MORNING UPDATE: PriceWatch Alerts for RFMD and More... for 2014-04-30 |
| ------------------------------------------------------------------ MORNING UPDATE FOR APRIL 30, 2014 PriceWatch Alerts for WB, XONE, BIIB, VZ, DAL, GOOG, MGM, NRG, GE, NVO, V, FSLR, LMT, TROW and RFMD. Weibo (NASDAQ: WB) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $18.30 while selling the June $17.50 call will produce a new covered call with a break-even point around $16.11. At that price, this position has a target return of 8.6%. This trade will have roughly 12.0% downside protection, while still aiming for a 8.6% return in 52 days. It will lock in that return as long as Weibo is above $17.50 on 6/21/2014. For comparison purposes only, this WB covered call aims for an annualized return rate of 60.5%. ExOne (NASDAQ: XONE) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $32.32 while simultaneously selling the June $30.00 call will result in a new position with a target return of 5.1%. Based on recent prices, this position will cost about $28.55, which is also the trade?s breakeven point. At that level, this covered call has 11.7% downside protection, while still providing a 5.1% return in 52 days as long as XONE is above $30.00 on 6/21/2014. For comparison purposes only, this ExOne covered call aims for an annualized return rate of 35.6%. Biogen Idec (NASDAQ: BIIB) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $290.84 while selling the June $290.00 call will produce a new covered call with a break-even point around $274.43. At that price, this position has a target return of 5.7%. This trade will have roughly 5.6% downside protection, while still aiming for a 5.7% return in 52 days. It will lock in that return as long as Biogen Idec is above $290.00 on 6/21/2014. For comparison purposes only, this BIIB covered call aims for an annualized return rate of 39.8%. Verizon Communications (NYSE: VZ) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the October $48.00 call while at the same time buying VZ stock for $46.77 will produce a new covered call with a target return of 5.2%. Based on recent data, this trade will cost about $45.64, which is also the covered call?s breakeven point. At that price, this covered call has 2.4% downside protection, while seeking an assigned return of 5.2% return in 171 days. If VZ is higher than $48.00 on 10/18/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 11.0%. Delta Air Lines (NYSE: DAL) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the June $36.00 call while simultaneously buying DAL stock for $36.74 will result in a new position with a break-even point around $34.54. At that price, this position has a target return of 4.2%. This trade has 6.0% downside protection, while still providing a 4.2% return in 52 days as long as DAL is above $36.00 on 6/21/2014. For comparison purposes only, this Delta Air Lines covered call targets an annualized return rate of 29.6%. Google (NASDAQ: GOOG) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $527.70 while selling the June $535.00 call will produce a new covered call with a break-even point around $514.20. At that price, this position has a target return of 4.0%. This trade will have roughly 2.6% downside protection, while still aiming for a 4.0% return in 52 days. It will lock in that return as long as Google is above $535.00 on 6/21/2014. For comparison purposes only, this GOOG covered call aims for an annualized return rate of 28.4%. MGM Mirage (NYSE: MGM) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $25.00 while simultaneously selling the June $25.00 call will result in a new position with a target return of 5.3%. Based on recent prices, this position will cost about $23.74, which is also the trade?s breakeven point. At that level, this covered call has 5.0% downside protection, while still providing a 5.3% return in 52 days as long as MGM is above $25.00 on 6/21/2014. For comparison purposes only, this MGM Mirage covered call aims for an annualized return rate of 37.2%. NRG Energy (NYSE: NRG) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $32.81 while selling the September $32.00 call will produce a new covered call with a break-even point around $30.71. At that price, this position has a target return of 4.2%. This trade will have roughly 6.4% downside protection, while still aiming for a 4.2% return in 143 days. It will lock in that return as long as NRG Energy is above $32.00 on 9/20/2014. For comparison purposes only, this NRG covered call aims for an annualized return rate of 10.7%. General Electric (NYSE: GE) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the December $27.00 call while at the same time buying GE stock for $26.74 will produce a new covered call with a target return of 5.3%. Based on recent data, this trade will cost about $25.63, which is also the covered call?s breakeven point. At that price, this covered call has 4.2% downside protection, while seeking an assigned return of 5.3% return in 234 days. If GE is higher than $27.00 on 12/20/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 8.3%. Novo Nordisk (NYSE: NVO) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the September $45.00 call while simultaneously buying NVO stock for $45.24 will result in a new position with a break-even point around $42.71. At that price, this position has a target return of 5.4%. This trade has 5.6% downside protection, while still providing a 5.4% return in 143 days as long as NVO is above $45.00 on 9/20/2014. For comparison