MORNING UPDATE: PriceWatch Alerts for MNKD and More... for 2014-07-01 |
| ------------------------------------------------------------------ MORNING UPDATE FOR July 1, 2014 PriceWatch Alerts for MNKD, AOL, PLUG, CTRP, WUBA, TSL, PM, PETM, ADP, HPQ, SNE, VALE, RAD, TRV and TWC. MannKind (NASDAQ: MNKD) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $10.96 while selling the November $10.00 call will produce a new covered call with a break-even point around $8.59. At that price, this position has a target return of 16.4%. This trade will have roughly 21.6% downside protection, while still aiming for a 16.4% return in 144 days. It will lock in that return as long as MannKind is above $10.00 on 11/22/2014. For comparison purposes only, this MNKD covered call aims for an annualized return rate of 41.6%. AOL (NYSE: AOL) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $39.79 while simultaneously selling the August $39.00 call will result in a new position with a target return of 4.9%. Based on recent prices, this position will cost about $37.19, which is also the trade?s breakeven point. At that level, this covered call has 6.5% downside protection, while still providing a 4.9% return in 46 days as long as AOL is above $39.00 on 8/16/2014. For comparison purposes only, this AOL covered call aims for an annualized return rate of 38.6%. Plug Power (NASDAQ: PLUG) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $4.68 while selling the January $5.00 call will produce a new covered call with a break-even point around $3.33. At that price, this position has a target return of 50.2%. This trade will have roughly 28.8% downside protection, while still aiming for a 50.2% return in 563 days. It will lock in that return as long as Plug Power is above $5.00 on 1/15/2016. For comparison purposes only, this PLUG covered call aims for an annualized return rate of 32.5%. Ctrip.com (NASDAQ: CTRP) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the August $62.50 call while at the same time buying CTRP stock for $64.04 will produce a new covered call with a target return of 6.8%. Based on recent data, this trade will cost about $58.54, which is also the covered call?s breakeven point. At that price, this covered call has 8.6% downside protection, while seeking an assigned return of 6.8% return in 46 days. If CTRP is higher than $62.50 on 8/16/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 53.6%. 58.Com (NYSE: WUBA) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the August $50.00 call while simultaneously buying WUBA stock for $54.06 will result in a new position with a break-even point around $47.21. At that price, this position has a target return of 5.9%. This trade has 12.7% downside protection, while still providing a 5.9% return in 46 days as long as WUBA is above $50.00 on 8/16/2014. For comparison purposes only, this 58.Com covered call targets an annualized return rate of 46.8%. Trina Solar (NYSE: TSL) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $12.83 while selling the September $12.00 call will produce a new covered call with a break-even point around $10.94. At that price, this position has a target return of 9.7%. This trade will have roughly 14.7% downside protection, while still aiming for a 9.7% return in 81 days. It will lock in that return as long as Trina Solar is above $12.00 on 9/20/2014. For comparison purposes only, this TSL covered call aims for an annualized return rate of 43.6%. Philip Morris International (NYSE: PM) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $84.31 while simultaneously selling the December $87.50 call will result in a new position with a target return of 5.8%. Based on recent prices, this position will cost about $82.68, which is also the trade?s breakeven point. At that level, this covered call has 1.9% downside protection, while still providing a 5.8% return in 172 days as long as PM is above $87.50 on 12/20/2014. For comparison purposes only, this Philip Morris International covered call aims for an annualized return rate of 12.4%. PetSmart (NASDAQ: PETM) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $59.80 while selling the October $57.70 call will produce a new covered call with a break-even point around $55.10. At that price, this position has a target return of 4.7%. This trade will have roughly 7.9% downside protection, while still aiming for a 4.7% return in 109 days. It will lock in that return as long as PetSmart is above $57.70 on 10/18/2014. For comparison purposes only, this PETM covered call aims for an annualized return rate of 15.8%. Automatic Data Processing (NASDAQ: ADP) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the November $80.00 call while at the