MORNING UPDATE: PriceWatch Alerts for PXD and More... for 2014-06-26 |
| MORNING UPDATE FOR June 26, 2014 PriceWatch Alerts for ZU, PEP, BBY, PXD, WAG, GE, DE, ISIS, EXPE and SHLD. Zulily (NASDAQ: ZU) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $39.88 while selling the July $39.00 call will produce a new covered call with a break-even point around $37.38. At that price, this position has a target return of 4.3%. This trade will have roughly 6.3% downside protection, while still aiming for a 4.3% return in 23 days. It will lock in that return as long as Zulily is above $39.00 on 7/19/2014. For comparison purposes only, this ZU covered call aims for an annualized return rate of 68.7%. PepsiCo (NYSE: PEP) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $88.58 while simultaneously selling the October $92.50 call will result in a new position with a target return of 5.7%. Based on recent prices, this position will cost about $87.48, which is also the trade?s breakeven point. At that level, this covered call has 1.2% downside protection, while still providing a 5.7% return in 114 days as long as PEP is above $92.50 on 10/18/2014. For comparison purposes only, this PepsiCo covered call aims for an annualized return rate of 18.3%. Best Buy (NYSE: BBY) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $30.56 while selling the September $29.00 call will produce a new covered call with a break-even point around $27.73. At that price, this position has a target return of 4.6%. This trade will have roughly 9.3% downside protection, while still aiming for a 4.6% return in 86 days. It will lock in that return as long as Best Buy is above $29.00 on 9/20/2014. For comparison purposes only, this BBY covered call aims for an annualized return rate of 19.4%. Pioneer Natural Resources (NYSE: PXD) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the July $240.00 call while at the same time buying PXD stock for $233.07 will produce a new covered call with a target return of 4.1%. Based on recent data, this trade will cost about $230.57, which is also the covered call?s breakeven point. At that price, this covered call has 1.1% downside protection, while seeking an assigned return of 4.1% return in 23 days. If PXD is higher than $240.00 on 7/19/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 64.7%. Walgreen (NYSE: WAG) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the August $75.00 call while simultaneously buying WAG stock for $74.19 will result in a new position with a break-even point around $71.14. At that price, this position has a target return of 5.4%. This trade has 4.1% downside protection, while still providing a 5.4% return in 51 days as long as WAG is above $75.00 on 8/16/2014. For comparison purposes only, this Walgreen covered call targets an annualized return rate of 38.8%. General Electric (NYSE: GE) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $26.42 while selling the March $27.00 call will produce a new covered call with a break-even point around $25.42. At that price, this position has a target return of 6.2%. This trade will have roughly 3.8% downside protection, while still aiming for a 6.2% return in 267 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 8.5%. Deere (NYSE: DE) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $90.74 while simultaneously selling the December $92.50 call will result in a new position with a target return of 5.1%. Based on recent prices, this position will cost about $87.99, which is also the trade?s breakeven point. At that level, this covered call has 3.0% downside protection, while still providing a 5.1% return in 177 days as long as DE is above $92.50 on 12/20/2014. For comparison purposes only, this Deere covered call aims for an annualized return rate of 10.6%. Isis Pharmaceuticals (NASDAQ: ISIS) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $36.10 while selling the July $36.00 call will produce a new covered call with a break-even point around $33.85. At that price, this position has a target return of 6.4%. This trade will have roughly 6.2% downside protection, while still aiming for a 6.4% return in 23 days. It will lock in that return as long as Isis Pharmaceuticals is above $36.00 on 7/19/2014. For comparison purposes only, this ISIS covered call aims for an annualized return rate of 100.8%. Expedia (NASDAQ: EXPE) 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 EXPE stock for $77.31 will produce a new covered call with a target return of 4.8%. Based on recent data, this trade will cost about $71.56, 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 4.8% return in 51 days. If EXPE 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 34.4%. Sears (NASDAQ: SHLD) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the August $37.00 call while simultaneously buying SHLD stock for $38.85 will result in a new position with a break-even point around $35.40. At that price, this position has a target return of 4.5%. This trade has 8.9% downside protection, while still providing a 4.5% return in 51 days as long as SHLD is above $37.00 on 8/16/2014. For comparison purposes only, this Sears covered call targets an annualized return rate of 32.3%. *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'. 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STOCKS ON THE MOVE Iron Mountain (IRM), Nabors Industries (NBR) and Zulily (ZU) are on the rise this morning, while Blackberry (BBBY), Ensco (ESV) and Philip Morris International are retrenching. PAREXEL (PRXL), Zulily (ZU) and Pinnacle Foods (PF) were upgraded by analysts this morning, while United Continental (UAL) was downgraded. INTERNATIONAL MARKETS Asian stocks rebounded today, as markets there followed the U.S. lead. The Hang Seng led the way, up 1.45%, while the Shanghai Composite was up 0.45%. European markets are also gaining ground this morning. The FTSE is up 0.03%, and the CAC 40 up 0.11%. FUTURES & CURRENCIES Energy futures are mostly down today. West Texas Intermediate crude oil is down $0.22 and Brent Crude is down $0.28, although natural gas is up $0.20. Among metals, gold is down $14.70, and platinum is down $10.70. The Dollar is up against the Euro and down against the Yen. PUT/CALL RATIO Yesterday, 1,064,427 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 517,206 put contracts. The single-session put/call was 0.49, while the 20-day moving average is now at 0.51. TODAY'S ECONOMIC CALENDAR 08:30 AM 6/21 Initial Claims 08:30 AM 6/14 Continuing Claims 08:30 AM May Personal Income 08:30 AM May Personal Spending 08:30 AM May PCE Prices - Core 10:30 AM 6/21 Natural Gas Inventories EARNINGS EXPECTED TODAY ACN CAG 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 |
