MORNING UPDATE: PriceWatch Alerts for ULTA and More... for 2014-09-15 |
| MORNING UPDATE FOR SEPTEMBER 15, 2014 PriceWatch Alerts for ULTA, CNVR, MSFT, ARO, XOM, ACHN, LITB, VJET, WFM and DIS. Ulta Salon Cosmetics (NASDAQ: ULTA) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $115.10 while selling the December $120.00 call will produce a new covered call with a break-even point around $109.60. At that price, this position has a target return of 9.5%. This trade will have roughly 4.8% downside protection, while still aiming for a 9.5% return in 96 days. It will lock in that return as long as Ulta Salon Cosmetics is above $120.00 on 12/20/2014. For comparison purposes only, this ULTA covered call aims for an annualized return rate of 36.0%. Conversant (NASDAQ: CNVR) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $34.80 while simultaneously selling the March $35.00 call will result in a new position with a target return of 4.0%. Based on recent prices, this position will cost about $33.65, which is also the trade?s breakeven point. At that level, this covered call has 3.3% downside protection, while still providing a 4.0% return in 186 days as long as CNVR is above $35.00 on 3/20/2015. For comparison purposes only, this Conversant covered call aims for an annualized return rate of 7.9%. Microsoft (NASDAQ: MSFT) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $46.68 while selling the December $48.00 call will produce a new covered call with a break-even point around $45.56. At that price, this position has a target return of 5.4%. This trade will have roughly 2.4% downside protection, while still aiming for a 5.4% return in 96 days. It will lock in that return as long as Microsoft is above $48.00 on 12/20/2014. For comparison purposes only, this MSFT covered call aims for an annualized return rate of 20.3%. Aeropostale (NYSE: ARO) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the April $4.50 call while at the same time buying ARO stock for $4.10 will produce a new covered call with a target return of 28.6%. Based on recent data, this trade will cost about $3.50, which is also the covered call?s breakeven point. At that price, this covered call has 14.6% downside protection, while seeking an assigned return of 28.6% return in 214 days. If ARO is higher than $4.50 on 4/17/2015, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 48.7%. (To avoid having your profit margin narrowed by transaction costs, consider making this trade with multiple contracts.) Exxon Mobil (NYSE: XOM) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the January $100.00 call while simultaneously buying XOM stock for $95.68 will result in a new position with a break-even point around $94.13. At that price, this position has a target return of 6.2%. This trade has 1.6% downside protection, while still providing a 6.2% return in 124 days as long as XOM is above $100.00 on 1/17/2015. For comparison purposes only, this Exxon Mobil covered call targets an annualized return rate of 18.3%. Achillion Pharmaceuticals (NASDAQ: ACHN) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $12.18 while selling the October $13.00 call will produce a new covered call with a break-even point around $10.63. At that price, this position has a target return of 22.3%. This trade will have roughly 12.7% downside protection, while still aiming for a 22.3% return in 33 days. It will lock in that return as long as Achillion Pharmaceuticals is above $13.00 on 10/18/2014. For comparison purposes only, this ACHN covered call aims for an annualized return rate of 246.5%. Lightinthebox (NYSE: LITB) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $6.48 while simultaneously selling the March $7.50 call will result in a new position with a target return of 30.9%. Based on recent prices, this position will cost about $5.73, which is also the trade?s breakeven point. At that level, this covered call has 11.6% downside protection, while still providing a 30.9% return in 186 days as long as LITB is above $7.50 on 3/20/2015. For comparison purposes only, this Lightinthebox covered call aims for an annualized return rate of 60.6%. (To avoid having your profit margin narrowed by transaction costs, consider making this trade with multiple contracts.) Voxeljet (NYSE: VJET) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $16.98 while selling the October $17.00 call will produce a new covered call with a break-even point around $15.70. At that price, this position has a target return of 8.3%. This trade will have roughly 7.5% downside protection, while still aiming for a 8.3% return in 33 days. It will lock in that return as long as Voxeljet is above $17.00 on 10/18/2014. For comparison purposes only, this VJET covered call aims for an annualized return rate of 91.6%. Whole Foods (NASDAQ: WFM) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the November $40.00 call while at the same time buying WFM stock for $38.10 will produce a new covered call with a target return of 8.3%. Based on recent data, this trade will cost about $36.92, 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 8.3% return in 68 days. If WFM is higher than $40.00 on 11/22/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 44.8%. Walt Disney (NYSE: DIS) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the November $92.50 call while simultaneously buying DIS stock for $89.67 will result in a new position with a break-even point around $88.04. At that price, this position has a target return of 5.1%. This trade has 1.8% downside protection, while still providing a 5.1% return in 68 days as long as DIS is above $92.50 on 11/22/2014. For comparison purposes only, this Walt Disney covered call targets an annualized return rate of 27.2%. *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. The RadioActive Home Study Kit comes with a money back guarantee and a free month of access to the patented PowerOptions Suite of Tools! Can you back test these strategies? Yes, you can! PowerOptions offers a full back testing screener, SmartHistoryXL, to its subscribers. Back test over 20 different options strategies using your personal search criteria. 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 Halozyme (HALO), VimpelCom (VIP) and Molson Coors (TAP) are rising in pre-market trading, while NPS Pharmaceuticals (NPSP), Cree (CREE) and Rackspace Holdings (RAX) are in decline. Nokia (NOK) was upgraded by analysts this morning. INTERNATIONAL MARKETS Asian markets were mixed on Monday as Chinese industrial growth numbers indicated a weak economic recovery. The Hang Seng was down 0.97% and the Nikkei was up 0.25%. Following the bad news from China, European stocks are mixed to start the morning. The FTSE is down 0.04%, and the DAX is up 0.20%. FUTURES & CURRENCIES Energy futures are lower this morning, with West Texas Intermediate crude oil down $0.65 to $91.62 while NYMEX natural gas is advancing nearly 1% to $3.89. In metals, gold is up $3.54 to $1,233.63, Silver is up $0.02 to $18.59 and platinum is trading at $1,368. Currencies show little movement, with the U.S. Dollar up this morning versus the Euro and the Yen. PUT/CALL RATIO Yesterday, 1,145,218 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 638,659 put contracts. The single-session put/call was 0.56, while the 20-day moving average is now at 0.63. TODAY'S ECONOMIC CALENDAR 08:30 AM Sep Empire Manufacturing 09:15 AM Aug Industrial Production 09:15 AM Aug Capacity Utilization EARNINGS EXPECTED TODAY No major earnings reports today! 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 |
