MORNING UPDATE: PriceWatch Alerts for TSLA and More... for 2014-06-18 |
| ------------------------------------------------------------------ MORNING UPDATE FOR JUNE 18, 2014 PriceWatch Alerts for TSLA, XOM, COST, MNST, CBS, NTLS, WBMD, CLVS, VOD, PG, SCTY, TJX, MDVN, C and ADBE. Tesla (NASDAQ: TSLA) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $231.67 while selling the July $230.00 call will produce a new covered call with a break-even point around $220.17. At that price, this position has a target return of 4.5%. This trade will have roughly 5.0% downside protection, while still aiming for a 4.5% return in 31 days. It will lock in that return as long as Tesla is above $230.00 on 7/19/2014. For comparison purposes only, this TSLA covered call aims for an annualized return rate of 52.5%. Exxon Mobil (NYSE: XOM) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $102.42 while selling the October $105.00 call will produce a new covered call with a break-even point around $100.44. At that price, this position has a target return of 4.5%. This trade will have roughly 1.9% downside protection, while still aiming for a 4.5% return in 122 days. It will lock in that return as long as Exxon Mobil is above $105.00 on 10/18/2014. For comparison purposes only, this XOM covered call aims for an annualized return rate of 13.6%. Costco Wholesale (NASDAQ: COST) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $115.45 while simultaneously selling the October $120.00 call will result in a new position with a target return of 5.7%. Based on recent prices, this position will cost about $113.51, which is also the trade?s breakeven point. At that level, this covered call has 1.7% downside protection, while still providing a 5.7% return in 122 days as long as COST is above $120.00 on 10/18/2014. For comparison purposes only, this Costco Wholesale covered call aims for an annualized return rate of 17.1%. Monster Beverage (NASDAQ: MNST) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $70.24 while selling the September $70.00 call will produce a new covered call with a break-even point around $65.74. At that price, this position has a target return of 6.5%. This trade will have roughly 6.4% downside protection, while still aiming for a 6.5% return in 94 days. It will lock in that return as long as Monster Beverage is above $70.00 on 9/20/2014. For comparison purposes only, this MNST covered call aims for an annualized return rate of 25.2%. CBS (NYSE: CBS) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the July $60.00 call while simultaneously buying CBS stock for $60.11 will result in a new position with a break-even point around $57.34. At that price, this position has a target return of 4.6%. This trade has 4.6% downside protection, while still providing a 4.6% return in 31 days as long as CBS is above $60.00 on 7/19/2014. For comparison purposes only, this CBS covered call targets an annualized return rate of 54.5%. NTELOS (NASDAQ: NTLS) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $12.69 while simultaneously selling the December $15.00 call will result in a new position with a target return of 28.3%. Based on recent prices, this position will cost about $11.69, which is also the trade?s breakeven point. At that level, this covered call has 7.9% downside protection, while still providing a 28.3% return in 185 days as long as NTLS is above $15.00 on 12/20/2014. For comparison purposes only, this NTELOS covered call aims for an annualized return rate of 55.9%. WebMD Health (NASDAQ: WBMD) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $48.81 while selling the September $45.00 call will produce a new covered call with a break-even point around $42.66. At that price, this position has a target return of 5.5%. This trade will have roughly 12.6% downside protection, while still aiming for a 5.5% return in 94 days. It will lock in that return as long as WebMD Health is above $45.00 on 9/20/2014. For comparison purposes only, this WBMD covered call aims for an annualized return rate of 21.3%. Clovis Oncology (NASDAQ: CLVS) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $43.79 while selling the October $40.00 call will produce a new covered call with a break-even point around $34.79. At that price, this position has a target return of 15.0%. This trade will have roughly 20.6% downside protection, while still aiming for a 15.0% return in 122 days. It will lock in that return as long as Clovis Oncology is above $40.00 on 10/18/2014. For comparison purposes only, this CLVS covered call aims for an annualized return rate of 44.8%. Vodafone Group (NASDAQ: VOD) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the January $33.00 call while