MORNING UPDATE: PriceWatch Alerts for GILD and More... for 2014-10-15 |
| MORNING UPDATE FOR OCTOBER 15, 2014 PriceWatch Alerts for AAL, SWKS, DPZ, SBH, VLO, SHLD, JBLU, QLGC, LVS, ALXN, TSLA, TKMR, GILD, DDD and TASR. American Airlines (NASDAQ: AAL) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $31.88 while selling the November $32.00 call will produce a new covered call with a break-even point around $29.54. At that price, this position has a target return of 8.3%. This trade will have roughly 7.3% downside protection, while still aiming for a 8.3% return in 38 days. It will lock in that return as long as American Airlines is above $32.00 on 11/22/2014. For comparison purposes only, this AAL covered call aims for an annualized return rate of 79.9%. Skyworks Solutions (NASDAQ: SWKS) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $49.30 while simultaneously selling the November $50.00 call will result in a new position with a target return of 8.5%. Based on recent prices, this position will cost about $46.10, which is also the trade?s breakeven point. At that level, this covered call has 6.5% downside protection, while still providing a 8.5% return in 38 days as long as SWKS is above $50.00 on 11/22/2014. For comparison purposes only, this Skyworks Solutions covered call aims for an annualized return rate of 81.2%. Dominos Pizza (NYSE: DPZ) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $84.35 while simultaneously selling the November $85.00 call will result in a new position with a target return of 3.2%. Based on recent prices, this position will cost about $82.35, which is also the trade?s breakeven point. At that level, this covered call has 2.4% downside protection, while still providing a 3.2% return in 38 days as long as DPZ is above $85.00 on 11/22/2014. For comparison purposes only, this Dominos Pizza covered call aims for an annualized return rate of 30.8%. Sally Beauty (NYSE: SBH) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the March $25.00 call while at the same time buying SBH stock for $27.76 will produce a new covered call with a target return of 4.2%. Based on recent data, this trade will cost about $24.00, which is also the covered call?s breakeven point. At that price, this covered call has 13.5% downside protection, while seeking an assigned return of 4.2% return in 156 days. If SBH is higher than $25.00 on 3/20/2015, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 9.7%. Valero Energy (NYSE: VLO) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the November $45.00 call while simultaneously buying VLO stock for $44.92 will result in a new position with a break-even point around $42.67. At that price, this position has a target return of 5.5%. This trade has 5.0% downside protection, while still providing a 5.5% return in 38 days as long as VLO is above $45.00 on 11/22/2014. For comparison purposes only, this Valero Energy covered call targets an annualized return rate of 52.4%. Sears (NASDAQ: SHLD) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $28.50 while selling the November $29.00 call will produce a new covered call with a break-even point around $25.90. At that price, this position has a target return of 12.0%. This trade will have roughly 9.1% downside protection, while still aiming for a 12.0% return in 38 days. It will lock in that return as long as Sears is above $29.00 on 11/22/2014. For comparison purposes only, this SHLD covered call aims for an annualized return rate of 114.9%. JetBlue Airways (NASDAQ: JBLU) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $10.26 while simultaneously selling the March $11.00 call will result in a new position with a target return of 18.8%. Based on recent prices, this position will cost about $9.26, which is also the trade?s breakeven point. At that level, this covered call has 9.7% downside protection, while still providing a 18.8% return in 156 days as long as JBLU is above $11.00 on 3/20/2015. For comparison purposes only, this JetBlue Airways covered call aims for an annualized return rate of 44.0%. QLogic (NASDAQ: QLGC) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $9.53 while selling the April $10.00 call will produce a new covered call with a break-even point around $9.03. At that price, this position has a target return of 10.7%. This trade will have roughly 5.2% downside protection, while still aiming for a 10.7% return in 184 days. It will lock in that return as long as QLogic is above $10.00 on 4/17/2015. For comparison purposes only, this QLGC covered call aims for an annualized return rate of 21.3%. Las Vegas Sands (NYSE: LVS) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the November $60.00 call while at the same time buying LVS stock for $58.89 will produce a new covered call with a target return of 7.0%. Based on recent data, this trade will cost about $56.07, which is also the covered call?s breakeven point. At that price, this covered call has 4.8% downside protection, while