MORNING UPDATE: PriceWatch Alerts for GTAT and More... for 2014-07-09 |
| ------------------------------------------------------------------ MORNING UPDATE FOR JULY 9 PriceWatch Alerts for GTAT, DAL, TSLA, STJ, NQ, MU, DIS, WB, PRLB, YELP, AAPL, BLDP, AIG, PAYX and XLNX. GT Advanced Technologies (NASDAQ: GTAT) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $16.52 while selling the August $16.00 call will produce a new covered call with a break-even point around $14.70. At that price, this position has a target return of 8.8%. This trade will have roughly 11.0% downside protection, while still aiming for a 8.8% return in 38 days. It will lock in that return as long as Gt Advanced Technologies is above $16.00 on 8/16/2014. For comparison purposes only, this GTAT covered call aims for an annualized return rate of 84.9%. Delta Air Lines (NYSE: DAL) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $36.44 while simultaneously selling the August $36.00 call will result in a new position with a target return of 4.5%. Based on recent prices, this position will cost about $34.44, which is also the trade?s breakeven point. At that level, this covered call has 5.5% downside protection, while still providing a 4.5% return in 38 days as long as DAL is above $36.00 on 8/16/2014. For comparison purposes only, this Delta Air Lines covered call aims for an annualized return rate of 43.4%. Tesla (NASDAQ: TSLA) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the August $215.00 call while at the same time buying TSLA stock for $219.07 will produce a new covered call with a target return of 6.6%. Based on recent data, this trade will cost about $201.77, which is also the covered call?s breakeven point. At that price, this covered call has 7.9% downside protection, while seeking an assigned return of 6.6% return in 38 days. If TSLA is higher than $215.00 on 8/16/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 62.9%. St Jude Medical (NYSE: STJ) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $70.23 while simultaneously selling the October $70.00 call will result in a new position with a target return of 4.5%. Based on recent prices, this position will cost about $66.98, which is also the trade?s breakeven point. At that level, this covered call has 4.6% downside protection, while still providing a 4.5% return in 101 days as long as STJ is above $70.00 on 10/18/2014. For comparison purposes only, this St Jude Medical covered call aims for an annualized return rate of 16.3%. NQ Mobile (NYSE: NQ) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the September $4.00 call while simultaneously buying NQ stock for $4.14 will result in a new position with a break-even point around $2.86. At that price, this position has a target return of 39.9%. This trade has 30.9% downside protection, while still providing a 39.9% return in 73 days as long as NQ is above $4.00 on 9/20/2014. For comparison purposes only, this NQ Mobile covered call targets an annualized return rate of 199.3%. Micron Technology (NASDAQ: MU) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $33.13 while selling the August $33.00 call will produce a new covered call with a break-even point around $31.56. At that price, this position has a target return of 4.6%. This trade will have roughly 4.7% downside protection, while still aiming for a 4.6% return in 38 days. It will lock in that return as long as Micron Technology is above $33.00 on 8/16/2014. For comparison purposes only, this MU covered call aims for an annualized return rate of 43.8%. Walt Disney (NYSE: DIS) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $85.86 while simultaneously selling the September $87.50 call will result in a new position with a target return of 4.5%. Based on recent prices, this position will cost about $83.76, which is also the trade?s breakeven point. At that level, this covered call has 2.4% downside protection, while still providing a 4.5% return in 73 days as long as DIS is above $87.50 on 9/20/2014. For comparison purposes only, this Walt Disney covered call aims for an annualized return rate of 22.3%. Weibo (NASDAQ: WB) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $18.94 while simultaneously selling the August $18.00 call will result in a new position with a target return of 5.9%. Based on recent prices, this position will cost about $16.99, which is also the trade?s breakeven point. At that level, this covered call has 10.3% downside protection, while still providing a 5.9% return in 38 days as long as WB is above $18.00 on 8/16/2014. For comparison purposes only, this Weibo covered call aims for an annualized return rate of 57.1%. Proto Labs (NYSE: