MORNING UPDATE: PriceWatch Alerts for THI and More... for 2014-08-27 |
| MORNING UPDATE FOR AUGUST 27, 2014 PriceWatch Alerts for ARWR, ISIS, MOBL, JPM, VIAB, GE, DSW, CLDX, CTSH, MMM, VOD, THI, RIG, MYGN and SINA. Arrowhead (NASDAQ: ARWR) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $15.19 while selling the October $16.00 call will produce a new covered call with a break-even point around $13.24. At that price, this position has a target return of 20.8%. This trade will have roughly 12.8% downside protection, while still aiming for a 20.8% return in 52 days. It will lock in that return as long as Arrowhead is above $16.00 on 10/18/2014. For comparison purposes only, this ARWR covered call aims for an annualized return rate of 146.3%. Isis Pharmaceuticals (NASDAQ: ISIS) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $40.01 while simultaneously selling the October $41.00 call will result in a new position with a target return of 10.9%. Based on recent prices, this position will cost about $36.96, which is also the trade?s breakeven point. At that level, this covered call has 7.6% downside protection, while still providing a 10.9% return in 52 days as long as ISIS is above $41.00 on 10/18/2014. For comparison purposes only, this Isis Pharmaceuticals covered call aims for an annualized return rate of 76.7%. MobileIron (NASDAQ: MOBL) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $11.73 while selling the January $12.50 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 17.6%. This trade will have roughly 9.4% downside protection, while still aiming for a 17.6% return in 143 days. It will lock in that return as long as MobileIron is above $12.50 on 1/17/2015. For comparison purposes only, this MOBL covered call aims for an annualized return rate of 44.9%. JPMorgan (NYSE: JPM) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the January $60.00 call while at the same time buying JPM stock for $59.74 will produce a new covered call with a target return of 4.5%. Based on recent data, this trade will cost about $57.44, which is also the covered call?s breakeven point. At that price, this covered call has 3.9% downside protection, while seeking an assigned return of 4.5% return in 143 days. If JPM is higher than $60.00 on 1/17/2015, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 11.4%. Viacom (NASDAQ: VIAB) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the October $82.50 call while simultaneously buying VIAB stock for $80.44 will result in a new position with a break-even point around $79.29. At that price, this position has a target return of 4.0%. This trade has 1.4% downside protection, while still providing a 4.0% return in 52 days as long as VIAB is above $82.50 on 10/18/2014. For comparison purposes only, this Viacom covered call targets an annualized return rate of 28.4%. General Electric (NYSE: GE) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $26.01 while selling the June $27.00 call will produce a new covered call with a break-even point around $25.11. At that price, this position has a target return of 7.5%. This trade will have roughly 3.5% downside protection, while still aiming for a 7.5% return in 296 days. It will lock in that return as long as General Electric is above $27.00 on 6/19/2015. For comparison purposes only, this GE covered call aims for an annualized return rate of 9.3%. DSW (NYSE: DSW) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $30.99 while simultaneously selling the April $35.00 call will result in a new position with a target return of 18.1%. Based on recent prices, this position will cost about $29.64, which is also the trade?s breakeven point. At that level, this covered call has 4.4% downside protection, while still providing a 18.1% return in 233 days as long as DSW is above $35.00 on 4/17/2015. For comparison purposes only, this DSW covered call aims for an annualized return rate of 28.3%. Celldex Therapeutics (NASDAQ: CLDX) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the November $17.00 call while at the same time buying CLDX stock for $16.42 will produce a new covered call with a target return of 14.7%. Based on recent data, this trade will cost about $14.82, which is also the covered call?s breakeven point. At that price, this covered call has 9.7% downside protection, while seeking an assigned return of 14.7% return in 87 days. If CLDX is higher than $17.00 on 11/22/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 61.7%. Cognizant Technology (NASDAQ: CTSH) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $45.73 while selling the January $46.25 call will produce a new covered call with a break-even point around $43.23. At that price, this position has a target return of 7.0%. This trade will have roughly 5.5% downside protection, while still aiming for a 7.0% return in 143 days. It will lock in that return as long as Cognizant Technology is above $46.25 on 1/17/2015. For comparison purposes only, this CTSH covered call aims for an annualized return rate of 17.8%. 