MORNING UPDATE: PriceWatch Alerts for PLUG and More... for 2014-04-08 |
| ------------------------------------------------------------------ MORNING UPDATE FOR APRIL 8, 2014 PriceWatch Alerts for IBM, PBR, QCOM, CHRW, AMAT, JPM, AMGN, YHOO, NVDA, BUD, DISH, PLUG, ILMN, TWC and MRK. International Business Machines (NYSE: IBM) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $194.52 while selling the July $195.00 call will produce a new covered call with a break-even point around $187.12. At that price, this position has a target return of 4.2%. This trade will have roughly 3.8% downside protection, while still aiming for a 4.2% return in 102 days. It will lock in that return as long as International Business Machines is above $195.00 on 7/19/2014. For comparison purposes only, this IBM covered call aims for an annualized return rate of 15.1%. Petroleo Brasileiro (NYSE: PBR) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $14.22 while simultaneously selling the October $14.00 call will result in a new position with a target return of 10.9%. Based on recent prices, this position will cost about $12.62, which is also the trade?s breakeven point. At that level, this covered call has 11.3% downside protection, while still providing a 10.9% return in 193 days as long as PBR is above $14.00 on 10/18/2014. For comparison purposes only, this Petroleo Brasileiro covered call aims for an annualized return rate of 20.7%. Qualcomm (NASDAQ: QCOM) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $78.08 while selling the July $80.00 call will produce a new covered call with a break-even point around $75.91. At that price, this position has a target return of 5.4%. This trade will have roughly 2.8% downside protection, while still aiming for a 5.4% return in 102 days. It will lock in that return as long as Qualcomm is above $80.00 on 7/19/2014. For comparison purposes only, this QCOM covered call aims for an annualized return rate of 19.3%. CH Robinson Worldwide (NASDAQ: CHRW) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the August $52.50 call while at the same time buying CHRW stock for $52.04 will produce a new covered call with a target return of 6.0%. Based on recent data, this trade will cost about $49.54, which is also the covered call?s breakeven point. At that price, this covered call has 4.8% downside protection, while seeking an assigned return of 6.0% return in 130 days. If CHRW is higher than $52.50 on 8/16/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 16.8%. Applied Materials (NASDAQ: AMAT) 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 AMAT stock for $20.03 will result in a new position with a break-even point around $18.81. At that price, this position has a target return of 6.3%. This trade has 6.1% downside protection, while still providing a 6.3% return in 102 days as long as AMAT is above $20.00 on 7/19/2014. For comparison purposes only, this Applied Materials covered call targets an annualized return rate of 22.6%. JPMorgan (NYSE: JPM) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $59.00 while selling the July $60.00 call will produce a new covered call with a break-even point around $57.17. At that price, this position has a target return of 5.0%. This trade will have roughly 3.1% downside protection, while still aiming for a 5.0% return in 102 days. It will lock in that return as long as JPMorgan is above $60.00 on 7/19/2014. For comparison purposes only, this JPM covered call aims for an annualized return rate of 17.7%. Amgen (NASDAQ: AMGN) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $118.82 while simultaneously selling the October $115.00 call will result in a new position with a target return of 6.1%. Based on recent prices, this position will cost about $108.37, which is also the trade?s breakeven point. At that level, this covered call has 8.8% downside protection, while still providing a 6.1% return in 193 days as long as AMGN is above $115.00 on 10/18/2014. For comparison purposes only, this Amgen covered call aims for an annualized return rate of 11.6%. Yahoo (NASDAQ: YHOO) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $33.07 while selling the May $33.00 call will produce a new covered call with a break-even point around $31.22. 