MORNING UPDATE: PriceWatch Alerts for WMT and More... for 2014-05-13 |
| ------------------------------------------------------------------ MORNING UPDATE FOR May 13, 2014 PriceWatch Alerts for CSCO, JCP, P, FEYE, HUM, WMT, TTWO, JASO, QCOM, MA, PEP, CRM, FTNT, TOT and ABBV. Cisco Systems (NASDAQ: CSCO) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $23.19 while selling the January $24.00 call will produce a new covered call with a break-even point around $22.19. At that price, this position has a target return of 8.2%. This trade will have roughly 4.3% downside protection, while still aiming for a 8.2% return in 249 days. It will lock in that return as long as Cisco Systems is above $24.00 on 1/17/2015. For comparison purposes only, this CSCO covered call aims for an annualized return rate of 11.9%. JC Penney (NYSE: JCP) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $9.18 while simultaneously selling the November $9.00 call will result in a new position with a target return of 15.8%. Based on recent prices, this position will cost about $7.77, which is also the trade?s breakeven point. At that level, this covered call has 15.4% downside protection, while still providing a 15.8% return in 193 days as long as JCP is above $9.00 on 11/22/2014. For comparison purposes only, this JC Penney covered call aims for an annualized return rate of 29.9%. Pandora (NYSE: P) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $23.98 while selling the June $24.00 call will produce a new covered call with a break-even point around $22.21. At that price, this position has a target return of 8.1%. This trade will have roughly 7.4% downside protection, while still aiming for a 8.1% return in 39 days. It will lock in that return as long as Pandora is above $24.00 on 6/21/2014. For comparison purposes only, this P covered call aims for an annualized return rate of 75.3%. FireEye (NASDAQ: FEYE) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the June $28.00 call while at the same time buying FEYE stock for $28.54 will produce a new covered call with a target return of 9.0%. Based on recent data, this trade will cost about $25.69, which is also the covered call?s breakeven point. At that price, this covered call has 10.0% downside protection, while seeking an assigned return of 9.0% return in 39 days. If FEYE is higher than $28.00 on 6/21/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 84.1%. Humana (NYSE: HUM) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the November $120.00 call while simultaneously buying HUM stock for $123.62 will result in a new position with a break-even point around $112.72. At that price, this position has a target return of 6.5%. This trade has 8.8% downside protection, while still providing a 6.5% return in 193 days as long as HUM is above $120.00 on 11/22/2014. For comparison purposes only, this Humana covered call targets an annualized return rate of 12.2%. Walmart Stores (NYSE: WMT) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $79.15 while selling the September $82.50 call will produce a new covered call with a break-even point around $78.14. At that price, this position has a target return of 5.6%. This trade will have roughly 1.3% downside protection, while still aiming for a 5.6% return in 130 days. It will lock in that return as long as Walmart Stores is above $82.50 on 9/20/2014. For comparison purposes only, this WMT covered call aims for an annualized return rate of 15.6%. TakeTwo Interactive (NASDAQ: TTWO) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $20.67 while simultaneously selling the September $20.00 call will result in a new position with a target return of 8.3%. Based on recent prices, this position will cost about $18.47, which is also the trade?s breakeven point. At that level, this covered call has 10.6% downside protection, while still providing a 8.3% return in 130 days as long as TTWO is above $20.00 on 9/20/2014. For comparison purposes only, this TakeTwo Interactive covered call aims for an annualized return rate of 23.2%. JA Solar (NASDAQ: JASO) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $10.33 while simultaneously selling the September $10.00 call will result in a new position with a target return of 15.2%. Based on recent prices, this position will cost about $8.68, which is also the trade?s breakeven point. At that level, this covered call has 16.0% downside protection, while still providing a 15.2% return in 130 days as long as JASO is above $10.00 on 9/20/2014. For comparison purposes only, this JA Solar covered call aims for an annualized return rate of 42.7%. Qualcomm (NASDAQ: QCOM) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the October $82.50 call while at the same