3M (NYSE: MMM) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the April $155.00 call while simultaneously buying MMM stock for $144.60 will result in a new position with a break-even point around $142.12. At that price, this position has a target return of 9.1%. This trade has 1.7% downside protection, while still providing a 9.1% return in 233 days as long as MMM is above $155.00 on 4/17/2015. For comparison purposes only, this 3M covered call targets an annualized return rate of 14.2%. Vodafone Group (NASDAQ: VOD) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $34.06 while simultaneously selling the January $35.00 call will result in a new position with a target return of 6.4%. Based on recent prices, this position will cost about $32.89, which is also the trade?s breakeven point. At that level, this covered call has 3.4% downside protection, while still providing a 6.4% return in 143 days as long as VOD is above $35.00 on 1/17/2015. For comparison purposes only, this Vodafone Group covered call aims for an annualized return rate of 16.4%. Tim Hortons (NYSE: THI) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $81.05 while selling the January $85.00 call will produce a new covered call with a break-even point around $79.25. At that price, this position has a target return of 7.3%. This trade will have roughly 2.2% downside protection, while still aiming for a 7.3% return in 143 days. It will lock in that return as long as Tim Hortons is above $85.00 on 1/17/2015. For comparison purposes only, this THI covered call aims for an annualized return rate of 18.5%. Transocean (NYSE: RIG) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $38.52 while simultaneously selling the November $40.00 call will result in a new position with a target return of 7.3%. Based on recent prices, this position will cost about $37.29, which is also the trade?s breakeven point. At that level, this covered call has 3.2% downside protection, while still providing a 7.3% return in 87 days as long as RIG is above $40.00 on 11/22/2014. For comparison purposes only, this Transocean covered call aims for an annualized return rate of 30.5%. Myriad Genetics (NASDAQ: MYGN) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the October $38.00 call while at the same time buying MYGN stock for $36.25 will produce a new covered call with a target return of 8.6%. Based on recent data, this trade will cost about $35.00, which is also the covered call?s breakeven point. At that price, this covered call has 3.4% downside protection, while seeking an assigned return of 8.6% return in 52 days. If MYGN is higher than $38.00 on 10/18/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 60.2%. SINA com (NASDAQ: SINA) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the October $50.00 call while simultaneously buying SINA stock for $46.62 will result in a new position with a break-even point around $45.22. At that price, this position has a target return of 10.6%. This trade has 3.0% downside protection, while still providing a 10.6% return in 52 days as long as SINA is above $50.00 on 10/18/2014. For comparison purposes only, this SINA com covered call targets an annualized return rate of 74.2%. *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. 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INTERNATIONAL MARKETS Asian stocks were mostly up Wednesday, though Hong Kong markets slipped. The Shanghai Composite was up 0.11% and the Nikkei rose 0.09%. European markets are mixed today, as German consumer confidence data proved weaker than expected. Investors took solace in hopes for stimulus from the European Central Bank. This morning the FTSE is up 0.08%, and the DAX is off 0.14%. FUTURES & CURRENCIES Energy futures are up Wednesday. The West Texas Intermediate crude oil price per barrel is $94.16, up $0.30 and natural gas is up $0.04. Metals prices are mostly up today. Gold is up $2.30 and platinum is up $5.80. The Dollar is down against both the Euro and the Yen. PUT/CALL RATIO Yesterday, 886,857 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 472,129 put contracts. The single-session put/call was 0.53, while the 20-day moving average is still at 0.64. TODAY'S ECONOMIC CALENDAR 07:00 AM 8/23 MBA Mortgage Index 10:30 AM 8/23 Crude Inventories EARNINGS EXPECTED TODAY BF.B GES TIF WDAY YGE 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 |
