MORNING UPDATE: PriceWatch Alerts for DTV and More... for 2014-05-14 |
| ------------------------------------------------------------------ MORNING UPDATE FOR MAY 14, 2014 PriceWatch Alerts for T, JNJ, FNSR, RAX, NFLX, GS, NDLS, SBUX, GILD, TWC, DTV, JPM, FSLR, CELG and BIDU. AT&T (NYSE: T) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $36.20 while selling the January $37.00 call will produce a new covered call with a break-even point around $35.10. At that price, this position has a target return of 5.4%. This trade will have roughly 3.0% downside protection, while still aiming for a 5.4% return in 248 days. It will lock in that return as long as AT&T is above $37.00 on 1/17/2015. For comparison purposes only, this T covered call aims for an annualized return rate of 8.0%. Johnson and Johnson (NYSE: JNJ) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the October $105.00 call while at the same time buying JNJ stock for $101.02 will produce a new covered call with a target return of 5.7%. Based on recent data, this trade will cost about $99.38, which is also the covered call?s breakeven point. At that price, this covered call has 1.6% downside protection, while seeking an assigned return of 5.7% return in 157 days. If JNJ is higher than $105.00 on 10/18/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 13.1%. Finisar (NASDAQ: FNSR) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $22.76 while simultaneously selling the June $23.00 call will result in a new position with a target return of 7.8%. Based on recent prices, this position will cost about $21.34, which is also the trade?s breakeven point. At that level, this covered call has 6.2% downside protection, while still providing a 7.8% return in 38 days as long as FNSR is above $23.00 on 6/21/2014. For comparison purposes only, this Finisar covered call aims for an annualized return rate of 74.6%. Rackspace Hosting (NYSE: RAX) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the June $29.00 call while simultaneously buying RAX stock for $29.88 will result in a new position with a break-even point around $27.82. At that price, this position has a target return of 4.2%. This trade has 6.9% downside protection, while still providing a 4.2% return in 38 days as long as RAX is above $29.00 on 6/21/2014. For comparison purposes only, this Rackspace Hosting covered call targets an annualized return rate of 40.7%. Netflix (NASDAQ: NFLX) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $347.14 while selling the June $345.00 call will produce a new covered call with a break-even point around $328.06. At that price, this position has a target return of 5.2%. This trade will have roughly 5.5% downside protection, while still aiming for a 5.2% return in 38 days. It will lock in that return as long as Netflix is above $345.00 on 6/21/2014. For comparison purposes only, this NFLX covered call aims for an annualized return rate of 49.6%. Goldman Sachs (NYSE: GS) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $160.28 while selling the October $160.00 call will produce a new covered call with a break-even point around $152.78. At that price, this position has a target return of 4.7%. This trade will have roughly 4.7% downside protection, while still aiming for a 4.7% return in 157 days. It will lock in that return as long as Goldman Sachs is above $160.00 on 10/18/2014. For comparison purposes only, this GS covered call aims for an annualized return rate of 11.0%. Noodles & Co (NASDAQ: NDLS) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $31.53 while simultaneously selling the November $30.00 call will result in a new position with a target return of 9.1%. Based on recent prices, this position will cost about $27.49, which is also the trade?s breakeven point. At that level, this covered call has 12.8% downside protection, while still providing a 9.1% return in 192 days as long as NDLS is above $30.00 on 11/22/2014. For comparison purposes only, this Noodles & Co covered call aims for an annualized return rate of 17.4%. Starbucks (NASDAQ: SBUX) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $71.16 while selling the October $70.00 call will produce a new covered call with a break-even point around $66.77. At that price, this position has a target return of 4.8%. This trade will have roughly 6.2% downside protection, while still aiming for a 4.8% return in 157 days. It will lock in that return as long as Starbucks is above $70.00 on 10/18/2014. For comparison purposes only, this SBUX covered call aims for an annualized return rate of 11.2%. Gilead Sciences (NASDAQ: GILD) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the July $80.00 call while at the same time buying GILD stock for $80.30 will produce a new covered call with a target return of 4.8%. Based on recent data, this trade will cost about $76.35, which is also the covered call?s breakeven point. At that price, this covered call has 4.9% downside protection, while seeking an assigned return of 4.8% return in 66 days. If GILD is higher than $80.00 on 