MORNING UPDATE: PriceWatch Alerts for GLD and More... for 2014-04-01 |
| ------------------------------------------------------------------ MORNING UPDATE FOR April 1, 2014 PriceWatch Alerts for NWSA, GLD, MCD, TSL, CELG, LNKD, MGM, KO, SUNE, INFI, BIDU, GME, ADSK, CBS, URBN. News Corp. (NASDAQ: NWSA) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $17.22 while selling the October $17.00 call will produce a new covered call with a break-even point around $15.97. At that price, this position has a target return of 6.4%. This trade will have roughly 7.3% downside protection, while still aiming for a 6.4% return in 200 days. It will lock in that return as long as News Corp. is above $17.00 on 10/18/2014. For comparison purposes only, this NWSA covered call aims for an annualized return rate of 11.8%. Gold SPDR (AMEX: GLD) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $123.61 while simultaneously selling the July $125.00 call will result in a new position with a target return of 4.1%. Based on recent prices, this position will cost about $120.06, which is also the trade?s breakeven point. At that level, this covered call has 2.9% downside protection, while still providing a 4.1% return in 109 days as long as GLD is above $125.00 on 7/19/2014. For comparison purposes only, this Gold SPDR covered call aims for an annualized return rate of 13.8%. McDonald's (NYSE: MCD) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $98.03 while selling the September $100.00 call will produce a new covered call with a break-even point around $95.95. At that price, this position has a target return of 4.2%. This trade will have roughly 2.1% downside protection, while still aiming for a 4.2% return in 172 days. It will lock in that return as long as McDonald's is above $100.00 on 9/20/2014. For comparison purposes only, this MCD covered call aims for an annualized return rate of 9.0%. Trina Solar (NYSE: TSL) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the May $13.00 call while at the same time buying TSL stock for $13.45 will produce a new covered call with a target return of 8.8%. Based on recent data, this trade will cost about $11.95, which is also the covered call?s breakeven point. At that price, this covered call has 11.2% downside protection, while seeking an assigned return of 8.8% return in 46 days. If TSL is higher than $13.00 on 5/17/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 69.7%. Celgene (NASDAQ: CELG) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the May $140.00 call while simultaneously buying CELG stock for $139.60 will result in a new position with a break-even point around $133.20. At that price, this position has a target return of 5.1%. This trade has 4.6% downside protection, while still providing a 5.1% return in 46 days as long as CELG is above $140.00 on 5/17/2014. For comparison purposes only, this Celgene covered call targets an annualized return rate of 40.5%. LinkedIn (NYSE: LNKD) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $184.94 while selling the May $180.00 call will produce a new covered call with a break-even point around $169.39. At that price, this position has a target return of 6.3%. This trade will have roughly 8.4% downside protection, while still aiming for a 6.3% return in 46 days. It will lock in that return as long as LinkedIn is above $180.00 on 5/17/2014. For comparison purposes only, this LNKD covered call aims for an annualized return rate of 49.7%. MGM Mirage (NYSE: MGM) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $25.86 while simultaneously selling the May $26.00 call will result in a new position with a target return of 5.4%. Based on recent prices, this position will cost about $24.66, which is also the trade?s breakeven point. At that level, this covered call has 4.6% downside protection, while still providing a 5.4% return in 46 days as long as MGM is above $26.00 on 5/17/2014. For comparison purposes only, this MGM Mirage covered call aims for an annualized return rate of 43.1%. Coca Cola (NYSE: KO) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $38.66 while selling the November $40.00 call will produce a new covered call with a break-even point around $37.63. At that price, this position has a target return of 6.3%. This trade will have roughly 2.7% downside protection, while still aiming for a 6.3% return in 235 days. It will lock in that return as long as Coca Cola is above $40.00 on 11/22/2014. For comparison purposes only, this KO covered call aims for an annualized return rate of 9.8%. SunEdison (NYSE: SUNE) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the May $19.00 call while at the same time buying SUNE stock for $18.84 will produce a new covered call with a target return of 12.3%. Based on recent data, this trade will cost about $16.92, which is also the covered call?s breakeven point. At that price, this covered call has 10.2% downside protection, while seeking an assigned return of 12.3% return in 46 days. If SUNE is higher than $19.00 on 5/17/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 