purposes only, this Novo Nordisk covered call targets an annualized return rate of 13.7%. Visa (NYSE: V) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $202.67 while selling the September $200.00 call will produce a new covered call with a break-even point around $190.72. At that price, this position has a target return of 4.9%. This trade will have roughly 5.9% downside protection, while still aiming for a 4.9% return in 143 days. It will lock in that return as long as Visa is above $200.00 on 9/20/2014. For comparison purposes only, this V covered call aims for an annualized return rate of 12.4%. First Solar (NASDAQ: FSLR) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $66.28 while simultaneously selling the June $65.00 call will result in a new position with a target return of 7.3%. Based on recent prices, this position will cost about $60.58, which is also the trade?s breakeven point. At that level, this covered call has 8.6% downside protection, while still providing a 7.3% return in 52 days as long as FSLR is above $65.00 on 6/21/2014. For comparison purposes only, this First Solar covered call aims for an annualized return rate of 51.2%. Lockheed Martin (NYSE: LMT) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $162.00 while selling the September $165.00 call will produce a new covered call with a break-even point around $156.90. At that price, this position has a target return of 5.2%. This trade will have roughly 3.1% downside protection, while still aiming for a 5.2% return in 143 days. It will lock in that return as long as Lockheed Martin is above $165.00 on 9/20/2014. For comparison purposes only, this LMT covered call aims for an annualized return rate of 13.2%. T Rowe Price (NASDAQ: TROW) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the September $85.00 call while at the same time buying TROW stock for $81.80 will produce a new covered call with a target return of 5.7%. Based on recent data, this trade will cost about $80.40, which is also the covered call?s breakeven point. At that price, this covered call has 1.7% downside protection, while seeking an assigned return of 5.7% return in 143 days. If TROW is higher than $85.00 on 9/20/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 14.6%. RF Micro Devices (NASDAQ: RFMD) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the November $8.00 call while simultaneously buying RFMD stock for $8.09 will result in a new position with a break-even point around $7.14. At that price, this position has a target return of 12.0%. This trade has 11.7% downside protection, while still providing a 12.0% return in 206 days as long as RFMD is above $8.00 on 11/22/2014. For comparison purposes only, this RF Micro Devices covered call targets an annualized return rate of 21.3%. *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 ? 'Cut your losers short and let your winners run'. These limited risk techniques have saved investors thousands of dollars during unexpected market downturns and Black Swan events. The RadioActive Home Study Kit teaches the proper limited risk trade setup and the 10 different Income Methods that are used to lower the initial risk, potentially bulletproof your stock positions and earn extra income. The RadioActive Home Study Kit comes with a money back guarantee and a free month of access to the patented PowerOptions Suite of Tools! 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 Pepco (POM), RF Micro Devices (RFMD) and Garmin (GRMN) are headed higher this morning, while Express Scripts (ESRX), eBay (EBAY) and Weibo (WB) are dropping. TriQuint Semiconductor (TQNT), Columbia Sportswear (COLM) and Xylem (XYL) were upgraded by analysts this morning, while there were no major analyst downgrades. INTERNATIONAL MARKETS Asian indices were more negative than positive on Wednesday. The Shanghai SEC and the Nikkei 225 each gained small amounts, but the Hong Kong Hang Seng fell 1.4% and the Taiwan TSEC dropped 0.9%. A canceled IPO in Hong Kong for a pork company stole optimism away from many traders. In Europe, markets are not very much changed so far this morning. Eurozone inflation was lower than expected for April. Alstom shares rose again after that company reported received a sweetened offer from Siemens, trumping the General Electric (GE) offer made previously this week. At last check, the German DAX and British FTSE 100 were both slightly in positive territory, while the French CAC 40 and Euronext 100 are each slightly lower. FUTURES & CURRENCIES Energy futures are sharply lower in the commodities pits, with front- month West Texas Intermediate crude oil lower by more than 1% to $100.10. Natural gas, heating oil and gasoline are all falling as well. Precious metals are down across the board, with gold lower by 0.6% and silver off 1.5%. The U.S. Dollar is weaker against the Euro, but slightly stronger versus the Yen. PUT/CALL RATIO Yesterday, 1,090,565 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 666,455 put contracts. The single-session put/call was 0.61, while the 20-day moving average is now at 0.59. TODAY'S ECONOMIC CALENDAR 07:00 AM 4/26 MBA Mortgage Index 08:15 AM Apr ADP Employment Change 08:30 AM Q1 GDP-Adv. 08:30 AM Q1 Chain Deflator-Adv. 08:30 AM Q1 Employment Cost Index 09:45 AM Apr Chicago PMI 10:30 AM 4/26 Crude Inventories 02:00 PM Apr FOMC Rate Decision EARNINGS EXPECTED TODAY ACT ADP ATML EXC ICLR ICON IP MET SAM SGI SO SPRT TASR TWX VALE WDC YELP 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 |
