MORNING UPDATE: PriceWatch Alerts for MA and More... for 2014-06-04 |
| ------------------------------------------------------------------ MORNING UPDATE FOR JUNE 4, 2014 PriceWatch Alerts for MA, P, PRU, NWSA, BBRY, CRM, CSCO, XOM, CMCSA, YHOO, TWTR, FEYE, SPLK, VJET and QCOM. MasterCard (NYSE: MA) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $76.35 while selling the October $75.00 call will produce a new covered call with a break-even point around $71.63. At that price, this position has a target return of 4.7%. This trade will have roughly 6.2% downside protection, while still aiming for a 4.7% return in 136 days. It will lock in that return as long as MasterCard is above $75.00 on 10/18/2014. For comparison purposes only, this MA covered call aims for an annualized return rate of 12.6%. Pandora (NYSE: P) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $24.61 while simultaneously selling the July $24.00 call will result in a new position with a target return of 6.5%. Based on recent prices, this position will cost about $22.53, which is also the trade?s breakeven point. At that level, this covered call has 8.5% downside protection, while still providing a 6.5% return in 45 days as long as P is above $24.00 on 7/19/2014. For comparison purposes only, this Pandora covered call aims for an annualized return rate of 52.9%. Prudential Financial (NYSE: PRU) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $86.03 while selling the September $85.00 call will produce a new covered call with a break-even point around $81.58. At that price, this position has a target return of 4.2%. This trade will have roughly 5.2% downside protection, while still aiming for a 4.2% return in 108 days. It will lock in that return as long as Prudential Financial is above $85.00 on 9/20/2014. For comparison purposes only, this PRU covered call aims for an annualized return rate of 14.2%. News Corp. (NASDAQ: NWSA) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the January $17.00 call while at the same time buying NWSA stock for $17.37 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 8.1% downside protection, while seeking an assigned return of 6.4% return in 227 days. If NWSA is higher than $17.00 on 1/17/2015, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 10.4%. Blackberry (NASDAQ: BBRY) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the March $7.00 call while simultaneously buying BBRY stock for $7.48 will result in a new position with a break-even point around $6.00. At that price, this position has a target return of 16.7%. This trade has 19.8% downside protection, while still providing a 16.7% return in 289 days as long as BBRY is above $7.00 on 3/20/2015. For comparison purposes only, this Blackberry covered call targets an annualized return rate of 21.0%. Salesforce.com (NYSE: CRM) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $50.95 while selling the July $50.00 call will produce a new covered call with a break-even point around $47.38. At that price, this position has a target return of 5.5%. This trade will have roughly 7.0% downside protection, while still aiming for a 5.5% return in 45 days. It will lock in that return as long as Salesforce.com is above $50.00 on 7/19/2014. For comparison purposes only, this CRM covered call aims for an annualized return rate of 44.8%. Cisco Systems (NASDAQ: CSCO) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $24.68 while simultaneously selling the January $25.00 call will result in a new position with a target return of 6.5%. Based on recent prices, this position will cost about $23.47, which is also the trade?s breakeven point. At that level, this covered call has 4.9% downside protection, while still providing a 6.5% return in 227 days as long as CSCO is above $25.00 on 1/17/2015. For comparison purposes only, this Cisco Systems covered call aims for an annualized return rate of 10.5%. Exxon Mobil (NYSE: XOM) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $100.39 while selling the October $105.00 call will produce a new covered call with a break-even point around $99.12. At that price, this position has a target return of 5.9%. This trade will have roughly 1.3% downside protection, while still aiming for a 5.9% return in 136 days. It will lock in that return as long as Exxon Mobil is above $105.00 on 10/18/2014. For comparison purposes only, this XOM covered call aims for an annualized return rate of 15.9%. Comcast (NASDAQ: CMCSA) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the October $52.50 call while at the same time buying CMCSA stock for $52.32 will produce a new covered call with a target return of 4.3%. Based on recent data, this trade will cost about $50.32, 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 4.3% return in 136 days. If CMCSA is higher than $52.50 on 10/18/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 11.6%. Yahoo (NASDAQ: YHOO) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the