MORNING UPDATE: PriceWatch Alerts for JCP and More... for 2014-08-26 |
| MORNING UPDATE FOR AUGUST 26, 2014 PriceWatch Alerts for ACHN, INTC, YY, JASO, SKUL, JCP, GRPN, FNSR, BRCM, SLB, LOCO, ZNGA, RL, AXP and WBMD. Achillion Pharmaceuticals (NASDAQ: ACHN) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $10.78 while selling the October $11.00 call will produce a new covered call with a break-even point around $8.83. At that price, this position has a target return of 24.6%. This trade will have roughly 18.1% downside protection, while still aiming for a 24.6% return in 53 days. It will lock in that return as long as Achillion Pharmaceuticals is above $11.00 on 10/18/2014. For comparison purposes only, this ACHN covered call aims for an annualized return rate of 169.2%. Intel (NASDAQ: INTC) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $34.81 while simultaneously selling the November $35.00 call will result in a new position with a target return of 4.4%. Based on recent prices, this position will cost about $33.54, which is also the trade?s breakeven point. At that level, this covered call has 3.6% downside protection, while still providing a 4.4% return in 88 days as long as INTC is above $35.00 on 11/22/2014. For comparison purposes only, this Intel covered call aims for an annualized return rate of 18.0%. YY (NASDAQ: YY) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $88.42 while selling the September $90.00 call will produce a new covered call with a break-even point around $85.27. At that price, this position has a target return of 5.5%. This trade will have roughly 3.6% downside protection, while still aiming for a 5.5% return in 25 days. It will lock in that return as long as YY is above $90.00 on 9/20/2014. For comparison purposes only, this YY covered call aims for an annualized return rate of 80.9%. JA Solar (NASDAQ: JASO) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the January $9.00 call while at the same time buying JASO stock for $9.23 will produce a new covered call with a target return of 13.5%. Based on recent data, this trade will cost about $7.93, which is also the covered call?s breakeven point. At that price, this covered call has 14.1% downside protection, while seeking an assigned return of 13.5% return in 144 days. If JASO is higher than $9.00 on 1/17/2015, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 34.2%. Skullcandy (NASDAQ: SKUL) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the March $8.00 call while simultaneously buying SKUL stock for $8.23 will result in a new position with a break-even point around $6.98. At that price, this position has a target return of 14.6%. This trade has 15.2% downside protection, while still providing a 14.6% return in 206 days as long as SKUL is above $8.00 on 3/20/2015. For comparison purposes only, this Skullcandy covered call targets an annualized return rate of 25.9%. JC Penney (NYSE: JCP) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $10.68 while selling the January $11.00 call will produce a new covered call with a break-even point around $9.67. At that price, this position has a target return of 13.8%. This trade will have roughly 9.5% downside protection, while still aiming for a 13.8% return in 144 days. It will lock in that return as long as JC Penney is above $11.00 on 1/17/2015. For comparison purposes only, this JCP covered call aims for an annualized return rate of 34.9%. Groupon (NASDAQ: GRPN) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $6.33 while simultaneously selling the April $6.00 call will result in a new position with a target return of 17.0%. Based on recent prices, this position will cost about $5.13, which is also the trade?s breakeven point. At that level, this covered call has 19.0% downside protection, while still providing a 17.0% return in 234 days as long as GRPN is above $6.00 on 4/17/2015. For comparison purposes only, this Groupon covered call aims for an annualized return rate of 26.4%. (To avoid having your profit margin narrowed by transaction costs, consider making this trade with multiple contracts.) Finisar (NASDAQ: FNSR) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $20.06 while selling the December $21.00 call will produce a new covered call with a break-even point around $18.51. At that price, this position has a target return of 13.5%. This trade will have roughly 7.7% downside protection, while still aiming for a 13.5% return in 116 days. It will lock in that return as long as Finisar is above $21.00 on 12/20/2014. For comparison purposes only, this FNSR covered call aims for an annualized return rate of 42.3%. Broadcom (NASDAQ: BRCM) 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 BRCM stock for $38.97 will produce a new covered call with a target return of 6.1%. Based on recent data, this trade will cost about $37.71, which is also the covered call?s breakeven