MORNING UPDATE: PriceWatch Alerts for GPRO and More... for 2014-09-30 |
| MORNING UPDATE FOR SEPTEMBER 30, 2014 PriceWatch Alerts for GPRO, KNDI, PXLW, SBUX, ONVO, ACHN, DWA, SUNE, LOCO, WFM, YHOO, CLVS, SHLD, PETM and ENDP. GoPro (NASDAQ: GPRO) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $90.18 while selling the October $100.00 call will produce a new covered call with a break-even point around $88.20. At that price, this position has a target return of 13.4%. This trade will have roughly 2.2% downside protection, while still aiming for a 13.4% return in 18 days. It will lock in that return as long as GoPro is above $100.00 on 10/18/2014. For comparison purposes only, this GPRO covered call aims for an annualized return rate of 271.1%. Kandi Technologies (NASDAQ: KNDI) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $13.46 while simultaneously selling the December $15.00 call will result in a new position with a target return of 23.4%. Based on recent prices, this position will cost about $12.16, which is also the trade?s breakeven point. At that level, this covered call has 9.7% downside protection, while still providing a 23.4% return in 81 days as long as KNDI is above $15.00 on 12/20/2014. For comparison purposes only, this Kandi Technologies covered call aims for an annualized return rate of 105.2%. Pixelworks (NASDAQ: PXLW) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $6.62 while selling the May $7.50 call will produce a new covered call with a break-even point around $5.42. At that price, this position has a target return of 38.4%. This trade will have roughly 18.1% downside protection, while still aiming for a 38.4% return in 227 days. It will lock in that return as long as Pixelworks is above $7.50 on 5/15/2015. For comparison purposes only, this PXLW covered call aims for an annualized return rate of 61.7%. Starbucks (NASDAQ: SBUX) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the December $77.50 call while at the same time buying SBUX stock for $75.27 will produce a new covered call with a target return of 5.3%. Based on recent data, this trade will cost about $73.63, which is also the covered call?s breakeven point. At that price, this covered call has 2.2% downside protection, while seeking an assigned return of 5.3% return in 81 days. If SBUX is higher than $77.50 on 12/20/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 23.7%. Organovo (AMEX: ONVO) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the May $7.00 call while simultaneously buying ONVO stock for $6.33 will result in a new position with a break-even point around $5.33. At that price, this position has a target return of 31.3%. This trade has 15.8% downside protection, while still providing a 31.3% return in 227 days as long as ONVO is above $7.00 on 5/15/2015. For comparison purposes only, this Organovo covered call targets an annualized return rate of 50.4%. Achillion Pharmaceuticals (NASDAQ: ACHN) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $10.77 while selling the November $11.00 call will produce a new covered call with a break-even point around $8.59. At that price, this position has a target return of 28.1%. This trade will have roughly 20.2% downside protection, while still aiming for a 28.1% return in 53 days. It will lock in that return as long as Achillion Pharmaceuticals is above $11.00 on 11/22/2014. For comparison purposes only, this ACHN covered call aims for an annualized return rate of 193.2%. Dreamworks Animation (NASDAQ: DWA) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $28.34 while simultaneously selling the November $29.00 call will result in a new position with a target return of 10.5%. Based on recent prices, this position will cost about $26.24, which is also the trade?s breakeven point. At that level, this covered call has 7.4% downside protection, while still providing a 10.5% return in 53 days as long as DWA is above $29.00 on 11/22/2014. For comparison purposes only, this Dreamworks Animation covered call aims for an annualized return rate of 72.4%. SunEdison (NYSE: SUNE) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $19.80 while selling the November $20.00 call will produce a new covered call with a break-even point around $18.15. At that price, this position has a target return of 10.2%. This trade will have roughly 8.3% downside protection, while still aiming for a 10.2% return in 53 days. It will lock in that return as long as SunEdison is above $20.00 on 11/22/2014. For comparison purposes only, this SUNE covered call aims for an annualized return rate of 70.2%. El Pollo Loco (NASDAQ: LOCO) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the November $36.00 call while at the same time buying LOCO stock for $35.58 will produce a new covered call with a target return of 7.2%. Based on recent data, this trade will cost about $33.58, 