time buying QCOM stock for $79.97 will produce a new covered call with a target return of 7.9%. Based on recent data, this trade will cost about $76.47, 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 7.9% return in 158 days. If QCOM is higher than $82.50 on 10/18/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 18.2%. MasterCard (NYSE: MA) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the October $75.00 call while simultaneously buying MA stock for $75.02 will result in a new position with a break-even point around $70.62. At that price, this position has a target return of 6.2%. This trade has 5.9% downside protection, while still providing a 6.2% return in 158 days as long as MA is above $75.00 on 10/18/2014. For comparison purposes only, this MasterCard covered call targets an annualized return rate of 14.3%. PepsiCo (NYSE: PEP) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $86.93 while selling the October $90.00 call will produce a new covered call with a break-even point around $85.24. At that price, this position has a target return of 5.6%. This trade will have roughly 1.9% downside protection, while still aiming for a 5.6% return in 158 days. It will lock in that return as long as PepsiCo is above $90.00 on 10/18/2014. For comparison purposes only, this PEP covered call aims for an annualized return rate of 12.9%. Salesforce.com (NYSE: CRM) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $53.43 while simultaneously selling the June $52.50 call will result in a new position with a target return of 5.0%. Based on recent prices, this position will cost about $49.98, which is also the trade?s breakeven point. At that level, this covered call has 6.5% downside protection, while still providing a 5.0% return in 39 days as long as CRM is above $52.50 on 6/21/2014. For comparison purposes only, this Salesforce.com covered call aims for an annualized return rate of 47.2%. Fortinet (NASDAQ: FTNT) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $20.99 while selling the September $20.00 call will produce a new covered call with a break-even point around $18.54. At that price, this position has a target return of 7.9%. This trade will have roughly 11.7% downside protection, while still aiming for a 7.9% return in 130 days. It will lock in that return as long as Fortinet is above $20.00 on 9/20/2014. For comparison purposes only, this FTNT covered call aims for an annualized return rate of 22.1%. Total (NYSE: TOT) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $71.78 while selling the November $75.00 call will produce a new covered call with a break-even point around $70.33. At that price, this position has a target return of 6.6%. This trade will have roughly 2.0% downside protection, while still aiming for a 6.6% return in 193 days. It will lock in that return as long as Total is above $75.00 on 11/22/2014. For comparison purposes only, this TOT covered call aims for an annualized return rate of 12.6%. Abbvie (NYSE: ABBV) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the November $52.50 call while simultaneously buying ABBV stock for $52.37 will result in a new position with a break-even point around $49.07. At that price, this position has a target return of 7.0%. This trade has 6.3% downside protection, while still providing a 7.0% return in 193 days as long as ABBV is above $52.50 on 11/22/2014. 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Asian markets finished with strong gains in India and Japan, but weaker performance from Shanghai and Taiwan. China's April industrial output and retail sales were both weaker than expected, which put a damper on performance in that part of the region. In Europe, trading so far this morning is slightly bullish. The German DAX is higher by 0.6% at last check, but the FTSE 100, CAC 40, and Euronext 100 are each just slightly in positive territory. FUTURES & CURRENCIES Turning to commodities, in the energy pits, things are heading higher, with front-month West Texas Intermediate crude oil up 0.6% to $101.23. Gasoline, heating oil, and natural gas are each higher by less than half a percent. Gold is lower by 0.6% and silver is off by 0.5%. The U.S. Dollar is stronger against the Euro and the Yen, but mixed versus other international currencies. PUT/CALL RATIO Yesterday, 1,045,035 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 552,397 put contracts. The single-session put/call was 0.53, while the 20-day moving average is now at 0.61. TODAY'S ECONOMIC CALENDAR 08:30 AM Apr Retail Sales 08:30 AM Apr Retail Sales ex-Auto 08:30 AM Apr Export Prices ex-ag 08:30 AM Apr Import Prices ex-oil EARNINGS EXPECTED TODAY AG FOSL GA TA TTWO 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 |
