MORNING UPDATE: PriceWatch Alerts for INVN and More... for 2014-10-16 |
| MORNING UPDATE FOR OCTOBER 16, 2014 PriceWatch Alerts for NLNK, OREX, JKS, GOLD, ARWR, INVN, TSL, JNPR, QCOM and LINE. NewLink Genetics (NASDAQ: NLNK) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $24.86 while selling the November $26.00 call will produce a new covered call with a break-even point around $20.86. At that price, this position has a target return of 24.6%. This trade will have roughly 16.1% downside protection, while still aiming for a 24.6% return in 37 days. It will lock in that return as long as NewLink Genetics is above $26.00 on 11/22/2014. For comparison purposes only, this NLNK covered call aims for an annualized return rate of 243.1%. Orexigen Therapeutics (NASDAQ: OREX) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $3.58 while simultaneously selling the April $4.00 call will result in a new position with a target return of 43.9%. Based on recent prices, this position will cost about $2.78, which is also the trade?s breakeven point. At that level, this covered call has 22.3% downside protection, while still providing a 43.9% return in 183 days as long as OREX is above $4.00 on 4/17/2015. For comparison purposes only, this Orexigen Therapeutics covered call aims for an annualized return rate of 87.5%. JinkoSolar (NYSE: JKS) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $21.90 while selling the November $22.00 call will produce a new covered call with a break-even point around $19.50. At that price, this position has a target return of 12.8%. This trade will have roughly 11.0% downside protection, while still aiming for a 12.8% return in 37 days. It will lock in that return as long as JinkoSolar is above $22.00 on 11/22/2014. For comparison purposes only, this JKS covered call aims for an annualized return rate of 126.5%. Randgold Resources (NASDAQ: GOLD) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the November $70.00 call while at the same time buying GOLD stock for $70.07 will produce a new covered call with a target return of 5.5%. Based on recent data, this trade will cost about $66.37, which is also the covered call?s breakeven point. At that price, this covered call has 5.3% downside protection, while seeking an assigned return of 5.5% return in 37 days. If GOLD is higher than $70.00 on 11/22/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 53.9%. Arrowhead (NASDAQ: ARWR) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the November $6.00 call while simultaneously buying ARWR stock for $6.60 will result in a new position with a break-even point around $5.55. At that price, this position has a target return of 8.1%. This trade has 15.9% downside protection, while still providing a 8.1% return in 37 days as long as ARWR is above $6.00 on 11/22/2014. For comparison purposes only, this Arrowhead covered call targets an annualized return rate of 79.9%. Invensense (NYSE: INVN) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $19.75 while selling the November $20.00 call will produce a new covered call with a break-even point around $17.75. At that price, this position has a target return of 12.7%. This trade will have roughly 10.1% downside protection, while still aiming for a 12.7% return in 37 days. It will lock in that return as long as Invensense is above $20.00 on 11/22/2014. For comparison purposes only, this INVN covered call aims for an annualized return rate of 125.0%. Trina Solar (NYSE: TSL) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $9.26 while simultaneously selling the December $10.00 call will result in a new position with a target return of 22.5%. Based on recent prices, this position will cost about $8.16, which is also the trade?s breakeven point. At that level, this covered call has 11.9% downside protection, while still providing a 22.5% return in 65 days as long as TSL is above $10.00 on 12/20/2014. For comparison purposes only, this Trina Solar covered call aims for an annualized return rate of 126.6%. Juniper Networks (NYSE: JNPR) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $18.80 while selling the January $19.00 call will produce a new covered call with a break-even point around $17.55. At that price, this position has a target return of 8.3%. This trade will have roughly 6.6% downside protection, while still aiming for a 8.3% return in 93 days. It will lock in that return as long as Juniper Networks is above $19.00 on 1/17/2015. For comparison purposes only, this JNPR covered call aims for an annualized return rate of 32.4% Qualcomm (NASDAQ: QCOM) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the December $72.50 call while at the same time buying QCOM stock for $70.70 will produce a new covered call with a target return of 6.3%. Based on recent data, this trade will cost about $68.20, which is also the covered call?s breakeven point. At that price, this covered call has 3.5% downside protection, while seeking an assigned return of 6.3% return in 65 days. If QCOM is higher than $72.50 on 12/20/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 35.4%. Linn Energy (NASDAQ: LINE) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the January $23.00 call while simultaneously buying LINE stock for $22.22 will result in a new position with a break-even point around $20.32. At that price, this position has a target return of 13.2%. This trade has 8.6% downside protection, while still providing a 13.2% return in 93 days as long as LINE is above $23.00 on 1/17/2015. For comparison purposes only, this Linn Energy covered call targets an annualized return rate of 51.7%. *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? 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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 BioCryst Pharmaceuticals (BCRX) and practically nothing else are higher in pre-market trading, while foremost among the decliners are Netflix (NFLX) and Baker Hughes (BHI). Wells Fargo (WFC), Citigroup (C) and Time Warner (TWX) were upgraded by analysts this morning, while eBay (EBAY) and Rio Tinto (RIO) were downgraded. INTERNATIONAL MARKETS Asian stocks fell Thursday with Tokyo stocks leading the way down. The Nikkei was down 2.22% and the Hang Seng fell 1.06%. In Europe, stocks are falling today as the selloff continues. The FTSE is down 1.75%, and the DAX is off 1.66%. FUTURES & CURRENCIES West Texas Intermediate crude oil is down $1.34 to $80.44 while NYMEX natural gas is up $0.01 to $3.81. In metals, gold is down $5 to $1,239, silver is down $0.08 to $17.33 and platinum is trading at $1,246. The Dollar is up against the Euro and down versus the Yen. PUT/CALL RATIO Yesterday, 1,547,938 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 1,173,661 put contracts. The single-session put/call was 0.76, while the 20-day moving average is now at 0.70. Higher and higher. TODAY'S ECONOMIC CALENDAR 08:30 AM 10/11 Initial Claims 08:30 AM 10/04 Continuing Claims 09:15 AM Sep Industrial Production 09:15 AM Sep Capacity Utilization 10:00 AM Oct Philadelphia Fed 10:00 AM Oct NAHB Housing Market Index 10:30 AM 10/11 Natural Gas Inventories 11:00 AM 10/11 Crude Inventories 04:00 PM Aug Net Long-Term TIC Flows EARNINGS EXPECTED TODAY AMD ATHN BBT BX COF DAL GOOG GOOGL GS MAT PM SLB WAL XLNX 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 |
