MORNING UPDATE: PriceWatch Alerts for BBBY and More... for 2014-04-14 |
| ------------------------------------------------------------------ MORNING UPDATE FOR April 14, 2014 PriceWatch Alerts for DIS, WAG, BMRN, CSIQ, MNKD, PRU, SNDK, MMM, BBBY and CVS. Walt Disney (NYSE: DIS) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $77.01 while selling the October $75.00 call will produce a new covered call with a break-even point around $70.66. At that price, this position has a target return of 6.1%. This trade will have roughly 8.2% downside protection, while still aiming for a 6.1% return in 187 days. It will lock in that return as long as Walt Disney is above $75.00 on 10/18/2014. For comparison purposes only, this DIS covered call aims for an annualized return rate of 12.0%. Walgreen (NYSE: WAG) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $64.26 while simultaneously selling the July $62.50 call will result in a new position with a target return of 4.3%. Based on recent prices, this position will cost about $59.91, which is also the trade?s breakeven point. At that level, this covered call has 6.8% downside protection, while still providing a 4.3% return in 96 days as long as WAG is above $62.50 on 7/19/2014. For comparison purposes only, this Walgreen covered call aims for an annualized return rate of 16.4%. BioMarin Pharmaceutical (NASDAQ: BMRN) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $57.25 while selling the July $55.00 call will produce a new covered call with a break-even point around $51.05. At that price, this position has a target return of 7.7%. This trade will have roughly 10.8% downside protection, while still aiming for a 7.7% return in 96 days. It will lock in that return as long as BioMarin Pharmaceutical is above $55.00 on 7/19/2014. For comparison purposes only, this BMRN covered call aims for an annualized return rate of 29.4%. Canadian Solar (NASDAQ: CSIQ) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the May $25.00 call while at the same time buying CSIQ stock for $24.99 will produce a new covered call with a target return of 9.7%. Based on recent data, this trade will cost about $22.79, which is also the covered call?s breakeven point. At that price, this covered call has 8.8% downside protection, while seeking an assigned return of 9.7% return in 33 days. If CSIQ is higher than $25.00 on 5/17/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 107.2%. MannKind (NASDAQ: MNKD) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the August $6.00 call while simultaneously buying MNKD stock for $6.41 will result in a new position with a break-even point around $4.66. At that price, this position has a target return of 28.8%. This trade has 27.3% downside protection, while still providing a 28.8% return in 124 days as long as MNKD is above $6.00 on 8/16/2014. For comparison purposes only, this MannKind covered call targets an annualized return rate of 84.6%. Prudential Financial (NYSE: PRU) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $77.61 while selling the June $77.50 call will produce a new covered call with a break-even point around $74.21. At that price, this position has a target return of 4.4%. This trade will have roughly 4.4% downside protection, while still aiming for a 4.4% return in 68 days. It will lock in that return as long as Prudential Financial is above $77.50 on 6/21/2014. For comparison purposes only, this PRU covered call aims for an annualized return rate of 23.8%. SanDisk (NASDAQ: SNDK) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $73.65 while simultaneously selling the May $73.50 call will result in a new position with a target return of 3.8%. Based on recent prices, this position will cost about $70.80, which is also the trade?s breakeven point. At that level, this covered call has 3.9% downside protection, while still providing a 3.8% return in 33 days as long as SNDK is above $73.50 on 5/17/2014. For comparison purposes only, this SanDisk covered call aims for an annualized return rate of 42.1%. 3M (NYSE: MMM) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $132.39 while selling the October $140.00 call will produce a new covered call with a break-even point around $129.79. At that price, this position has a target return of 7.9%. This trade will have roughly 2.0% downside protection, while still aiming for a 7.9% return in 187 days. It will lock in that return as long as 3M is above $140.00 on 10/18/2014. For comparison purposes only, this MMM covered call aims for an annualized return rate of 15.3%. Bed Bath and Beyond (NASDAQ: BBBY) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the May $62.50 call while at the same time buying BBBY stock for $63.72 will produce a new covered call with a target return of 6.8%. Based on recent data, this trade will cost about $58.52, which is also the covered call?s breakeven point. At that price, this covered call has 8.2% downside protection, while seeking an assigned return of 6.8% return in 33 days. If BBBY is higher than $62.50 on 5/17/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 75.2%. CVS Caremark (NYSE: CVS) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the November $75.00 call while simultaneously buying CVS stock for $72.58 will result in a new position with a break-even point around $69.63. At that price, this position has a target return of 7.7%. This trade has 4.1% downside protection, while still providing a 7.7% return in 222 days as long as CVS is above $75.00 on 11/22/2014. For comparison purposes only, this CVS Caremark covered call targets an annualized return rate of 12.7%. *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'. 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STOCKS ON THE MOVE WebMD (WBMD), JA Solar (JASO) and Citigroup (C) are rising this morning, while Xilinx (XLNX), Amgen (AMGN) and Medtronic (MDT) are falling. Seagate Tech (STX), F5 Networks (FFIV) and MasterCard (M) were upgraded by analysts this morning, while there were no major analyst downgrades. INTERNATIONAL MARKETS International trading kicked off the new week with mostly negative results. Asian markets were mixed, with the Taiwan TSEC falling 0.6% and the Nikkei 225 losing 0.4%. Australian shares had it the worst, dropping 1.3%. However Shanghai's SEC and Hong Kong's Hang Seng each eked out small gains. In Europe, stocks continue to be weak as the Ukrainian-Russian altercation flares up again. So far on Monday, the German DAX is down 0.6% and the Euronext 100, French CAC 40 and FTSE 100 are all off by 0.4%. Peugeot Citroen lost more than 4% after publishing a new turnaround plan. FUTURES & CURRENCIES Turning to commodities and other futures, energy contracts are little changed so far this morning. Front-month West Texas Intermediate crude is down $0.17 to $103.57, natural gas is down 0.6%, but heating oil and gasoline are slightly higher. Gold is up just 0.2%, but silver is off 0.9%. The U.S. Dollar is stronger against the Yen and the Euro, and the Bitcoin global average, which touched $356 on Friday afternoon has rebounded back above $450. PUT/CALL RATIO Yesterday, 1,085,976 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 814,735 put contracts. The single-session put/call was 0.75, while the 20-day moving average is now at 0.59. TODAY'S ECONOMIC CALENDAR 08:30 AM Mar Retail Sales 08:30 AM Mar Retail Sales ex-Auto 10:00 AM Feb Business Inventories EARNINGS EXPECTED TODAY C JBHT PBY PNFP 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 |
