MORNING UPDATE: PriceWatch Alerts for C and More... for 2014-04-15 |
| ------------------------------------------------------------------ MORNING UPDATE FOR APRIL 15, 2014 PriceWatch Alerts for C, WBMD, LINE, GRPN, WDAY, RDS.A, GMCR, VAL, LO, ENDP, CAT, VALE, CLVS, XLNX and ADM. Citigroup (NYSE: C) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $47.67 while selling the July $47.00 call will produce a new covered call with a break-even point around $45.02. At that price, this position has a target return of 4.4%. This trade will have roughly 5.6% downside protection, while still aiming for a 4.4% return in 95 days. It will lock in that return as long as Citigroup is above $47.00 on 7/19/2014. For comparison purposes only, this C covered call aims for an annualized return rate of 16.9%. WebMD Health (NASDAQ: WBMD) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $43.87 while simultaneously selling the May $45.00 call will result in a new position with a target return of 8.0%. Based on recent prices, this position will cost about $41.67, which is also the trade?s breakeven point. At that level, this covered call has 5.0% downside protection, while still providing a 8.0% return in 32 days as long as WBMD is above $45.00 on 5/17/2014. For comparison purposes only, this WebMD Health covered call aims for an annualized return rate of 91.1%. Linn Energy (NASDAQ: LINE) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $28.57 while selling the October $29.00 call will produce a new covered call with a break-even point around $27.17. At that price, this position has a target return of 6.7%. This trade will have roughly 4.9% downside protection, while still aiming for a 6.7% return in 186 days. It will lock in that return as long as Linn Energy is above $29.00 on 10/18/2014. For comparison purposes only, this LINE covered call aims for an annualized return rate of 13.2%. Groupon (NASDAQ: GRPN) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the October $7.00 call while at the same time buying GRPN stock for $6.94 will produce a new covered call with a target return of 19.5%. Based on recent data, this trade will cost about $5.86, which is also the covered call?s breakeven point. At that price, this covered call has 15.6% downside protection, while seeking an assigned return of 19.5% return in 186 days. If GRPN is higher than $7.00 on 10/18/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 38.2%. Workday (NYSE: WDAY) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the May $72.50 call while simultaneously buying WDAY stock for $73.00 will result in a new position with a break-even point around $68.25. At that price, this position has a target return of 6.2%. This trade has 6.5% downside protection, while still providing a 6.2% return in 32 days as long as WDAY is above $72.50 on 5/17/2014. For comparison purposes only, this Workday covered call targets an annualized return rate of 70.9%. Royal Dutch Shell (NYSE: RDS.A) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $74.09 while selling the October $77.50 call will produce a new covered call with a break-even point around $72.99. At that price, this position has a target return of 6.2%. This trade will have roughly 1.5% downside protection, while still aiming for a 6.2% return in 186 days. It will lock in that return as long as Royal Dutch Shell is above $77.50 on 10/18/2014. For comparison purposes only, this RDS.A covered call aims for an annualized return rate of 12.1%. Keurig Green Mountain (NASDAQ: GMCR) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $96.52 while simultaneously selling the May $95.00 call will result in a new position with a target return of 7.3%. Based on recent prices, this position will cost about $88.52, which is also the trade?s breakeven point. At that level, this covered call has 8.3% downside protection, while still providing a 7.3% return in 32 days as long as GMCR is above $95.00 on 5/17/2014. For comparison purposes only, this Keurig Green Mountain covered call aims for an annualized return rate of 83.5%. Valspar (NYSE: VAL) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $70.50 while selling the July $75.00 call will produce a new covered call with a break-even point around $69.20. At that price, this position has a target return of 8.4%. This trade will have roughly 1.8% downside protection, while still aiming for a 8.4% return in 95 days. It will lock in that return as long as Valspar is above $75.00 on 7/19/2014. For comparison purposes only, this VAL covered call aims for an annualized return rate of 32.2%. Lorillard (NYSE: LO) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the September $52.50 call while at the same time buying LO stock for $53.13 will produce a new covered call with a target return of 5.6%. Based on recent data, this trade will cost about $49.73, which is also the covered call?s breakeven point. At that price, this covered call has 6.4% downside protection, while