MORNING UPDATE: PriceWatch Alerts for and More... for 2014-05-30 |
| MORNING UPDATE FOR May 30, 2014 PriceWatch Alerts for AAPL, BLK, ATHN, CAR, TSN, JPM, DRI, BWA, ACAD and AFL. Apple (NASDAQ: AAPL) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $635.38 while selling the August $635.00 call will produce a new covered call with a break-even point around $608.48. At that price, this position has a target return of 4.4%. This trade will have roughly 4.2% downside protection, while still aiming for a 4.4% return in 78 days. It will lock in that return as long as Apple is above $635.00 on 8/16/2014. For comparison purposes only, this AAPL covered call aims for an annualized return rate of 20.4%. BlackRock (NYSE: BLK) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $304.82 while simultaneously selling the October $310.00 call will result in a new position with a target return of 5.5%. Based on recent prices, this position will cost about $293.92, which is also the trade?s breakeven point. At that level, this covered call has 3.6% downside protection, while still providing a 5.5% return in 141 days as long as BLK is above $310.00 on 10/18/2014. For comparison purposes only, this BlackRock covered call aims for an annualized return rate of 14.2%. Athenahealth (NASDAQ: ATHN) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $129.81 while selling the July $125.00 call will produce a new covered call with a break-even point around $118.01. At that price, this position has a target return of 5.9%. This trade will have roughly 9.1% downside protection, while still aiming for a 5.9% return in 50 days. It will lock in that return as long as Athenahealth is above $125.00 on 7/19/2014. For comparison purposes only, this ATHN covered call aims for an annualized return rate of 43.2%. Avis Budget (NYSE: CAR) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the August $55.00 call while at the same time buying CAR stock for $56.99 will produce a new covered call with a target return of 5.0%. Based on recent data, this trade will cost about $52.39, 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 5.0% return in 78 days. If CAR is higher than $55.00 on 8/16/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 23.3%. Tyson Foods (NYSE: TSN) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the October $43.00 call while simultaneously buying TSN stock for $43.25 will result in a new position with a break-even point around $40.50. At that price, this position has a target return of 6.2%. This trade has 6.4% downside protection, while still providing a 6.2% return in 141 days as long as TSN is above $43.00 on 10/18/2014. For comparison purposes only, this Tyson Foods covered call targets an annualized return rate of 16.0%. JPMorgan (NYSE: JPM) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $55.72 while selling the September $57.50 call will produce a new covered call with a break-even point around $54.57. At that price, this position has a target return of 5.4%. This trade will have roughly 2.1% downside protection, while still aiming for a 5.4% return in 113 days. It will lock in that return as long as JPMorgan is above $57.50 on 9/20/2014. For comparison purposes only, this JPM covered call aims for an annualized return rate of 17.3%. Darden Restaurants (NYSE: DRI) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $49.88 while simultaneously selling the October $50.00 call will result in a new position with a target return of 4.8%. Based on recent prices, this position will cost about $47.73, which is also the trade?s breakeven point. At that level, this covered call has 4.3% downside protection, while still providing a 4.8% return in 141 days as long as DRI is above $50.00 on 10/18/2014. For comparison purposes only, this Darden Restaurants covered call aims for an annualized return rate of 12.3%. BorgWarner (NYSE: BWA) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $62.84 while selling the October $65.00 call will produce a new covered call with a break-even point around $60.42. At that price, this position has a target return of 7.6%. This trade will have roughly 3.9% downside protection, while still aiming for a 7.6% return in 141 days. It will lock in that return as long as BorgWarner is above $65.00 on 10/18/2014. For comparison purposes only, this BWA covered call aims for an annualized return rate of 19.6%. Acadia (NASDAQ: ACAD) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the September $21.00 call while at the same time buying ACAD stock for $21.25 will produce a new covered call with a target return of 9.7%. Based on recent data, this trade will cost about $19.15, which is also the covered call?s breakeven point. At that price, this covered call has 9.9% downside protection, while seeking an assigned return of 9.7% return in 113 days. If ACAD is higher than $21.00 on 9/20/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 31.2%. AFLAC (NYSE: AFL) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the November $62.50 call while simultaneously buying AFL stock for $61.44 will result in a new position with a break-even point around $59.39. At that price, this position has a target return of 5.2%. This trade has 3.3% downside protection, while still providing a 5.2% return in 176 days as long as AFL is above $62.50 on 11/22/2014. For comparison purposes only, this AFLAC covered call targets an annualized return rate of 10.8%. *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. 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STOCKS ON THE MOVE NewLink Genetics (NLNK), Omnivision (OVTI) and MannKind (MNKD) are climbing this morning, while Splunk (SPLK), Randgold Resources (GOLD) and NRG Energy (NRG) are sinking. Omnivision (OVTI) and Lifepoint Hospitals (LPNT) were upgraded by analysts this morning, while Alaska Air (ALK) was downgraded. INTERNATIONAL MARKETS Almost all major Asian indices headed lower overnight. The Japanese Nikkei 225 fell 0.3% and the Taiwan TSEC dropped 0.4%, while the Hong Kong Hang Seng rose 0.3% as one just a few markets to go the other way. A great deal of economic data from Japan was just released, including weak household spending, higher than anticipated inflation and steady unemployment rate. In Europe, the biggest markets are headed lower so far this morning. The French CAC 40 and Euronext 100 are each down 0.3% at last check, while the FTSE 100 is off 0.2%. In Germany, the DAX is peeking just barely into positive territory. Spanish inflation was 0.2% for the month of May, while Italy's CPI fell slightly. FUTURES & CURRENCIES Energy futures are mostly flat this morning, with West Texas Intermediate crude oil down $0.53 while natural gas is up slightly. In metals, gold is down $3.80 and silver down $0.034. The U.S. Dollar is lower this morning versus the Euro, while the Yen is higher. The Bitcoin global average is higher by 6% in the past day, rising from $565 on Thursday to top $600 this morning. PUT/CALL RATIO Yesterday, 1,036,011 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 543,871 put contracts. The single-session put/call was 0.52, while the 20-day moving average is now at 0.63. TODAY'S ECONOMIC CALENDAR 08:30 AM Apr Personal Income 08:30 AM Apr Personal Spending 08:30 AM Apr PCE Prices ? Core 09:45 AM May Chicago PMI 09:55 AM May Michegan Sentiment - Final EARNINGS EXPECTED TODAY ANN BIG NGL 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 |
