MORNING UPDATE: PriceWatch Alerts for SODA and More... for 2014-07-31 |
| ------------------------------------------------------------------ MORNING UPDATE FOR July 31, 2014 PriceWatch Alerts for SODA, ASML, ABC, SBUX, FDX, AEGR, ZLTQ, ECYT, BRCM, AZN, JCI, SRPT, LFC, FNSR and PBR. SodaStream (NASDAQ: SODA) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $32.76 while selling the September $32.50 call will produce a new covered call with a break-even point around $30.16. At that price, this position has a target return of 7.8%. This trade will have roughly 7.9% downside protection, while still aiming for a 7.8% return in 51 days. It will lock in that return as long as SodaStream is above $32.50 on 9/20/2014. For comparison purposes only, this SODA covered call aims for an annualized return rate of 55.5%. ASML (NASDAQ: ASML) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $95.14 while simultaneously selling the October $95.00 call will result in a new position with a target return of 5.4%. Based on recent prices, this position will cost about $90.14, which is also the trade?s breakeven point. At that level, this covered call has 5.3% downside protection, while still providing a 5.4% return in 79 days as long as ASML is above $95.00 on 10/18/2014. For comparison purposes only, this ASML covered call aims for an annualized return rate of 24.9%. AmerisourceBergen (NYSE: ABC) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $77.95 while selling the November $80.00 call will produce a new covered call with a break-even point around $76.15. At that price, this position has a target return of 5.1%. This trade will have roughly 2.3% downside protection, while still aiming for a 5.1% return in 114 days. It will lock in that return as long as AmerisourceBergen is above $80.00 on 11/22/2014. For comparison purposes only, this ABC covered call aims for an annualized return rate of 16.2%. Starbucks (NASDAQ: SBUX) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the October $82.50 call while at the same time buying SBUX stock for $78.90 will produce a new covered call with a target return of 6.0%. Based on recent data, this trade will cost about $77.85, which is also the covered call?s breakeven point. At that price, this covered call has 1.3% downside protection, while seeking an assigned return of 6.0% return in 79 days. If SBUX is higher than $82.50 on 10/18/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 27.6%. FedEx (NYSE: FDX) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the September $155.00 call while simultaneously buying FDX stock for $149.36 will result in a new position with a break-even point around $147.58. At that price, this position has a target return of 5.0%. This trade has 1.2% downside protection, while still providing a 5.0% return in 51 days as long as FDX is above $155.00 on 9/20/2014. For comparison purposes only, this FedEx covered call targets an annualized return rate of 35.9%. Aegerion Pharmaceuticals (NASDAQ: AEGR) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $35.65 while selling the September $35.00 call will produce a new covered call with a break-even point around $32.90. At that price, this position has a target return of 6.4%. This trade will have roughly 7.7% downside protection, while still aiming for a 6.4% return in 51 days. It will lock in that return as long as Aegerion Pharmaceuticals is above $35.00 on 9/20/2014. For comparison purposes only, this AEGR covered call aims for an annualized return rate of 45.7%. Zeltiq Aesthetics (NASDAQ: ZLTQ) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $21.34 while simultaneously selling the September $20.00 call will result in a new position with a target return of 5.3%. Based on recent prices, this position will cost about $18.99, which is also the trade?s breakeven point. At that level, this covered call has 11.0% downside protection, while still providing a 5.3% return in 51 days as long as ZLTQ is above $20.00 on 9/20/2014. For comparison purposes only, this Zeltiq Aesthetics covered call aims for an annualized return rate of 38.0%. Endocyte (NASDAQ: ECYT) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $7.10 while selling the January $7.00 call will produce a new covered call with a break-even point around $5.68. At that price, this position has a target return of 23.2%. This trade will have roughly 20.0% downside protection, while still aiming for a 23.2% return in 170 days. It will lock in that return as long as Endocyte is above $7.00 on 1/17/2015. For comparison purposes only, this ECYT covered call aims for an annualized return rate of 49.9%. Broadcom (NASDAQ: BRCM) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the November $37.00 call while at the same time buying BRCM stock for $37.87 will produce a new covered call with a target return of 4.7%. Based on recent data, this trade will cost about $35.35, which is also the covered call?s breakeven point. At that price, this covered call has 6.7% downside protection, while seeking an assigned return of 