MORNING UPDATE: PriceWatch Alerts for GE and More... for 2014-07-16 |
| ------------------------------------------------------------------ MORNING UPDATE FOR JULY 16, 2014 PriceWatch Alerts for CISG, FCX, LVLT, EA, ISIS, GE, SRPT, IRBT, GS, BIDU, FSLR, LO, VMW, CHRS and SFUN. Cninsure (NASDAQ: CISG) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $6.67 while selling the January $7.00 call will produce a new covered call with a break-even point around $5.67. At that price, this position has a target return of 23.5%. This trade will have roughly 15.0% downside protection, while still aiming for a 23.5% return in 185 days. It will lock in that return as long as Cninsure is above $7.00 on 1/17/2015. For comparison purposes only, this CISG covered call aims for an annualized return rate of 46.3%. Freeport McMoran (NYSE: FCX) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $38.29 while simultaneously selling the September $39.00 call will result in a new position with a target return of 5.0%. Based on recent prices, this position will cost about $37.15, which is also the trade?s breakeven point. At that level, this covered call has 3.0% downside protection, while still providing a 5.0% return in 66 days as long as FCX is above $39.00 on 9/20/2014. For comparison purposes only, this Freeport McMoran covered call aims for an annualized return rate of 27.5%. Level 3 Communications (NASDAQ: LVLT) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $45.32 while selling the September $44.00 call will produce a new covered call with a break-even point around $42.07. At that price, this position has a target return of 4.6%. This trade will have roughly 7.2% downside protection, while still aiming for a 4.6% return in 66 days. It will lock in that return as long as Level 3 Communications is above $44.00 on 9/20/2014. For comparison purposes only, this LVLT covered call aims for an annualized return rate of 25.3%. Electronic Arts (NASDAQ: EA) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the August $36.00 call while at the same time buying EA stock for $36.18 will produce a new covered call with a target return of 4.5%. Based on recent data, this trade will cost about $34.46, which is also the covered call?s breakeven point. At that price, this covered call has 4.8% downside protection, while seeking an assigned return of 4.5% return in 31 days. If EA is higher than $36.00 on 8/16/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 52.5%. Isis Pharmaceuticals (NASDAQ: ISIS) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the August $28.00 call while simultaneously buying ISIS stock for $29.07 will result in a new position with a break-even point around $26.32. At that price, this position has a target return of 6.4%. This trade has 9.5% downside protection, while still providing a 6.4% return in 31 days as long as ISIS is above $28.00 on 8/16/2014. For comparison purposes only, this Isis Pharmaceuticals covered call targets an annualized return rate of 75.1%. General Electric (NYSE: GE) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $26.61 while selling the March $27.00 call will produce a new covered call with a break-even point around $25.60. At that price, this position has a target return of 5.5%. This trade will have roughly 3.8% downside protection, while still aiming for a 5.5% return in 247 days. It will lock in that return as long as General Electric is above $27.00 on 3/20/2015. For comparison purposes only, this GE covered call aims for an annualized return rate of 8.1%. 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 $21.00 while simultaneously selling the August $20.00 call will result in a new position with a target return of 6.7%. Based on recent prices, this position will cost about $18.75, which is also the trade?s breakeven point. At that level, this covered call has 10.7% downside protection, while still providing a 6.7% return in 31 days as long as SRPT is above $20.00 on 8/16/2014. For comparison purposes only, this Sarepta Therapeutics covered call aims for an annualized return rate of 78.4%. iRobot (NASDAQ: IRBT) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $36.35 while selling the August $36.00 call will produce a new covered call with a break-even point around $33.95. At that price, this position has a target return of 6.0%. This trade will have roughly 6.6% downside protection, while still aiming for a 6.0% return in 31 days. It will lock in that return as long as iRobot is above $36.00 on 8/16/2014. For comparison purposes only, this IRBT covered call aims for an annualized return rate of 71.0%. Goldman Sachs (NYSE: GS) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the January $170.00 call while at the same time buying GS stock for $169.17 will produce a new covered call with a target return of 5.1%. Based on recent data, this trade will cost about $161.77, 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 5.1% return in 185 days. If GS is higher than $170.00 on 1/17/2015, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 10.0%. Baidu.com (NASDAQ: BIDU) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the August $190.00 call while at the same time buying BIDU stock for $189.87 will produce a new covered call with a target return of 5.0%. Based on recent data, this trade will cost about $181.02, which is also the covered call?s breakeven point. At that price, this covered call has 4.7% downside protection, while seeking an assigned return of 5.0% return in 31 days. If BIDU is higher than $190.00 on 8/16/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 58.4%. First Solar (NASDAQ: FSLR) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $62.95 while selling the August $65.00 call will produce a new covered call with a break-even point around $60.10. At that price, this position has a target return of 8.2%. This trade will have roughly 4.5% downside protection, while still aiming for a 8.2% return in 31 days. It will lock in that return as long as First Solar is above $65.00 on 8/16/2014. For comparison purposes only, this FSLR covered call aims for an annualized return rate of 96.0%. Lorillard (NYSE: LO) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $60.17 while simultaneously selling the December $62.50 call will result in a new position with a target return of 5.9%. Based on recent prices, this position will cost about $59.02, which is also the trade?s breakeven point. At that level, this covered call has 1.9% downside protection, while still providing a 5.9% return in 157 days as long as LO is above $62.50 on 12/20/2014. For comparison purposes only, this Lorillard covered call aims for an annualized return rate of 13.7%. VMware (NYSE: VMW) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $94.82 while selling the October $92.50 call will produce a new covered call with a break-even point around $86.97. At that price, this position has a target return of 6.4%. This trade will have roughly 8.3% downside protection, while still aiming for a 6.4% return in 94 days. It will lock in that return as long as VMware is above $92.50 on 10/18/2014. For comparison purposes only, this VMW covered call aims for an annualized return rate of 24.7%. CH Robinson Worldwide (NASDAQ: CHRW) 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 CHRW stock for $64.31 will produce a new covered call with a target return of 5.4%. Based on recent data, this trade will cost about $61.69, which is also the covered call?s breakeven point. At that price, this covered call has 4.1% downside protection, while seeking an assigned return of 5.4% return in 129 days. If CHRW 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 15.2%. SouFun (NYSE: SFUN) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the November $10.00 call while simultaneously buying SFUN stock for $10.12 will result in a new position with a break-even point around $8.64. At that price, this position has a target return of 15.7%. This trade has 14.6% downside protection, while still providing a 15.7% return in 129 days as long as SFUN is above $10.00 on 11/22/2014. For comparison purposes only, this SouFun covered call targets an annualized return rate of 44.5%. *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. 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INTERNATIONAL MARKETS In Asia, markets were mixed Wednesday after news that China?s economy expanded 7.5% in the second quarter. The Nikkei was down 0.10% while the Hang Seng was up 0.27%. The positive news from China helped European markets to a strong start today. The FTSE is up 1.04%, and the German DAX is up 1.38%. FUTURES & CURRENCIES Energy futures are mostly up Wednesday. West Texas Intermediate crude oil is up $0.80 and natural gas is up $0.02. Metals prices are mixed this morning. Gold is up $1.50, and platinum is down $1.70. The Dollar is up against both the Euro and the Yen. PUT/CALL RATIO Yesterday, 1,070,916 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 621,050 put contracts. The single-session put/call was 0.58, while the 20-day moving average is now at 0.54. TODAY'S ECONOMIC CALENDAR 07:00 AM 7/12 MBA Mortgage Index 08:30 AM Jun PPI 08:30 AM Jun Core PPI 09:00 AM May Net Long-Term TIC Flows 09:15 AM Jun Industrial Production 09:15 AM Jun Capacity Utilization 10:00 AM Jul NAHB Housing Market Index 10:30 AM 7/12 Crude Inventories 02:00 PM Jul Fed's Beige Book EARNINGS EXPECTED TODAY ABT BAC BLK EBAY LVS SCHW STJ 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 |
