MORNING UPDATE: PriceWatch Alerts for BABA and More... for 2014-10-02 |
| MORNING UPDATE FOR OCTOBER 2, 2014 PriceWatch Alerts for BABA, BCRX, TSL, VIPS, V, T, NLNK, AYI, Q and FINL. Alibaba (NYSE: BABA) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $86.01 while selling the December $90.00 call will produce a new covered call with a break-even point around $81.39. At that price, this position has a target return of 10.6%. This trade will have roughly 5.4% downside protection, while still aiming for a 10.6% return in 79 days. It will lock in that return as long as Alibaba is above $90.00 on 12/20/2014. For comparison purposes only, this BABA covered call aims for an annualized return rate of 48.8%. BioCryst Pharmaceuticals (NASDAQ: BCRX) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $10.15 while simultaneously selling the December $11.00 call will result in a new position with a target return of 21.5%. Based on recent prices, this position will cost about $9.05, which is also the trade?s breakeven point. At that level, this covered call has 10.8% downside protection, while still providing a 21.5% return in 79 days as long as BCRX is above $11.00 on 12/20/2014. For comparison purposes only, this BioCryst Pharmaceuticals covered call aims for an annualized return rate of 99.5%. Trina Solar (NYSE: TSL) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $11.40 while selling the December $12.00 call will produce a new covered call with a break-even point around $10.32. At that price, this position has a target return of 16.3%. This trade will have roughly 9.5% downside protection, while still aiming for a 16.3% return in 79 days. It will lock in that return as long as Trina Solar is above $12.00 on 12/20/2014. For comparison purposes only, this TSL covered call aims for an annualized return rate of 75.2%. Vipshop (NYSE: VIPS) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the November $190.00 call while at the same time buying VIPS stock for $183.45 will produce a new covered call with a target return of 9.7%. Based on recent data, this trade will cost about $173.20, which is also the covered call?s breakeven point. At that price, this covered call has 5.6% downside protection, while seeking an assigned return of 9.7% return in 51 days. If VIPS is higher than $190.00 on 11/22/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 69.4%. Visa (NYSE: V) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the December $220.00 call while simultaneously buying V stock for $210.01 will result in a new position with a break-even point around $206.86. At that price, this position has a target return of 6.4%. This trade has 1.5% downside protection, while still providing a 6.4% return in 79 days as long as V is above $220.00 on 12/20/2014. For comparison purposes only, this Visa covered call targets an annualized return rate of 29.3%. AT&T (NYSE: T) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $34.96 while selling the July $35.00 call will produce a new covered call with a break-even point around $33.52. At that price, this position has a target return of 4.4%. This trade will have roughly 4.1% downside protection, while still aiming for a 4.4% return in 288 days. It will lock in that return as long as AT&T is above $35.00 on 7/17/2015. For comparison purposes only, this T covered call aims for an annualized return rate of 5.6%. NewLink Genetics (NASDAQ: NLNK) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $23.09 while simultaneously selling the November $24.00 call will result in a new position with a target return of 25.1%. Based on recent prices, this position will cost about $19.19, which is also the trade?s breakeven point. At that level, this covered call has 16.9% downside protection, while still providing a 25.1% return in 51 days as long as NLNK is above $24.00 on 11/22/2014. For comparison purposes only, this NewLink Genetics covered call aims for an annualized return rate of 179.4%. Acuity Brands (NYSE: AYI) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $130.62 while selling the November $135.00 call will produce a new covered call with a break-even point around $127.37. At that price, this position has a target return of 6.0%. This trade will have roughly 2.5% downside protection, while still aiming for a 6.0% return in 51 days. It will lock in that return as long as Acuity Brands is above $135.00 on 11/22/2014. For comparison purposes only, this AYI covered call aims for an annualized return rate of 42.9%. Quintiles (NYSE: Q) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the November $55.00 call while at the same time buying Q stock for $54.56 will produce a new covered call with a target return of 4.4%. Based on recent data, this trade will cost about $52.66, 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 4.4% return in 51 days. If Q is higher than $55.00 on 11/22/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 31.8%. Finish Line (NASDAQ: FINL) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the February $25.00 call while simultaneously buying FINL stock for $24.65 will result in a new position with a break-even point around $22.95. At that price, this position has a target return of 8.9%. This trade has 6.9% downside protection, while still providing a 8.9% return in 141 days as long as FINL is above $25.00 on 2/20/2015. For comparison purposes only, this Finish Line covered call targets an annualized return rate of 23.1%. *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 ARIAD Pharmaceuticals (ARIA), Tesla (TSLA) and Inovio Pharmaceuticals (INO) are rising in pre-market trading, while Cree (CREE), NewLink Genetics (NLNK) and GoPro (GPRO) are falling. Time Warner (TWX) was upgraded this morning, while WebMD Health (WBMD) and Francesca's (FRAN) were downgraded. INTERNATIONAL MARKETS In Asia, markets were mixed on Thursday with Japanese stocks falling for a third straight day. The Nikkei was down 2.61% and the Shanghai Composite climbed 0.26%. European markets are mixed this morning as European investors await news from today?s meeting of the European Central Bank. The FTSE is down 0.07%, and the DAX is up 0.17%. FUTURES & CURRENCIES West Texas Intermediate crude oil down $1.47 to $89.26 while NYMEX natural gas is unchanged at $4.03. In metals, gold is down $4 to $1,211, silver is down $0.17 to $17.04 and platinum is trading at $1,272. The U.S. Dollar down this morning versus the Euro and the Yen. PUT/CALL RATIO Yesterday, 1,040,041 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 815,545 put contracts. The single-session put/call was 0.78, while the 20-day moving average is now at 0.64. TODAY'S ECONOMIC CALENDAR 07:30 AM Sep Challenger Job Cuts 08:30 AM 9/27 Initial Claims 08:30 AM 9/20 Continuing Claims 10:00 AM Aug Factory Orders 10:00 AM 9/27 Natural Gas Inventories EARNINGS EXPECTED TODAY ESI GPN 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 |
