MORNING UPDATE: PriceWatch Alerts for CERN and More... for 2014-04-03 |
| ------------------------------------------------------------------ MORNING UPDATE FOR APRIL 3, 2014 PriceWatch Alerts for MYGN, PCLN, PRLB, INVN, SNY, CERN, CRM, DFS, DOW and CTRP. Myriad Genetics (NASDAQ: MYGN) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $39.18 while selling the May $39.00 call will produce a new covered call with a break-even point around $36.43. At that price, this position has a target return of 7.1%. This trade will have roughly 7.0% downside protection, while still aiming for a 7.1% return in 44 days. It will lock in that return as long as Myriad Genetics is above $39.00 on 5/17/2014. For comparison purposes only, this MYGN covered call aims for an annualized return rate of 58.5%. Priceline.com (NASDAQ: PCLN) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $1,266.66 while simultaneously selling the May $1,265.00 call will result in a new position with a target return of 5.2%. Based on recent prices, this position will cost about $1,202.66, which is also the trade?s breakeven point. At that level, this covered call has 5.1% downside protection, while still providing a 5.2% return in 44 days as long as PCLN is above $1,265.00 on 5/17/2014. For comparison purposes only, this Priceline.com covered call aims for an annualized return rate of 43.0%. Proto Labs (NYSE: PRLB) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $68.44 while selling the May $65.00 call will produce a new covered call with a break-even point around $61.84. At that price, this position has a target return of 5.1%. This trade will have roughly 9.6% downside protection, while still aiming for a 5.1% return in 44 days. It will lock in that return as long as Proto Labs is above $65.00 on 5/17/2014. For comparison purposes only, this PRLB covered call aims for an annualized return rate of 42.3%. Invensense (NYSE: INVN) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the May $22.00 call while at the same time buying INVN stock for $23.10 will produce a new covered call with a target return of 7.3%. Based on recent data, this trade will cost about $20.50, which is also the covered call?s breakeven point. At that price, this covered call has 11.3% downside protection, while seeking an assigned return of 7.3% return in 44 days. If INVN is higher than $22.00 on 5/17/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 60.6%. Sanofi (NYSE: SNY) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the September $55.00 call while simultaneously buying SNY stock for $52.02 will result in a new position with a break-even point around $51.02. At that price, this position has a target return of 7.8%. This trade has 1.9% downside protection, while still providing a 7.8% return in 170 days as long as SNY is above $55.00 on 9/20/2014. For comparison purposes only, this Sanofi covered call targets an annualized return rate of 16.7%. Cerner (NASDAQ: CERN) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $56.13 while selling the June $55.00 call will produce a new covered call with a break-even point around $52.63. At that price, this position has a target return of 4.5%. This trade will have roughly 6.2% downside protection, while still aiming for a 4.5% return in 79 days. It will lock in that return as long as Cerner is above $55.00 on 6/21/2014. For comparison purposes only, this CERN covered call aims for an annualized return rate of 20.8%. Salesforce.com (NYSE: CRM) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $58.15 while simultaneously selling the May $57.50 call will result in a new position with a target return of 4.5%. Based on recent prices, this position will cost about $55.05, which is also the trade?s breakeven point. At that level, this covered call has 5.3% downside protection, while still providing a 4.5% return in 44 days as long as CRM is above $57.50 on 5/17/2014. For comparison purposes only, this Salesforce.com covered call aims for an annualized return rate of 36.9%. Discover (NYSE: DFS) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $59.18 while selling the July $60.00 call will produce a new covered call with a break-even point around $56.98. At that price, this position has a target return of 5.3%. This trade will have roughly 3.7% downside protection, while still aiming for a 5.3% return in 107 days. It will lock in that return as long as Discover is above $60.00 on 7/19/2014. For comparison purposes only, this DFS covered call aims for an annualized return rate of 18.1%. Dow Chemical (NYSE: DOW) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the June $50.00 call while at the same time buying DOW stock for $49.90 will produce a new covered call with a target return of 4.4%. Based on recent data, this trade will cost about $47.90, which is also the covered call?s breakeven point. At that price, this covered call has 4.0% downside protection, while seeking an assigned return of 4.4% return in 79 days. If DOW is higher than $50.00 on 6/21/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 20.2%. Ctrip.com (NASDAQ: CTRP) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $52.17 while simultaneously selling the May $49.00 call will result in a new position with a target return of 6.1%. Based on recent prices, this position will cost about $46.17, which is also the trade?s breakeven point. At that level, this covered call has 11.5% downside protection, while still providing a 6.1% return in 44 days as long as CTRP is above $49.00 on 5/17/2014. For comparison purposes only, this Ctrip.com covered call aims for an annualized return rate of 50.8%. *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? 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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 Ctrip.com (CTRP), MannKind (MNKD) and FuelCell Energy (FCEL) are headed higher this morning, while VIVUS (VVUS), ARIAD Pharmaceuticals (ARIA) and Tesla (TSLA) are in decline. G&K Services (GK) was downgraded by analysts this morning. INTERNATIONAL MARKETS International trading overnight was relatively directionless. In Asia, Japan's Nikkei 225 moved higher by 0.8% as the Yen softened again. China's Shanghai SEC fell 0.7% after the state Council announced new stimulus plans that included money for railroads and low income housing. The Taiwan TSEC, Mumbai Sensex, and Hong Kong Hang Seng were all less than 0.2% of Wednesday's closing level. European trading so far this morning is also quiet, with the German DAX, French CAC 40 and Euronext 100 each down just 0.2% at last check. As expected, the European Central Bank did not adjust rates and traders will look to ECB President Mario Draghi's imminent press conference for hints about what might come next. FUTURES & CURRENCIES In commodities, crude oil and other energy futures relatively flat so far this morning. West Texas Intermediate crude oil is holding steady at $99.55, down just a few cents while natural gas, gasoline and heating oil are a small amount higher. Metals are all in negative territory, including gold off 0.5% at $1,284 and silver lower by 1.1%. The U.S. Dollar is stronger against the Yen and weaker against the Euro. The Bitcoin global average fell sharply on Wednesday afternoon, dropping 12% in the course of one day and touching lows below $420 before rebounding to $434 at last check. PUT/CALL RATIO Yesterday, 1,034,225 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 532,460 put contracts. The single-session put/call was 0.51, while the 20-day moving average is now at 0.59. TODAY'S ECONOMIC CALENDAR 07:30 AM Mar Challenger Job Cuts 08:30 AM 3/29 Initial Claims 08:30 AM 3/22 Continuing Claims 08:30 AM Feb Trade Balance 10:00 AM Mar ISM Services 10:30 AM 3/29 Natural Gas Inventories EARNINGS EXPECTED TODAY GBX MU 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 |