seeking an assigned return of 5.6% return in 158 days. If LO is higher than $52.50 on 9/20/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 12.9%. Endo Pharmaceuticals (NASDAQ: ENDP) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the July $55.00 call while simultaneously buying ENDP stock for $56.78 will result in a new position with a break-even point around $50.53. At that price, this position has a target return of 8.8%. This trade has 11.0% downside protection, while still providing a 8.8% return in 95 days as long as ENDP is above $55.00 on 7/19/2014. For comparison purposes only, this Endo Pharmaceuticals covered call targets an annualized return rate of 34.0%. Caterpillar (NYSE: CAT) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $102.78 while selling the June $105.00 call will produce a new covered call with a break-even point around $100.53. At that price, this position has a target return of 4.4%. This trade will have roughly 2.2% downside protection, while still aiming for a 4.4% return in 67 days. It will lock in that return as long as Caterpillar is above $105.00 on 6/21/2014. For comparison purposes only, this CAT covered call aims for an annualized return rate of 24.2%. Vale (NYSE: VALE) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $14.84 while simultaneously selling the January $15.00 call will result in a new position with a target return of 10.4%. Based on recent prices, this position will cost about $13.59, which is also the trade?s breakeven point. At that level, this covered call has 8.4% downside protection, while still providing a 10.4% return in 277 days as long as VALE is above $15.00 on 1/17/2015. For comparison purposes only, this Vale covered call aims for an annualized return rate of 13.7%. Clovis Oncology (NASDAQ: CLVS) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $54.92 while selling the May $55.00 call will produce a new covered call with a break-even point around $49.42. At that price, this position has a target return of 11.3%. This trade will have roughly 10.0% downside protection, while still aiming for a 11.3% return in 32 days. It will lock in that return as long as Clovis Oncology is above $55.00 on 5/17/2014. For comparison purposes only, this CLVS covered call aims for an annualized return rate of 128.8%. Xilinx (NASDAQ: XLNX) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the September $50.00 call while at the same time buying XLNX stock for $51.69 will produce a new covered call with a target return of 4.4%. Based on recent data, this trade will cost about $47.89, 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 4.4% return in 158 days. If XLNX is higher than $50.00 on 9/20/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 10.2%. Archer Daniels Midland (NYSE: ADM) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the September $44.00 call while simultaneously buying ADM stock for $44.69 will result in a new position with a break-even point around $42.07. At that price, this position has a target return of 4.6%. This trade has 5.9% downside protection, while still providing a 4.6% return in 158 days as long as ADM is above $44.00 on 9/20/2014. For comparison purposes only, this Archer Daniels Midland covered call targets an annualized return rate of 10.6%. *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)! 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. 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INTERNATIONAL MARKETS In Asia, markets were mixed, with the Shanghai SEC losing 1.4% and the Hong Kong Hang Seng falling 1.6%. Traders are concerned about Chinese debt after new loans increased sharply in March. On the other side of the ledger, the Nikkei 225 advanced 0.6% and the Taiwan TSEC gained 0.7%. European markets are also varied but the spread between the gainers and losers is smaller. The German DAX is down 0.3% so far today, while the Euronext 100 and French CAC 40 are each higher by 0.3%. The situation in Eastern Ukraine took a turn toward armed conflict when military operations were launched to unseat pro-Russian forces that have occupied buildings. FUTURES & CURRENCIES In commodities and futures, energy interests are lower so far this morning across the board. Front-month West Texas Intermediate crude is down $0.94 to $103.11 and gasoline, heating oil and natural gas area also all lower. Gold has dipped 1.8% to $1,303, silver is off 1.6%, and copper is down 1.3%. The U.S. Dollar is stronger against all major international currencies, and the Bitcoin global average, topped $500 this morning. PUT/CALL RATIO Yesterday, 930,636 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 569,535 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 08:30 AM Mar CPI 08:30 AM Mar Core CPI 08:30 AM Apr Empire Manufacturing 09:00 AM Feb Net Long-Term TIC Flows 10:00 AM Apr NAHB Housing Market Index EARNINGS EXPECTED TODAY INTC JNJ KO YHOO 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 |