point. At that price, this covered call has 3.2% downside protection, while seeking an assigned return of 6.1% return in 88 days. If BRCM 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 25.2%. Schlumberger (NYSE: SLB) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the October $115.00 call while simultaneously buying SLB stock for $110.22 will result in a new position with a break-even point around $109.09. At that price, this position has a target return of 5.4%. This trade has 1.0% downside protection, while still providing a 5.4% return in 53 days as long as SLB is above $115.00 on 10/18/2014. For comparison purposes only, this Schlumberger covered call targets an annualized return rate of 37.3%. El Pollo Loco (NASDAQ: LOCO) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $32.19 while selling the October $34.00 call will produce a new covered call with a break-even point around $30.89. At that price, this position has a target return of 10.1%. This trade will have roughly 4.0% downside protection, while still aiming for a 10.1% return in 53 days. It will lock in that return as long as El Pollo Loco is above $34.00 on 10/18/2014. For comparison purposes only, this LOCO covered call aims for an annualized return rate of 69.3%. Zynga (NASDAQ: ZNGA) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $3.01 while simultaneously selling the March $3.00 call will result in a new position with a target return of 20.0%. Based on recent prices, this position will cost about $2.50, which is also the trade?s breakeven point. At that level, this covered call has 16.9% downside protection, while still providing a 20.0% return in 206 days as long as ZNGA is above $3.00 on 3/20/2015. For comparison purposes only, this Zynga covered call aims for an annualized return rate of 35.4%. (To avoid having your profit margin narrowed by transaction costs, consider making this trade with multiple contracts.) Polo Ralph Lauren (NYSE: RL) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $169.97 while selling the January $175.00 call will produce a new covered call with a break-even point around $164.47. At that price, this position has a target return of 6.4%. This trade will have roughly 3.2% downside protection, while still aiming for a 6.4% return in 144 days. It will lock in that return as long as Polo Ralph Lauren is above $175.00 on 1/17/2015. For comparison purposes only, this RL covered call aims for an annualized return rate of 16.2%. American Express (NYSE: AXP) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $89.59 while simultaneously selling the January $92.50 call will result in a new position with a target return of 6.2%. Based on recent prices, this position will cost about $87.09, which is also the trade?s breakeven point. At that level, this covered call has 2.8% downside protection, while still providing a 6.2% return in 144 days as long as AXP is above $92.50 on 1/17/2015. For comparison purposes only, this American Express covered call aims for an annualized return rate of 15.7%. WebMD Health (NASDAQ: WBMD) 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 WBMD stock for $48.99 will result in a new position with a break-even point around $47.24. At that price, this position has a target return of 5.8%. This trade has 3.6% downside protection, while still providing a 5.8% return in 53 days as long as WBMD is above $50.00 on 10/18/2014. For comparison purposes only, this WebMD Health covered call targets an annualized return rate of 40.2%. *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. 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STOCKS ON THE MOVE Kandi Technologies (KNDI), Achillion Pharmaceuticals (ACHN) and Basic Energy Services (BAS) are higher in pre-market trading, while Trina Solar (TSL) and Best Buy (BBY) are tumbling. There were no upgrades or downgrades this morning. INTERNATIONAL MARKETS Asian markets were mostly lower on Tuesday, down 0.99% on the Shanghai Composite and 0.59% on the Nikkei. European stocks are showing moderate strength on Tuesday. The CAC 40 is up 0.48%, and the DAX is up 0.17%. FUTURES & CURRENCIES Energy futures are headed higher this morning. West Texas Intermediate crude oil is up $0.20 to $93.55, and natural gas is down $0.02. Metals are also showing strength today, with gold up $8.20 and platinum up $5.80. The Dollar is down versus the Euro and the Yen. PUT/CALL RATIO Yesterday, 729,525 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 463,559 put contracts. The single-session put/call was 0.64, while the 20-day moving average is now at 0.63. TODAY'S ECONOMIC CALENDAR 08:30 AM Jul Durable Orders 08:30 AM Jul Durable Goods ?ex transportation 09:00 AM Jun Case-Shiller 20-city Index 10:00 AM Jun FHFA Housing Price Index 10:00 AM Aug Consumer Confidence EARNINGS EXPECTED TODAY ARUN BBY TA TSL 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 |
