MORNING UPDATE: PriceWatch Alerts for SPWR and More... for 2014-06-09 |
| ------------------------------------------------------------------ MORNING UPDATE FOR JUNE 9, 2014 PriceWatch Alerts for GRPN, BIDU, JNJ, FSLR, CMG, SPWR, BRCM, NPSP, GM and YY. Groupon (NASDAQ: GRPN) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $5.83 while selling the January $8.00 call will produce a new covered call with a break-even point around $4.78. At that price, this position has a target return of 67.4%. This trade will have roughly 18.0% downside protection, while still aiming for a 67.4% return in 585 days. It will lock in that return as long as Groupon is above $8.00 on 1/15/2016. For comparison purposes only, this GRPN covered call aims for an annualized return rate of 42.0%. Baidu.com (NASDAQ: BIDU) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $172.34 while selling the August $170.00 call will produce a new covered call with a break-even point around $160.44. At that price, this position has a target return of 6.0%. This trade will have roughly 6.9% downside protection, while still aiming for a 6.0% return in 68 days. It will lock in that return as long as Baidu.com is above $170.00 on 8/16/2014. For comparison purposes only, this BIDU covered call aims for an annualized return rate of 31.9%. Johnson and Johnson (NYSE: JNJ) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $103.18 while simultaneously selling the January $105.00 call will result in a new position with a target return of 4.9%. Based on recent prices, this position will cost about $100.08, which is also the trade?s breakeven point. At that level, this covered call has 3.0% downside protection, while still providing a 4.9% return in 222 days as long as JNJ is above $105.00 on 1/17/2015. For comparison purposes only, this Johnson and Johnson covered call aims for an annualized return rate of 8.1%. First Solar (NASDAQ: FSLR) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the July $62.50 call while at the same time buying FSLR stock for $62.88 will produce a new covered call with a target return of 5.5%. Based on recent data, this trade will cost about $59.23, which is also the covered call?s breakeven point. At that price, this covered call has 5.8% downside protection, while seeking an assigned return of 5.5% return in 40 days. If FSLR is higher than $62.50 on 7/19/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 50.4%. Chipotle Mexican Grill (NYSE: CMG) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the July $567.50 call while simultaneously buying CMG stock for $569.17 will result in a new position with a break-even point around $540.67. At that price, this position has a target return of 5.0%. This trade has 5.0% downside protection, while still providing a 5.0% return in 40 days as long as CMG is above $567.50 on 7/19/2014. For comparison purposes only, this Chipotle Mexican Grill covered call targets an annualized return rate of 45.3%. SunPower (NASDAQ: SPWR) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $33.78 while selling the July $33.00 call will produce a new covered call with a break-even point around $31.44. At that price, this position has a target return of 5.0%. This trade will have roughly 6.9% downside protection, while still aiming for a 5.0% return in 40 days. It will lock in that return as long as SunPower is above $33.00 on 7/19/2014. For comparison purposes only, this SPWR covered call aims for an annualized return rate of 45.3%. Broadcom (NASDAQ: BRCM) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $38.02 while simultaneously selling the August $38.00 call will result in a new position with a target return of 4.6%. Based on recent prices, this position will cost about $36.32, which is also the trade?s breakeven point. At that level, this covered call has 4.5% downside protection, while still providing a 4.6% return in 68 days as long as BRCM is above $38.00 on 8/16/2014. For comparison purposes only, this Broadcom covered call aims for an annualized return rate of 24.8%. NPS Pharmaceuticals (NASDAQ: NPSP) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $34.60 while selling the July $34.00 call will produce a new covered call with a break-even point around $31.60. At that price, this position has a target return of 7.6%. This trade will have roughly 8.7% downside protection, while still aiming for a 7.6% return in 40 days. It will lock in that return as long as NPS Pharmaceuticals is above $34.00 on 7/19/2014. For comparison purposes only, this NPSP covered call aims for an annualized return rate of 69.3%. GM (NYSE: GM) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the September $36.00 call while at the same time buying GM stock for $36.55 will produce a new covered call with a target return of 4.6%. Based on recent data, this trade will cost about $34.43, which is also the covered call?s breakeven point. At that price, this covered call has 5.8% downside protection, while seeking an assigned return of 4.6% return in 103 days. If GM is higher than $36.00 on 9/20/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 16.1%. YY (NASDAQ: YY) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the July $65.00 call while simultaneously buying YY stock for $65.22 will result in a new position with a break-even point around $61.22. At that price, this position has a target return of 6.2%. This trade has 6.1% downside protection, while still providing a 6.2% return in 40 days as long as YY is above $65.00 on 7/19/2014. 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European markets were up this morning. The FTSE was up 0.25%, and the DAX up 0.08%. FUTURES & CURRENCIES Energy futures are mostly up this morning, with West Texas Intermediate crude oil up $0.88 and natural gas is up $0.03. In metals, gold is up $4.20, silver up $0.17. The Dollar is up versus the Euro and down against the Yen. PUT/CALL RATIO On Friday, 1,281,037 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 608,426 put contracts. The single-session put/call was 0.47, while the 20-day moving average is now at 0.59. TODAY'S ECONOMIC CALENDAR 10:00 AM Apr Wholesale Inventories 10:00 AM Apr JOLTS ? Job Openings EARNINGS EXPECTED TODAY FGP PBY 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 |
