MORNING UPDATE: PriceWatch Alerts for ADSK and More... for 2014-06-27 |
| ------------------------------------------------------------------ MORNING UPDATE FOR JUNE 27, 2014 PriceWatch Alerts for ADSK, FB, ATVI, ROSE, HLF, AAPL, WY, AET, ENDP and BMRN. Autodesk (NASDAQ: ADSK) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $56.25 while selling the October $55.00 call will produce a new covered call with a break-even point around $51.85. At that price, this position has a target return of 6.1%. This trade will have roughly 7.8% downside protection, while still aiming for a 6.1% return in 113 days. It will lock in that return as long as Autodesk is above $55.00 on 10/18/2014. For comparison purposes only, this ADSK covered call aims for an annualized return rate of 19.6%. Facebook (NASDAQ: FB) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $67.13 while simultaneously selling the August $65.00 call will result in a new position with a target return of 4.9%. Based on recent prices, this position will cost about $61.98, which is also the trade?s breakeven point. At that level, this covered call has 7.7% downside protection, while still providing a 4.9% return in 50 days as long as FB is above $65.00 on 8/16/2014. For comparison purposes only, this Facebook covered call aims for an annualized return rate of 35.6%. Activision (NASDAQ: ATVI) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $21.80 while selling the November $21.00 call will produce a new covered call with a break-even point around $19.80. At that price, this position has a target return of 6.1%. This trade will have roughly 9.2% downside protection, while still aiming for a 6.1% return in 148 days. It will lock in that return as long as Activision is above $21.00 on 11/22/2014. For comparison purposes only, this ATVI covered call aims for an annualized return rate of 14.9%. Rosetta Resources (NASDAQ: ROSE) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the October $50.00 call while at the same time buying ROSE stock for $53.64 will produce a new covered call with a target return of 4.4%. Based on recent data, this trade will cost about $47.89, which is also the covered call?s breakeven point. At that price, this covered call has 10.7% downside protection, while seeking an assigned return of 4.4% return in 113 days. If ROSE is higher than $50.00 on 10/18/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 14.2%. Herbalife (NYSE: HLF) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the August $60.00 call while simultaneously buying HLF stock for $64.24 will result in a new position with a break-even point around $57.13. At that price, this position has a target return of 5.0%. This trade has 11.1% downside protection, while still providing a 5.0% return in 50 days as long as HLF is above $60.00 on 8/16/2014. For comparison purposes only, this Herbalife covered call targets an annualized return rate of 36.6%. Apple (NASDAQ: AAPL) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $90.90 while selling the August $92.14 call will produce a new covered call with a break-even point around $88.21. At that price, this position has a target return of 4.5%. This trade will have roughly 3.0% downside protection, while still aiming for a 4.5% return in 50 days. It will lock in that return as long as Apple is above $92.14 on 8/16/2014. For comparison purposes only, this AAPL covered call aims for an annualized return rate of 32.5%. Weyerhaeuser (NYSE: WY) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $32.70 while simultaneously selling the January $33.00 call will result in a new position with a target return of 4.8%. Based on recent prices, this position will cost about $31.50, which is also the trade?s breakeven point. At that level, this covered call has 3.7% downside protection, while still providing a 4.8% return in 204 days as long as WY is above $33.00 on 1/17/2015. For comparison purposes only, this Weyerhaeuser covered call aims for an annualized return rate of 8.5%. Aetna (NYSE: AET) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $82.05 while selling the October $85.00 call will produce a new covered call with a break-even point around $79.81. At that price, this position has a target return of 6.5%. This trade will have roughly 2.7% downside protection, while still aiming for a 6.5% return in 113 days. It will lock in that return as long as Aetna is above $85.00 on 10/18/2014. For comparison purposes only, this AET covered call aims for an annualized return rate of 21.0%. Endo Pharmaceuticals (NASDAQ: ENDP) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the August $75.00 call while at the same time buying ENDP stock for $70.66 will produce a new covered call with a target return of 8.8%. Based on recent data, this trade will cost about $68.91, which is also the covered call?s breakeven point. At that price, this covered call has 2.5% downside protection, while seeking an assigned return of 8.8% return in 50 days. If ENDP is higher than $75.00 on 8/16/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 64.5%. BioMarin Pharmaceutical (NASDAQ: BMRN) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the October $60.00 call while simultaneously buying BMRN stock for $62.69 will result in a new position with a break-even point around $55.44. At that price, this position has a target return of 8.2%. This trade has 11.6% downside protection, while still providing a 8.2% return in 113 days as long as BMRN is above $60.00 on 10/18/2014. For comparison purposes only, this BioMarin Pharmaceutical covered call targets an annualized return rate of 26.6%. *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? 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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 Brooks Automation (BRKS), Nike (NKE) and Keurig Green Mountain (GMCR) are showing gains this morning, while DuPont (DD), Retrophin (RTRX) and Isis Pharmaceuticals (ISIS) are doing the other thing. Brooks Automation (BRKS) was upgraded by analysts this morning, while LaSalle Hotel Properties (LHO) was downgraded. INTERNATIONAL MARKETS Asian stocks slid today in response to a stronger Yen. The Nikkei was down 1.39%, the Shanghai Composite is down 0.11%. European markets are mostly up today, with a stronger UK housing sector leading the way. The FTSE is up 0.08%, and the CAC 40 up 0.03%. FUTURES & CURRENCIES Energy futures are mostly up this morning. West Texas Intermediate crude oil is up a penny, and Brent Crude up $0.19. In metals, gold is down $1.50, and platinum is up $7.60. The Dollar is down against both the Euro and the Yen. PUT/CALL RATIO Yesterday, 980,298 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 565,779 put contracts. The single-session put/call was 0.58, while the 20-day moving average is now at 0.51. TODAY'S ECONOMIC CALENDAR 9:55 AM Jun Michegan Sentiment ? Final EARNINGS EXPECTED TODAY KBH 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 |