PRLB) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the August $80.00 call while at the same time buying PRLB stock for $82.06 will produce a new covered call with a target return of 5.3%. Based on recent data, this trade will cost about $75.96, which is also the covered call?s breakeven point. At that price, this covered call has 7.4% downside protection, while seeking an assigned return of 5.3% return in 38 days. If PRLB is higher than $80.00 on 8/16/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 51.0%. Yelp (NYSE: YELP) 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 YELP stock for $70.71 will result in a new position with a break-even point around $62.91. At that price, this position has a target return of 7.3%. This trade has 11.0% downside protection, while still providing a 7.3% return in 38 days as long as YELP is above $67.50 on 8/16/2014. For comparison purposes only, this Yelp covered call targets an annualized return rate of 70.0%. Apple (NASDAQ: AAPL) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $95.35 while selling the September $95.00 call will produce a new covered call with a break-even point around $91.10. At that price, this position has a target return of 4.3%. This trade will have roughly 4.5% downside protection, while still aiming for a 4.3% return in 73 days. It will lock in that return as long as Apple is above $95.00 on 9/20/2014. For comparison purposes only, this AAPL covered call aims for an annualized return rate of 21.4%. Ballard Power Systems (NASDAQ: BLDP) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $3.90 while simultaneously selling the February $4.00 call will result in a new position with a target return of 37.9%. Based on recent prices, this position will cost about $2.90, which is also the trade?s breakeven point. At that level, this covered call has 25.6% downside protection, while still providing a 37.9% return in 226 days as long as BLDP is above $4.00 on 2/20/2015. For comparison purposes only, this Ballard Power Systems covered call aims for an annualized return rate of 61.3%. American International Group (NYSE: AIG) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $54.93 while selling the November $55.00 call will produce a new covered call with a break-even point around $52.35. At that price, this position has a target return of 5.1%. This trade will have roughly 4.7% downside protection, while still aiming for a 5.1% return in 136 days. It will lock in that return as long as American International Group is above $55.00 on 11/22/2014. For comparison purposes only, this AIG covered call aims for an annualized return rate of 13.6%. Paychex (NASDAQ: PAYX) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the December $43.00 call while simultaneously buying PAYX stock for $41.86 will result in a new position with a break-even point around $40.78. At that price, this position has a target return of 5.4%. This trade has 2.6% downside protection, while still providing a 5.4% return in 164 days as long as PAYX is above $43.00 on 12/20/2014. For comparison purposes only, this Paychex covered call targets an annualized return rate of 12.1%. Xilinx (NASDAQ: XLNX) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the September $49.00 call while at the same time buying XLNX stock for $48.57 will produce a new covered call with a target return of 4.0%. Based on recent data, this trade will cost about $47.11, which is also the covered call?s breakeven point. At that price, this covered call has 3.0% downside protection, while seeking an assigned return of 4.0% return in 73 days. If XLNX is higher than $49.00 on 9/20/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 20.1%. *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. 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 Asian markets were down today after softer than expected June inflation numbers from China. The Nikkei ended down 0.08%, and the Shanghai Composite was down 1.23%. European markets are mixed this morning. The FTSE is down 0.53%, while the German DAX is up 0.13%. FUTURES & CURRENCIES Energy futures are down today. West Texas Intermediate crude oil is down $0.21 and natural gas is unchanged. In metals, gold is up $11.20, and platinum is up $10.20. The Dollar is up versus the Euro and the Yen. PUT/CALL RATIO Yesterday, 1,225,028 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 768,609 put contracts. The single-session put/call was 0.63, while the 20-day moving average is now at 0.52. TODAY'S ECONOMIC CALENDAR 07:00 AM 7/05 MBA Mortgage Index 10:30 AM 7/05 Crude Inventories 02:00 PM 6/18 FOMC Minutes EARNINGS EXPECTED TODAY GY WDFC 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 |
