MORNING UPDATE: PriceWatch Alerts for HLF and More... for 2014-07-23 |
| ------------------------------------------------------------------ MORNING UPDATE FOR JULY 23, 2014 PriceWatch Alerts for CROX, F, RIG, SCTY, LINE, TWC, VALE, WUBA, NKE, TGT, HLF, MA, AET, SHLD and GME. Crocs (NASDAQ: CROX) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $16.68 while selling the December $16.00 call will produce a new covered call with a break-even point around $15.00. At that price, this position has a target return of 6.7%. This trade will have roughly 10.1% downside protection, while still aiming for a 6.7% return in 150 days. It will lock in that return as long as Crocs is above $16.00 on 12/20/2014. For comparison purposes only, this CROX covered call aims for an annualized return rate of 16.2%. Ford Motor (NYSE: F) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $17.82 while simultaneously selling the January $17.00 call will result in a new position with a target return of 7.9%. Based on recent prices, this position will cost about $15.75, which is also the trade?s breakeven point. At that level, this covered call has 11.6% downside protection, while still providing a 7.9% return in 541 days as long as F is above $17.00 on 1/15/2016. For comparison purposes only, this Ford Motor covered call aims for an annualized return rate of 5.4%. Transocean (NYSE: RIG) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $43.66 while selling the November $44.00 call will produce a new covered call with a break-even point around $41.91. At that price, this position has a target return of 5.0%. This trade will have roughly 4.0% downside protection, while still aiming for a 5.0% return in 122 days. It will lock in that return as long as Transocean is above $44.00 on 11/22/2014. For comparison purposes only, this RIG covered call aims for an annualized return rate of 14.9%. SolarCity (NASDAQ: SCTY) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the August $69.00 call while at the same time buying SCTY stock for $69.71 will produce a new covered call with a target return of 7.1%. Based on recent data, this trade will cost about $64.41, which is also the covered call?s breakeven point. At that price, this covered call has 7.6% downside protection, while seeking an assigned return of 7.1% return in 24 days. If SCTY is higher than $69.00 on 8/16/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 108.3%. Linn Energy (NASDAQ: LINE) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the January $31.00 call while simultaneously buying LINE stock for $31.15 will result in a new position with a break-even point around $29.82. At that price, this position has a target return of 4.0%. This trade has 4.3% downside protection, while still providing a 4.0% return in 178 days as long as LINE is above $31.00 on 1/17/2015. For comparison purposes only, this Linn Energy covered call targets an annualized return rate of 8.1%. Time Warner Cable Inc. (NYSE: TWC) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $149.15 while selling the September $155.00 call will produce a new covered call with a break-even point around $147.80. At that price, this position has a target return of 4.9%. This trade will have roughly 0.9% downside protection, while still aiming for a 4.9% return in 59 days. It will lock in that return as long as Time Warner Cable Inc. is above $155.00 on 9/20/2014. For comparison purposes only, this TWC covered call aims for an annualized return rate of 30.1%. Vale (NYSE: VALE) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $14.43 while simultaneously selling the March $15.00 call will result in a new position with a target return of 11.4%. Based on recent prices, this position will cost about $13.46, which is also the trade?s breakeven point. At that level, this covered call has 6.7% downside protection, while still providing a 11.4% return in 240 days as long as VALE is above $15.00 on 3/20/2015. For comparison purposes only, this Vale covered call aims for an annualized return rate of 17.4%. 58.Com (NYSE: WUBA) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the September $50.00 call while at the same time buying WUBA stock for $52.41 will produce a new covered call with a target return of 9.3%. Based on recent data, this trade will cost about $45.76, which is also the covered call?s breakeven point. At that price, this covered call has 12.7% downside protection, while seeking an assigned return of 9.3% return in 59 days. If WUBA is higher than $50.00 on 9/20/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 57.3%. Nike (NYSE: NKE) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the January $77.50 call while simultaneously buying NKE stock for $77.04 will result in a new position with a break-even point around $73.24. At that price, this position has a target return of 5.8%. This trade has 4.9% downside protection, while still providing a 5.8% return in 178 days as long as