,245. The Dollar is up versus both the Euro and the Yen. PUT/CALL RATIO Yesterday, 1,089,307 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 789,150 put contracts. The single-session put/call was 0.72, while the 20-day moving average is now at 0.69. TODAY'S ECONOMIC CALENDAR 08:30 AM 10/25 Initial Claims 08:30 AM 10/18 Continuing Claims 08:30 AM Q3 GDP-Adv. 08:30 AM Q3 Chain Deflator-Adv. 10:30 AM 10/25 Natural Gas Inventories EARNINGS EXPECTED TODAY ABC AEGR AVP BAGL BG BODY BYD CAH CI CME ESI GDOT GG GMC GRPN JCI KMT MCD NOV OUTR PBI PXLW RGLD SBUX SGEN TASR THRX TSRA VALE WLT WU 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 |
