MORNING UPDATE: PriceWatch Alerts for FNSR and More... for 2014-06-06 |
| ------------------------------------------------------------------ MORNING UPDATE FOR JUNE 6, 2014 PriceWatch Alerts for NFLX, MNKD, DISH, ILMN, BUD, FNSR, GS, LULU, KBH and NVO. Netflix (NASDAQ: NFLX) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $428.35 while selling the July $420.00 call will produce a new covered call with a break-even point around $390.60. At that price, this position has a target return of 7.5%. This trade will have roughly 8.8% downside protection, while still aiming for a 7.5% return in 43 days. It will lock in that return as long as Netflix is above $420.00 on 7/19/2014. For comparison purposes only, this NFLX covered call aims for an annualized return rate of 63.8%. MannKind (NASDAQ: MNKD) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $10.04 while simultaneously selling the July $10.00 call will result in a new position with a target return of 18.5%. Based on recent prices, this position will cost about $8.44, which is also the trade?s breakeven point. At that level, this covered call has 15.9% downside protection, while still providing a 18.5% return in 43 days as long as MNKD is above $10.00 on 7/19/2014. For comparison purposes only, this MannKind covered call aims for an annualized return rate of 156.9%. Dish Network (NASDAQ: DISH) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $58.45 while selling the September $57.50 call will produce a new covered call with a break-even point around $53.65. At that price, this position has a target return of 7.2%. This trade will have roughly 8.2% downside protection, while still aiming for a 7.2% return in 106 days. It will lock in that return as long as Dish Network is above $57.50 on 9/20/2014. For comparison purposes only, this DISH covered call aims for an annualized return rate of 24.7%. Illumina (NASDAQ: ILMN) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the July $165.00 call while at the same time buying ILMN stock for $164.09 will produce a new covered call with a target return of 5.9%. Based on recent data, this trade will cost about $155.84, which is also the covered call?s breakeven point. At that price, this covered call has 5.0% downside protection, while seeking an assigned return of 5.9% return in 43 days. If ILMN is higher than $165.00 on 7/19/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 49.8%. Anheuser-Busch InBev (NYSE: BUD) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the December $115.00 call while simultaneously buying BUD stock for $110.41 will result in a new position with a break-even point around $106.96. At that price, this position has a target return of 7.5%. This trade has 3.1% downside protection, while still providing a 7.5% return in 197 days as long as BUD is above $115.00 on 12/20/2014. For comparison purposes only, this Anheuser-Busch InBev covered call targets an annualized return rate of 13.9%. Finisar (NASDAQ: FNSR) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $24.85 while selling the July $24.00 call will produce a new covered call with a break-even point around $22.95. At that price, this position has a target return of 4.6%. This trade will have roughly 7.6% downside protection, while still aiming for a 4.6% return in 43 days. It will lock in that return as long as Finisar is above $24.00 on 7/19/2014. For comparison purposes only, this FNSR covered call aims for an annualized return rate of 38.8%. Goldman Sachs (NYSE: GS) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $162.58 while simultaneously selling the October $165.00 call will result in a new position with a target return of 5.0%. Based on recent prices, this position will cost about $157.13, which is also the trade?s breakeven point. At that level, this covered call has 3.4% downside protection, while still providing a 5.0% return in 134 days as long as GS is above $165.00 on 10/18/2014. For comparison purposes only, this Goldman Sachs covered call aims for an annualized return rate of 13.6%. Lululemon Athletica (NASDAQ: LULU) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $42.87 while selling the July $42.50 call will produce a new covered call with a break-even point around $39.98. At that price, this position has a target return of 6.3%. This trade will have roughly 6.7% downside protection, while still aiming for a 6.3% return in 43 days. It will lock in that return as long as Lululemon Athletica is above $42.50 on 7/19/2014. For comparison purposes only, this LULU covered call aims for an annualized return rate of 53.5%. KB Home (NYSE: KBH) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the October $17.00 call while at the same time buying KBH stock for $16.76 will produce a new covered call with a target return of 9.3%. Based on recent data, this trade will cost about $15.56, which is also the covered call?s breakeven point. At that price, this covered call has 7.2% downside protection, while seeking an assigned return of 9.3% return in 134 days. If KBH is higher than $17.00 on 10/18/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 25.2%. Novo Nordisk (NYSE: NVO) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the September $45.00 call while simultaneously buying NVO stock for $43.50 will result in a new position with a break-even point around $42.35. At that price, this position has a target return of 6.3%. This trade has 2.6% downside protection, while still providing a 6.3% return in 106 days as long as NVO is above $45.00 on 9/20/2014. For comparison purposes only, this Novo Nordisk covered call targets an annualized return rate of 21.5%. *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. The RadioActive Home Study Kit comes with a money back guarantee and a free month of access to the patented PowerOptions Suite of Tools! Can you back test these strategies? Yes, you can! PowerOptions offers a full back testing screener, SmartHistoryXL, to its subscribers. Back test over 20 different options strategies using your personal search criteria. 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 GW Pharmaceuticals (GWPH), Angie's List (ANGI) and ARM Holdings (ARMH) are rising this morning, while Splunk (SPLK), Randgold Resources (GOLD) and Gilead Sciences (GILD) are falling. Humana (HUM) was upgraded by analysts this morning and there were no major analyst downgrades. INTERNATIONAL MARKETS In Asia, markets were mixed. The Mumbai Sensex ended the session higher by 1.51%, while other markets showed little change. Bank stocks in China were down after the China Banking Regulatory Commission announced plans to lower financing costs for Chinese companies and pushed for lower bank fees. Turning to Europe, the major indices are in positive territory so far this morning. The FTSE 100, French CAC 40 and German DAX are all higher by 0.4% while the Swiss Market Index is dipping into the red. European banks were the big winners in the session following yesterday's central bank action. FUTURES & CURRENCIES Energy futures are up slightly this morning, with West Texas Intermediate crude oil up $0.22 while natural gas is mostly unmoved. In metals, gold is down $0.90, silver down $0.05, and Platinum up about $5.00. The Dollar is up versus the Euro and down against the Yen. PUT/CALL RATIO Yesterday, 1,073,466 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 535,021 put contracts. The single-session put/call was 0.5, while the 20-day moving average is now at 0.6. TODAY'S ECONOMIC CALENDAR 08:30 AM May Nonfarm Payrolls 08:30 AM May Nonfarm Private Payrolls 08:30 AM May Unemployment Rate 08:30 AM May Hourly Earnings 08:30 AM May Average Workweek 03:00 PM Apr Consumer Credit EARNINGS EXPECTED TODAY JOSB KMG 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 |
