MORNING UPDATE: PriceWatch Alerts for GILD and More... for 2014-09-26 |
| MORNING UPDATE FOR SEPTEMBER 26, 2014 PriceWatch Alerts for FCEL, PAY, OLED, SYNA, ACAD, WPRT, RBS, MHR, BMRN and AGN. FuelCell Energy (NASDAQ: FCEL) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $2.07 while selling the January $2.00 call will produce a new covered call with a break-even point around $1.50. At that price, this position has a target return of 33.3%. This trade will have roughly 27.5% downside protection, while still aiming for a 33.3% return in 476 days. It will lock in that return as long as FuelCell Energy is above $2.00 on 1/15/2016. For comparison purposes only, this FCEL covered call aims for an annualized return rate of 25.6%. Verifone (NYSE: PAY) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $35.02 while simultaneously selling the January $37.00 call will result in a new position with a target return of 11.7%. Based on recent prices, this position will cost about $33.12, which is also the trade?s breakeven point. At that level, this covered call has 5.4% downside protection, while still providing a 11.7% return in 113 days as long as PAY is above $37.00 on 1/17/2015. For comparison purposes only, this Verifone covered call aims for an annualized return rate of 37.8%. Universal Display (NASDAQ: OLED) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $33.20 while selling the December $35.00 call will produce a new covered call with a break-even point around $30.95. At that price, this position has a target return of 13.1%. This trade will have roughly 6.8% downside protection, while still aiming for a 13.1% return in 85 days. It will lock in that return as long as Universal Display is above $35.00 on 12/20/2014. For comparison purposes only, this OLED covered call aims for an annualized return rate of 56.2%. Synaptics (NASDAQ: SYNA) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the November $80.00 call while at the same time buying SYNA stock for $75.08 will produce a new covered call with a target return of 12.0%. Based on recent data, this trade will cost about $71.43, which is also the covered call?s breakeven point. At that price, this covered call has 4.9% downside protection, while seeking an assigned return of 12.0% return in 57 days. If SYNA is higher than $80.00 on 11/22/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 76.8%. Acadia (NASDAQ: ACAD) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the October $26.00 call while simultaneously buying ACAD stock for $25.71 will result in a new position with a break-even point around $24.61. At that price, this position has a target return of 5.6%. This trade has 4.3% downside protection, while still providing a 5.6% return in 22 days as long as ACAD is above $26.00 on 10/18/2014. For comparison purposes only, this Acadia covered call targets an annualized return rate of 93.6%. Westport Innovations (NASDAQ: WPRT) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $10.96 while selling the April $11.00 call will produce a new covered call with a break-even point around $9.56. At that price, this position has a target return of 15.1%. This trade will have roughly 12.8% downside protection, while still aiming for a 15.1% return in 203 days. It will lock in that return as long as Westport Innovations is above $11.00 on 4/17/2015. For comparison purposes only, this WPRT covered call aims for an annualized return rate of 27.1%. Royal Bank of Scotland (NYSE: RBS) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $11.76 while simultaneously selling the May $12.00 call will result in a new position with a target return of 11.5%. Based on recent prices, this position will cost about $10.76, which is also the trade?s breakeven point. At that level, this covered call has 8.5% downside protection, while still providing a 11.5% return in 231 days as long as RBS is above $12.00 on 5/15/2015. For comparison purposes only, this Royal Bank of Scotland covered call aims for an annualized return rate of 18.2%. Magnum Hunter Resources (AMEX: MHR) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $6.18 while selling the May $6.00 call will produce a new covered call with a break-even point around $5.05. At that price, this position has a target return of 18.8%. This trade will have roughly 18.3% downside protection, while still aiming for a 18.8% return in 231 days. It will lock in that return as long as Magnum Hunter Resources is above $6.00 on 5/15/2015. For comparison purposes only, this MHR covered call aims for an annualized return rate of 29.7%. BioMarin Pharmaceutical (NASDAQ: BMRN) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the November $80.00 call while at the same time buying BMRN stock for $71.31 will produce a new covered call with a target return of 14.1%. Based on recent data, this trade will cost about $70.11, which is also the covered call?s breakeven point. At that price, this covered call has 1.7% downside protection, while seeking an assigned return of 14.1% return in 57 days. If BMRN is higher than $80.00 on 11/22/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 90.3%. Allergan (NYSE: AGN) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the October $180.00 call while simultaneously buying AGN stock for $174.88 will result in a new position with a break-even point around $171.23. At that price, this position has a target return of 5.1%. This trade has 2.1% downside protection, while still providing a 5.1% return in 22 days as long as AGN is above $180.00 on 10/18/2014. For comparison purposes only, this Allergan covered call targets an annualized return rate of 84.9%. *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? 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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 Lightinthebox (LITB), Micron (MU) and Vertex Pharmaceuticals (VRTX) are higher in pre-market trading, while Finish Line (FINL) is lower. Textron (TXT), Packaging (PKG) and Nike (NKE) were upgraded by analysts this morning, while Actuant (ATU) was downgraded. INTERNATIONAL MARKETS Asian markets were mixed Friday as stocks steadied after a difficult week, with investors attributing losses to international conflict, high stock prices, and concern over asset seizures in Russia. The Shanghai Composite was up 0.11% while the Nikkei was down 0.88%. European markets are climbing this morning. The FTSE is up 0.13%, and the DAX is up 0.07%. FUTURES & CURRENCIES West Texas Intermediate crude oil is up $0.54 to $93.07 while NYMEX natural gas is down $0.03 to $3.94. Gold is down $2 to $1,219, silver is up $0.15 to $17.53, and platinum is trading at $1,308 the U.S. The Dollar is up versus the Euro and the Yen. PUT/CALL RATIO Yesterday, 1,098,824 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 848,474 put contracts. The single-session put/call was 0.77, while the 20-day moving average is now at 0.62. TODAY'S ECONOMIC CALENDAR 08:30 AM Q2 GDP ? Third Estimate 08:30 AM Q2 GDP Deflator ? Third Estimate 09:55 AM Sep Michegan Sentiment ? Final EARNINGS EXPECTED TODAY BBRY 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 |