same time buying ADP stock for $79.28 will produce a new covered call with a target return of 4.0%. Based on recent data, this trade will cost about $76.93, 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 144 days. If ADP is higher than $80.00 on 11/22/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 10.1%. Hewlett Packard (NYSE: HPQ) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the September $33.00 call while simultaneously buying HPQ stock for $33.68 will result in a new position with a break-even point around $31.68. At that price, this position has a target return of 4.2%. This trade has 5.9% downside protection, while still providing a 4.2% return in 81 days as long as HPQ is above $33.00 on 9/20/2014. For comparison purposes only, this Hewlett Packard covered call targets an annualized return rate of 18.7%. Sony (NYSE: SNE) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $16.77 while selling the January $17.00 call will produce a new covered call with a break-even point around $15.59. At that price, this position has a target return of 9.0%. This trade will have roughly 7.0% downside protection, while still aiming for a 9.0% return in 200 days. It will lock in that return as long as Sony is above $17.00 on 1/17/2015. For comparison purposes only, this SNE covered call aims for an annualized return rate of 16.5%. 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 $13.23 while simultaneously selling the January $15.00 call will result in a new position with a target return of 22.6%. Based on recent prices, this position will cost about $12.23, which is also the trade?s breakeven point. At that level, this covered call has 7.6% downside protection, while still providing a 22.6% return in 563 days as long as VALE is above $15.00 on 1/15/2016. For comparison purposes only, this Vale covered call aims for an annualized return rate of 14.7%. Rite Aid (NYSE: RAD) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $7.17 while selling the January $7.00 call will produce a new covered call with a break-even point around $5.42. At that price, this position has a target return of 29.2%. This trade will have roughly 24.4% downside protection, while still aiming for a 29.2% return in 563 days. It will lock in that return as long as Rite Aid is above $7.00 on 1/15/2016. For comparison purposes only, this RAD covered call aims for an annualized return rate of 18.9%. Travelers (NYSE: TRV) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the October $97.50 call while at the same time buying TRV stock for $94.07 will produce a new covered call with a target return of 4.9%. Based on recent data, this trade will cost about $92.92, which is also the covered call?s breakeven point. At that price, this covered call has 1.2% downside protection, while seeking an assigned return of 4.9% return in 109 days. If TRV is higher than $97.50 on 10/18/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 16.5%. Time Warner Cable Inc. (NYSE: TWC) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the October $150.00 call while simultaneously buying TWC stock for $147.30 will result in a new position with a break-even point around $143.30. At that price, this position has a target return of 4.7%. This trade has 2.7% downside protection, while still providing a 4.7% return in 109 days as long as TWC is above $150.00 on 10/18/2014. For comparison purposes only, this Time Warner Cable Inc. covered call targets an annualized return rate of 15.6%. *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 Salix Pharmaceuticals (SLXP), GoPro (GPRO) and Netflix (NFLX) are on the rise this morning, while Nuance Communications (NUAN), Urban Outfitters (URBN) and H&R Block (HRB). Mannkind (MNKD) and Symantec (SYMC) were downgraded by analysts this morning. INTERNATIONAL MARKETS Asian markets were mostly up as China released two sets of strong manufacturing numbers. The Nikkei was up 1.08%, and the Shanghai Composite up 0.10%. European markets are positive across the board today. The FTSE is up 0.51%, and the CAC 40 is up 0.60%. FUTURES & CURRENCIES Turning to energy futures, West Texas Intermediate crude oil is up $0.35. natural gas is off $0.03. In metals, gold is up $4.80, and platinum is up $11.60. The Dollar is up versus the Euro and the Yen. PUT/CALL RATIO Yesterday, 1,020,910 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 513,842 put contracts. The single-session put/call was 0.5, while the 20-day moving average is now at 0.5. TODAY'S ECONOMIC CALENDAR 10:00 AM Jun ISM Index 10:00 AM May Construction Spending 02:00 PM Jun Auto Sales 02:00 PM Jun Truck Sales EARNINGS EXPECTED TODAY PAYX TA 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 |