4.7% return in 114 days. If BRCM is higher than $37.00 on 11/22/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 14.9%. AstraZeneca (NYSE: AZN) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the September $75.00 call while simultaneously buying AZN stock for $73.19 will result in a new position with a break-even point around $70.99. At that price, this position has a target return of 5.6%. This trade has 3.0% downside protection, while still providing a 5.6% return in 51 days as long as AZN is above $75.00 on 9/20/2014. For comparison purposes only, this AstraZeneca covered call targets an annualized return rate of 40.4%. Johnson Controls (NYSE: JCI) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $48.21 while selling the October $49.00 call will produce a new covered call with a break-even point around $46.96. At that price, this position has a target return of 4.3%. This trade will have roughly 2.6% downside protection, while still aiming for a 4.3% return in 79 days. It will lock in that return as long as Johnson Controls is above $49.00 on 10/18/2014. For comparison purposes only, this JCI covered call aims for an annualized return rate of 20.1%. Sarepta Therapeutics (NASDAQ: SRPT) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $22.93 while simultaneously selling the August $23.00 call will result in a new position with a target return of 6.8%. Based on recent prices, this position will cost about $21.53, which is also the trade?s breakeven point. At that level, this covered call has 6.1% downside protection, while still providing a 6.8% return in 16 days as long as SRPT is above $23.00 on 8/16/2014. For comparison purposes only, this Sarepta Therapeutics covered call aims for an annualized return rate of 155.6%. China Life Insurance (NYSE: LFC) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $44.31 while selling the September $45.00 call will produce a new covered call with a break-even point around $43.11. At that price, this position has a target return of 4.4%. This trade will have roughly 2.7% downside protection, while still aiming for a 4.4% return in 51 days. It will lock in that return as long as China Life Insurance is above $45.00 on 9/20/2014. For comparison purposes only, this LFC covered call aims for an annualized return rate of 31.3%. Finisar (NASDAQ: FNSR) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the September $20.00 call while at the same time buying FNSR stock for $19.99 will produce a new covered call with a target return of 7.0%. Based on recent data, this trade will cost about $18.69, which is also the covered call?s breakeven point. At that price, this covered call has 6.5% downside protection, while seeking an assigned return of 7.0% return in 51 days. If FNSR is higher than $20.00 on 9/20/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 50.1%. Petroleo Brasileiro (NYSE: PBR) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the October $16.00 call while simultaneously buying PBR stock for $16.58 will result in a new position with a break-even point around $14.90. At that price, this position has a target return of 7.4%. This trade has 10.1% downside protection, while still providing a 7.4% return in 79 days as long as PBR is above $16.00 on 10/18/2014. For comparison purposes only, this Petroleo Brasileiro covered call targets an annualized return rate of 34.1%. *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)! 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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Brands (YUM), Akamai (AKAM) and Glu Mobile (GLUU) are lower. SM Energy (SM) was upgraded by analysts this morning, while Harley Davidson (HOG) was downgraded. INTERNATIONAL MARKETS Asian markets were mixed Thursday as Japanese stocks broke their four- day win streak. The Hang Seng was up 0.10% while the Nikkei was down 0.16%. European stocks are down this morning as a number of disappointing earnings reports were delivered. The FTSE is down 0.18%, and the CAC 40 is down 0.69%. FUTURES & CURRENCIES Energy futures are mixed today. The West Texas Intermediate crude oil price per barrel is $99.57, down $0.71 and natural gas is up $0.01. Metals prices show little movement. Gold is down $0.90 and platinum is down $2.10. The Dollar is up versus the Euro and the Yen. PUT/CALL RATIO Yesterday, 1,175,991 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 673,820 put contracts. The single-session put/call was 0.57, while the 20-day moving average is now at 0.59. TODAY'S ECONOMIC CALENDAR 07:30 AM Jul Challenger Job Cuts 08:30 AM 7/26 Initial Claims 08:30 AM 7/19 Continuing Claims 08:30 AM Q2 Employment Cost Index 09:45 AM Jul Chicago PMI 10:30 AM 7/26 Natural Gas Inventories EARNINGS EXPECTED TODAY 383 companies report today. Here are the most prominent. ADP AFFX APA ATK AVP AZN BG BRKS BUD BWA BYD BZH CI CL CME COP DDD DISCA DTV EXC IRM ITT JIVE K KOG LLL MA MDP RDS.A RMD PSA RMTI SBC SGEN SKUL SPWR TEF TMUS TRLA TSLA TWC VALE WLT WPRT WU WWE XOM 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 |
