MORNING UPDATE: PriceWatch Alerts for LNKD and More... for 2014-05-01 |
| ------------------------------------------------------------------ MORNING UPDATE FOR MAY 1, 2014 PriceWatch Alerts for KO, BIDU, URBN, CELG, TSL, LNKD, MS, JWN, REGN and NWSA. Coca Cola (NYSE: KO) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $40.79 while selling the November $42.00 call will produce a new covered call with a break-even point around $39.84. At that price, this position has a target return of 5.4%. This trade will have roughly 2.3% downside protection, while still aiming for a 5.4% return in 205 days. It will lock in that return as long as Coca Cola is above $42.00 on 11/22/2014. For comparison purposes only, this KO covered call aims for an annualized return rate of 9.7%. Baidu.com (NASDAQ: BIDU) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $153.85 while simultaneously selling the June $150.00 call will result in a new position with a target return of 4.6%. Based on recent prices, this position will cost about $143.35, which is also the trade?s breakeven point. At that level, this covered call has 6.8% downside protection, while still providing a 4.6% return in 51 days as long as BIDU is above $150.00 on 6/21/2014. For comparison purposes only, this Baidu.com covered call aims for an annualized return rate of 33.1%. Urban Outfitters (NASDAQ: URBN) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $35.66 while selling the September $35.00 call will produce a new covered call with a break-even point around $32.91. At that price, this position has a target return of 6.4%. This trade will have roughly 7.7% downside protection, while still aiming for a 6.4% return in 142 days. It will lock in that return as long as Urban Outfitters is above $35.00 on 9/20/2014. For comparison purposes only, this URBN covered call aims for an annualized return rate of 16.3%. Celgene (NASDAQ: CELG) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $147.01 while selling the June $145.00 call will produce a new covered call with a break-even point around $139.21. At that price, this position has a target return of 4.2%. This trade will have roughly 5.3% downside protection, while still aiming for a 4.2% return in 51 days. It will lock in that return as long as Celgene is above $145.00 on 6/21/2014. For comparison purposes only, this CELG covered call aims for an annualized return rate of 29.7%. Trina Solar (NYSE: TSL) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the June $11.00 call while simultaneously buying TSL stock for $11.18 will result in a new position with a break-even point around $9.94. At that price, this position has a target return of 10.7%. This trade has 11.1% downside protection, while still providing a 10.7% return in 51 days as long as TSL is above $11.00 on 6/21/2014. For comparison purposes only, this Trina Solar covered call targets an annualized return rate of 76.3%. LinkedIn (NYSE: LNKD) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $153.47 while simultaneously selling the May $150.00 call will result in a new position with a target return of 5.4%. Based on recent prices, this position will cost about $142.32, which is also the trade?s breakeven point. At that level, this covered call has 7.3% downside protection, while still providing a 5.4% return in 16 days as long as LNKD is above $150.00 on 5/17/2014. For comparison purposes only, this LinkedIn covered call aims for an annualized return rate of 123.0%. Morgan Stanley (NYSE: MS) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $30.93 while selling the October $30.00 call will produce a new covered call with a break-even point around $28.48. At that price, this position has a target return of 5.3%. This trade will have roughly 7.9% downside protection, while still aiming for a 5.3% return in 170 days. It will lock in that return as long as Morgan Stanley is above $30.00 on 10/18/2014. For comparison purposes only, this MS covered call aims for an annualized return rate of 11.4%. Nordstrom (NYSE: JWN) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $61.28 while simultaneously selling the October $62.50 call will result in a new position with a target return of 6.5%. Based on recent prices, this position will cost about $58.68, which is also the trade?s breakeven point. At that level, this covered call has 4.2% downside protection, while still providing a 6.5% return in 170 days as long as JWN is above $62.50 on 10/18/2014. For comparison purposes only, this Nordstrom covered call aims for an annualized return rate of 14.0%. Regeneron Pharmaceuticals (NASDAQ: REGN) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the June $295.00 call while at the same time buying REGN stock for $296.89 will produce a new covered call with a target return of 5.6%. Based on recent data, this trade will cost about $279.39, 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 5.6% return in 51 days. If REGN is higher than $295.00 on 6/21/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 39.9%. News Corp. (NASDAQ: NWSA) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the October $17.00 call while simultaneously buying NWSA stock for $17.02 will result in a new position with a break-even point around $15.92. At that price, this position has a target return of 6.8%. This trade has 6.5% downside protection, while still providing a 6.8% return in 170 days as long as NWSA is above $17.00 on 10/18/2014. For comparison purposes only, this News Corp. covered call targets an annualized return rate of 14.6%. *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)! 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NOTE: All stocks and options shown are examples only. These are not recommendations to buy or sell any security. STOCKS ON THE MOVE Endo Pharmaceuticals (ENDP), Catamaran (CTRX) and DIRECTV (DTV) are advancing this morning, while JDS Uniphase (JDSU), Vodafone (VOD) and ARM Holdings (ARMH) are pulling back. Fortune Brands Home & Security (FBHS) and Wright Medical Group (WMGI) were upgraded by analysts this morning, while Clean Harbors (CLH) and Exco Resources (XCO) were downgraded. INTERNATIONAL MARKETS In Asia, most markets were closed overnight for May Day, but Japanese stocks moved higher for the most part. The Nikkei 225 advanced 1.3% as many utility companies made strong advances on the announcement of new government assistance intended to keep electricity rates low. In Australia, most stocks moved lower as banks and mining companies fell. Turning to European trading, most indices are closed as well for the holiday. Manufacturing PMI and home prices in the United Kingdom were both strong, which pushed the FTSE 100 higher by 0.2%. FUTURES & CURRENCIES In the commodities pits, energy interests continue to move lower with front-month West Texas Intermediate crude oil down 0.8% this morning to $98.92 and off more than 5% in the past two weeks. Natural gas, heating oil and gasoline are all falling along with almost all metals as well. Gold is lower by 1.2% at $1,280 at last check. The U.S. Dollar is weaker against the Euro, but slightly stronger versus the Yen. PUT/CALL RATIO Yesterday, 1,125,769 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 608,598 put contracts. The single-session put/call was 0.54, while the 20-day moving average is now at 0.6. TODAY'S ECONOMIC CALENDAR 07:30 AM Apr Challenger Job Cuts 08:30 AM 4/26 Initial Claims 08:30 AM 4/19 Continuing Claims 08:30 AM Mar Personal Income 08:30 AM Mar Personal Spending 08:30 AM Mar PCE Prices-Core 10:00 AM Apr ISM Index 10:00 AM Mar Construction Spending 10:30 AM 4/26 Natural Gas Inventories 02:00 PM Apr Auto Sales 02:00 PM Apr Truck Sales EARNINGS EXPECTED TODAY AKAM AMT BEAM BMRN BODY CAH COP CROX ED GG LINE LNKD MYL NTRI NU NVO PRLB PSA PWR QLGC RGLD SBH SGEN TMUS TEVA XOM 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 |
