MORNING UPDATE: PriceWatch Alerts for EXEL and More... for 2014-07-15 |
| ------------------------------------------------------------------ MORNING UPDATE FOR JULY 15, 2014 PriceWatch Alerts for EXEL, FUEL, NFLX, JNJ, ACHN, C, BBRY, RFMD, AMGN, MSFT, PLUG, GRPN, VJET, VZ and FB. Exelixis (NASDAQ: EXEL) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $4.09 while selling the November $4.00 call will produce a new covered call with a break-even point around $3.00. At that price, this position has a target return of 33.3%. This trade will have roughly 26.7% downside protection, while still aiming for a 33.3% return in 130 days. It will lock in that return as long as Exelixis is above $4.00 on 11/22/2014. For comparison purposes only, this EXEL covered call aims for an annualized return rate of 93.6%. Rocket Fuel (NASDAQ: FUEL) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $25.20 while simultaneously selling the August $25.00 call will result in a new position with a target return of 8.9%. Based on recent prices, this position will cost about $22.95, which is also the trade?s breakeven point. At that level, this covered call has 8.9% downside protection, while still providing a 8.9% return in 32 days as long as FUEL is above $25.00 on 8/16/2014. For comparison purposes only, this Rocket Fuel covered call aims for an annualized return rate of 101.9%. Netflix (NASDAQ: NFLX) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $452.58 while selling the August $450.00 call will produce a new covered call with a break-even point around $426.43. At that price, this position has a target return of 5.5%. This trade will have roughly 5.8% downside protection, while still aiming for a 5.5% return in 32 days. It will lock in that return as long as Netflix is above $450.00 on 8/16/2014. For comparison purposes only, this NFLX covered call aims for an annualized return rate of 63.0%. Johnson and Johnson (NYSE: JNJ) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the January $110.00 call while at the same time buying JNJ stock for $105.38 will produce a new covered call with a target return of 6.1%. Based on recent data, this trade will cost about $103.70, which is also the covered call?s breakeven point. At that price, this covered call has 1.6% downside protection, while seeking an assigned return of 6.1% return in 186 days. If JNJ is higher than $110.00 on 1/17/2015, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 11.9%. Achillion Pharmaceuticals (NASDAQ: ACHN) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the September $7.00 call while at the same time buying ACHN stock for $7.41 will produce a new covered call with a target return of 21.5%. Based on recent data, this trade will cost about $5.76, which is also the covered call?s breakeven point. At that price, this covered call has 22.3% downside protection, while seeking an assigned return of 21.5% return in 67 days. If ACHN is higher than $7.00 on 9/20/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 117.2%. Citigroup (NYSE: C) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $48.42 while selling the December $48.00 call will produce a new covered call with a break-even point around $45.84. At that price, this position has a target return of 4.7%. This trade will have roughly 5.3% downside protection, while still aiming for a 4.7% return in 158 days. It will lock in that return as long as Citigroup is above $48.00 on 12/20/2014. For comparison purposes only, this C covered call aims for an annualized return rate of 10.9%. Blackberry (NASDAQ: BBRY) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $11.22 while simultaneously selling the October $11.00 call will result in a new position with a target return of 12.0%. Based on recent prices, this position will cost about $9.82, which is also the trade?s breakeven point. At that level, this covered call has 12.5% downside protection, while still providing a 12.0% return in 95 days as long as BBRY is above $11.00 on 10/18/2014. For comparison purposes only, this Blackberry covered call aims for an annualized return rate of 46.1%. RF Micro Devices (NASDAQ: RFMD) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $9.80 while selling the February $10.00 call will produce a new covered call with a break-even point around $8.80. At that price, this position has a target return of 13.6%. This trade will have roughly 10.2% downside protection, while still aiming for a 13.6% return in 220 days. It will lock in that return as long as RF Micro Devices is above $10.00 on 2/20/2015. For comparison purposes only, this RFMD covered call aims for an annualized return rate of 22.6%. Amgen (NASDAQ: AMGN) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the October $120.00 call while at the same time buying AMGN stock for $118.98 will produce a new covered call with a target return of 4.6%. Based on recent data, this trade will cost about $114.68, which is also the covered call?s breakeven point. At that price, this