NKE is above $77.50 on 1/17/2015. For comparison purposes only, this Nike covered call targets an annualized return rate of 11.9%. Rackspace Hosting (NYSE: RAX) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $31.11 while selling the September $31.00 call will produce a new covered call with a break-even point around $28.61. At that price, this position has a target return of 8.4%. This trade will have roughly 8.0% downside protection, while still aiming for a 8.4% return in 59 days. It will lock in that return as long as Rackspace Hosting is above $31.00 on 9/20/2014. For comparison purposes only, this RAX covered call aims for an annualized return rate of 51.7%. Herbalife (NYSE: HLF) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $67.77 while selling the September $65.00 call will produce a new covered call with a break-even point around $60.77. At that price, this position has a target return of 7.0%. This trade will have roughly 10.3% downside protection, while still aiming for a 7.0% return in 59 days. It will lock in that return as long as Herbalife is above $65.00 on 9/20/2014. For comparison purposes only, this HLF covered call aims for an annualized return rate of 43.1%. MasterCard (NYSE: MA) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $78.27 while simultaneously selling the September $80.00 call will result in a new position with a target return of 4.6%. Based on recent prices, this position will cost about $76.47, which is also the trade?s breakeven point. At that level, this covered call has 2.3% downside protection, while still providing a 4.6% return in 59 days as long as MA is above $80.00 on 9/20/2014. For comparison purposes only, this MasterCard covered call aims for an annualized return rate of 28.5%. Aetna (NYSE: AET) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $84.87 while selling the October $85.00 call will produce a new covered call with a break-even point around $81.74. At that price, this position has a target return of 4.0%. This trade will have roughly 3.7% downside protection, while still aiming for a 4.0% return in 87 days. It will lock in that return as long as Aetna is above $85.00 on 10/18/2014. For comparison purposes only, this AET covered call aims for an annualized return rate of 16.7%. Sears (NASDAQ: SHLD) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the September $38.00 call while at the same time buying SHLD stock for $38.28 will produce a new covered call with a target return of 7.9%. Based on recent data, this trade will cost about $35.23, which is also the covered call?s breakeven point. At that price, this covered call has 8.0% downside protection, while seeking an assigned return of 7.9% return in 59 days. If SHLD is higher than $38.00 on 9/20/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 48.6%. GameStop (NYSE: GME) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the September $44.00 call while simultaneously buying GME stock for $44.09 will result in a new position with a break-even point around $41.39. At that price, this position has a target return of 6.3%. This trade has 6.1% downside protection, while still providing a 6.3% return in 59 days as long as GME is above $44.00 on 9/20/2014. 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Can you back test these strategies? Yes, you can! PowerOptions offers a full back testing screener, SmartHistoryXL, to its subscribers. Back test over 20 different options strategies using your personal search criteria. 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 Biogen (BIIB), Intuitive Surgical (ISRG) and FuelCell Energy (FCEL) are trading higher this morning, while Juniper Networks,(JNPR), Whirlpool (WHR) and Xilinx (XLNX) are trading lower. Qualcomm (QCOM) and Intuitive Surgical (ISRG) were upgraded by analysts this morning, while New Oriental Education & Technology (EDU), Hexcel (HXL) and Sunstone Hotel Investors (SHO) were downgraded. INTERNATIONAL MARKETS In Asia, markets were mostly higher as Hong Kong stocks set a new high for the year. The Hang Seng was up 0.8% while the Shanghai SE Composite was up 0.14%. In Europe, markets are up today as there are no indications of new sanctions against Russia. The FTSE is up 0.19%, and the German DAX is up 0.48%. FUTURES & CURRENCIES Energy futures are up today. The West Texas Intermediate crude oil price per barrel is $102.44, up $0.07 and natural gas is unchanged. Metals prices are mixed this morning. Gold is up $2.30, and platinum is off $1.30. The Dollar is down versus the Euro and the Yen. PUT/CALL RATIO Yesterday, 1,204,019 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 707,694 put contracts. The single-session put/call was 0.59, while the 20-day moving average is now at 0.56. TODAY'S ECONOMIC CALENDAR 07:00 AM 7/19 MBA Mortgage Index 10:30 AM 7/19 Crude Inventories EARNINGS EXPECTED TODAY BA CAKE DAL DOW FB FLS LOGI PEP QCOM R T WHR 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 |
