MORNING UPDATE: PriceWatch Alerts for ISRG and More... for 2014-04-04 |
| ------------------------------------------------------------------ MORNING UPDATE FOR APRIL 4, 2014 PriceWatch Alerts for VLO, TGT, ETFC, IDCC, ZU, MON, ISRG, ICE, APC and HRB. Valero Energy (NYSE: VLO) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $55.79 while selling the June $55.00 call will produce a new covered call with a break-even point around $52.14. At that price, this position has a target return of 5.5%. This trade will have roughly 6.5% downside protection, while still aiming for a 5.5% return in 77 days. It will lock in that return as long as Valero Energy is above $55.00 on 6/20/2014. For comparison purposes only, this VLO covered call aims for an annualized return rate of 26.0%. Target (NYSE: TGT) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $61.72 while simultaneously selling the July $62.50 call will result in a new position with a target return of 4.0%. Based on recent prices, this position will cost about $60.09, which is also the trade?s breakeven point. At that level, this covered call has 2.6% downside protection, while still providing a 4.0% return in 106 days as long as TGT is above $62.50 on 7/19/2014. For comparison purposes only, this Target covered call aims for an annualized return rate of 13.8%. E*Trade Financial (NASDAQ: ETFC) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the July $22.00 call while at the same time buying ETFC stock for $22.16 will produce a new covered call with a target return of 7.6%. Based on recent data, this trade will cost about $20.45, which is also the covered call?s breakeven point. At that price, this covered call has 7.7% downside protection, while seeking an assigned return of 7.6% return in 106 days. If ETFC is higher than $22.00 on 7/19/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 26.1%. InterDigital (NASDAQ: IDCC) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the September $32.50 call while simultaneously buying IDCC stock for $34.40 will result in a new position with a break-even point around $30.30. At that price, this position has a target return of 7.3%. This trade has 11.9% downside protection, while still providing a 7.3% return in 169 days as long as IDCC is above $32.50 on 9/20/2014. For comparison purposes only, this InterDigital covered call targets an annualized return rate of 15.7%. Zulily (NASDAQ: ZU) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $51.42 while selling the May $50.00 call will produce a new covered call with a break-even point around $45.22. At that price, this position has a target return of 10.6%. This trade will have roughly 12.1% downside protection, while still aiming for a 10.6% return in 42 days. It will lock in that return as long as Zulily is above $50.00 on 5/16/2014. For comparison purposes only, this ZU covered call aims for an annualized return rate of 91.9%. Monsanto (NYSE: MON) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $117.04 while simultaneously selling the October $120.00 call will result in a new position with a target return of 7.5%. Based on recent prices, this position will cost about $111.59, which is also the trade?s breakeven point. At that level, this covered call has 4.7% downside protection, while still providing a 7.5% return in 197 days as long as MON is above $120.00 on 10/18/2014. For comparison purposes only, this Monsanto covered call aims for an annualized return rate of 14.0%. Intuitive Surgical (NASDAQ: ISRG) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the May $540.00 call while at the same time buying ISRG stock for $540.52 will produce a new covered call with a target return of 5.5%. Based on recent data, this trade will cost about $512.02, which is also the covered call?s breakeven point. At that price, this covered call has 5.3% downside protection, while seeking an assigned return of 5.5% return in 42 days. If ISRG is higher than $540.00 on 5/16/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 47.5%. Intercontinental Exchange (NYSE: ICE) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the September $200.00 call while simultaneously buying ICE stock for $202.18 will result in a new position with a break-even point around $189.28. At that price, this position has a target return of 5.7%. This trade has 6.4% downside protection, while still providing a 5.7% return in 169 days as long as ICE is above $200.00 on 9/20/2014. For comparison purposes only, this Intercontinental Exchange covered call targets an annualized return rate of 12.2%. Anadarko Petroleum (NYSE: APC) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $99.00 while selling the August $95.00 call will produce a new covered call with a break-even point around $90.95. At that price, this position has a target return of 4.5%. This trade will have roughly 8.1% downside protection, while still aiming for a 4.5% return in 134 days. It will lock in that return as long as Anadarko Petroleum is above $95.00 on 8/16/2014. For comparison purposes only, this APC covered call aims for an annualized return rate of 12.1%. H&R Block (NYSE: HRB) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $29.97 while simultaneously selling the July $29.00 call will result in a new position with a target return of 4.8%. Based on recent prices, this position will cost about $27.67, which is also the trade?s breakeven point. At that level, this covered call has 7.7% downside protection, while still providing a 4.8% return in 106 days as long as HRB is above $29.00 on 7/19/2014. For comparison purposes only, this H&R Block covered call aims for an annualized return rate of 16.5%. *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 Mylan (MYL), Align Technology (ALGN) and Micron Technology (MU) are advancing this morning, while Carmax (KMX), Halozyme Therapeutics (HALO) and Five Below (FIVE) are in retreat. Myriad Genetics (MYGN) and Scripps Networks Interactive (SNI) were upgraded by analysts this morning. There were no major analyst downgrades. INTERNATIONAL MARKETS Asian trading was varied overnight, with China's Shanghai SEC rising 0.7%, but the Taiwan TSEC, Japan's Nikkei 225 and Hong Kong's Hang Seng all losing small amounts. Chinese interests bucked the regional trend on continued optimism surrounding the recently announced stimulus package. In Europe, trading is slightly positive so far this morning. The German DAX, French CAC 40 and FTSE 100 are each higher by 0.2% - 0.4%. German manufacturing in February grew unexpectedly, but January's data was revised lower. If the continent-wide Stoxx Europe 600 can finish today's session in the green, it will mark the ninth consecutive positive day of trading. FUTURES & CURRENCIES Turning to commodities, crude oil surged late on Thursday and early this morning. The front-month contract for West Texas Intermediate crude oil is now above $101, up 0.9% so far today. Heating oil and gasoline are very slightly higher while natural gas is down 0.4%. Most metals are higher, including gold, which is up 0.8% at $1,294. The U.S. Dollar is stronger against the Euro and weaker against the Yen, in a reversal of recent trends. PUT/CALL RATIO Yesterday, 1,036,264 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 616,291 put contracts. The single-session put/call was 0.59, while the 20-day moving average is at 0.59, where it seems to have parked for the time being. TODAY'S ECONOMIC CALENDAR 08:30 AM Mar Nonfarm Payrolls 08:30 AM Mar Nonfarm Private Payrolls 08:30 AM Mar Unemployment Rate 08:30 AM Mar Hourly Earnings 08:30 AM Mar Average Workweek EARNINGS EXPECTED TODAY GY KMZ 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 |