July $34.00 call while simultaneously buying YHOO stock for $34.65 will result in a new position with a break-even point around $32.62. At that price, this position has a target return of 4.2%. This trade has 5.9% downside protection, while still providing a 4.2% return in 45 days as long as YHOO is above $34.00 on 7/19/2014. For comparison purposes only, this Yahoo covered call targets an annualized return rate of 34.3%. Twitter (NYSE: TWTR) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $32.58 while selling the July $32.00 call will produce a new covered call with a break-even point around $30.16. At that price, this position has a target return of 6.1%. This trade will have roughly 7.4% downside protection, while still aiming for a 6.1% return in 45 days. It will lock in that return as long as Twitter is above $32.00 on 7/19/2014. For comparison purposes only, this TWTR covered call aims for an annualized return rate of 49.5%. FireEye (NASDAQ: FEYE) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $30.94 while simultaneously selling the July $30.00 call will result in a new position with a target return of 8.2%. Based on recent prices, this position will cost about $27.72, which is also the trade?s breakeven point. At that level, this covered call has 10.4% downside protection, while still providing a 8.2% return in 45 days as long as FEYE is above $30.00 on 7/19/2014. For comparison purposes only, this FireEye covered call aims for an annualized return rate of 66.7%. Splunk (NASDAQ: SPLK) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $40.50 while selling the July $40.00 call will produce a new covered call with a break-even point around $37.10. At that price, this position has a target return of 7.8%. This trade will have roughly 8.4% downside protection, while still aiming for a 7.8% return in 45 days. It will lock in that return as long as Splunk is above $40.00 on 7/19/2014. For comparison purposes only, this SPLK covered call aims for an annualized return rate of 63.3%. Voxeljet (NYSE: VJET) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the July $14.00 call while at the same time buying VJET stock for $13.92 will produce a new covered call with a target return of 10.5%. Based on recent data, this trade will cost about $12.67, which is also the covered call?s breakeven point. At that price, this covered call has 9.0% downside protection, while seeking an assigned return of 10.5% return in 45 days. If VJET is higher than $14.00 on 7/19/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 85.1%. Qualcomm (NASDAQ: QCOM) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the October $82.50 call while simultaneously buying QCOM stock for $80.40 will result in a new position with a break-even point around $78.10. At that price, this position has a target return of 5.6%. This trade has 2.9% downside protection, while still providing a 5.6% return in 136 days as long as QCOM is above $82.50 on 10/18/2014. For comparison purposes only, this Qualcomm covered call targets an annualized return rate of 15.1%. *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 Legg Mason (LM), SunPower (SPWR) and MannKind (MNKD) are headed higher this morning, while TIBCO Software (TIBX), Merck (MRK) and Canadian Solar (CSIQ) are falling. There were no major analyst upgrades this morning, but TIBCO Software (TIBX) was downgraded. INTERNATIONAL MARKETS International trading was relatively weak overnight, with most markets in Asia closing lower. Japan and Korea were the only positive movers of the bunch, with the Nikkei gaining 0.2% and the KOSPI rising 0.3%. The Shanghai SEC, Hong Kong Hang Seng and Australian All Ordinaries each fell by 0.6%. In Europe so far this morning, most trading is on the bearish side as well. The FTSE 100 is down 0.3%, the German DAX is off 0.2% and the French CAC 40 is off only 0.1% at last check. Final European PMI numbers for May were announced, with the region-wide number coming in below the initial flash reading. German PMI indicated strength in that country, while the French version projected weakness. FUTURES & CURRENCIES Energy futures are up slightly, with West Texas Intermediate crude oil up $0.65 while natural gas is up $0.05. In metals, gold is up $0.90 and silver up $0.02. Currencies show little movement, with the both U.S. Dollar is down slightly versus both the Euro and the Yen. PUT/CALL RATIO Yesterday, 811,243 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 468,995 put contracts. The single-session put/call was 0.58, while the 20-day moving average is now at 0.63. TODAY'S ECONOMIC CALENDAR 07:00 AM 5/31 MBA Mortgage Index 08:15 AM May ADP Employment Change 08:30 AM Apr Trade Balance 08:30 AM Q1 Productivity-Rev 08:30 AM Q1 Unit Labor Costs 10:00 AM May ISM Services 10:30 AM 5/31 Crude Inventories 02:00 PM Jun Fed's Beige Book EARNINGS EXPECTED TODAY BF-B FIVE VISN 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 |
