MORNING UPDATE: PriceWatch Alerts for TM and More... for 2014-08-04 |
| ------------------------------------------------------------------ MORNING UPDATE FOR August 4, 2014 PriceWatch Alerts for DIS, IMGN, VOD, TM, NDAQ, GRPN, GILD, BLDP, GSK and LLY. Walt Disney (NYSE: DIS) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $85.38 while selling the September $87.50 call will produce a new covered call with a break-even point around $83.90. At that price, this position has a target return of 4.3%. This trade will have roughly 1.7% downside protection, while still aiming for a 4.3% return in 47 days. It will lock in that return as long as Walt Disney is above $87.50 on 9/20/2014. For comparison purposes only, this DIS covered call aims for an annualized return rate of 33.3%. ImmunoGen (NASDAQ: IMGN) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $10.47 while simultaneously selling the January $10.00 call will result in a new position with a target return of 16.0%. Based on recent prices, this position will cost about $8.62, which is also the trade?s breakeven point. At that level, this covered call has 17.7% downside protection, while still providing a 16.0% return in 166 days as long as IMGN is above $10.00 on 1/17/2015. For comparison purposes only, this ImmunoGen covered call aims for an annualized return rate of 35.2%. Vodafone Group (NASDAQ: VOD) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $32.86 while selling the October $33.00 call will produce a new covered call with a break-even point around $31.71. At that price, this position has a target return of 4.1%. This trade will have roughly 3.5% downside protection, while still aiming for a 4.1% return in 75 days. It will lock in that return as long as Vodafone Group is above $33.00 on 10/18/2014. For comparison purposes only, this VOD covered call aims for an annualized return rate of 19.8%. Toyota (NYSE: TM) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the October $125.00 call while at the same time buying TM stock for $117.59 will produce a new covered call with a target return of 7.3%. Based on recent data, this trade will cost about $116.52, which is also the covered call?s breakeven point. At that price, this covered call has 0.9% downside protection, while seeking an assigned return of 7.3% return in 75 days. If TM is higher than $125.00 on 10/18/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 35.4%. Nasdaq Stock Market (NASDAQ: NDAQ) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the December $42.00 call while simultaneously buying NDAQ stock for $41.97 will result in a new position with a break-even point around $39.87. At that price, this position has a target return of 5.3%. This trade has 5.0% downside protection, while still providing a 5.3% return in 138 days as long as NDAQ is above $42.00 on 12/20/2014. For comparison purposes only, this Nasdaq Stock Market covered call targets an annualized return rate of 14.1%. Groupon (NASDAQ: GRPN) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $6.46 while selling the January $7.00 call will produce a new covered call with a break-even point around $5.62. At that price, this position has a target return of 24.6%. This trade will have roughly 13.0% downside protection, while still aiming for a 24.6% return in 166 days. It will lock in that return as long as Groupon is above $7.00 on 1/17/2015. For comparison purposes only, this GRPN covered call aims for an annualized return rate of 54.0%. Gilead Sciences (NASDAQ: GILD) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $91.50 while simultaneously selling the September $92.50 call will result in a new position with a target return of 5.0%. Based on recent prices, this position will cost about $88.10, which is also the trade?s breakeven point. At that level, this covered call has 3.7% downside protection, while still providing a 5.0% return in 47 days as long as GILD is above $92.50 on 9/20/2014. For comparison purposes only, this Gilead Sciences covered call aims for an annualized return rate of 38.8%. Ballard Power Systems (NASDAQ: BLDP) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $4.01 while selling the February $4.00 call will produce a new covered call with a break-even point around $3.01. At that price, this position has a target return of 32.9%. This trade will have roughly 24.9% downside protection, while still aiming for a 32.9% return in 200 days. It will lock in that return as long as Ballard Power Systems is above $4.00 on 2/20/2015. For comparison purposes only, this BLDP covered call aims for an annualized return rate of 60.0%. GlaxoSmithKline PLC (NYSE: GSK) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the January $49.00 call while at the same time buying GSK stock for $48.03 will produce a new covered call with a target return of 4.7%. Based on recent data, this trade will cost about $46.81, which is also the covered call?s breakeven point. At that price, this covered call has 2.5% downside protection, while seeking an assigned return of 4.7% return in 166 days. If GSK is higher than $49.00 on 1/17/2015, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 10.3%. Eli Lilly (NYSE: LLY) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the October $62.50 call while simultaneously buying LLY stock for $60.68 will result in a new position with a break-even point around $59.58. At that price, this position has a target return of 4.9%. This trade has 1.8% downside protection, while still providing a 4.9% return in 75 days as long as LLY is above $62.50 on 10/18/2014. For comparison purposes only, this Eli Lilly covered call targets an annualized return rate of 23.8%. *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 Amgen (AMGN), Tower Semiconductor (TSEM) and Himax Technologies (HIMX) are higher in pre-market trading, while Diamond Offshore (DO) and Insmed (INSM) are both significantly lower. Targa Resources (TRGP) and Air Lease (AL) were upgraded by analyst this morning, while Douglass Emmett (DEI) and Kodiak Oil & Gas (KOG) were downgraded. INTERNATIONAL MARKETS Asian stocks were mixed Monday as Hong Kong stocks rebounded from Friday?s fall. The Hang Seng was up 0.28% while the Nikkei was down 0.31%. European markets are flat after Portugal?s central bank announced plans to bail out Banco Espirito Santo. The FTSE is down 0.44%, and the German Dax is up 0.04%. FUTURES & CURRENCIES Energy futures are mixed Monday as well. The West Texas Intermediate crude oil price per barrel is $97.73, down $0.15 and natural gas is up a penny. Metals prices are mixed. Gold is down $2.00 and platinum is up $4.30. The Dollar is up against the Euro and the Yen. PUT/CALL RATIO Yesterday, 1,116,272 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 1,156,395 put contracts. The single-session put/call was a weird 1.04, while the 20-day moving average is now at 0.61. TODAY'S ECONOMIC CALENDAR There are no major economic reports scheduled for today. EARNINGS EXPECTED TODAY AIG BSFT ISIS KORS MRO ROSE THC TSEM 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 |