97.5%. Infinity Pharmaceuticals (NASDAQ: INFI) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the May $12.00 call while simultaneously buying INFI stock for $11.89 will result in a new position with a break- even point around $10.79. At that price, this position has a target return of 11.2%. This trade has 9.3% downside protection, while still providing a 11.2% return in 46 days as long as INFI is above $12.00 on 5/17/2014. For comparison purposes only, this Infinity Pharmaceuticals covered call targets an annualized return rate of 88.9%. Baidu.com (NASDAQ: BIDU) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $152.27 while selling the May $150.00 call will produce a new covered call with a break-even point around $141.12. At that price, this position has a target return of 6.3%. This trade will have roughly 7.3% downside protection, while still aiming for a 6.3% return in 46 days. It will lock in that return as long as Baidu.com is above $150.00 on 5/17/2014. For comparison purposes only, this BIDU covered call aims for an annualized return rate of 49.9%. GameStop (NYSE: GME) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $41.10 while simultaneously selling the May $41.00 call will result in a new position with a target return of 5.7%. Based on recent prices, this position will cost about $38.80, which is also the trade?s breakeven point. At that level, this covered call has 5.6% downside protection, while still providing a 5.7% return in 46 days as long as GME is above $41.00 on 5/17/2014. For comparison purposes only, this GameStop covered call aims for an annualized return rate of 45.0%. Autodesk (NASDAQ: ADSK) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $49.18 while selling the July $49.00 call will produce a new covered call with a break-even point around $45.73. At that price, this position has a target return of 7.2%. This trade will have roughly 7.0% downside protection, while still aiming for a 7.2% return in 109 days. It will lock in that return as long as Autodesk is above $49.00 on 7/19/2014. For comparison purposes only, this ADSK covered call aims for an annualized return rate of 23.9%. CBS (NYSE: CBS) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the May $65.00 call while at the same time buying CBS stock for $61.80 will produce a new covered call with a target return of 7.0%. Based on recent data, this trade will cost about $60.75, which is also the covered call?s breakeven point. At that price, this covered call has 1.7% downside protection, while seeking an assigned return of 7.0% return in 46 days. If CBS is higher than $65.00 on 5/17/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 55.5%. Urban Outfitters (NASDAQ: URBN) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the May $37.00 call while simultaneously buying URBN stock for $36.47 will result in a new position with a break-even point around $35.47. At that price, this position has a target return of 4.3%. This trade has 2.7% downside protection, while still providing a 4.3% return in 46 days as long as URBN is above $37.00 on 5/17/2014. For comparison purposes only, this Urban Outfitters covered call targets an annualized return rate of 34.2%. *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 Most international markets were bullish again overnight. In Asia, the Hong Kong Hang Seng led the way, up 1.3% while the Shanghai SEC picked up 0.7% and Taiwan TSEC gained 0.3%. Markets that finished in the red included Japan's Nikkei 225 and the Australian All-Ordinaries, but both lost only 0.2%. Official Chinese PMI rose slightly and came in just a touch above 50, beating the estimates by a small amount, while the private HSBC version fell slightly to 48. European markets are trekking higher partway through today's session. The German DAX, French CAC 40, Euronext 100 and FTSE 100 are all higher by at least 0.5% at last check, rising after euro zone PMI showed a continuing broad-based recovery in manufacturing. This marks two months in a row where all the European countries surveyed reported rising output. FUTURES & CURRENCIES In the commodities pits, crude oil and other energy futures are lower so far this morning, with front-month West Texas Intermediate crude oil down 0.2% at $101.32. Natural gas, gasoline and heating oil are all down less than one penny. Metals are all a small amount higher, with platinum the biggest mover for the second session in a row, up $13.60 or 0.9%. In currencies, the U.S. Dollar is weaker versus the Euro, but stronger against the Yen and most other currencies. The Bitcoin global average has rebounded in the past twelve hours to approach $500 and is at $481 at last check. PUT/CALL RATIO Yesterday, 957,440 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 545,919 put contracts. The single-session put/call was 0.57, while the 20-day moving average is now at 0.59. TODAY'S ECONOMIC CALENDAR 10:00 AM Mar ISM Index 10:00 AM Feb Construction Spending 02:00 PM Mar Auto Sales 02:00 PM Mat Truck Sales EARNINGS EXPECTED TODAY APOL 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 |
