MORNING UPDATE: PriceWatch Alerts for TWTR and More... for 2014-09-24 |
| MORNING UPDATE FOR SEPTEMBER 24, 2014 PriceWatch Alerts for GILD, AMBA, AGNC, NTAP, F, TKMR, HLF, AA, ACT and TWTR. Gilead Sciences (NASDAQ: GILD) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $105.39 while selling the November $120.00 call will produce a new covered call with a break-even point around $103.89. At that price, this position has a target return of 15.5%. This trade will have roughly 1.4% downside protection, while still aiming for a 15.5% return in 59 days. It will lock in that return as long as Gilead Sciences is above $120.00 on 11/22/2014. For comparison purposes only, this GILD covered call aims for an annualized return rate of 95.9%. Ambarella (NASDAQ: AMBA) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $40.92 while simultaneously selling the October $42.00 call will result in a new position with a target return of 7.3%. Based on recent prices, this position will cost about $39.14, which is also the trade?s breakeven point. At that level, this covered call has 4.3% downside protection, while still providing a 7.3% return in 24 days as long as AMBA is above $42.00 on 10/18/2014. For comparison purposes only, this Ambarella covered call aims for an annualized return rate of 111.0%. American Capital Agency (NASDAQ: AGNC) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $22.22 while selling the January $25.00 call will produce a new covered call with a break-even point around $21.77. At that price, this position has a target return of 14.8%. This trade will have roughly 2.0% downside protection, while still aiming for a 14.8% return in 478 days. It will lock in that return as long as American Capital Agency is above $25.00 on 1/15/2016. For comparison purposes only, this AGNC covered call aims for an annualized return rate of 11.3%. (To avoid having your profit margin narrowed by transaction costs, consider making this trade with multiple contracts.) NetApp (NASDAQ: NTAP) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the November $44.00 call while at the same time buying NTAP stock for $43.50 will produce a new covered call with a target return of 4.1%. Based on recent data, this trade will cost about $42.25, which is also the covered call?s breakeven point. At that price, this covered call has 2.9% downside protection, while seeking an assigned return of 4.1% return in 59 days. If NTAP is higher than $44.00 on 11/22/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 25.6%. Ford Motor (NYSE: F) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the March $17.00 call while simultaneously buying F stock for $16.18 will result in a new position with a break-even point around $15.68. At that price, this position has a target return of 8.4%. This trade has 3.1% downside protection, while still providing a 8.4% return in 177 days as long as F is above $17.00 on 3/20/2015. For comparison purposes only, this Ford Motor covered call targets an annualized return rate of 17.3%. (To avoid having your profit margin narrowed by transaction costs, consider making this trade with multiple contracts.) Tekmira Pharmaceuticals (NASDAQ: TKMR) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $24.65 while selling the October $25.00 call will produce a new covered call with a break-even point around $22.53. At that price, this position has a target return of 11.0%. This trade will have roughly 8.6% downside protection, while still aiming for a 11.0% return in 24 days. It will lock in that return as long as Tekmira Pharmaceuticals is above $25.00 on 10/18/2014. For comparison purposes only, this TKMR covered call aims for an annualized return rate of 166.7%. 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 $43.99 while simultaneously selling the October $47.50 call will result in a new position with a target return of 11.4%. Based on recent prices, this position will cost about $42.64, which is also the trade?s breakeven point. At that level, this covered call has 3.1% downside protection, while still providing a 11.4% return in 24 days as long as HLF is above $47.50 on 10/18/2014. For comparison purposes only, this Herbalife covered call aims for an annualized return rate of 173.2%. Alcoa (NYSE: AA) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $15.68 while selling the April $16.00 call will produce a new covered call with a break-even point around $14.46. At that price, this position has a target return of 10.7%. This trade will have roughly 7.8% downside protection, while still aiming for a 10.7% return in 205 days. It will lock in that return as long as Alcoa is above $16.00 on 4/17/2015. For comparison purposes only, this AA covered call aims for an annualized return rate of 19.0%. Actavis (NYSE: ACT) 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 ACT stock for $242.50 will produce a new covered call with a target return of 11.3%. Based on recent data, this trade will cost about $233.50, which is also the covered call?s breakeven point. At that price, this covered call has 3.7% downside protection, while seeking an assigned return of 11.3% return in 59 days. If ACT 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 70.2%. Twitter (NYSE: TWTR) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the December $55.00 call while simultaneously buying TWTR stock for $52.09 will result in a new position with a break-even point around $48.26. At that price, this position has a target return of 14.0%. This trade has 7.4% downside protection, while still providing a 14.0% return in 87 days as long as TWTR is above $55.00 on 12/20/2014. 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The FTSE is down 0.28%, and the DAX is off 0.48%. FUTURES & CURRENCIES West Texas Intermediate crude oil is down $0.12 to $91.44 per barrel, down $0.25 and NYMEX natural gas is down $0.01 to $3.81. Gold is unchanged at $1,221, Silver is down $0.02 to $17.70 and platinum is up $2.00 to $1,331.20. The Dollar is up versus the Euro and down versus the Yen. PUT/CALL RATIO Yesterday, 1,038,232 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 681,676 put contracts. The single-session put/call was 0.66, while the 20-day moving average is now at 0.61. TODAY'S ECONOMIC CALENDAR 07:00 AM 9/20 MBA Mortgage Index 10:00 AM Aug New Home Sales 10:30 AM 9/20 Crude Inventories EARNINGS EXPECTED TODAY JBL KBH PAYX 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 |
