MORNING UPDATE: PriceWatch Alerts for LOCO and More... for 2014-08-07 |
| ------------------------------------------------------------------ MORNING UPDATE FOR AUGUST 7, 2014 PriceWatch Alerts for PRU, GMCR, CZR, RIG, CTSH, LOCO, CSCO, RFMD, LB and T. Prudential Financial (NYSE: PRU) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $86.57 while selling the December $85.00 call will produce a new covered call with a break-even point around $81.32. At that price, this position has a target return of 4.5%. This trade will have roughly 6.1% downside protection, while still aiming for a 4.5% return in 135 days. It will lock in that return as long as Prudential Financial is above $85.00 on 12/20/2014. For comparison purposes only, this PRU covered call aims for an annualized return rate of 12.2%. Keurig Green Mountain (NASDAQ: GMCR) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $115.48 while simultaneously selling the August $115.00 call will result in a new position with a target return of 5.0%. Based on recent prices, this position will cost about $109.48, which is also the trade?s breakeven point. At that level, this covered call has 5.2% downside protection, while still providing a 5.0% return in 9 days as long as GMCR is above $115.00 on 8/16/2014. For comparison purposes only, this Keurig Green Mountain covered call aims for an annualized return rate of 204.4%. Caesars (NASDAQ: CZR) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $13.80 while selling the September $14.00 call will produce a new covered call with a break-even point around $12.65. At that price, this position has a target return of 10.7%. This trade will have roughly 8.3% downside protection, while still aiming for a 10.7% return in 44 days. It will lock in that return as long as Caesars is above $14.00 on 9/20/2014. For comparison purposes only, this CZR covered call aims for an annualized return rate of 88.5%. Transocean (NYSE: RIG) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the November $38.00 call while at the same time buying RIG stock for $38.15 will produce a new covered call with a target return of 5.3%. Based on recent data, this trade will cost about $36.10, which is also the covered call?s breakeven point. At that price, this covered call has 5.4% downside protection, while seeking an assigned return of 5.3% return in 107 days. If RIG is higher than $38.00 on 11/22/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 17.9%. Cognizant Technology (NASDAQ: CTSH) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the October $45.00 call while simultaneously buying CTSH stock for $43.67 will result in a new position with a break-even point around $42.25. At that price, this position has a target return of 6.5%. This trade has 3.3% downside protection, while still providing a 6.5% return in 72 days as long as CTSH is above $45.00 on 10/18/2014. For comparison purposes only, this Cognizant Technology covered call targets an annualized return rate of 33.0%. 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 $36.95 while selling the September $36.00 call will produce a new covered call with a break-even point around $34.10. At that price, this position has a target return of 5.6%. This trade will have roughly 7.7% downside protection, while still aiming for a 5.6% return in 44 days. It will lock in that return as long as El Pollo Loco is above $36.00 on 9/20/2014. For comparison purposes only, this LOCO covered call aims for an annualized return rate of 46.2%. Cisco Systems (NASDAQ: CSCO) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $24.93 while simultaneously selling the November $25.00 call will result in a new position with a target return of 5.4%. Based on recent prices, this position will cost about $23.73, which is also the trade?s breakeven point. At that level, this covered call has 4.8% downside protection, while still providing a 5.4% return in 107 days as long as CSCO is above $25.00 on 11/22/2014. For comparison purposes only, this Cisco Systems covered call aims for an annualized return rate of 18.3%. RF Micro Devices (NASDAQ: RFMD) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $11.34 while selling the January $11.00 call will produce a new covered call with a break-even point around $9.94. At that price, this position has a target return of 10.7%. This trade will have roughly 12.3% downside protection, while still aiming for a 10.7% return in 163 days. It will lock in that return as long as RF Micro Devices is above $11.00 on 1/17/2015. For comparison purposes only, this RFMD covered call aims for an annualized return rate of 23.9%. L Brands (AMEX: LB) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the November $60.00 call while at the same time buying LB stock for $59.19 will produce a new covered call with a target return of 6.0%. Based on recent data, this trade will cost about $56.59, which is also the covered call?s breakeven point. At that price, this covered call has 4.4% downside protection, while seeking an assigned return of 6.0% return in 107 days. If LB is higher than $60.00 on 11/22/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 20.5%. AT&T (NYSE: T) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the January $35.00 call while simultaneously buying T stock for $34.62 will result in a new position with a break-even point around $33.49. At that price, this position has a target return of 4.5%. This trade has 3.3% downside protection, while still providing a 4.5% return in 163 days as long as T is above $35.00 on 1/17/2015. For comparison purposes only, this AT&T covered call targets an annualized return rate of 10.1%. *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 Twenty-First Century Fox (FOXA), Stratasys (SSYS) and Ctrip.com (CTRP) are rising in pre-market trading, while Atmel (ATML), Zulily (ZU) and Windstream (WIN) are falling. Chesapeake Energy (CHK) was downgraded by analysts this morning. INTERNATIONAL MARKETS Asian markets finished mixed Thursday as Hong Kong stocks led the way down. The Hang Seng was down 0.80% while the Nikkei was up 0.48%. European markets are mixed this morning. The FTSE is down 0.13%, and the CAC 40 is down 0.50%. FUTURES & CURRENCIES Energy futures are mixed today. The West Texas Intermediate crude oil price per barrel is $97.05, up $0.13 and natural gas is up $0.02. Metals prices are also mixed. Gold is unchanged and platinum is up $4.40. The Dollar is up versus the Euro and the Yen. PUT/CALL RATIO Yesterday, 856,101 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 686,877 put contracts. The single-session put/call was 0.8, while the 20-day moving average is now at 0.64. TODAY'S ECONOMIC CALENDAR 08:30 AM 8/02 Initial Claims 08:30 AM 7/26 Continuing Claims 10:30 AM 8/02 Natural Gas Inventories 02:00 PM Jun Consumer Credit EARNINGS EXPECTED TODAY BODY CBS CTB DUK EAT FF GOLD LINE MDVN MELI MNST MPEL NVDA NVO OLED OREX RGLD SFUN SLXP SRPT SSYS SUNE UNXL VVUS WEN WIN ZNGA 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 Winner. InvestorsObserver -- Better Strategies for Making Money in Up, Down, and Flat Markets -> Get Started with InvestosObserver's 100% Free Essentials Service: http://www.poweropt.com/io All stocks and options shown are examples only. These are not recommendations to buy or sell any security and they do not represent in any way a positive or negative outlook for any security. Potential returns do not take into account your trade size, brokerage commissions, taxes or our subscription fees which will affect actual investment returns. Stocks and options involve risk and are not suitable for all |
