MORNING UPDATE: PriceWatch Alerts for IRBT and More... for 2014-06-23 |
| ------------------------------------------------------------------ MORNING UPDATE FOR JUNE 23, 2014 PriceWatch Alerts for IRBT, YUM, INTC, ATHN, CVX, DIS, AMGN, DDD, MSFT, LOW, F, XONE, SSYS, BA and DAL. iRobot (NASDAQ: IRBT) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $38.27 while selling the July $39.00 call will produce a new covered call with a break-even point around $37.12. At that price, this position has a target return of 5.1%. This trade will have roughly 3.0% downside protection, while still aiming for a 5.1% return in 26 days. It will lock in that return as long as iRobot is above $39.00 on 7/19/2014. For comparison purposes only, this IRBT covered call aims for an annualized return rate of 71.0%. Yum Brands (NYSE: YUM) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $80.50 while simultaneously selling the October $80.00 call will result in a new position with a target return of 4.2%. Based on recent prices, this position will cost about $76.80, which is also the trade?s breakeven point. At that level, this covered call has 4.6% downside protection, while still providing a 4.2% return in 117 days as long as YUM is above $80.00 on 10/18/2014. For comparison purposes only, this Yum Brands covered call aims for an annualized return rate of 13.0%. Intel (NASDAQ: INTC) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $30.20 while selling the January $31.00 call will produce a new covered call with a break-even point around $28.96. At that price, this position has a target return of 7.0%. This trade will have roughly 4.1% downside protection, while still aiming for a 7.0% return in 208 days. It will lock in that return as long as Intel is above $31.00 on 1/17/2015. For comparison purposes only, this INTC covered call aims for an annualized return rate of 12.4%. Athenahealth (NASDAQ: ATHN) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the July $125.00 call while at the same time buying ATHN stock for $125.90 will produce a new covered call with a target return of 5.8%. Based on recent data, this trade will cost about $118.15, which is also the covered call?s breakeven point. At that price, this covered call has 6.2% downside protection, while seeking an assigned return of 5.8% return in 26 days. If ATHN is higher than $125.00 on 7/19/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 81.3%. Chevron (NYSE: CVX) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the December $140.00 call while simultaneously buying CVX stock for $132.34 will result in a new position with a break-even point around $130.54. At that price, this position has a target return of 7.2%. This trade has 1.4% downside protection, while still providing a 7.2% return in 180 days as long as CVX is above $140.00 on 12/20/2014. For comparison purposes only, this Chevron covered call targets an annualized return rate of 14.7%. 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 $82.82 while simultaneously selling the August $85.00 call will result in a new position with a target return of 4.7%. Based on recent prices, this position will cost about $81.22, which is also the trade?s breakeven point. At that level, this covered call has 1.9% downside protection, while still providing a 4.7% return in 54 days as long as DIS is above $85.00 on 8/16/2014. For comparison purposes only, this Walt Disney covered call aims for an annualized return rate of 31.4%. Amgen (NASDAQ: AMGN) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $120.97 while selling the October $120.00 call will produce a new covered call with a break-even point around $115.07. At that price, this position has a target return of 4.3%. This trade will have roughly 4.9% downside protection, while still aiming for a 4.3% return in 117 days. It will lock in that return as long as Amgen is above $120.00 on 10/18/2014. For comparison purposes only, this AMGN covered call aims for an annualized return rate of 13.4%. 3D Systems (NYSE: DDD) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $53.34 while selling the August $50.00 call will produce a new covered call with a break-even point around $47.79. At that price, this position has a target return of 4.6%. This trade will have roughly 10.4% downside protection, while still aiming for a 4.6% return in 54 days. It will lock in that return as long as 3D Systems is above $50.00 on 8/16/2014. For comparison purposes only, this DDD covered call aims for an annualized return rate of 31.2%. Microsoft (NASDAQ: MSFT) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the October $42.00 call while at the same time buying MSFT stock for $41.68 will produce a new covered call with a target return of 4.4%. Based on recent data, this trade will cost about $40.24, which is also the covered call?s breakeven point. At that price, this covered call has 3.5% downside protection, while seeking an assigned return of 4.4% return in 117 days. If MSFT is higher than $42.00 on 10/18/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 13.6%. Lowe's (NYSE: LOW) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the October $46.00 call while simultaneously buying LOW stock for $46.02 will result in a new position with a break-even point around $44.07. At that price, this position has a target return of 4.4%. This trade has 4.2% downside protection, while still providing a 4.4% return in 117 days as long as LOW is above $46.00 on 10/18/2014. For comparison purposes only, this Lowe's covered call targets an annualized return rate of 13.6%. Ford Motor (NYSE: F) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $16.67 while selling the January $17.00 call will produce a new covered call with a break-even point around $15.18. At that price, this position has a target return of 12.0%. This trade will have roughly 8.9% downside protection, while still aiming for a 12.0% return in 571 days. It will lock in that return as long as Ford Motor is above $17.00 on 1/15/2016. For comparison purposes only, this F covered call aims for an annualized return rate of 7.7%. ExOne (NASDAQ: XONE) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $34.75 while simultaneously selling the July $35.00 call will result in a new position with a target return of 5.1%. Based on recent prices, this position will cost about $33.30, which is also the trade?s breakeven point. At that level, this covered call has 4.2% downside protection, while still providing a 5.1% return in 26 days as long as XONE is above $35.00 on 7/19/2014. For comparison purposes only, this ExOne covered call aims for an annualized return rate of 71.6%. Stratasys (NASDAQ: SSYS) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $102.12 while selling the July $105.00 call will produce a new covered call with a break-even point around $99.12. At that price, this position has a target return of 5.9%. This trade will have roughly 2.9% downside protection, while still aiming for a 5.9% return in 26 days. It will lock in that return as long as Stratasys is above $105.00 on 7/19/2014. For comparison purposes only, this SSYS covered call aims for an annualized return rate of 83.2%. Boeing (NYSE: BA) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the November $130.00 call while at the same time buying BA stock for $132.10 will produce a new covered call with a target return of 4.1%. Based on recent data, this trade will cost about $124.85, which is also the covered call?s breakeven point. At that price, this covered call has 5.5% downside protection, while seeking an assigned return of 4.1% return in 152 days. If BA is higher than $130.00 on 11/22/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 9.9%. Delta Air Lines (NYSE: DAL) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the July $40.00 call while simultaneously buying DAL stock for $39.57 will result in a new position with a break-even point around $38.33. At that price, this position has a target return of 4.4%. This trade has 3.1% downside protection, while still providing a 4.4% return in 26 days as long as DAL is above $40.00 on 7/19/2014. 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The FTSE is down 0.18%, and the CAC 40 is down 0.24%. FUTURES & CURRENCIES Energy futures are down this morning. West Texas Intermediate crude oil is down $0.09, and natural gas is down $0.03. In metals, gold is down $2.00 after its sharp rise last week, and platinum is off $7.80. The Dollar is down versus both the Euro and the Yen. PUT/CALL RATIO Yesterday, 1,600,399 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 825,912 put contracts. The single-session put/call was 0.52, while the 20-day moving average is now at 0.51. TODAY'S ECONOMIC CALENDAR 10:00 AM May Existing Home Sales EARNINGS EXPECTED TODAY MU 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 |
