MORNING UPDATE: PriceWatch Alerts for F and More... for 2014-06-03 |
| ------------------------------------------------------------------ MORNING UPDATE FOR JUNE 3, 2014 PriceWatch Alerts for TSLA, AAPL, R, XONE, BIIB, F, V, NVDA, TGT, WFM, DIS, AMGN, DWA, RGLD and YUM. Tesla (NASDAQ: TSLA) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $204.70 while selling the July $200.00 call will produce a new covered call with a break-even point around $190.65. At that price, this position has a target return of 4.9%. This trade will have roughly 6.9% downside protection, while still aiming for a 4.9% return in 45 days. It will lock in that return as long as Tesla is above $200.00 on 7/18/2014. For comparison purposes only, this TSLA covered call aims for an annualized return rate of 39.7%. Apple (NASDAQ: AAPL) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $628.65 while simultaneously selling the August $630.00 call will result in a new position with a target return of 4.4%. Based on recent prices, this position will cost about $603.40, which is also the trade?s breakeven point. At that level, this covered call has 4.0% downside protection, while still providing a 4.4% return in 74 days as long as AAPL is above $630.00 on 8/16/2014. For comparison purposes only, this Apple covered call aims for an annualized return rate of 21.7%. Ryder System (NYSE: R) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $87.04 while selling the November $87.50 call will produce a new covered call with a break-even point around $82.34. At that price, this position has a target return of 6.3%. This trade will have roughly 5.4% downside protection, while still aiming for a 6.3% return in 172 days. It will lock in that return as long as Ryder System is above $87.50 on 11/22/2014. For comparison purposes only, this R covered call aims for an annualized return rate of 13.3%. ExOne (NASDAQ: XONE) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the July $30.00 call while at the same time buying XONE stock for $29.56 will produce a new covered call with a target return of 7.3%. Based on recent data, this trade will cost about $27.96, which is also the covered call?s breakeven point. At that price, this covered call has 5.4% downside protection, while seeking an assigned return of 7.3% return in 46 days. If XONE is higher than $30.00 on 7/19/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 57.8%. Biogen Idec (NASDAQ: BIIB) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the July $320.00 call while simultaneously buying BIIB stock for $318.22 will result in a new position with a break-even point around $306.62. At that price, this position has a target return of 4.4%. This trade has 3.6% downside protection, while still providing a 4.4% return in 46 days as long as BIIB is above $320.00 on 7/19/2014. For comparison purposes only, this Biogen Idec covered call targets an annualized return rate of 34.6%. Ford Motor (NYSE: F) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $16.44 while selling the March $17.00 call will produce a new covered call with a break-even point around $15.54. At that price, this position has a target return of 9.4%. This trade will have roughly 5.5% downside protection, while still aiming for a 9.4% return in 290 days. It will lock in that return as long as Ford Motor is above $17.00 on 3/20/2015. For comparison purposes only, this F covered call aims for an annualized return rate of 11.8%. Visa (NYSE: V) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $213.52 while simultaneously selling the September $215.00 call will result in a new position with a target return of 4.6%. Based on recent prices, this position will cost about $205.62, which is also the trade?s breakeven point. At that level, this covered call has 3.7% downside protection, while still providing a 4.6% return in 109 days as long as V is above $215.00 on 9/20/2014. For comparison purposes only, this Visa covered call aims for an annualized return rate of 15.3%. NVIDIA (NASDAQ: NVDA) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $18.94 while selling the September $19.00 call will produce a new covered call with a break-even point around $17.89. At that price, this position has a target return of 6.2%. This trade will have roughly 5.5% downside protection, while still aiming for a 6.2% return in 109 days. It will lock in that return as long as NVIDIA is above $19.00 on 9/20/2014. For comparison purposes only, this NVDA covered call aims for an annualized return rate of 20.8%. Target (NYSE: TGT) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the January $57.50 call while at the same time buying TGT stock for $56.49 will produce a new covered call with a target return of 6.5%. Based on recent data, this trade will cost about $54.01, which is also the covered call?s breakeven point. At that price, this covered call has 4.4% downside protection, while seeking an assigned return of 6.5% return in 228 days. If TGT is higher than $57.50 on 