MORNING UPDATE: PriceWatch Alerts for AAPL and More... for 2014-05-07 |
| ------------------------------------------------------------------ MORNING UPDATE FOR MAY 7, 2014 PriceWatch Alerts for AAPL, VJET, TSLA, TWTR, DDD, JPM, GE, FB, AMZN, BAC, SCTY, INTC, GOOG, MSFT and SSYS. Apple (NASDAQ: AAPL) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $594.41 while selling the August $595.00 call will produce a new covered call with a break-even point around $569.91. At that price, this position has a target return of 4.4%. This trade will have roughly 4.1% downside protection, while still aiming for a 4.4% return in 101 days. It will lock in that return as long as Apple is above $595.00 on 8/16/2014. For comparison purposes only, this AAPL covered call aims for an annualized return rate of 15.9%. Voxeljet (NYSE: VJET) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $14.85 while simultaneously selling the June $14.00 call will result in a new position with a target return of 8.9%. Based on recent prices, this position will cost about $12.85, which is also the trade?s breakeven point. At that level, this covered call has 13.5% downside protection, while still providing a 8.9% return in 45 days as long as VJET is above $14.00 on 6/21/2014. For comparison purposes only, this Voxeljet covered call aims for an annualized return rate of 72.5%. Tesla (NASDAQ: TSLA) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $207.28 while selling the June $200.00 call will produce a new covered call with a break-even point around $186.63. At that price, this position has a target return of 7.2%. This trade will have roughly 10.0% downside protection, while still aiming for a 7.2% return in 45 days. It will lock in that return as long as Tesla is above $200.00 on 6/21/2014. For comparison purposes only, this TSLA covered call aims for an annualized return rate of 58.1%. Twitter (NYSE: TWTR) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the June $32.00 call while at the same time buying TWTR stock for $31.85 will produce a new covered call with a target return of 8.5%. Based on recent data, this trade will cost about $29.50, which is also the covered call?s breakeven point. At that price, this covered call has 7.4% downside protection, while seeking an assigned return of 8.5% return in 45 days. If TWTR is higher than $32.00 on 6/21/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 68.7%. 3D Systems (NYSE: DDD) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the June $49.00 call while simultaneously buying DDD stock for $50.50 will result in a new position with a break-even point around $46.12. At that price, this position has a target return of 6.2%. This trade has 8.7% downside protection, while still providing a 6.2% return in 45 days as long as DDD is above $49.00 on 6/21/2014. For comparison purposes only, this 3D Systems covered call targets an annualized return rate of 50.6%. JPMorgan (NYSE: JPM) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $53.34 while selling the August $55.00 call will produce a new covered call with a break-even point around $52.12. At that price, this position has a target return of 5.5%. This trade will have roughly 2.3% downside protection, while still aiming for a 5.5% return in 101 days. It will lock in that return as long as JPMorgan is above $55.00 on 8/16/2014. For comparison purposes only, this JPM covered call aims for an annualized return rate of 19.9%. General Electric (NYSE: GE) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $26.19 while simultaneously selling the December $26.00 call will result in a new position with a target return of 4.4%. Based on recent prices, this position will cost about $24.90, which is also the trade?s breakeven point. At that level, this covered call has 4.9% downside protection, while still providing a 4.4% return in 227 days as long as GE is above $26.00 on 12/20/2014. For comparison purposes only, this General Electric covered call aims for an annualized return rate of 7.1%. Facebook (NASDAQ: FB) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $58.53 while selling the June $57.50 call will produce a new covered call with a break-even point around $54.83. At that price, this position has a target return of 4.9%. This trade will have roughly 6.3% downside protection, while still aiming for a 4.9% return in 45 days. It will lock in that return as long as Facebook is above $57.50 on 6/21/2014. For comparison purposes only, this FB covered call aims for an annualized return rate of 39.4%. Amazon (NASDAQ: AMZN) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the July $295.00 call while at the same time buying AMZN stock for $297.38 will produce a new covered call with a target return of 4.9%. Based on recent data, this trade will cost about $281.24, which is also the covered call?s breakeven point. At that price, this covered call has 5.4% downside protection, while seeking an assigned return of 4.9% return in 73 days. If AMZN is higher than $295.00 on 