7/19/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 26.4%. Time Warner Cable Inc. (NYSE: TWC) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the October $135.00 call while simultaneously buying TWC stock for $135.97 will result in a new position with a break-even point around $129.02. At that price, this position has a target return of 4.6%. This trade has 5.1% downside protection, while still providing a 4.6% return in 157 days as long as TWC is above $135.00 on 10/18/2014. For comparison purposes only, this Time Warner Cable Inc. covered call targets an annualized return rate of 10.8%. DirecTV (NASDAQ: DTV) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $86.08 while selling the September $85.00 call will produce a new covered call with a break-even point around $80.68. At that price, this position has a target return of 5.4%. This trade will have roughly 6.3% downside protection, while still aiming for a 5.4% return in 129 days. It will lock in that return as long as DirecTV is above $85.00 on 9/20/2014. For comparison purposes only, this DTV covered call aims for an annualized return rate of 15.1%. JPMorgan (NYSE: JPM) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $54.62 while selling the September $55.00 call will produce a new covered call with a break-even point around $52.60. At that price, this position has a target return of 4.6%. This trade will have roughly 3.7% downside protection, while still aiming for a 4.6% return in 129 days. It will lock in that return as long as JPMorgan is above $55.00 on 9/20/2014. For comparison purposes only, this JPM covered call aims for an annualized return rate of 12.9%. First Solar (NASDAQ: FSLR) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the June $62.50 call while at the same time buying FSLR stock for $63.05 will produce a new covered call with a target return of 5.3%. Based on recent data, this trade will cost about $59.35, which is also the covered call?s breakeven point. At that price, this covered call has 5.9% downside protection, while seeking an assigned return of 5.3% return in 38 days. If FSLR is higher than $62.50 on 6/21/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 50.9%. Celgene (NASDAQ: CELG) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the July $145.00 call while simultaneously buying CELG stock for $149.88 will result in a new position with a break-even point around $135.33. At that price, this position has a target return of 7.1%. This trade has 9.7% downside protection, while still providing a 7.1% return in 66 days as long as CELG is above $145.00 on 7/19/2014. For comparison purposes only, this Celgene covered call targets an annualized return rate of 39.5%. Baidu.com (NASDAQ: BIDU) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $156.11 while selling the June $155.00 call will produce a new covered call with a break-even point around $148.71. At that price, this position has a target return of 4.2%. This trade will have roughly 4.7% downside protection, while still aiming for a 4.2% return in 38 days. It will lock in that return as long as Baidu.com is above $155.00 on 6/21/2014. 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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 Isis Pharmaceuticals (ISIS), Celldex Therapeutics (CLDX) and Flextronics (FLEX) are on the rise this morning, while Fossil Group (FOSL), Zulily (ZU) and VimpelCom (VIP) are falling. AutoDesk (ADSK) and Zimmer Holdings (ZMH) were upgraded by analysts this morning, while there were no major analyst downgrades. INTERNATIONAL MARKETS Overseas in Asia, the major markets were either bullish or essentially flat. Hong Kong and India each gained more than 1%, but Japan and mainland China were each lower by 0.1% and Australia finished virtually unchanged. The People's Bank of China announced policies designed to increase mortgage lending, which had a positive effect on property companies in Hong Kong. Turning to European trading, so far on Wednesday morning, the indices are almost all slightly in negative territory. The German DAX FTSE 100 and CAC 40 are each lower by 0.1% at last check. The Bank of England held its growth and inflation forecasts unchanged this morning, which market watchers are interpreting as a sign it will raise rates as soon as early 2015. FUTURES & CURRENCIES In commodities futures, energy interests are mostly higher this morning, with front-month West Texas Intermediate crude oil up 0.3% to $102.04. Gasoline, heating oil, and natural gas are all higher as well. Gold is up 0.9% above $1,300 and silver is rising 1.8%. The U.S. Dollar is weaker against the Euro and the Yen. PUT/CALL RATIO Yesterday, 981,878 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 598,112 put contracts. The single-session put/call was 0.61, while the 20-day moving average is now at 0.61. TODAY'S ECONOMIC CALENDAR 07:00 AM 5/10 MBA Mortgage Index 08:30 AM Apr PPI 08:30 AM Apr Core PPI 10:30 AM 5/10 Crude Inventories EARNINGS EXPECTED TODAY A DE JACK M PLUG SNE SODA VIP VIPS XONE 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 |