at the same time buying VOD stock for $33.16 will produce a new covered call with a target return of 6.4%. Based on recent data, this trade will cost about $31.01, which is also the covered call?s breakeven point. At that price, this covered call has 6.5% downside protection, while seeking an assigned return of 6.4% return in 213 days. If VOD is higher than $33.00 on 1/17/2015, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 11.0%. Procter and Gamble (NYSE: PG) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the January $82.50 call while simultaneously buying PG stock for $79.58 will result in a new position with a break-even point around $77.93. At that price, this position has a target return of 5.9%. This trade has 2.1% downside protection, while still providing a 5.9% return in 213 days as long as PG is above $82.50 on 1/17/2015. For comparison purposes only, this Procter and Gamble covered call targets an annualized return rate of 10.0%. SolarCity (NASDAQ: SCTY) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $64.53 while selling the July $65.00 call will produce a new covered call with a break-even point around $60.48. At that price, this position has a target return of 7.5%. This trade will have roughly 6.3% downside protection, while still aiming for a 7.5% return in 31 days. It will lock in that return as long as SolarCity is above $65.00 on 7/19/2014. For comparison purposes only, this SCTY covered call aims for an annualized return rate of 88.0%. TJX (NYSE: TJX) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $54.74 while simultaneously selling the October $55.00 call will result in a new position with a target return of 4.7%. Based on recent prices, this position will cost about $52.54, which is also the trade?s breakeven point. At that level, this covered call has 4.0% downside protection, while still providing a 4.7% return in 122 days as long as TJX is above $55.00 on 10/18/2014. For comparison purposes only, this TJX covered call aims for an annualized return rate of 14.0%. Medivation (NASDAQ: MDVN) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $74.40 while selling the September $72.50 call will produce a new covered call with a break-even point around $67.85. At that price, this position has a target return of 6.9%. This trade will have roughly 8.8% downside protection, while still aiming for a 6.9% return in 94 days. It will lock in that return as long as Medivation is above $72.50 on 9/20/2014. For comparison purposes only, this MDVN covered call aims for an annualized return rate of 26.6%. Citigroup (NYSE: C) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the December $47.00 call while at the same time buying C stock for $47.79 will produce a new covered call with a target return of 5.6%. Based on recent data, this trade will cost about $44.52, which is also the covered call?s breakeven point. At that price, this covered call has 6.8% downside protection, while seeking an assigned return of 5.6% return in 185 days. If C is higher than $47.00 on 12/20/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 11.0%. Adobe Systems (NASDAQ: ADBE) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the October $67.50 call while simultaneously buying ADBE stock for $67.54 will result in a new position with a break-even point around $63.14. At that price, this position has a target return of 6.9%. This trade has 6.5% downside protection, while still providing a 6.9% return in 122 days as long as ADBE is above $67.50 on 10/18/2014. For comparison purposes only, this Adobe Systems covered call targets an annualized return rate of 20.6%. *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. 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INTERNATIONAL MARKETS Asian markets were mixed overnight with investors there also looking to today's word from the U.S. Fed. The Mumbai Sensex was down 1.08%, and the Nikkei up 0.93%. In Europe markets are up today. The FTSE is up 0.36%, and the DAX is up 0.16% at last check. FUTURES & CURRENCIES This morning energy futures are down. West Texas Intermediate crude oil is up $0.31, and natural gas is up $0.05. In metals, gold is down $1.30, while platinum is up $9.70. The Dollar is up versus the Euro and down against the Yen. PUT/CALL RATIO Yesterday, 1,033,096 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 503,924 put contracts. The single-session put/call was 0.49, while the 20-day moving average is now at 0.55. TODAY'S ECONOMIC CALENDAR 07:00 AM 6/14 MBA Mortgage Index 08:30 AM Q1 Current Account Balance 10:30 AM 6/14 Crude Inventories 02:00 PM Jun FOMC Rate Decision EARNINGS EXPECTED TODAY FDX JBL RHT 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 |
