MORNING UPDATE: PriceWatch Alerts for PBR and More... for 2014-10-07 |
| MORNING UPDATE FOR OCTOBER 7, 2014 PriceWatch Alerts for PBR, HLF, MU, FEYE, ISIS, JCP, RIO, GLUU, SHPG and FSLR. Petroleo Brasileiro (NYSE: PBR) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $15.80 while selling the November $16.00 call will produce a new covered call with a break-even point around $13.68. At that price, this position has a target return of 17.0%. This trade will have roughly 13.4% downside protection, while still aiming for a 17.0% return in 46 days. It will lock in that return as long as Petroleo Brasileiro is above $16.00 on 11/22/2014. For comparison purposes only, this PBR covered call aims for an annualized return rate of 134.5%. Herbalife (NYSE: HLF) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $47.27 while simultaneously selling the November $47.50 call will result in a new position with a target return of 11.6%. Based on recent prices, this position will cost about $42.57, which is also the trade?s breakeven point. At that level, this covered call has 9.9% downside protection, while still providing a 11.6% return in 46 days as long as HLF is above $47.50 on 11/22/2014. For comparison purposes only, this Herbalife covered call aims for an annualized return rate of 91.9%. Micron Technology (NASDAQ: MU) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $32.53 while selling the November $33.00 call will produce a new covered call with a break-even point around $30.89. At that price, this position has a target return of 6.8%. This trade will have roughly 5.0% downside protection, while still aiming for a 6.8% return in 46 days. It will lock in that return as long as Micron Technology is above $33.00 on 11/22/2014. For comparison purposes only, this mu covered call aims for an annualized return rate of 54.2%. FireEye (NASDAQ: FEYE) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the November $28.00 call while at the same time buying FEYE stock for $27.86 will produce a new covered call with a target return of 10.9%. Based on recent data, this trade will cost about $25.24, which is also the covered call?s breakeven point. At that price, this covered call has 9.4% downside protection, while seeking an assigned return of 10.9% return in 46 days. If FEYE is higher than $28.00 on 11/22/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 86.7%. 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 November $39.00 call while simultaneously buying ISIS stock for $38.41 will result in a new position with a break-even point around $34.66. At that price, this position has a target return of 12.5%. This trade has 9.8% downside protection, while still providing a 12.5% return in 46 days as long as ISIS is above $39.00 on 11/22/2014. For comparison purposes only, this Isis Pharmaceuticals covered call targets an annualized return rate of 99.3%. JC Penney (NYSE: JCP) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $9.43 while selling the May $10.00 call will produce a new covered call with a break-even point around $8.21. At that price, this position has a target return of 21.8%. This trade will have roughly 12.9% downside protection, while still aiming for a 21.8% return in 220 days. It will lock in that return as long as JC Penney is above $10.00 on 5/15/2015. For comparison purposes only, this JCP covered call aims for an annualized return rate of 36.2%. Rio (NYSE: RIO) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $52.00 while simultaneously selling the November $52.50 call will result in a new position with a target return of 5.5%. Based on recent prices, this position will cost about $49.75, which is also the trade?s breakeven point. At that level, this covered call has 4.3% downside protection, while still providing a 5.5% return in 46 days as long as RIO is above $52.50 on 11/22/2014. For comparison purposes only, this Rio covered call aims for an annualized return rate of 43.8%. Glu Mobile (NASDAQ: GLUU) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $5.13 while simultaneously selling the March $5.00 call will result in a new position with a target return of 21.1%. Based on recent prices, this position will cost about $4.13, which is also the trade?s breakeven point. At that level, this covered call has 19.5% downside protection, while still providing a 21.1% return in 164 days as long as GLUU is above $5.00 on 3/20/2015. For comparison purposes only, this Glu Mobile covered call aims for an annualized return rate of 46.9%. Shire (NASDAQ: SHPG) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the November $260.00 call while at the same time buying SHPG stock for $259.61 will produce a new covered call with a target return of 4.8%. Based on recent data, this trade will cost about $248.11, which is also the covered call?s breakeven point. At that price, this covered call has 4.4% downside protection, while seeking an assigned return of 4.8% return in 46 days. If SHPG is higher than $260.00 on 11/22/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 38.0%. First Solar (NASDAQ: FSLR) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the December $62.50 call while simultaneously buying FSLR stock for $62.45 will result in a new position with a break-even point around $57.20. At that price, this position has a target return of 9.3%. This trade has 8.4% downside protection, while still providing a 9.3% return in 74 days as long as FSLR is above $62.50 on 12/20/2014. For comparison purposes only, this First Solar covered call targets an annualized return rate of 45.7%. *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 Micron (MU), Apollo Group (APOL) and Skullcandy (SKUL) are rising this morning, while JinkoSolar (JKS), Twitter (TWTR) and Automatic Data Processing (ADP) are falling. Apollo Group (APOL) and Rowan (RDC) were upgraded by analysts this morning, while Itron (ITRI) and Ambarella (AMBA) were downgraded. INTERNATIONAL MARKETS In Asia, stock markets continue to put in widely varied performance. Overnight, the spread between the best-performing indices and the worst in the region was more than 2%, with the Nikkei 225 gaining 0.8%, but the Mumbai Sensex falling 1.4%. Also counted among the gainers was the Taiwan TSEC up 0.2% while the Shanghai SEC lost 0.8%. European markets are currently posting gains nearly across the board, with all the major bourses in positive territory so far this morning. The Euronext 100 and French CAC 40 are each up 0.9%, while the German DAX is up 0.4% and the Swiss Market Index is leading the way higher gaining 1.2%. Europe's finalized October PMI was revised upward from the previous estimate and retail sales fell less than expected, both of which are positive signs for investors. FUTURES & CURRENCIES In futures, crude oil is bouncing back from a large decline yesterday with an advance of 0.6%, up $0.60 $93.98. Gasoline is up 1.5%, while natural gas and heating oil are up smaller amounts. Gold is just higher by 0.8%, while silver and copper are also higher and platinum is up 1.3%. The U.S. Dollar is slightly higher against the Yen, but lower versus the euro and other international currencies. Bitcoins have shrugged off a few attempted corrections and touched a new all-time high overnight at $270. TODAY'S ECONOMIC CALENDAR 07:00 AM 1/04 MBA Mortgage 08:15 AM Dec ADP Employment Change 10:30 AM 1/04 Crude Inventories 02:00 PM 12/18 FOMC 03:00 PM Nov Consumer Credit EARNINGS EXPECTED TODAY BBBY MON STZ 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 |
