MORNING UPDATE: PriceWatch Alerts for WAG and More... for 2014-05-19 |
| ------------------------------------------------------------------ MORNING UPDATE FOR MAY 19, 2014 PriceWatch Alerts for GRPN, TJX, BRCM, WAG, SAM, EBAY, SPWR, EMC, CLVS and VALE. Groupon (NASDAQ: GRPN) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $6.01 while selling the January $6.00 call will produce a new covered call with a break-even point around $4.91. At that price, this position has a target return of 22.2%. This trade will have roughly 18.3% downside protection, while still aiming for a 22.2% return in 243 days. It will lock in that return as long as Groupon is above $6.00 on 1/17/2015. For comparison purposes only, this GRPN covered call aims for an annualized return rate of 33.3%. TJX (NYSE: TJX) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $58.56 while simultaneously selling the October $57.50 call will result in a new position with a target return of 4.2%. Based on recent prices, this position will cost about $55.18, which is also the trade?s breakeven point. At that level, this covered call has 5.8% downside protection, while still providing a 4.2% return in 152 days as long as TJX is above $57.50 on 10/18/2014. For comparison purposes only, this TJX covered call aims for an annualized return rate of 10.1%. Broadcom (NASDAQ: BRCM) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $29.70 while selling the November $29.00 call will produce a new covered call with a break-even point around $27.37. At that price, this position has a target return of 6.0%. This trade will have roughly 7.8% downside protection, while still aiming for a 6.0% return in 187 days. It will lock in that return as long as Broadcom is above $29.00 on 11/22/2014. For comparison purposes only, this BRCM covered call aims for an annualized return rate of 11.6%. Walgreen (NYSE: WAG) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the October $67.50 call while at the same time buying WAG stock for $67.77 will produce a new covered call with a target return of 6.2%. Based on recent data, this trade will cost about $63.57, which is also the covered call?s breakeven point. At that price, this covered call has 6.2% downside protection, while seeking an assigned return of 6.2% return in 152 days. If WAG is higher than $67.50 on 10/18/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 14.8%. Boston Beer Company (NYSE: SAM) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the September $210.00 call while simultaneously buying SAM stock for $225.11 will result in a new position with a break-even point around $199.61. At that price, this position has a target return of 5.2%. This trade has 11.3% downside protection, while still providing a 5.2% return in 124 days as long as SAM is above $210.00 on 9/20/2014. For comparison purposes only, this Boston Beer Company covered call targets an annualized return rate of 15.3%. eBay (NASDAQ: EBAY) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $51.95 while selling the October $50.00 call will produce a new covered call with a break-even point around $47.45. At that price, this position has a target return of 5.4%. This trade will have roughly 8.7% downside protection, while still aiming for a 5.4% return in 152 days. It will lock in that return as long as eBay is above $50.00 on 10/18/2014. For comparison purposes only, this EBAY covered call aims for an annualized return rate of 12.9%. SunPower (NASDAQ: SPWR) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $31.76 while simultaneously selling the June $31.00 call will result in a new position with a target return of 4.7%. Based on recent prices, this position will cost about $29.61, which is also the trade?s breakeven point. At that level, this covered call has 6.8% downside protection, while still providing a 4.7% return in 33 days as long as SPWR is above $31.00 on 6/21/2014. For comparison purposes only, this SunPower covered call aims for an annualized return rate of 51.9%. EMC (NYSE: EMC) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $26.25 while selling the October $26.00 call will produce a new covered call with a break-even point around $24.87. At that price, this position has a target return of 4.5%. This trade will have roughly 5.3% downside protection, while still aiming for a 4.5% return in 152 days. It will lock in that return as long as EMC is above $26.00 on 10/18/2014. For comparison purposes only, this EMC covered call aims for an annualized return rate of 10.9%. Clovis Oncology (NASDAQ: CLVS) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $55.96 while selling the July $55.00 call will produce a new covered call with a break-even point around $47.46. At that price, this position has a target return of 15.9%. This trade will have roughly 15.2% downside protection, while still aiming for a 15.9% return in 61 days. It will lock in that return as long as Clovis Oncology is above $55.00 on 7/19/2014. For comparison purposes only, this CLVS covered call aims for an annualized return rate of 95.0%. Vale (NYSE: VALE) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $13.73 while simultaneously selling the December $14.00 call will result in a new position with a target return of 10.4%. Based on recent prices, this position will cost about $12.68, which is also the trade?s breakeven point. At that level, this covered call has 7.6% downside protection, while still providing a 10.4% return in 215 days as long as VALE is above $14.00 on 12/20/2014. For comparison purposes only, this Vale covered call aims for an annualized return rate of 17.7%. *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 ? 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STOCKS ON THE MOVE InterMune (ITMN), Gogo (GOGO) and Ballard Power Systems (BLDP) are headed higher this morning, while Kamada (KMDA), Canadian Solar (CSIQ) and Campbell Soup (CPB) are heading lower. Matson (MATX), Brookdale Senior Living (BKD) and Fossil (FOSL) were upgraded by analysts this morning, while Kimberly Clark (KMB), DirecTV (DTV) and American Realty Capital (ARCP) were downgraded. INTERNATIONAL MARKETS Asian indices are mixed. Australia is down 1.26%, and the Chinese Shanghai SE Composite lost 1.05%. India gained 1.0%, with Taiwan up 0.13%. The Hong Kong Hang Seng and Nikkei 225 posted smaller losses on the day. In Europe, markets are tempered by news that U.K.-based AstraZeneca had rejected the latest bid from Pfizer (PFE) to acquire the company. AstraZeneca shares traded sharply lower after the rejection of Pfizer's "final offer", which was worth around $120 billion. At last check, the British FTSE 100 was down 0.2%. The Euronext 100 was up 0.2%, while the German DAX was up 0.12%. The Swiss Market Index was down 0.5% and the French CAC 40 was up around 0.2%. FUTURES & CURRENCIES Energy futures are higher in the commodities pits, with front-month West Texas Intermediate crude oil up 0.8% to $102.35. Natural gas heating oil and gasoline are also higher. Precious metals are also all higher, with gold higher by 0.7% and silver up 1.3%. The U.S. Dollar is weaker against the Euro and the Yen. PUT/CALL RATIO Friday, 1,149,404 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 783,528 put contracts. The single-session put/call was 0.68, while the 20-day moving average is now at 0.63, its highest level in quite a while. TODAY'S ECONOMIC CALENDAR There are no major economic reports scheduled for today. EARNINGS EXPECTED TODAY AU CPB VAL 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 |
