MORNING UPDATE: PriceWatch Alerts for CVS and More... for 2014-09-05 |
| MORNING UPDATE FOR SEPTEMBER 5, 2014 PriceWatch Alerts for TSLA, SGMS, CVS, RGLD, PII, C, MEI, BP, RDS.A and CI. Tesla (NASDAQ: TSLA) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $286.08 while selling the October $300.00 call will produce a new covered call with a break-even point around $278.68. At that price, this position has a target return of 7.7%. This trade will have roughly 2.6% downside protection, while still aiming for a 7.7% return in 43 days. It will lock in that return as long as Tesla is above $300.00 on 10/18/2014. For comparison purposes only, this TSLA covered call aims for an annualized return rate of 64.9%. Scientific Games (NASDAQ: SGMS) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $11.70 while simultaneously selling the January $12.50 call will result in a new position with a target return of 22.5%. Based on recent prices, this position will cost about $10.20, which is also the trade?s breakeven point. At that level, this covered call has 12.8% downside protection, while still providing a 22.5% return in 134 days as long as SGMS is above $12.50 on 1/17/2015. For comparison purposes only, this Scientific Games covered call aims for an annualized return rate of 61.4%. CVS Health (NYSE: CVS) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $80.31 while selling the January $82.50 call will produce a new covered call with a break-even point around $78.46. At that price, this position has a target return of 5.1%. This trade will have roughly 2.3% downside protection, while still aiming for a 5.1% return in 134 days. It will lock in that return as long as CVS Health is above $82.50 on 1/17/2015. For comparison purposes only, this CVS covered call aims for an annualized return rate of 14.0%. Royal Gold (NASDAQ: RGLD) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the January $75.00 call while at the same time buying RGLD stock for $73.27 will produce a new covered call with a target return of 8.7%. Based on recent data, this trade will cost about $68.97, which is also the covered call?s breakeven point. At that price, this covered call has 5.9% downside protection, while seeking an assigned return of 8.7% return in 134 days. If RGLD is higher than $75.00 on 1/17/2015, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 23.8%. Polaris Industries (NYSE: PII) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the December $150.00 call while simultaneously buying PII stock for $147.67 will result in a new position with a break-even point around $142.42. At that price, this position has a target return of 5.3%. This trade has 3.6% downside protection, while still providing a 5.3% return in 106 days as long as PII is above $150.00 on 12/20/2014. For comparison purposes only, this Polaris Industries covered call targets an annualized return rate of 18.3%. Citigroup (NYSE: C) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $52.45 while selling the December $55.00 call will produce a new covered call with a break-even point around $51.41. At that price, this position has a target return of 7.0%. This trade will have roughly 2.0% downside protection, while still aiming for a 7.0% return in 106 days. It will lock in that return as long as Citigroup is above $55.00 on 12/20/2014. For comparison purposes only, this C covered call aims for an annualized return rate of 24.0%. Methode Electronics (NYSE: MEI) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $39.72 while simultaneously selling the October $40.00 call will result in a new position with a target return of 5.2%. Based on recent prices, this position will cost about $38.02, which is also the trade?s breakeven point. At that level, this covered call has 4.3% downside protection, while still providing a 5.2% return in 43 days as long as MEI is above $40.00 on 10/18/2014. For comparison purposes only, this Methode Electronics covered call aims for an annualized return rate of 44.1%. BP (NYSE: BP) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $44.99 while selling the January $46.00 call will produce a new covered call with a break-even point around $43.84. At that price, this position has a target return of 4.9%. This trade will have roughly 2.6% downside protection, while still aiming for a 4.9% return in 134 days. It will lock in that return as long as BP is above $46.00 on 1/17/2015. For comparison purposes only, this BP covered call aims for an annualized return rate of 13.4%. Royal Dutch Shell (NYSE: RDS.A) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the April $82.50 call while at the same time buying RDS.A stock for $79.81 will produce a new covered call with a target return of 5.8%. Based on recent data, this trade will cost about $77.96, which is also the covered call?s breakeven point. At that price, this covered call has 2.3% downside protection, while seeking an assigned return of 5.8% return in 224 days. If RDS.A is higher than $82.50 on 4/17/2015, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 9.5%. CIGNA (NYSE: CI) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the January $97.50 call while simultaneously buying CI stock for $95.49 will result in a new position with a break-even point around $91.59. At that price, this position has a target return of 6.5%. This trade has 4.1% downside protection, while still providing a 6.5% return in 134 days as long as CI is above $97.50 on 1/17/2015. For comparison purposes only, this CIGNA covered call targets an annualized return rate of 17.6%. *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)! 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NOTE: All stocks and options shown are examples only. These are not recommendations to buy or sell any security. STOCKS ON THE MOVE Infoblox (BLOX) Taser (TASR) and El Polo Loco (LOCO) are rising in pre-market action this morning, while Finisar (FNSR), The Gap (GPS) and Michael Kors (KORS) are slipping into the red. There were no major analyst upgrades this morning, but Wynn Resorts (WYNN) and Finisar (FNSR) were downgraded. INTERNATIONAL MARKETS Asian stocks were down this morning as investors showed hesitation before the U.S. jobs report. The Hang Seng was down 0.23% and the Nikkei was down 0.05%. In Europe, markets are falling this morning as uncertainty over Ukraine continues. The FTSE is down 0.67%, and the DAX is down 0.18%. FUTURES & CURRENCIES Energy futures are up Friday. West Texas Intermediate crude oil is up $0.02 to $94.47 per barrel, and natural gas is up $0.02. Metals prices are slightly higher at present, with gold up $3 to $1,268 and platinum up $6 to $1,404. The Dollar is down versus the Euro and the Yen. PUT/CALL RATIO Yesterday, 1,110,373 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 723,850 put contracts. The single-session put/call was 0.65, while the 20-day moving average is now at 0.6. TODAY'S ECONOMIC CALENDAR 08:30 AM AUG Nonfarm Payrolls 08:30 AM AUG Nonfarm Private Payrolls 08:30 AM AUG Unemployment Rate 08:30 AM AUG Hourly Earnings 08:30 AM AUG Average Workweek EARNINGS EXPECTED TODAY No major earnings announcements scheduled. 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 |
