MORNING UPDATE: PriceWatch Alerts for GMCR and More... for 2014-06-16 |
| ------------------------------------------------------------------ MORNING UPDATE FOR June 16, 2014 PriceWatch Alerts for QCOM, TTWO, DLPH, GMCR, MON, XON, URBN, BHP, BLOX and HOG. Qualcomm (NASDAQ: QCOM) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $79.11 while selling the August $82.50 call will produce a new covered call with a break-even point around $78.02. At that price, this position has a target return of 5.7%. This trade will have roughly 1.4% downside protection, while still aiming for a 5.7% return in 61 days. It will lock in that return as long as Qualcomm is above $82.50 on 8/16/2014. For comparison purposes only, this QCOM covered call aims for an annualized return rate of 34.3%. TakeTwo Interactive (NASDAQ: TTWO) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $20.46 while simultaneously selling the September $20.00 call will result in a new position with a target return of 6.0%. Based on recent prices, this position will cost about $18.86, which is also the trade?s breakeven point. At that level, this covered call has 7.8% downside protection, while still providing a 6.0% return in 96 days as long as TTWO is above $20.00 on 9/20/2014. For comparison purposes only, this TakeTwo Interactive covered call aims for an annualized return rate of 23.0%. Delphi Automotive (NYSE: DLPH) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $67.99 while selling the November $67.50 call will produce a new covered call with a break-even point around $63.89. At that price, this position has a target return of 5.7%. This trade will have roughly 6.0% downside protection, while still aiming for a 5.7% return in 159 days. It will lock in that return as long as Delphi Automotive is above $67.50 on 11/22/2014. For comparison purposes only, this DLPH covered call aims for an annualized return rate of 13.0%. Keurig Green Mountain (NASDAQ: GMCR) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the August $119.00 call while at the same time buying GMCR stock for $119.80 will produce a new covered call with a target return of 5.7%. Based on recent data, this trade will cost about $112.60, which is also the covered call?s breakeven point. At that price, this covered call has 6.0% downside protection, while seeking an assigned return of 5.7% return in 61 days. If GMCR is higher than $119.00 on 8/16/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 34.0%. Monsanto (NYSE: MON) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the January $120.00 call while simultaneously buying MON stock for $119.67 will result in a new position with a break-even point around $112.77. At that price, this position has a target return of 6.4%. This trade has 5.8% downside protection, while still providing a 6.4% return in 215 days as long as MON is above $120.00 on 1/17/2015. For comparison purposes only, this Monsanto covered call targets an annualized return rate of 10.9%. Intrexon (NYSE: XON) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $24.62 while selling the October $22.50 call will produce a new covered call with a break-even point around $20.72. At that price, this position has a target return of 8.6%. This trade will have roughly 15.8% downside protection, while still aiming for a 8.6% return in 124 days. It will lock in that return as long as Intrexon is above $22.50 on 10/18/2014. For comparison purposes only, this XON covered call aims for an annualized return rate of 25.3%. Urban Outfitters (NASDAQ: URBN) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $33.52 while simultaneously selling the December $32.00 call will result in a new position with a target return of 6.2%. Based on recent prices, this position will cost about $30.12, which is also the trade?s breakeven point. At that level, this covered call has 10.1% downside protection, while still providing a 6.2% return in 187 days as long as URBN is above $32.00 on 12/20/2014. For comparison purposes only, this Urban Outfitters covered call aims for an annualized return rate of 12.2%. BHP Billiton (NYSE: BHP) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $66.78 while selling the August $67.50 call will produce a new covered call with a break-even point around $64.90. At that price, this position has a target return of 4.0%. This trade will have roughly 2.8% downside protection, while still aiming for a 4.0% return in 61 days. It will lock in that return as long as BHP Billiton is above $67.50 on 8/16/2014. For comparison purposes only, this BHP covered call aims for an annualized return rate of 23.9%. Infoblox (NYSE: BLOX) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the October $12.50 call while at the same time buying BLOX stock for $13.56 will produce a new covered call with a target return of 12.5%. Based on recent data, this trade will cost about $11.11, which is also the covered call?s breakeven point. At that price, this covered call has 18.1% downside protection, while seeking an assigned return of 12.5% return in 124 days. If BLOX is higher than $12.50 on 10/18/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 36.8%. Harley Davidson (NYSE: HOG) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the August $70.00 call while simultaneously buying HOG stock for $69.09 will result in a new position with a break-even point around $67.09. At that price, this position has a target return of 4.3%. This trade has 2.9% downside protection, while still providing a 4.3% return in 61 days as long as HOG is above $70.00 on 8/16/2014. For comparison purposes only, this Harley Davidson covered call targets an annualized return rate of 25.9%. *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 Bluebird Bio (BLUE) has broken out to the upside this morning. Goodyear Tire (GT) and Arrowhead Research (ARWR) are also headed higher, while Yahoo (YHOO), Zynga (ZNGA) and American Airlines are headed downward. Exterran (EXH), Micron (MU) and Medtronic (MDT) were upgraded by analysts this morning, while GNC (GNC) was downgraded. INTERNATIONAL MARKETS In Asia, markets were mixed today, with the Shanghai Composite up 0.75% and the Nikkei down 1.09%. European markets are down across the board in reaction to the Iraq and Ukraine situations. The FTSE down 0.33%, and the CAC 40 down 0.53%. FUTURES & CURRENCIES Energy futures are holding steady. West Texas Intermediate crude oil unchanged while natural gas is up $0.03. In metals, gold is up $6.70, while platinum is up $8.20. The Dollar is up versus the Euro and down against the Yen. PUT/CALL RATIO Yesterday, 1,145,218 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 638,659 put contracts. The single-session put/call was 0.56, while the 20-day moving average is now at 0.63. TODAY'S ECONOMIC CALENDAR 08:30 AM Jun Empire Manufacturing 09:00 AM Apr Net Long-Term TIC Flows 09:15 AM May Industrial Production 09:15 AM May Capacity Utilization 10:00 AM Jun NAHB Housing Market Index EARNINGS EXPECTED TODAY There are no major earnings announcements scheduled for today. 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 |