seeking an assigned return of 7.0% return in 38 days. If LVS is higher than $60.00 on 11/22/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 67.2%. Alexion Pharmaceuticals (NASDAQ: ALXN) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the November $160.00 call while simultaneously buying ALXN stock for $159.48 will result in a new position with a break-even point around $150.48. At that price, this position has a target return of 6.3%. This trade has 5.6% downside protection, while still providing a 6.3% return in 38 days as long as ALXN is above $160.00 on 11/22/2014. For comparison purposes only, this Alexion Pharmaceuticals covered call targets an annualized return rate of 60.7%. Tesla (NASDAQ: TSLA) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $227.50 while selling the November $235.00 call will produce a new covered call with a break-even point around $215.40. At that price, this position has a target return of 9.1%. This trade will have roughly 5.3% downside protection, while still aiming for a 9.1% return in 38 days. It will lock in that return as long as Tesla is above $235.00 on 11/22/2014. For comparison purposes only, this TSLA covered call aims for an annualized return rate of 87.3%. Tekmira Pharmaceuticals (NASDAQ: TKMR) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $23.50 while simultaneously selling the November $25.00 call will result in a new position with a target return of 19.0%. Based on recent prices, this position will cost about $21.00, which is also the trade?s breakeven point. At that level, this covered call has 10.6% downside protection, while still providing a 19.0% return in 38 days as long as TKMR is above $25.00 on 11/22/2014. For comparison purposes only, this Tekmira Pharmaceuticals covered call aims for an annualized return rate of 182.9%. Gilead Sciences (NASDAQ: GILD) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the December $97.50 call while simultaneously buying GILD stock for $97.65 will result in a new position with a break-even point around $90.60. At that price, this position has a target return of 7.6%. This trade has 7.2% downside protection, while still providing a 7.6% return in 66 days as long as GILD is above $97.50 on 12/20/2014. For comparison purposes only, this Gilead Sciences covered call targets an annualized return rate of 42.1%. 3D Systems (NYSE: DDD) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the November $42.00 call while at the same time buying DDD stock for $41.20 will produce a new covered call with a target return of 7.8%. Based on recent data, this trade will cost about $38.95, 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 7.8% return in 38 days. If DDD is higher than $42.00 on 11/22/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 75.2%. Taser International (NASDAQ: TASR) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the November $15.00 call while simultaneously buying TASR stock for $14.20 will result in a new position with a break-even point around $13.20. At that price, this position has a target return of 13.6%. This trade has 7.0% downside protection, while still providing a 13.6% return in 38 days as long as TASR is above $15.00 on 11/22/2014. For comparison purposes only, this Taser International covered call targets an annualized return rate of 130.9%. *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)! Learn how to limit your risks in any trade and keep your upside open ? 'Cut your losers short and let your winners run'. These limited risk techniques have saved investors thousands of dollars during unexpected market downturns and Black Swan events. 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JP Morgan (JPM) and WR Grace (GRA) were upgraded by analysts this morning, while there were no major analyst downgrades. INTERNATIONAL MARKETS Asian stocks were up Wednesday while Chinese inflation data raised hopes for new stimulus. The Nikkei was up 0.92% and the Hang Seng rose 0.40%. European stocks continue to fall today as fear over lack of growth creates unease for investors. The FTSE is down 1.19%, and the DAX is off 1.12%. FUTURES & CURRENCIES West Texas Intermediate crude oil down $0.60 to $81.24 while NYMEX natural gas is up $0.02 to $3.84. In metals, gold is up $2 to $1,234, silver is down $0.02 to $17.35 and platinum is trading at $1,257. The Dollar is down against the Euro and the Yen. PUT/CALL RATIO Yesterday, 1,218,284 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 954,952 put contracts. The single-session put/call was 0.78, while the 20-day moving average is now at 0.69. TODAY'S ECONOMIC CALENDAR 07:00 AM 10/11 MBA Mortgage Index 08:30 AM Sep Retail Sales 08:30 AM Sep Retail Sales ex-auto 08:30 AM Sep PPI 08:30 AM Sep Core PPI 08:30 AM Oct Empire Manufacturing 10:00 AM Aug Business Inventories 02:00 PM Oct Fed's Beige Book EARNINGS EXPECTED TODAY ASML BAC AXP BLK EBAY LVS NFLX SCHW URI 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 |
