MORNING UPDATE: PriceWatch Alerts for FB and More... for 2014-06-12 |
| ------------------------------------------------------------------ MORNING UPDATE FOR JUNE 12, 2014 PriceWatch Alerts for BBRY, SYNA, SKUL, ZTS, BLDP, FB, ULTA, RMBS, CVC and TER. Blackberry (NASDAQ: BBRY) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $7.78 while selling the March $7.00 call will produce a new covered call with a break-even point around $6.00. At that price, this position has a target return of 16.7%. This trade will have roughly 22.9% downside protection, while still aiming for a 16.7% return in 281 days. It will lock in that return as long as Blackberry is above $7.00 on 3/20/2015. For comparison purposes only, this BBRY covered call aims for an annualized return rate of 21.6%. Synaptics (NASDAQ: SYNA) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $85.78 while simultaneously selling the July $85.00 call will result in a new position with a target return of 5.4%. Based on recent prices, this position will cost about $80.63, which is also the trade?s breakeven point. At that level, this covered call has 6.0% downside protection, while still providing a 5.4% return in 37 days as long as SYNA is above $85.00 on 7/19/2014. For comparison purposes only, this Synaptics covered call aims for an annualized return rate of 53.4%. Skullcandy (NASDAQ: SKUL) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $7.93 while selling the December $8.00 call will produce a new covered call with a break-even point around $6.88. At that price, this position has a target return of 16.3%. This trade will have roughly 13.2% downside protection, while still aiming for a 16.3% return in 191 days. It will lock in that return as long as Skullcandy is above $8.00 on 12/20/2014. For comparison purposes only, this SKUL covered call aims for an annualized return rate of 31.1%. Zoetis (NYSE: ZTS) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the October $32.00 call while at the same time buying ZTS stock for $32.13 will produce a new covered call with a target return of 5.0%. Based on recent data, this trade will cost about $30.48, which is also the covered call?s breakeven point. At that price, this covered call has 5.1% downside protection, while seeking an assigned return of 5.0% return in 128 days. If ZTS is higher than $32.00 on 10/18/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 14.2%. Ballard Power Systems (NASDAQ: BLDP) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the November $3.50 call while simultaneously buying BLDP stock for $3.38 will result in a new position with a break-even point around $2.53. At that price, this position has a target return of 38.3%. This trade has 25.1% downside protection, while still providing a 38.3% return in 163 days as long as BLDP is above $3.50 on 11/22/2014. For comparison purposes only, this Ballard Power Systems covered call targets an annualized return rate of 85.8%. Facebook (NASDAQ: FB) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $65.78 while selling the August $65.00 call will produce a new covered call with a break-even point around $60.63. At that price, this position has a target return of 7.2%. This trade will have roughly 7.8% downside protection, while still aiming for a 7.2% return in 65 days. It will lock in that return as long as Facebook is above $65.00 on 8/16/2014. For comparison purposes only, this FB covered call aims for an annualized return rate of 40.4%. Ulta Salon Cosmetics (NASDAQ: ULTA) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $97.11 while simultaneously selling the September $95.00 call will result in a new position with a target return of 6.4%. Based on recent prices, this position will cost about $89.26, which is also the trade?s breakeven point. At that level, this covered call has 8.1% downside protection, while still providing a 6.4% return in 100 days as long as ULTA is above $95.00 on 9/20/2014. For comparison purposes only, this Ulta Salon Cosmetics covered call aims for an annualized return rate of 23.5%. Rambus (NASDAQ: RMBS) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $13.00 while selling the October $16.00 call will produce a new covered call with a break-even point around $12.00. At that price, this position has a target return of 33.3%. This trade will have roughly 7.7% downside protection, while still aiming for a 33.3% return in 128 days. It will lock in that return as long as Rambus is above $16.00 on 10/18/2014. For comparison purposes only, this RMBS covered call aims for an annualized return rate of 95.0%. Cablevision Systems (NYSE: CVC) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the December $17.00 call while at the same time buying CVC stock for $17.32 will produce a new covered call with a target return of 6.4%. Based on recent data, this trade will cost about $15.97, which is also the covered call?s breakeven point. At that price, this covered call has 7.8% downside protection, while seeking an assigned return of 6.4% return in 191 days. If CVC is higher than $17.00 on 12/20/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 12.3%. Teradyne (NYSE: TER) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the October $19.00 call while simultaneously buying TER stock for $19.22 will result in a new position with a break-even point around $17.87. At that price, this position has a target return of 6.3%. This trade has 7.0% downside protection, while still providing a 6.3% return in 128 days as long as TER is above $19.00 on 10/18/2014. For comparison purposes only, this Teradyne covered call targets an annualized return rate of 18.0%. *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 Console Energy (CNX), TIBCO Software (TIBX) and Arena Pharmaceuticals (ARNA) are climbing this morning, while Lululemon (LULU), Range Resources (RRC) and Himax Technologies (HIMX) are sinking. There were no major analyst upgrades, but Theravance (THRX) was downgraded by analysts this morning. INTERNATIONAL MARKETS In Asia markets were down after yesterday?s slip by U.S. stocks. The Hang Seng was down 0.35%, and the Nikkei was down 0.64%, while the Mumbai Sensex was up 0.40%. European markets are up though technical issues delayed trading for France?s CAC 40 by 30 minutes. The FTSE is up 0.19% and the CAC is up 0.25%. FUTURES & CURRENCIES Amid concerns over hostilities in Iraq, energy futures are up this morning. West Texas Intermediate crude oil up $1.79 while natural gas is up $0.04. In metals, gold is up $4.50, while platinum is down $29.70. The Dollar is up versus the Euro and the Yen. PUT/CALL RATIO Yesterday, 1,047,813 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 525,927 put contracts. The single-session put/call was 0.5, while the 20-day moving average is at 0.58, now dipping back down after the highs of the past few weeks. TODAY'S ECONOMIC CALENDAR 08:30 AM 6/07 Initial Claims 08:30 AM 5/31 Continuing Claims 08:30 AM May Retail Sales 08:30 AM May Retail Sales ex-auto 08:30 AM May Export Prices ex-ag. 08:30 AM May Import Prices ex-oil 10:00 AM Apr Business Inventories 10:30 AM 6/07 Natural Gas Inventories EARNINGS EXPECTED TODAY FNSR LULU 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 |
