MORNING UPDATE: PriceWatch Alerts for UA and More... for 2014-10-14 |
| MORNING UPDATE FOR OCTOBER 14, 2014 PriceWatch Alerts for ALNY, BKW, UA, MET, FFIV, CLF, VRX, TEX, JWN and GRMN. Alnylam Pharmaceuticals (NASDAQ: ALNY) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $86.90 while selling the December $90.00 call will produce a new covered call with a break-even point around $78.15. At that price, this position has a target return of 15.2%. This trade will have roughly 10.1% downside protection, while still aiming for a 15.2% return in 67 days. It will lock in that return as long as Alnylam Pharmaceuticals is above $90.00 on 12/20/2014. For comparison purposes only, this ALNY covered call aims for an annualized return rate of 82.6%. Burger King (NYSE: BKW) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $29.13 while simultaneously selling the April $30.00 call will result in a new position with a target return of 7.0%. Based on recent prices, this position will cost about $28.03, which is also the trade?s breakeven point. At that level, this covered call has 3.8% downside protection, while still providing a 7.0% return in 185 days as long as BKW is above $30.00 on 4/17/2015. For comparison purposes only, this Burger King covered call aims for an annualized return rate of 13.9%. Under Armour (NYSE: UA) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $61.64 while selling the November $60.00 call will produce a new covered call with a break-even point around $56.69. At that price, this position has a target return of 5.8%. This trade will have roughly 8.0% downside protection, while still aiming for a 5.8% return in 39 days. It will lock in that return as long as Under Armour is above $60.00 on 11/22/2014. For comparison purposes only, this UA covered call aims for an annualized return rate of 54.6%. MetLife (NYSE: MET) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the November $50.00 call while at the same time buying MET stock for $48.88 will produce a new covered call with a target return of 5.2%. Based on recent data, this trade will cost about $47.53, which is also the covered call?s breakeven point. At that price, this covered call has 2.8% downside protection, while seeking an assigned return of 5.2% return in 39 days. If MET is higher than $50.00 on 11/22/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 48.6%. F5 Networks (NASDAQ: FFIV) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the November $110.00 call while simultaneously buying FFIV stock for $109.11 will result in a new position with a break-even point around $103.36. At that price, this position has a target return of 6.4%. This trade has 5.3% downside protection, while still providing a 6.4% return in 39 days as long as FFIV is above $110.00 on 11/22/2014. For comparison purposes only, this F5 Networks covered call targets an annualized return rate of 60.1%. Cliffs Natural Resources (NYSE: CLF) 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 December $9.00 call will produce a new covered call with a break-even point around $7.25. At that price, this position has a target return of 24.1%. This trade will have roughly 12.1% downside protection, while still aiming for a 24.1% return in 67 days. It will lock in that return as long as Cliffs Natural Resources is above $9.00 on 12/20/2014. For comparison purposes only, this CLF covered call aims for an annualized return rate of 131.5%. Valeant Pharmaceuticals. (NYSE: VRX) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $113.45 while simultaneously selling the November $115.00 call will result in a new position with a target return of 6.8%. Based on recent prices, this position will cost about $107.70, which is also the trade?s breakeven point. At that level, this covered call has 5.1% downside protection, while still providing a 6.8% return in 39 days as long as VRX is above $115.00 on 11/22/2014. For comparison purposes only, this Valeant Pharmaceuticals. covered call aims for an annualized return rate of 63.4%. Terex (NYSE: TEX) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $26.90 while selling the November $27.00 call will produce a new covered call with a break-even point around $25.15. At that price, this position has a target return of 7.4%. This trade will have roughly 6.5% downside protection, while still aiming for a 7.4% return in 39 days. It will lock in that return as long as Terex is above $27.00 on 11/22/2014. For comparison purposes only, this TEX covered call aims for an annualized return rate of 68.8%. Nordstrom (NYSE: JWN) 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 JWN stock for $69.04 will produce a new covered call with a target return of 4.6%. Based on recent data, this trade will cost about $66.94, which is also the covered call?s breakeven point. At that price, this covered call has 3.0% downside protection, while seeking an assigned return of 4.6% return in 39 days. If JWN 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 42.8%. Garmin (NASDAQ: GRMN) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the November $50.00 call while simultaneously buying GRMN stock for $49.84 will result in a new position with a break-even point around $47.64. At that price, this position has a target return of 5.0%. This trade has 4.4% downside protection, while still providing a 5.0% return in 39 days as long as GRMN is above $50.00 on 11/22/2014. For comparison purposes only, this Garmin covered call targets an annualized return rate of 46.3%. *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 Avago (AVGO), RF Micro Devices (RFMD) and GoPro (GPRO) are higher in pre-market trading, while Petroleo Brasileiro (PBR) is lower. Cracker Barrel (CBRL), Level 3 (LVLT) and BorgWarner (BWA) were upgraded by analysts this morning, while 1-800-FLOWERS (FLWS) and Costco (COST) were downgraded. INTERNATIONAL MARKETS Asian stocks were down on Tuesday as Japanese markets finished the day at their lowest level in two years. The Nikkei was down 2.38% and the Hang Seng fell 0.41%. European stocks are falling today after a survey of German economic sentiment indicated fears about slowing growth. The FTSE is down 0.32%, and the DAX is off 0.58%. FUTURES & CURRENCIES West Texas Intermediate crude oil down $1.09 to $84.65 while NYMEX natural gas is advancing nearly 1%. In metals, gold is up $4 to $1,233, silver is up $0.19 to $17.52, and platinum is trading at $1,269. The Dollar is up against the Euro and down versus the Yen. PUT/CALL RATIO Yesterday, 1,064,687 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 969,292 put contracts. The single-session put/call was 0.91, while the 20-day moving average is now at 0.68 and rising fast. TODAY'S ECONOMIC CALENDAR There are no major economic announcements scheduled for this morning. EARNINGS EXPECTED TODAY C DPZ INTC JNJ JPM WFC 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 |
