MORNING UPDATE: PriceWatch Alerts for MRK and More... for 2014-05-28 |
| ------------------------------------------------------------------ MORNING UPDATE FOR May 28, 2014 PriceWatch Alerts for M, WDC, ITMN, MRK, TWX, DD, DAL, MGM, MS, JWN, GLD, LOW, CVX, DOW, TROW. Macy's (NYSE: M) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $58.41 while selling the August $60.00 call will produce a new covered call with a break-even point around $56.94. At that price, this position has a target return of 5.4%. This trade will have roughly 2.5% downside protection, while still aiming for a 5.4% return in 80 days. It will lock in that return as long as Macy's is above $60.00 on 8/16/2014. For comparison purposes only, this M covered call aims for an annualized return rate of 24.5%. Western Digital (NASDAQ: WDC) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $87.42 while simultaneously selling the October $85.00 call will result in a new position with a target return of 5.6%. Based on recent prices, this position will cost about $80.52, which is also the trade?s breakeven point. At that level, this covered call has 7.9% downside protection, while still providing a 5.6% return in 143 days as long as WDC is above $85.00 on 10/18/2014. For comparison purposes only, this Western Digital covered call aims for an annualized return rate of 14.2%. InterMune (NASDAQ: ITMN) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $39.63 while selling the July $39.00 call will produce a new covered call with a break-even point around $36.32. At that price, this position has a target return of 7.4%. This trade will have roughly 8.4% downside protection, while still aiming for a 7.4% return in 52 days. It will lock in that return as long as InterMune is above $39.00 on 7/19/2014. For comparison purposes only, this ITMN covered call aims for an annualized return rate of 51.7%. Merck (NYSE: MRK) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the October $57.50 call while at the same time buying MRK stock for $56.69 will produce a new covered call with a target return of 5.1%. Based on recent data, this trade will cost about $54.72, which is also the covered call?s breakeven point. At that price, this covered call has 3.5% downside protection, while seeking an assigned return of 5.1% return in 143 days. If MRK is higher than $57.50 on 10/18/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 13.0%. Time Warner (NYSE: TWX) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the October $70.00 call while simultaneously buying TWX stock for $70.59 will result in a new position with a break-even point around $66.99. At that price, this position has a target return of 4.5%. This trade has 5.1% downside protection, while still providing a 4.5% return in 143 days as long as TWX is above $70.00 on 10/18/2014. For comparison purposes only, this Time Warner covered call targets an annualized return rate of 11.5%. Du Pont (NYSE: DD) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $68.16 while selling the October $70.00 call will produce a new covered call with a break-even point around $66.63. At that price, this position has a target return of 5.1%. This trade will have roughly 2.2% downside protection, while still aiming for a 5.1% return in 143 days. It will lock in that return as long as Du Pont is above $70.00 on 10/18/2014. For comparison purposes only, this DD covered call aims for an annualized return rate of 12.9%. Delta Air Lines (NYSE: DAL) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $39.46 while simultaneously selling the July $40.00 call will result in a new position with a target return of 5.0%. Based on recent prices, this position will cost about $38.08, which is also the trade?s breakeven point. At that level, this covered call has 3.5% downside protection, while still providing a 5.0% return in 52 days as long as DAL is above $40.00 on 7/19/2014. For comparison purposes only, this Delta Air Lines covered call aims for an annualized return rate of 35.4%. MGM Mirage (NYSE: MGM) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $25.62 while selling the August $25.00 call will produce a new covered call with a break-even point around $23.79. At that price, this position has a target return of 5.1%. This trade will have roughly 7.1% downside protection, while still aiming for a 5.1% return in 80 days. It will lock in that return as long as MGM Mirage is above $25.00 on 8/16/2014. For comparison purposes only, this MGM covered call aims for an annualized return rate of 23.2%. Morgan Stanley (NYSE: MS) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the October $31.00 call while at the same time buying MS stock for $31.12 will produce a new covered call with a target return of 5.5%. Based on recent data, this trade will cost about $29.37, which is also the covered call?s breakeven point. At that price, this covered call has 5.6% downside protection, while seeking an assigned return of 5.5% return in 