7/19/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 24.5%. Bank of America (NYSE: BAC) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the November $15.00 call while simultaneously buying BAC stock for $14.73 will result in a new position with a break-even point around $13.80. At that price, this position has a target return of 8.7%. This trade has 6.3% downside protection, while still providing a 8.7% return in 199 days as long as BAC is above $15.00 on 11/22/2014. For comparison purposes only, this Bank of America covered call targets an annualized return rate of 15.9%. SolarCity (NASDAQ: SCTY) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $52.46 while selling the June $50.00 call will produce a new covered call with a break-even point around $46.56. At that price, this position has a target return of 7.4%. This trade will have roughly 11.2% downside protection, while still aiming for a 7.4% return in 45 days. It will lock in that return as long as SolarCity is above $50.00 on 6/21/2014. For comparison purposes only, this SCTY covered call aims for an annualized return rate of 59.9%. Intel (NASDAQ: INTC) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $26.20 while simultaneously selling the October $26.00 call will result in a new position with a target return of 4.5%. Based on recent prices, this position will cost about $24.88, which is also the trade?s breakeven point. At that level, this covered call has 5.0% downside protection, while still providing a 4.5% return in 164 days as long as INTC is above $26.00 on 10/18/2014. For comparison purposes only, this Intel covered call aims for an annualized return rate of 10.0%. Google (NASDAQ: GOOGL) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $522.57 while selling the July $525.00 call will produce a new covered call with a break-even point around $500.57. At that price, this position has a target return of 4.9%. This trade will have roughly 4.2% downside protection, while still aiming for a 4.9% return in 73 days. It will lock in that return as long as Google is above $525.00 on 7/19/2014. For comparison purposes only, this GOOGL covered call aims for an annualized return rate of 24.4%. Microsoft (NASDAQ: MSFT) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $39.06 while selling the August $40.00 call will produce a new covered call with a break-even point around $38.01. At that price, this position has a target return of 5.2%. This trade will have roughly 2.7% downside protection, while still aiming for a 5.2% return in 101 days. It will lock in that return as long as Microsoft is above $40.00 on 8/16/2014. For comparison purposes only, this MSFT covered call aims for an annualized return rate of 18.9%. Stratasys (NASDAQ: SSYS) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the June $95.00 call while simultaneously buying SSYS stock for $96.95 will result in a new position with a break-even point around $89.42. At that price, this position has a target return of 6.2%. This trade has 7.8% downside protection, while still providing a 6.2% return in 45 days as long as SSYS is above $95.00 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 Electronic Arts (EA), Mondelez (MDLZ) and First Solar (FSLR) are rising this morning, while Whole Foods (WFM), Zulily (ZU) and Aegerion Pharmaceuticals (AEGR) are falling. Whole Foods (WFM), Martha Stewart (MSO) and Legacy Reserves (LGCY) were upgraded by analysts this morning, while Groupon (GRPN) was downgraded. INTERNATIONAL MARKETS Asian trading resumed across the region last night and was broadly negative following the lead of U.S. securities on Tuesday. The Japanese Nikkei 225 lost 2.9% and the Hong Kong Hang Seng fell 1.0%. China's private PMI dropped in April to the lowest reading since last fall. In Europe, the picture so far this morning is significantly brighter. Traders started the day driving stocks lower, but most continental indices have turned thing around and are now in positive territory, with the Euronext 100, French CAC 40 and German DAX each up at least 0.4%. FUTURES & CURRENCIES Turning to commodities futures, energy contracts are mixed, with front- month West Texas Intermediate crude oil up 0.5% to $100.06. Natural gas and gasoline are slightly lower. Gold is down 0.3% at $1,303 and silver, platinum and copper are all lower as well. The U.S. Dollar is stronger against most international currencies, including the Yen, but unchanged against the Euro. PUT/CALL RATIO Yesterday, 1,049,527 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 713,728 put contracts. The single-session put/call was 0.68, while the 20-day moving average is now at 0.61. TODAY'S ECONOMIC CALENDAR 07:00 AM 5/03 MBA Mortgage Index 08:30 AM Q1 Productivity-Prel 08:30 AM Q1 Unit Labor Costs 10:30 AM 5/03 Crude Inventories 02:00 PM Mar Consumer Credit EARNINGS EXPECTED TODAY AGN AOL ARIA BID BODY BREW BUD CHK CLH CTRP FOXA HTZ HUM ICPT IEP JOBS NTLS POWR PRU RIG SCTY TSLA TWO Z 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 |
