MORNING UPDATE: PriceWatch Alerts for BITA and More... for 2014-04-02 |
| ------------------------------------------------------------------ MORNING UPDATE FOR APRIL 2, 2014 PriceWatch Alerts for BITA, SFUN, JKS, WUBA, YY, F, CSLT, GILD, TTWO, QIHU, LOW, BIG, WFM, CVX and ZNGA. BitAuto (NYSE: BITA) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $39.59 while selling the May $35.00 call will produce a new covered call with a break-even point around $32.84. At that price, this position has a target return of 6.6%. This trade will have roughly 17.0% downside protection, while still aiming for a 6.6% return in 45 days. It will lock in that return as long as BitAuto is above $35.00 on 5/17/2014. For comparison purposes only, this BITA covered call aims for an annualized return rate of 53.3%. SouFun (NYSE: SFUN) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $75.10 while simultaneously selling the May $70.00 call will result in a new position with a target return of 6.1%. Based on recent prices, this position will cost about $66.00, which is also the trade?s breakeven point. At that level, this covered call has 12.1% downside protection, while still providing a 6.1% return in 45 days as long as SFUN is above $70.00 on 5/17/2014. For comparison purposes only, this SouFun covered call aims for an annualized return rate of 49.2%. JinkoSolar (NYSE: JKS) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $31.24 while simultaneously selling the May $30.00 call will result in a new position with a target return of 8.3%. Based on recent prices, this position will cost about $27.69, which is also the trade?s breakeven point. At that level, this covered call has 11.4% downside protection, while still providing a 8.3% return in 45 days as long as JKS is above $30.00 on 5/17/2014. For comparison purposes only, this JinkoSolar covered call aims for an annualized return rate of 67.6%. 58.Com (NYSE: WUBA) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the May $40.00 call while at the same time buying WUBA stock for $46.80 will produce a new covered call with a target return of 5.1%. Based on recent data, this trade will cost about $38.05, which is also the covered call?s breakeven point. At that price, this covered call has 18.7% downside protection, while seeking an assigned return of 5.1% return in 45 days. If WUBA is higher than $40.00 on 5/17/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 41.5%. YY (NASDAQ: YY) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the May $75.00 call while simultaneously buying YY stock for $81.84 will result in a new position with a break-even point around $70.59. At that price, this position has a target return of 6.2%. This trade has 13.7% downside protection, while still providing a 6.2% return in 45 days as long as YY is above $75.00 on 5/17/2014. For comparison purposes only, this YY covered call targets an annualized return rate of 50.6%. Ford Motor (NYSE: F) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $16.32 while selling the January $17.00 call will produce a new covered call with a break-even point around $14.77. At that price, this position has a target return of 15.1%. This trade will have roughly 9.5% downside protection, while still aiming for a 15.1% return in 653 days. It will lock in that return as long as Ford Motor is above $17.00 on 1/15/2016. For comparison purposes only, this F covered call aims for an annualized return rate of 8.4%. Castlight Health (NYSE: CSLT) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $23.97 while simultaneously selling the August $22.50 call will result in a new position with a target return of 9.9%. Based on recent prices, this position will cost about $20.47, which is also the trade?s breakeven point. At that level, this covered call has 14.6% downside protection, while still providing a 9.9% return in 136 days as long as CSLT is above $22.50 on 8/16/2014. For comparison purposes only, this Castlight Health covered call aims for an annualized return rate of 26.6%. Gilead Sciences (NASDAQ: GILD) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $73.64 while simultaneously selling the May $72.50 call will result in a new position with a target return of 4.6%. Based on recent prices, this position will cost about $69.29, which is also the trade?s breakeven point. At that level, this covered call has 5.9% downside protection, while still providing a 4.6% return in 45 days as long as GILD is above $72.50 on 5/17/2014. For comparison purposes only, this Gilead Sciences covered call aims for an annualized return rate of 37.6%. TakeTwo Interactive (NASDAQ: TTWO) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the June $21.00 call while at the same time buying TTWO stock for $21.92 will produce a new covered call with a target return of 5.4%. Based on recent data, this trade will cost about $19.92, which is also the covered call?s breakeven point. At that price, this covered call has 9.1% downside protection, while seeking an assigned return of 5.4% return in 80 days. If TTWO is higher than $21.00 on 