MORNING UPDATE: PriceWatch Alerts for UTHR and More... for 2014-09-02 |
| MORNING UPDATE FOR SEPTERMBER 2, 2014 PriceWatch Alerts for BLUE, UTHR, MAT, ULTA, AMAT, WDAY, BLOX, TER, SYNA and NRG. Bluebird Bio (NASDAQ: BLUE) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $39.99 while selling the September $45.00 call will produce a new covered call with a break-even point around $38.84. At that price, this position has a target return of 15.9%. This trade will have roughly 2.9% downside protection, while still aiming for a 15.9% return in 18 days. It will lock in that return as long as Bluebird Bio is above $45.00 on 9/20/2014. For comparison purposes only, this BLUE covered call aims for an annualized return rate of 321.4%. United Therapeutics (NASDAQ: UTHR) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $117.50 while simultaneously selling the November $120.00 call will result in a new position with a target return of 8.5%. Based on recent prices, this position will cost about $110.60, which is also the trade?s breakeven point. At that level, this covered call has 5.9% downside protection, while still providing a 8.5% return in 81 days as long as UTHR is above $120.00 on 11/22/2014. For comparison purposes only, this United Therapeutics covered call aims for an annualized return rate of 38.3%. Mattel (NASDAQ: MAT) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $34.46 while selling the January $35.00 call will produce a new covered call with a break-even point around $33.26. At that price, this position has a target return of 5.2%. This trade will have roughly 3.5% downside protection, while still aiming for a 5.2% return in 137 days. It will lock in that return as long as Mattel is above $35.00 on 1/17/2015. For comparison purposes only, this MAT covered call aims for an annualized return rate of 13.9%. Ulta Salon Cosmetics (NASDAQ: ULTA) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the October $97.50 call while at the same time buying ULTA stock for $97.32 will produce a new covered call with a target return of 5.6%. Based on recent data, this trade will cost about $92.32, which is also the covered call?s breakeven point. At that price, this covered call has 5.1% downside protection, while seeking an assigned return of 5.6% return in 46 days. If ULTA is higher than $97.50 on 10/18/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 44.5%. Applied Materials (NASDAQ: AMAT) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the December $24.00 call while simultaneously buying AMAT stock for $22.98 will result in a new position with a break-even point around $21.94. At that price, this position has a target return of 9.4%. This trade has 4.5% downside protection, while still providing a 9.4% return in 109 days as long as AMAT is above $24.00 on 12/20/2014. For comparison purposes only, this Applied Materials covered call targets an annualized return rate of 31.4%. Workday (NYSE: WDAY) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $91.00 while selling the October $92.50 call will produce a new covered call with a break-even point around $87.45. At that price, this position has a target return of 5.8%. This trade will have roughly 3.9% downside protection, while still aiming for a 5.8% return in 46 days. It will lock in that return as long as Workday is above $92.50 on 10/18/2014. For comparison purposes only, this WDAY covered call aims for an annualized return rate of 45.8%. Infoblox (NYSE: BLOX) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $13.48 while simultaneously selling the January $15.00 call will result in a new position with a target return of 23.5%. Based on recent prices, this position will cost about $12.15, which is also the trade?s breakeven point. At that level, this covered call has 9.9% downside protection, while still providing a 23.5% return in 137 days as long as BLOX is above $15.00 on 1/17/2015. For comparison purposes only, this Infoblox covered call aims for an annualized return rate of 62.5%. Teradyne (NYSE: TER) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $20.59 while simultaneously selling the January $21.00 call will result in a new position with a target return of 8.3%. Based on recent prices, this position will cost about $19.39, which is also the trade?s breakeven point. At that level, this covered call has 5.8% downside protection, while still providing a 8.3% return in 137 days as long as TER is above $21.00 on 1/17/2015. For comparison purposes only, this Teradyne covered call aims for an annualized return rate of 22.1%. Synaptics (NASDAQ: SYNA) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the January $85.00 call while at the same time buying SYNA stock for $83.25 will produce a new covered call with a target return of 11.8%. Based on recent data, this trade will cost about $76.00, which is also the covered call?s breakeven point. At that price, this covered call has 8.7% downside protection, while seeking an assigned return of 11.8% return in 137 days. If SYNA is higher than $85.00 on 1/17/2015, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 31.5%. NRG Energy (NYSE: NRG) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the January $31.00 call while simultaneously buying NRG stock for $30.78 will result in a new position with a break-even point around $29.08. At that price, this position has a target return of 6.6%. This trade has 5.5% downside protection, while still providing a 6.6% return in 137 days as long as NRG is above $31.00 on 1/17/2015. For comparison purposes only, this NRG Energy 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? 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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 USG (USG), Regeneron (REGN) and Compuware (CPWR) are slightly higher in pre-market trading, while Finisar (FNSR), Randgold Resources (GOLD) and Radio Shack (RSH) are lower. Northrop Grumman (NOC) and Groupon (GRPN) were upgraded this morning, while PulteGroup (PHM) was downgraded. INTERNATIONAL MARKETS In Asia, markets rose Tuesday, with Tokyo stocks leading the way. The Shanghai Composite was up 1.37% and the Nikkei was up 1.34%. European stocks are mostly up this morning, with investors remaining optimistic over the possibility of stimulus measures from the European Central Bank. The CAC 40 is up 0.16%, and the DAX is up 0.28%. FUTURES & CURRENCIES Energy futures are down this morning. West Texas Intermediate crude oil is down $0.88 to $95.08 per barrel, and natural gas is down $0.06. Metals prices are also down. Gold is down $15.00 and platinum is down $8.50. The Dollar is up versus the Euro and the Yen. PUT/CALL RATIO Yesterday, 897,281 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 506,634 put contracts. The single-session put/call was 0.56, while the 20-day moving average is now at 0.61. TODAY'S ECONOMIC CALENDAR 10:00 AM Aug ISM Index 10:00 AM Jul Construction Spending EARNINGS EXPECTED TODAY TA 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 |
