MORNING UPDATE: PriceWatch Alerts for BBY and More... for 2014-09-25 |
| MORNING UPDATE FOR SEPTEMBER 25, 2014 PriceWatch Alerts for DDD, ACOR, SODA, FOXA, TMUS, BBY, GDOT, SLB, IMGN and ISRG. 3D Systems (NYSE: DDD) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $49.54 while selling the November $55.00 call will produce a new covered call with a break-even point around $48.39. At that price, this position has a target return of 13.7%. This trade will have roughly 2.3% downside protection, while still aiming for a 13.7% return in 58 days. It will lock in that return as long as 3D Systems is above $55.00 on 11/22/2014. For comparison purposes only, this DDD covered call aims for an annualized return rate of 85.9%. Acorda Therapeutics (NASDAQ: ACOR) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $37.65 while selling the October $39.00 call will produce a new covered call with a break-even point around $36.55. At that price, this position has a target return of 6.7%. This trade will have roughly 2.9% downside protection, while still aiming for a 6.7% return in 23 days. It will lock in that return as long as Acorda Therapeutics is above $39.00 on 10/18/2014. For comparison purposes only, this ACOR covered call aims for an annualized return rate of 106.3%. SodaStream (NASDAQ: SODA) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $30.60 while simultaneously selling the November $35.00 call will result in a new position with a target return of 18.2%. Based on recent prices, this position will cost about $29.60, which is also the trade?s breakeven point. At that level, this covered call has 3.3% downside protection, while still providing a 18.2% return in 58 days as long as SODA is above $35.00 on 11/22/2014. For comparison purposes only, this SodaStream covered call aims for an annualized return rate of 114.8%. Twenty-First Century Fox (NASDAQ: FOXA) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the November $35.00 call while at the same time buying FOXA stock for $34.33 will produce a new covered call with a target return of 5.2%. Based on recent data, this trade will cost about $33.28, which is also the covered call?s breakeven point. At that price, this covered call has 3.1% downside protection, while seeking an assigned return of 5.2% return in 58 days. If FOXA is higher than $35.00 on 11/22/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 32.5%. T-Mobile US (NYSE: TMUS) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the November $35.00 call while simultaneously buying TMUS stock for $28.62 will result in a new position with a break-even point around $27.54. At that price, this position has a target return of 27.1%. This trade has 3.8% downside protection, while still providing a 27.1% return in 58 days as long as TMUS is above $35.00 on 11/22/2014. For comparison purposes only, this T-Mobile US covered call targets an annualized return rate of 170.4%. Best Buy (NYSE: BBY) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $33.80 while selling the November $36.00 call will produce a new covered call with a break-even point around $32.77. At that price, this position has a target return of 9.9%. This trade will have roughly 3.0% downside protection, while still aiming for a 9.9% return in 58 days. It will lock in that return as long as Best Buy is above $36.00 on 11/22/2014. For comparison purposes only, this BBY covered call aims for an annualized return rate of 62.0%. Green Dot (NYSE: GDOT) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $23.50 while simultaneously selling the November $25.00 call will result in a new position with a target return of 12.1%. Based on recent prices, this position will cost about $22.30, which is also the trade?s breakeven point. At that level, this covered call has 5.1% downside protection, while still providing a 12.1% return in 58 days as long as GDOT is above $25.00 on 11/22/2014. For comparison purposes only, this Green Dot covered call aims for an annualized return rate of 76.1%. Schlumberger (NYSE: SLB) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $101.49 while selling the November $110.00 call will produce a new covered call with a break-even point around $100.45. At that price, this position has a target return of 9.5%. This trade will have roughly 1.0% downside protection, while still aiming for a 9.5% return in 58 days. It will lock in that return as long as Schlumberger is above $110.00 on 11/22/2014. For comparison purposes only, this SLB covered call aims for an annualized return rate of 59.8%. ImmunoGen (NASDAQ: IMGN) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the January $11.00 call while at the same time buying IMGN stock for $11.04 will produce a new covered call with a target return of 12.4%. Based on recent data, this trade will cost about $9.79, which is also the covered call?s breakeven point. At that price, this covered call has 11.3% downside protection, while seeking an assigned return of 12.4% return in 114 days. If IMGN is higher than $11.00 on 1/17/2015, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 39.5%. Intuitive Surgical (NASDAQ: ISRG) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the November $480.00 call while simultaneously buying ISRG stock for $463.97 will result in a new position with a break-even point around $446.97. At that price, this position has a target return of 7.4%. This trade has 3.7% downside protection, while still providing a 7.4% return in 58 days as long as ISRG is above $480.00 on 11/22/2014. 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Initial unemployment claims for the week of September 20 rose to 293,000 from 280,000 the previous week, but lower than the consensus estimate of 300,000. European stocks are mixed this morning after two days of gains. The FTSE is down 0.04%, and the DAX is up 0.52%. FUTURES & CURRENCIES West Texas Intermediate crude oil up $0.29 to $93.09 while NYMEX natural gas is down $0.02 to $3.89. In metals, gold is down $7 to $1,212, silver is down $0.09 to $17.53 and platinum is trading at $1,309. The Dollar is up versus the Euro and down versus the Yen. PUT/CALL RATIO Yesterday, 988,521 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 625,336 put contracts. The single-session put/call was 0.63, while the 20-day moving average is now at 0.62. TODAY'S ECONOMIC CALENDAR 08:30 AM 9/20 Initial Claims 08:30 AM 9/13 Continuing Claims 08:30 AM Aug Durable Orders 08:30 AM Aug Durable Goods ?ex transportation 10:30 AM 9/20 Natural Gas Inventories EARNINGS EXPECTED TODAY ESI MU NKE 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 |
