MORNING UPDATE: PriceWatch Alerts for KNDI and More... for 2014-07-22 |
| ------------------------------------------------------------------ MORNING UPDATE FOR JULY 22, 2014 PriceWatch Alerts for PXLW, SPLK, GLUU, AFL, HD, KNDI, EMC, RDS.A, MMM, MO, KING, DG, HUM, CRAY and EXPR. Pixelworks (NASDAQ: PXLW) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $9.14 while selling the September $7.50 call will produce a new covered call with a break-even point around $6.99. At that price, this position has a target return of 7.3%. This trade will have roughly 23.5% downside protection, while still aiming for a 7.3% return in 60 days. It will lock in that return as long as Pixelworks is above $7.50 on 9/20/2014. For comparison purposes only, this PXLW covered call aims for an annualized return rate of 44.3%. Splunk (NASDAQ: SPLK) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $46.09 while selling the August $46.00 call will produce a new covered call with a break-even point around $43.67. At that price, this position has a target return of 5.3%. This trade will have roughly 5.3% downside protection, while still aiming for a 5.3% return in 25 days. It will lock in that return as long as Splunk is above $46.00 on 8/16/2014. For comparison purposes only, this SPLK covered call aims for an annualized return rate of 77.8%. Glu Mobile (NASDAQ: GLUU) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $7.47 while selling the December $7.00 call will produce a new covered call with a break-even point around $5.92. At that price, this position has a target return of 18.2%. This trade will have roughly 20.7% downside protection, while still aiming for a 18.2% return in 151 days. It will lock in that return as long as Glu Mobile is above $7.00 on 12/20/2014. For comparison purposes only, this GLUU covered call aims for an annualized return rate of 44.1%. AFLAC (NYSE: AFL) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the November $65.00 call while at the same time buying AFL stock for $63.59 will produce a new covered call with a target return of 4.5%. Based on recent data, this trade will cost about $62.19, which is also the covered call?s breakeven point. At that price, this covered call has 2.2% downside protection, while seeking an assigned return of 4.5% return in 123 days. If AFL is higher than $65.00 on 11/22/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 13.4%. Home Depot (NYSE: HD) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the October $82.50 call while simultaneously buying HD stock for $79.71 will result in a new position with a break-even point around $78.49. At that price, this position has a target return of 5.1%. This trade has 1.5% downside protection, while still providing a 5.1% return in 88 days as long as HD is above $82.50 on 10/18/2014. For comparison purposes only, this Home Depot covered call targets an annualized return rate of 21.2%. Kandi Technologies (NASDAQ: KNDI) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $21.60 while selling the August $20.00 call will produce a new covered call with a break-even point around $18.72. At that price, this position has a target return of 6.8%. This trade will have roughly 13.3% downside protection, while still aiming for a 6.8% return in 25 days. It will lock in that return as long as Kandi Technologies is above $20.00 on 8/16/2014. For comparison purposes only, this KNDI covered call aims for an annualized return rate of 99.7%. EMC (NYSE: EMC) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $28.33 while simultaneously selling the January $29.00 call will result in a new position with a target return of 6.9%. Based on recent prices, this position will cost about $27.12, which is also the trade?s breakeven point. At that level, this covered call has 4.3% downside protection, while still providing a 6.9% return in 179 days as long as EMC is above $29.00 on 1/17/2015. For comparison purposes only, this EMC covered call aims for an annualized return rate of 14.1%. Royal Dutch Shell (NYSE: RDS.A) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $82.09 while selling the January $85.00 call will produce a new covered call with a break-even point around $80.89. At that price, this position has a target return of 5.1%. This trade will have roughly 1.5% downside protection, while still aiming for a 5.1% return in 179 days. It will lock in that return as long as Royal Dutch Shell is above $85.00 on 1/17/2015. For comparison purposes only, this RDS.A covered call aims for an annualized return rate of 10.4%. 