covered call has 3.6% downside protection, while seeking an assigned return of 4.6% return in 95 days. If AMGN is higher than $120.00 on 10/18/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 17.8%. Microsoft (NASDAQ: MSFT) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the October $43.00 call while simultaneously buying MSFT stock for $42.14 will result in a new position with a break-even point around $41.09. At that price, this position has a target return of 4.6%. This trade has 2.5% downside protection, while still providing a 4.6% return in 95 days as long as MSFT is above $43.00 on 10/18/2014. For comparison purposes only, this Microsoft covered call targets an annualized return rate of 17.8%. Plug Power (NASDAQ: PLUG) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $4.18 while selling the January $4.00 call will produce a new covered call with a break-even point around $2.68. At that price, this position has a target return of 49.3%. This trade will have roughly 35.9% downside protection, while still aiming for a 49.3% return in 549 days. It will lock in that return as long as Plug Power is above $4.00 on 1/15/2016. For comparison purposes only, this PLUG covered call aims for an annualized return rate of 32.7%. Groupon (NASDAQ: GRPN) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $6.46 while simultaneously selling the January $5.00 call will result in a new position with a target return of 25.0%. Based on recent prices, this position will cost about $4.00, which is also the trade?s breakeven point. At that level, this covered call has 38.1% downside protection, while still providing a 25.0% return in 549 days as long as GRPN is above $5.00 on 1/15/2016. For comparison purposes only, this Groupon covered call aims for an annualized return rate of 16.6%. Voxeljet (NYSE: VJET) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $20.57 while simultaneously selling the August $20.00 call will result in a new position with a target return of 9.2%. Based on recent prices, this position will cost about $18.32, which is also the trade?s breakeven point. At that level, this covered call has 10.9% downside protection, while still providing a 9.2% return in 32 days as long as VJET is above $20.00 on 8/16/2014. For comparison purposes only, this Voxeljet covered call aims for an annualized return rate of 104.6%. Verizon Communications (NYSE: VZ) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $50.53 while simultaneously selling the April $52.50 call will result in a new position with a target return of 6.8%. Based on recent prices, this position will cost about $49.14, which is also the trade?s breakeven point. At that level, this covered call has 2.8% downside protection, while still providing a 6.8% return in 276 days as long as VZ is above $52.50 on 4/17/2015. For comparison purposes only, this Verizon Communications covered call aims for an annualized return rate of 9.0%. Facebook (NASDAQ: FB) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the August $67.50 call while simultaneously buying FB stock for $67.90 will result in a new position with a break-even point around $64.10. At that price, this position has a target return of 5.3%. This trade has 5.6% downside protection, while still providing a 5.3% return in 32 days as long as FB is above $67.50 on 8/16/2014. For comparison purposes only, this Facebook covered call targets an annualized return rate of 60.5%. *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. 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STOCKS ON THE MOVE JP Morgan Chase (JPM), Athena Pharmaceuticals (ATHN) and Ballard Power Systems (BLDP) are rising in pre-market action, while Lorillard (LO), Shire (SHPG) and Apollo Education Group (APOL) are in negative territory. PHH (PHH) and Kodiak Oil & Gas (KOG) were upgraded by analysts this morning. There were no major analyst downgrades. INTERNATIONAL MARKETS In Asia, markets were mostly up Tuesday morning. The Nikkei ended up 0.64% and the Shanghai Composite was up 0.18%. European markets are mixed today after a report revealed declining German investor confidence. The FTSE is up 0.04%, while the German DAX is down 0.1%. FUTURES & CURRENCIES Energy futures are down Tuesday. West Texas Intermediate crude oil is down $0.80 and natural gas is down $0.02. Metals prices are on the rise this morning. Gold is up $5.60, and platinum is up $7.20. The Dollar is up again today against both the Euro and the Yen. PUT/CALL RATIO Yesterday, 1,034,655 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 596,017 put contracts. The single-session put/call was 0.58, while the 20-day moving average is now at 0.53. TODAY'S ECONOMIC CALENDAR 08:30 AM Jun Retail Sales 08:30 AM Jun Retail Sales ex-auto 08:30 AM Jul Empire Manufacturing 08:30 AM Jun Export Prices ex-ag. 08:30 AM Jun Import Prices ex-oil 10:00 AM May Business Inventories EARNINGS EXPECTED TODAY CMA CSX GS INTC JNJ JPM YHOO 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 |