1/17/2015, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 10.3%. Whole Foods (NASDAQ: WFM) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the August $37.50 call while simultaneously buying WFM stock for $37.76 will result in a new position with a break-even point around $35.68. At that price, this position has a target return of 5.1%. This trade has 5.5% downside protection, while still providing a 5.1% return in 74 days as long as WFM is above $37.50 on 8/16/2014. For comparison purposes only, this Whole Foods covered call targets an annualized return rate of 25.2%. Walt Disney (NYSE: DIS) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $84.27 while selling the August $85.00 call will produce a new covered call with a break-even point around $81.65. At that price, this position has a target return of 4.1%. This trade will have roughly 3.1% downside protection, while still aiming for a 4.1% return in 74 days. It will lock in that return as long as Walt Disney is above $85.00 on 8/16/2014. For comparison purposes only, this DIS covered call aims for an annualized return rate of 20.2%. Amgen (NASDAQ: AMGN) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $116.45 while simultaneously selling the July $120.00 call will result in a new position with a target return of 4.7%. Based on recent prices, this position will cost about $114.65, which is also the trade?s breakeven point. At that level, this covered call has 1.5% downside protection, while still providing a 4.7% return in 46 days as long as AMGN is above $120.00 on 7/19/2014. For comparison purposes only, this Amgen covered call aims for an annualized return rate of 37.0%. DreamWorks Animation (NASDAQ: DWA) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $27.93 while selling the July $28.00 call will produce a new covered call with a break-even point around $26.65. At that price, this position has a target return of 5.1%. This trade will have roughly 4.6% downside protection, while still aiming for a 5.1% return in 46 days. It will lock in that return as long as DreamWorks Animation is above $28.00 on 7/19/2014. For comparison purposes only, this DWA covered call aims for an annualized return rate of 40.2%. Royal Gold (NASDAQ: RGLD) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the October $62.50 call while at the same time buying RGLD stock for $62.79 will produce a new covered call with a target return of 7.6%. Based on recent data, this trade will cost about $58.09, which is also the covered call?s breakeven point. At that price, this covered call has 7.5% downside protection, while seeking an assigned return of 7.6% return in 137 days. If RGLD is higher than $62.50 on 10/18/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 20.2%. Yum Brands (NYSE: YUM) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the October $77.50 call while simultaneously buying YUM stock for $78.12 will result in a new position with a break-even point around $74.07. At that price, this position has a target return of 4.6%. This trade has 5.2% downside protection, while still providing a 4.6% return in 137 days as long as YUM is above $77.50 on 10/18/2014. 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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 InterDigital (IDCC), Skyworks Solutions (SWKS) and Omeros (OMER) are on the rise this morning, while Advanced Energy Industries (AEIS), Clovis Oncology (CLVS) and Melco Crown Entertainment Limited (MPEL) are in decline. Broadcom (BRCM) was upgraded by analysts this morning, while Kroger (KR) was downgraded. INTERNATIONAL MARKETS In Asia, trading was mostly stronger overnight on Tuesday. Traders returned from a holiday session and the Nikkei 225, Indian Sensex, and Hong Kong Hang Seng each gained between 0.5% and 1.0% while the Shanghai SEC held steady. In Korea, Samsung Everland, the conglomeration behind the largest Android mobile phone brand among other things announced it will be looking to IPO by early 2015. European trading is weak across the board so far today. The FTSE 100 is off by 0.6%, the German DAX is down 0.5% and the French CAC 40 and Euronext 100 are lower by 0.4%. Euro-zone inflation showed slower than expected increase in CPI for May which is being blamed for the weakness in stocks. FUTURES & CURRENCIES Energy futures are mostly flat this morning, with West Texas Intermediate crude oil down $0.13 while natural gas is up $0.01. In metals, gold is up $2.40 and silver up $0.09, but copper is losing more than 1%, off $0.38. Currencies show little movement, with the U.S. Dollar down slightly versus the Euro and the Yen. PUT/CALL RATIO Friday, 774,029 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 482,891 put contracts. The single-session put/call was 0.62, while the 20-day moving average is now at 0.63. TODAY'S ECONOMIC CALENDAR 10:00 AM Apr Factory Orders 02:00 PM May Auto Sales 02:00 PM May Truck Sales EARNINGS EXPECTED TODAY DG TA 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 |