3M (NYSE: MMM) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the January $150.00 call while at the same time buying MMM stock for $144.30 will produce a new covered call with a target return of 6.1%. Based on recent data, this trade will cost about $141.37, which is also the covered call?s breakeven point. At that price, this covered call has 2.0% downside protection, while seeking an assigned return of 6.1% return in 179 days. If MMM is higher than $150.00 on 1/17/2015, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 12.4%. Altria Group (NYSE: MO) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the January $43.00 call while simultaneously buying MO stock for $42.01 will result in a new position with a break-even point around $41.01. At that price, this position has a target return of 4.9%. This trade has 2.4% downside protection, while still providing a 4.9% return in 179 days as long as MO is above $43.00 on 1/17/2015. For comparison purposes only, this Altria Group covered call targets an annualized return rate of 9.9%. King Digital (NYSE: KING) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $20.44 while selling the August $20.00 call will produce a new covered call with a break-even point around $18.89. At that price, this position has a target return of 5.9%. This trade will have roughly 7.6% downside protection, while still aiming for a 5.9% return in 25 days. It will lock in that return as long as King Digital is above $20.00 on 8/16/2014. For comparison purposes only, this KING covered call aims for an annualized return rate of 85.7%. Dollar General (NYSE: DG) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $55.33 while simultaneously selling the September $55.00 call will result in a new position with a target return of 4.6%. Based on recent prices, this position will cost about $52.58, which is also the trade?s breakeven point. At that level, this covered call has 5.0% downside protection, while still providing a 4.6% return in 60 days as long as DG is above $55.00 on 9/20/2014. For comparison purposes only, this Dollar General covered call aims for an annualized return rate of 28.0%. Humana (NYSE: HUM) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $133.02 while selling the September $140.00 call will produce a new covered call with a break-even point around $131.32. At that price, this position has a target return of 6.6%. This trade will have roughly 1.3% downside protection, while still aiming for a 6.6% return in 60 days. It will lock in that return as long as Humana is above $140.00 on 9/20/2014. For comparison purposes only, this HUM covered call aims for an annualized return rate of 40.2%. Cray (NASDAQ: CRAY) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the September $30.00 call while at the same time buying CRAY stock for $29.00 will produce a new covered call with a target return of 12.1%. Based on recent data, this trade will cost about $26.75, which is also the covered call?s breakeven point. At that price, this covered call has 7.8% downside protection, while seeking an assigned return of 12.1% return in 60 days. If CRAY is higher than $30.00 on 9/20/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 73.9%. Express (NYSE: EXPR) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the September $15.00 call while simultaneously buying EXPR stock for $15.99 will result in a new position with a break-even point around $13.99. At that price, this position has a target return of 7.2%. This trade has 12.5% downside protection, while still providing a 7.2% return in 60 days as long as EXPR is above $15.00 on 9/20/2014. For comparison purposes only, this Express covered call targets an annualized return rate of 43.9%. *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. The RadioActive Home Study Kit teaches the proper limited risk trade setup and the 10 different Income Methods that are used to lower the initial risk, potentially bulletproof your stock positions and earn extra income. The RadioActive Home Study Kit comes with a money back guarantee and a free month of access to the patented PowerOptions Suite of Tools! 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 Chipotle's Mexican Grill (CMG), Apache (APA) and Crocs (CROX) are rising in premarket trading, while Amazon (AMZN), Tower Semiconductor (TSEM) and Harley Davidson (HOG) are in decline. VCA (WOOF) and CYS Investments (CYS) were upgraded by analysts this morning, while Matador Resources (MTDR) was downgraded. INTERNATIONAL MARKETS In Asia, markets are up today. The Nikkei was up 0.84% while the Hang Seng was up 1.69%. In Europe, markets are up this morning as tensions in the Ukraine eased slightly. The FTSE is up 0.79%, and the German DAX is up 0.80%. FUTURES & CURRENCIES Energy futures are up today. The West Texas Intermediate crude oil price per barrel is $103.12, up $0.26 and natural gas is down a penny. Metals prices are moving down this morning. Gold is down $7.60, and platinum is off $6.50. The Dollar is up versus the Euro and the Yen. PUT/CALL RATIO Yesterday, 989,087 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 612,984 put contracts. The single-session put/call was 0.62, while the 20-day moving average is now at 0.56. TODAY'S ECONOMIC CALENDAR 08:30 AM Jun CPI 08:30 AM Jun CORE CPI 09:00 AM May FHFA Housing Price Index 10:00 AM Jun Existing Home Sales EARNINGS EXPECTED TODAY AAPL BRCM BTU CMCSA DD DPZ IRBT ISRG JNPR KO LMT MCD MO MSFT TRV VMW VZ XLNX 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. 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