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 7.2% return in 53 days. If LOCO is higher than $36.00 on 11/22/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 49.6%. Whole Foods (NASDAQ: WFM) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the November $37.50 call while simultaneously buying WFM stock for $37.48 will result in a new position with a break-even point around $35.65. At that price, this position has a target return of 5.2%. This trade has 4.9% downside protection, while still providing a 5.2% return in 53 days as long as WFM is above $37.50 on 11/22/2014. For comparison purposes only, this Whole Foods covered call targets an annualized return rate of 35.7%. Yahoo (NASDAQ: YHOO) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $40.52 while simultaneously selling the November $41.00 call will result in a new position with a target return of 6.5%. Based on recent prices, this position will cost about $38.48, which is also the trade?s breakeven point. At that level, this covered call has 5.0% downside protection, while still providing a 6.5% return in 53 days as long as YHOO is above $41.00 on 11/22/2014. For comparison purposes only, this Yahoo covered call aims for an annualized return rate of 45.0%. Clovis Oncology (NASDAQ: CLVS) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $48.17 while selling the November $50.00 call will produce a new covered call with a break-even point around $43.52. At that price, this position has a target return of 14.9%. This trade will have roughly 9.7% downside protection, while still aiming for a 14.9% return in 53 days. It will lock in that return as long as Clovis Oncology is above $50.00 on 11/22/2014. For comparison purposes only, this CLVS covered call aims for an annualized return rate of 102.5%. Sears (NASDAQ: SHLD) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $25.95 while simultaneously selling the November $26.00 call will result in a new position with a target return of 11.3%. Based on recent prices, this position will cost about $23.35, which is also the trade?s breakeven point. At that level, this covered call has 10.0% downside protection, while still providing a 11.3% return in 53 days as long as SHLD is above $26.00 on 11/22/2014. For comparison purposes only, this Sears covered call aims for an annualized return rate of 78.1%. PetSmart (NASDAQ: PETM) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the November $72.50 call while at the same time buying PETM stock for $70.18 will produce a new covered call with a target return of 5.6%. Based on recent data, this trade will cost about $68.63, which is also the covered call?s breakeven point. At that price, this covered call has 2.2% downside protection, while seeking an assigned return of 5.6% return in 53 days. If PETM is higher than $72.50 on 11/22/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 38.8%. Endo Pharmaceuticals (NASDAQ: ENDP) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the November $75.00 call while simultaneously buying ENDP stock for $69.51 will result in a new position with a break-even point around $67.21. At that price, this position has a target return of 11.6%. This trade has 3.3% downside protection, while still providing a 11.6% return in 53 days as long as ENDP is above $75.00 on 11/22/2014. For comparison purposes only, this Endo Pharmaceuticals covered call targets an annualized return rate of 79.8%. *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. The RadioActive Home Study Kit teaches the proper limited risk trade setup and the 10 different Income Methods that are used to lower the initial risk, potentially bulletproof your stock positions and earn extra income. 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Raytheon (RTN) and Lockheed Martin (LMT) were upgraded by analysts this morning, while TIBCO (TIBX) and Athlon Energy (ATHL) were downgraded. INTERNATIONAL MARKETS Asian?markets were mixed Monday as protests continued in Hong Kong. The Hang Seng was down 1.28% while the Shanghai Composite was up 0.26%. European?markets are mixed today after reports showed inflation easing in the Eurozone. The FTSE is down 0.07%, and the DAX gained 0.54%. FUTURES & CURRENCIES West Texas Intermediate crude oil id down $0.18 to $94.39 while NYMEX natural gas is down $0.03 to $4.12. In metals, gold down $11 to $1,207, silver is down $0.28 to $17.25, and platinum is trading at $1,305. The Dollar is up versus the Euro and the Yen. PUT/CALL RATIO Yesterday, 901,681 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 635,172 put contracts. The single-session put/call was 0.7, while the 20-day moving average is now at 0.64. TODAY'S ECONOMIC CALENDAR 09:00 AM Jul Case-Shiller 20-city Index 09:45 AM Sep Chicago PMI 10:00 AM Sep Consumer Confidence EARNINGS EXPECTED TODAY WAG 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 |