6/21/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 24.7%. Qihoo 360 Technology (NYSE: QIHU) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the May $97.50 call while simultaneously buying QIHU stock for $103.00 will result in a new position with a break-even point around $92.25. At that price, this position has a target return of 5.7%. This trade has 10.4% downside protection, while still providing a 5.7% return in 45 days as long as QIHU is above $97.50 on 5/17/2014. For comparison purposes only, this Qihoo 360 Technology covered call targets an annualized return rate of 46.2%. Lowe's (NYSE: LOW) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $49.43 while selling the July $49.00 call will produce a new covered call with a break-even point around $47.03. At that price, this position has a target return of 4.2%. This trade will have roughly 4.9% downside protection, while still aiming for a 4.2% return in 108 days. It will lock in that return as long as Lowe's is above $49.00 on 7/19/2014. For comparison purposes only, this LOW covered call aims for an annualized return rate of 14.1%. Big Lots (NYSE: BIG) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $37.96 while simultaneously selling the July $37.50 call will result in a new position with a target return of 6.7%. Based on recent prices, this position will cost about $35.16, which is also the trade?s breakeven point. At that level, this covered call has 7.4% downside protection, while still providing a 6.7% return in 108 days as long as BIG is above $37.50 on 7/19/2014. For comparison purposes only, this Big Lots covered call aims for an annualized return rate of 22.5%. Whole Foods (NASDAQ: WFM) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $52.17 while selling the August $50.00 call will produce a new covered call with a break-even point around $47.47. At that price, this position has a target return of 5.3%. This trade will have roughly 9.0% downside protection, while still aiming for a 5.3% return in 136 days. It will lock in that return as long as Whole Foods is above $50.00 on 8/16/2014. For comparison purposes only, this WFM covered call aims for an annualized return rate of 14.3%. Chevron (NYSE: CVX) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the September $125.00 call while at the same time buying CVX stock for $119.00 will produce a new covered call with a target return of 6.4%. Based on recent data, this trade will cost about $117.46, which is also the covered call?s breakeven point. At that price, this covered call has 1.3% downside protection, while seeking an assigned return of 6.4% return in 171 days. If CVX is higher than $125.00 on 9/20/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 13.7%. Zynga (NASDAQ: ZNGA) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the January $4.00 call while simultaneously buying ZNGA stock for $4.38 will result in a new position with a break-even point around $2.91. At that price, this position has a target return of 37.5%. This trade has 33.6% downside protection, while still providing a 37.5% return in 653 days as long as ZNGA is above $4.00 on 1/15/2016. For comparison purposes only, this Zynga covered call targets an annualized return rate of 20.9%. *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 MannKind (MNKD), Myriad Genetics (MYGN) and Monsanto (MON) are rising this morning, while New York Mortgage Trust (NYMT), Apollo Education Group (APOL) and ARM Holdings (ARM) are sinking. DSW (DSW) was upgraded by analysts this morning, while Healthstream (HSTM) was downgraded. INTERNATIONAL MARKETS The larger international markets were all bullish overnight. Asian trading was led by the Nikkei 225, which gained 1.0% after a Bank of Japan survey hinted at reasonable levels of inflation this year and yen continued to weaken. The Shanghai SEC and the Indian Sensex each rose 0.5%, while the Taiwan TSEC and Hong Kong Hang Seng added 0.3%. In Europe, the gains are smaller so far this morning. The major markets are all slightly higher at last check, including the French CAC 40, FTSE 100, and Euronext 100 all up less than 0.1%. However, there are some countries in the red, including Italy, Portugal and Spain. FUTURES & CURRENCIES Turning to commodities, crude oil and other energy futures are lower across the board this morning, with front-month West Texas Intermediate crude oil down 0.5% and below $100 for the first time in the past week. Natural gas, gasoline and heating oil are all off as well. Metals are all headed higher, with front-month gold up 0.9% to $1,291. Copper is up 1.2% and silver is higher by 1.9%. The U.S. Dollar is virtually unchanged against the Euro and the Yen. PUT/CALL RATIO Yesterday, 1,140,176 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 535,526 put contracts. The single-session put/call was 0.47, while the 20-day moving average is now at 0.59. TODAY'S ECONOMIC CALENDAR 07:00 AM 3/29 MBA Mortgage Index 08:15 AM Mar ADP Employment Change 10:00 AM Feb Factory Orders 10:30 AM 3/29 Crude Inventories EARNINGS EXPECTED TODAY NQ 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 |
