MORNING UPDATE: PriceWatch Alerts for TER and More... for 2014-04-10 |
| ------------------------------------------------------------------ MORNING UPDATE FOR APRIL 10, 2014 PriceWatch Alerts for CMCSA, INVN, PXLW, XLRN, TER, WLT, TRLA, TEVA, FNSR and CCE. Comcast (NASDAQ: CMCSA) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $49.79 while selling the July $50.00 call will produce a new covered call with a break-even point around $47.87. At that price, this position has a target return of 4.4%. This trade will have roughly 3.9% downside protection, while still aiming for a 4.4% return in 100 days. It will lock in that return as long as Comcast is above $50.00 on 7/19/2014. For comparison purposes only, this CMCSA covered call aims for an annualized return rate of 16.2%. Invensense (NYSE: INVN) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $22.41 while simultaneously selling the May $22.00 call will result in a new position with a target return of 7.3%. Based on recent prices, this position will cost about $20.51, which is also the trade?s breakeven point. At that level, this covered call has 8.5% downside protection, while still providing a 7.3% return in 37 days as long as INVN is above $22.00 on 5/17/2014. For comparison purposes only, this Invensense covered call aims for an annualized return rate of 71.6%. Pixelworks (NASDAQ: PXLW) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $6.01 while selling the November $7.50 call will produce a new covered call with a break-even point around $5.01. At that price, this position has a target return of 49.7%. This trade will have roughly 16.6% downside protection, while still aiming for a 49.7% return in 226 days. It will lock in that return as long as Pixelworks is above $7.50 on 11/22/2014. For comparison purposes only, this PXLW covered call aims for an annualized return rate of 80.3%. Acceleron Pharma (NASDAQ: XLRN) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the May $35.00 call while at the same time buying XLRN stock for $37.83 will produce a new covered call with a target return of 5.3%. Based on recent data, this trade will cost about $33.23, which is also the covered call?s breakeven point. At that price, this covered call has 12.2% downside protection, while seeking an assigned return of 5.3% return in 37 days. If XLRN is higher than $35.00 on 5/17/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 52.5%. Teradyne (NYSE: TER) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the July $20.00 call while simultaneously buying TER stock for $19.74 will result in a new position with a break-even point around $18.74. At that price, this position has a target return of 6.7%. This trade has 5.1% downside protection, while still providing a 6.7% return in 100 days as long as TER is above $20.00 on 7/19/2014. For comparison purposes only, this Teradyne covered call targets an annualized return rate of 24.5%. Walter Energy (NYSE: WLT) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $7.83 while selling the June $8.00 call will produce a new covered call with a break-even point around $6.83. At that price, this position has a target return of 17.1%. This trade will have roughly 12.8% downside protection, while still aiming for a 17.1% return in 72 days. It will lock in that return as long as Walter Energy is above $8.00 on 6/21/2014. For comparison purposes only, this WLT covered call aims for an annualized return rate of 86.8%. Trulia (NYSE: TRLA) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $34.64 while simultaneously selling the June $30.00 call will result in a new position with a target return of 6.0%. Based on recent prices, this position will cost about $28.29, which is also the trade?s breakeven point. At that level, this covered call has 18.3% downside protection, while still providing a 6.0% return in 72 days as long as TRLA is above $30.00 on 6/21/2014. For comparison purposes only, this Trulia covered call aims for an annualized return rate of 30.6%. Teva Pharmaceutical (NASDAQ: TEVA) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $52.19 while selling the September $50.00 call will produce a new covered call with a break-even point around $47.54. At that price, this position has a target return of 5.2%. This trade will have roughly 8.9% downside protection, while still aiming for a 5.2% return in 163 days. It will lock in that return as long as Teva Pharmaceutical is above $50.00 on 9/20/2014. For comparison purposes only, this TEVA covered call aims for an annualized return rate of 11.6%. Finisar (NASDAQ: FNSR) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the May $26.00 call while at the same time buying FNSR stock for $26.38 will produce a new covered call with a target return of 4.7%. Based on recent data, this trade will cost about $24.83, 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 4.7% return in 37 days. If FNSR is higher than $26.00 on 5/17/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 46.5%. Coca Cola Enterprises (NYSE: CCE) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the August $46.00 call while simultaneously buying CCE stock for $46.46 will result in a new position with a break-even point around $44.16. At that price, this position has a target return of 4.2%. This trade has 5.0% downside protection, while still providing a 4.2% return in 128 days as long as CCE is above $46.00 on 8/16/2014. For comparison purposes only, this Coca Cola Enterprises covered call targets an annualized return rate of 11.9%. *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 Pixelworks (PXLW), Merck (MRK) and Ballard Power Systems (BLDP) are advancing this morning, while Bed Bath & Beyond (BBBY), Cablevision Systems (CVC) and Family Dollar (FDO) are in retreat. Zumiez (ZUMZ), Alkermes (ALKS) and AmerisourceBergen (ABC) were upgraded by analysts this morning, while Cabot Oil & Gas (COG) and Imperva (IMPV) were downgraded. INTERNATIONAL MARKETS International trading overnight was almost all positive. The major Asian markets all finished the session higher or little changed. The Shanghai SEC rose 1.4% and the Hong Kong Hang Seng gained 1.6%, while the Taiwan TSEC added 0.2% and the Japanese Nikkei 225 finished just barely in the green. The one glaring outlier was Indonesia, where markets fell upwards of 3% on the results of a political survey. In Europe, trading is also bullish so far this morning. The FTSE 100 and German DAX are higher by 0.4%, while the French CAC 40 and Euronext 100 are each up 0.1% at last check. The first Greek bond sale in years drew unexpectedly high demand, which set yields at 4.95% and gave market watchers optimism. FUTURES & CURRENCIES Turning to commodities, crude oil futures, which have been advancing sharply in recent days are pulling back slightly this morning. The front-month West Texas Intermediate contract is down just 0.2% to $103.37. Gold is higher by 1.3% at $1,323 and most metals are following suit. Silver is up 2.6% and platinum is higher by 1.5%. The U.S. Dollar is weaker this morning against the Yen and the Euro. The Bitcoin global average has tumbled overnight more than 6% and is now at $413 after a Chinese bank said it will close the account of the world's largest Bitcoin exchange. PUT/CALL RATIO Yesterday, 1,215,530 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 551,511 put contracts. The single-session put/call was 0.45, while the 20-day moving average is now at 0.58. TODAY'S ECONOMIC CALENDAR 08:30 AM 4/05 Initial Claims 08:30 AM 3/29 Continuing Claims 08:30 AM Mar Export Prices ex-ag 08:30 AM Mar Import Prices ex-oil 10:30 AM 4/05 Natural Gas Inventories 02:00 PM Mar Treasury Budget EARNINGS EXPECTED TODAY FDO PIR RAD 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 |