143 days. If MS is higher than $31.00 on 10/18/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 14.1%. Nordstrom (NYSE: JWN) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the October $67.50 call while simultaneously buying JWN stock for $67.92 will result in a new position with a break-even point around $64.69. At that price, this position has a target return of 4.3%. This trade has 4.8% downside protection, while still providing a 4.3% return in 143 days as long as JWN is above $67.50 on 10/18/2014. For comparison purposes only, this Nordstrom covered call targets an annualized return rate of 11.1%. Gold SPDR (AMEX: GLD) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $121.85 while selling the December $124.00 call will produce a new covered call with a break-even point around $117.38. At that price, this position has a target return of 5.6%. This trade will have roughly 3.7% downside protection, while still aiming for a 5.6% return in 206 days. It will lock in that return as long as Gold SPDR is above $124.00 on 12/20/2014. For comparison purposes only, this GLD covered call aims for an annualized return rate of 10.0%. Lowe's (NYSE: LOW) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $47.78 while simultaneously selling the October $47.00 call will result in a new position with a target return of 4.3%. Based on recent prices, this position will cost about $45.08, which is also the trade?s breakeven point. At that level, this covered call has 5.7% downside protection, while still providing a 4.3% return in 143 days as long as LOW is above $47.00 on 10/18/2014. For comparison purposes only, this Lowe's covered call aims for an annualized return rate of 10.8%. Chevron (NYSE: CVX) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $122.84 while selling the December $130.00 call will produce a new covered call with a break-even point around $121.09. At that price, this position has a target return of 7.4%. This trade will have roughly 1.4% downside protection, while still aiming for a 7.4% return in 206 days. It will lock in that return as long as Chevron is above $130.00 on 12/20/2014. For comparison purposes only, this CVX covered call aims for an annualized return rate of 13.0%. Dow Chemical (NYSE: DOW) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the September $52.50 call while at the same time buying DOW stock for $50.93 will produce a new covered call with a target return of 6.1%. Based on recent data, this trade will cost about $49.48, which is also the covered call?s breakeven point. At that price, this covered call has 2.8% downside protection, while seeking an assigned return of 6.1% return in 115 days. If DOW is higher than $52.50 on 9/20/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 19.4%. T Rowe Price (NASDAQ: TROW) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the October $85.00 call while simultaneously buying TROW stock for $81.01 will result in a new position with a break-even point around $79.36. At that price, this position has a target return of 7.1%. This trade has 2.0% downside protection, while still providing a 7.1% return in 143 days as long as TROW is above $85.00 on 10/18/2014. For comparison purposes only, this T Rowe Price covered call targets an annualized return rate of 18.1%. *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 Lincoln National (LNC), Michal Kors (KORS) and First Solar (FSLR) are going up this morning, while Health Care REIT (HCN), Sungy Mobile Limited (GOMO) and BioCryst Pharmaceuticals (BCRX) are going down. DreamWorks Animation (DWA) was upgraded by analysts this morning and Lowe's was downgraded. INTERNATIONAL MARKETS Asian markets moved higher overnight across the board. The Shanghai SEC gained 0.8%, the Taiwan TSEC picked up 0.7%, the Hong Kong Hang Seng added 0.6% and the Nikkei 225 lagged behind, rising only 0.2%. Chinese financial and insurance companies led the way higher. In Europe, the major indices are relatively flat so far this morning. The FTSE 100 and French CAC 40 are each higher by 0.1%, while the Euronext 100 is just below break-even. German unemployment data rose slightly in May, surprising market watchers. GlaxoSmithKline (GSK) is facing an investigation by the British Serious Fraud Office and Nestle struck a deal with Valeant Pharmaceuticals (VRX) to buy some pieces of that company's skin care business. FUTURES & CURRENCIES In commodities, crude oil and gasoline are down slightly, while natural gas is up a bit. Metals are mostly unchanged. The U.S. Dollar is weaker against the Yen but higher versus the Euro. The Bitcoin global average is at $569.21. PUT/CALL RATIO Yesterday, 1,090,183 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 580,342 put contracts. The single-session put/call was 0.53, while the 20-day moving average is now at 0.63. TODAY'S ECONOMIC CALENDAR 07:00 AM 5/24 MBA Mortgage EARNINGS EXPECTED TODAY BMO CHS CPRT ZLC 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 |
