MORNING UPDATE: PriceWatch Alerts for TSL and More... for 2014-06-05 |
| ------------------------------------------------------------------ MORNING UPDATE FOR JUNE 5, 2014 PriceWatch Alerts for PM, TSL, TM, NDAQ, TEVA, ZNGA, DFS, CERN, ABC and FDX. Philip Morris International (NYSE: PM) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $87.97 while selling the December $92.50 call will produce a new covered call with a break-even point around $86.76. At that price, this position has a target return of 6.6%. This trade will have roughly 1.4% downside protection, while still aiming for a 6.6% return in 198 days. It will lock in that return as long as Philip Morris International is above $92.50 on 12/20/2014. For comparison purposes only, this PM covered call aims for an annualized return rate of 12.2%. Trina Solar (NYSE: TSL) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $12.39 while simultaneously selling the September $12.00 call will result in a new position with a target return of 13.7%. Based on recent prices, this position will cost about $10.55, which is also the trade?s breakeven point. At that level, this covered call has 14.9% downside protection, while still providing a 13.7% return in 107 days as long as TSL is above $12.00 on 9/20/2014. For comparison purposes only, this Trina Solar covered call aims for an annualized return rate of 46.9%. Toyota (NYSE: TM) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $114.48 while selling the October $115.00 call will produce a new covered call with a break-even point around $109.93. At that price, this position has a target return of 4.6%. This trade will have roughly 4.0% downside protection, while still aiming for a 4.6% return in 135 days. It will lock in that return as long as Toyota is above $115.00 on 10/18/2014. For comparison purposes only, this TM covered call aims for an annualized return rate of 12.5%. Nasdaq Stock Market (NASDAQ: NDAQ) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the September $38.00 call while at the same time buying NDAQ stock for $38.16 will produce a new covered call with a target return of 4.4%. Based on recent data, this trade will cost about $36.41, which is also the covered call?s breakeven point. At that price, this covered call has 4.6% downside protection, while seeking an assigned return of 4.4% return in 107 days. If NDAQ is higher than $38.00 on 9/20/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 14.9%. Teva Pharmaceutical (NASDAQ: TEVA) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the September $50.00 call while simultaneously buying TEVA stock for $50.82 will result in a new position with a break-even point around $47.55. At that price, this position has a target return of 5.2%. This trade has 6.4% downside protection, while still providing a 5.2% return in 107 days as long as TEVA is above $50.00 on 9/20/2014. For comparison purposes only, this Teva Pharmaceutical covered call targets an annualized return rate of 17.6%. Zynga (NASDAQ: ZNGA) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $3.27 while selling the January $3.50 call will produce a new covered call with a break-even point around $2.30. At that price, this position has a target return of 52.2%. This trade will have roughly 29.7% downside protection, while still aiming for a 52.2% return in 589 days. It will lock in that return as long as Zynga is above $3.50 on 1/15/2016. For comparison purposes only, this ZNGA covered call aims for an annualized return rate of 32.3%. Discover (NYSE: DFS) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $59.81 while simultaneously selling the October $60.00 call will result in a new position with a target return of 4.7%. Based on recent prices, this position will cost about $57.31, which is also the trade?s breakeven point. At that level, this covered call has 4.2% downside protection, while still providing a 4.7% return in 135 days as long as DFS is above $60.00 on 10/18/2014. For comparison purposes only, this Discover covered call aims for an annualized return rate of 12.7%. Cerner (NASDAQ: CERN) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $54.13 while selling the September $55.00 call will produce a new covered call with a break-even point around $51.88. At that price, this position has a target return of 6.0%. This trade will have roughly 4.2% downside protection, while still aiming for a 6.0% return in 107 days. It will lock in that return as long as Cerner is above $55.00 on 9/20/2014. For comparison purposes only, this CERN covered call aims for an annualized return rate of 20.5%. AmerisourceBergen (NYSE: ABC) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the November $75.00 call while at the same time buying ABC stock for $73.66 will produce a new covered call with a target return of 5.8%. Based on recent data, this trade will cost about $70.86, which is also the covered call?s breakeven point. At that price, this covered call has 3.8% downside protection, while seeking an assigned return of 5.8% return in 170 days. If ABC is higher than $75.00 on 11/22/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 12.5%. FedEx (NYSE: FDX) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the July $150.00 call while simultaneously buying FDX stock for $143.00 will result in a new position with a break-even point around $141.92. At that price, this position has a target return of 5.7%. This trade has 0.8% downside protection, while still providing a 5.7% return in 44 days as long as FDX is above $150.00 on 7/19/2014. For comparison purposes only, this FedEx covered call targets an annualized return rate of 47.2%. *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)! 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NOTE: All stocks and options shown are examples only. These are not recommendations to buy or sell any security. STOCKS ON THE MOVE Halozyme Therapeutics (HALO), Joy Global (JOY) and Clovis Oncology (CLVS) are climbing this morning, while Vera Bradley (VRA), Marvell Technology (MRVL) and PVH Corp (PVH) are sinking. Microsoft (MSFT) and Clovis Oncology (CLVS) were upgraded by analysts this morning, while BHP Billiton (BHP) was downgraded. INTERNATIONAL MARKETS In Asia, markets finished with mixed results. The Nikkei 225 and Mumbai Sensex ended the session higher by 0.8%, while on the other side of the ledger, the Hang Seng and Australian markets closed less than 0.2% each. European trading so far this morning is on the positive side immediately following the European Central Bank's announcement. The French CAC 40 is advancing 0.6% and the Euronext 100 is higher by 0.5% as we count down to the opening bell in the U.S. The rate cut was widely expected and include a negative rate on the deposit facility, which should serve to push capital out of deposits and into the market. FUTURES & CURRENCIES Energy futures are mixed this morning, with West Texas Intermediate crude oil down $0.35 while natural gas is up $0.03. In metals, gold is up $0.80 and silver down slightly. The Dollar is up versus the Euro and down slightly versus the Yen. PUT/CALL RATIO Yesterday, 1,145,475 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 493,350 put contracts. The single-session put/call was 0.43, while the 20-day moving average is now at 0.61. TODAY'S ECONOMIC CALENDAR 07:30 AM May Challenger Job Cuts 08:30 AM 5/31 Initial Claims 08:30 AM 5/24 Continuing Claims 10:30 AM 5/31 Natural Gas Inventories EARNINGS EXPECTED TODAY CIEN JOY PAY SJM VRA 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. 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