MORNING UPDATE: PriceWatch Alerts for TXT and More... for 2014-10-20 |
| MORNING UPDATE FOR OCTOBER 20, 2014 PriceWatch Alerts for TXT, BXP, MGM, BWLD, RKUS, SAM, APOL, OPK, VALE and SLW. Textron (NYSE: TXT) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $36.50 while selling the November $37.00 call will produce a new covered call with a break-even point around $35.25. At that price, this position has a target return of 5.0%. This trade will have roughly 3.4% downside protection, while still aiming for a 5.0% return in 33 days. It will lock in that return as long as Textron is above $37.00 on 11/22/2014. For comparison purposes only, this TXT covered call aims for an annualized return rate of 54.9%. Boston Properties (NYSE: BXP) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $119.56 while simultaneously selling the April $120.00 call will result in a new position with a target return of 4.6%. Based on recent prices, this position will cost about $114.76, which is also the trade?s breakeven point. At that level, this covered call has 4.0% downside protection, while still providing a 4.6% return in 179 days as long as BXP is above $120.00 on 4/17/2015. For comparison purposes only, this Boston Properties covered call aims for an annualized return rate of 9.3%. MGM Mirage (NYSE: MGM) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $21.65 while selling the December $22.00 call will produce a new covered call with a break-even point around $20.47. At that price, this position has a target return of 7.5%. This trade will have roughly 5.5% downside protection, while still aiming for a 7.5% return in 61 days. It will lock in that return as long as MGM Mirage is above $22.00 on 12/20/2014. For comparison purposes only, this MGM covered call aims for an annualized return rate of 44.7%. Buffalo Wild Wings (NASDAQ: BWLD) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the December $135.00 call while at the same time buying BWLD stock for $130.32 will produce a new covered call with a target return of 8.5%. Based on recent data, this trade will cost about $124.47, which is also the covered call?s breakeven point. At that price, this covered call has 4.5% downside protection, while seeking an assigned return of 8.5% return in 61 days. If BWLD is higher than $135.00 on 12/20/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 50.6%. Ruckus Wireless (NYSE: RKUS) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the February $12.50 call while simultaneously buying RKUS stock for $11.68 will result in a new position with a break-even point around $10.63. At that price, this position has a target return of 17.6%. This trade has 9.0% downside protection, while still providing a 17.6% return in 123 days as long as RKUS is above $12.50 on 2/20/2015. For comparison purposes only, this Ruckus Wireless covered call targets an annualized return rate of 52.2%. Boston Beer Company (NYSE: SAM) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $220.54 while selling the December $230.00 call will produce a new covered call with a break-even point around $213.79. At that price, this position has a target return of 7.6%. This trade will have roughly 3.1% downside protection, while still aiming for a 7.6% return in 61 days. It will lock in that return as long as Boston Beer Company is above $230.00 on 12/20/2014. For comparison purposes only, this SAM covered call aims for an annualized return rate of 45.4%. Apollo Group (NASDAQ: APOL) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $25.62 while simultaneously selling the November $26.00 call will result in a new position with a target return of 7.6%. Based on recent prices, this position will cost about $24.16, which is also the trade?s breakeven point. At that level, this covered call has 5.7% downside protection, while still providing a 7.6% return in 33 days as long as APOL is above $26.00 on 11/22/2014. For comparison purposes only, this Apollo Group covered call aims for an annualized return rate of 84.2%. Opko Health (NYSE: OPK) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $8.25 while selling the March $9.00 call will produce a new covered call with a break-even point around $7.70. At that price, this position has a target return of 16.9%. This trade will have roughly 6.7% downside protection, while still aiming for a 16.9% return in 151 days. It will lock in that return as long as Opko Health is above $9.00 on 3/20/2015. For comparison purposes only, this OPK covered call aims for an annualized return rate of 40.8%. (To avoid having your profit margin narrowed by transaction costs, consider making this trade with multiple contracts.) Vale (NYSE: VALE) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the April $11.00 call while at the same time buying VALE stock for $10.95 will produce a new covered call with a target return of 10.6%. Based on recent data, this trade will cost about $9.95, which is also the covered call?s breakeven point. At that price, this covered call has 9.1% downside protection, while seeking an assigned return of 10.6% return in 179 days. If VALE is higher than $11.00 on 4/17/2015, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 21.5%. Silver Wheaton (NYSE: SLW) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the December $20.00 call while simultaneously buying SLW stock for $19.50 will result in a new position with a break-even point around $18.41. At that price, this position has a target return of 8.6%. This trade has 5.6% downside protection, while still providing a 8.6% return in 61 days as long as SLW is above $20.00 on 12/20/2014. 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FUTURES & CURRENCIES West Texas Intermediate crude oil up $0.05 to $82.80 while NYMEX natural gas is down $0.08 to $3.68. In metals, gold is up $8 to $1,247, silver is up $0.17 to $17.45 and platinum is trading at $1,271. The US Dollar is down this morning versus the Euro and the Yen. PUT/CALL RATIO Yesterday, 1,532,980 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 1,085,677 put contracts. The single-session put/call was 0.71, while the 20-day moving average is now at 0.70. TODAY'S ECONOMIC CALENDAR There are no economic reports scheduled for today. EARNINGS EXPECTED TODAY AAPL BTU HAL IBM ILMN PETS RMBS SAP TXN VRX 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 |