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 39 days. It will lock in that return as long as Yahoo is above $33.00 on 5/17/2014. For comparison purposes only, this YHOO covered call aims for an annualized return rate of 53.3%. NVIDIA (NASDAQ: NVDA) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the September $18.00 call while at the same time buying NVDA stock for $18.21 will produce a new covered call with a target return of 7.7%. Based on recent data, this trade will cost about $16.71, 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 7.7% return in 165 days. If NVDA is higher than $18.00 on 9/20/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 17.1%. Anheuser-Busch InBev (NYSE: BUD) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the June $110.00 call while simultaneously buying BUD stock for $105.70 will result in a new position with a break-even point around $104.55. At that price, this position has a target return of 5.2%. This trade has 1.1% downside protection, while still providing a 5.2% return in 74 days as long as BUD is above $110.00 on 6/21/2014. For comparison purposes only, this Anheuser-Busch InBev covered call targets an annualized return rate of 25.7%. Dish Network (NASDAQ: DISH) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $59.51 while selling the May $57.50 call will produce a new covered call with a break-even point around $54.91. At that price, this position has a target return of 4.7%. This trade will have roughly 7.7% downside protection, while still aiming for a 4.7% return in 39 days. It will lock in that return as long as Dish Network is above $57.50 on 5/17/2014. For comparison purposes only, this DISH covered call aims for an annualized return rate of 44.1%. Plug Power (NASDAQ: PLUG) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $6.74 while simultaneously selling the July $6.00 call will result in a new position with a target return of 21.5%. Based on recent prices, this position will cost about $4.94, which is also the trade?s breakeven point. At that level, this covered call has 26.7% downside protection, while still providing a 21.5% return in 102 days as long as PLUG is above $6.00 on 7/19/2014. For comparison purposes only, this Plug Power covered call aims for an annualized return rate of 76.8%. Illumina (NASDAQ: ILMN) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $140.46 while selling the May $135.00 call will produce a new covered call with a break-even point around $127.46. At that price, this position has a target return of 5.9%. This trade will have roughly 9.3% downside protection, while still aiming for a 5.9% return in 39 days. It will lock in that return as long as Illumina is above $135.00 on 5/17/2014. For comparison purposes only, this ILMN covered call aims for an annualized return rate of 55.3%. Time Warner Cable Inc. (NYSE: TWC) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the July $140.00 call while at the same time buying TWC stock for $136.24 will produce a new covered call with a target return of 5.4%. Based on recent data, this trade will cost about $132.79, which is also the covered call?s breakeven point. At that price, this covered call has 2.5% downside protection, while seeking an assigned return of 5.4% return in 102 days. If TWC is higher than $140.00 on 7/19/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 19.4%. Merck (NYSE: MRK) 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 MRK stock for $55.19 will result in a new position with a break-even point around $52.88. At that price, this position has a target return of 4.0%. This trade has 4.2% downside protection, while still providing a 4.0% return in 102 days as long as MRK is above $55.00 on 7/19/2014. For comparison purposes only, this Merck covered call targets an annualized return rate of 14.3%. *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. 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INTERNATIONAL MARKETS Asian stock markets were mixed overnight, with the Japanese Nikkei 225 falling another 1.3%, but the Shanghai SEC rising 1.9% and the Honk Kong Hang Seng gaining 1.0%. The Bank of Japan announced no changes to monetary policy, with Governor Haruhiko Kuroda saying the economy will survive the sales tax increase enacted last week and that the bank is not considering additional changes at this time. In Europe, stocks are once again heading lower. So far this morning, the Euronext 100, German DAX, French CAC 40 and FTSE 100 are each down at least 0.7%. In Ukraine, conflict is escalating in several cities outside of Crimea, causing concern among western countries. FUTURES & CURRENCIES Turning to commodities and futures, crude oil is higher this morning, with West Texas Intermediate up 0.9% to $101.40 for the front-month contract. Heating oil and gasoline are higher as well, but natural gas is slightly lower. Gold is up 1.0% at $1,312 and most other metals are following suit, but copper is slightly lower. The U.S. Dollar is weaker against all major international currencies, including the Yen and the Euro. PUT/CALL RATIO Yesterday, 1,162,203 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 660,127 put contracts. The single-session put/call was 0.57, while the 20-day moving average is now at 0.58. TODAY'S ECONOMIC CALENDAR 10:00 AM Feb JOLTS ? Job Openings EARNINGS EXPECTED TODAY AA 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 |
