MORNING UPDATE: PriceWatch Alerts for AMZN and More... for 2014-03-27 |
| MORNING UPDATE FOR MARCH 27, 2014 PriceWatch Alerts for AMZN, ADBE, PETM, GSK, DG, DTV, BIIB, TWX, ISIS and DWA. Amazon (NASDAQ: AMZN) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $343.41 while selling the May $340.00 call will produce a new covered call with a break-even point around $324.41. At that price, this position has a target return of 4.8%. This trade will have roughly 5.5% downside protection, while still aiming for a 4.8% return in 51 days. It will lock in that return as long as Amazon is above $340.00 on 5/17/2014. For comparison purposes only, this AMZN covered call aims for an annualized return rate of 34.4%. Adobe Systems (NASDAQ: ADBE) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $63.90 while simultaneously selling the May $65.00 call will result in a new position with a target return of 4.3%. Based on recent prices, this position will cost about $62.30, which is also the trade?s breakeven point. At that level, this covered call has 2.5% downside protection, while still providing a 4.3% return in 51 days as long as ADBE is above $65.00 on 5/17/2014. For comparison purposes only, this Adobe Systems covered call aims for an annualized return rate of 31.0%. PetSmart (NASDAQ: PETM) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $68.30 while selling the May $70.00 call will produce a new covered call with a break-even point around $67.10. At that price, this position has a target return of 4.3%. This trade will have roughly 1.8% downside protection, while still aiming for a 4.3% return in 51 days. It will lock in that return as long as PetSmart is above $70.00 on 5/17/2014. For comparison purposes only, this PETM covered call aims for an annualized return rate of 30.9%. GlaxoSmithKline PLC (NYSE: GSK) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the August $55.00 call while at the same time buying GSK stock for $53.59 will produce a new covered call with a target return of 5.0%. Based on recent data, this trade will cost about $52.39, which is also the covered call?s breakeven point. At that price, this covered call has 2.2% downside protection, while seeking an assigned return of 5.0% return in 142 days. If GSK is higher than $55.00 on 8/16/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 12.8%. Dollar General (NYSE: DG) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the May $57.50 call while simultaneously buying DG stock for $55.59 will result in a new position with a break-even point around $54.09. At that price, this position has a target return of 6.3%. This trade has 2.7% downside protection, while still providing a 6.3% return in 51 days as long as DG is above $57.50 on 5/17/2014. For comparison purposes only, this Dollar General covered call targets an annualized return rate of 45.1%. DirecTV (NASDAQ: DTV) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $77.34 while selling the May $77.50 call will produce a new covered call with a break-even point around $74.09. At that price, this position has a target return of 4.6%. This trade will have roughly 4.2% downside protection, while still aiming for a 4.6% return in 51 days. It will lock in that return as long as DirecTV is above $77.50 on 5/17/2014. For comparison purposes only, this DTV covered call aims for an annualized return rate of 32.9%. Biogen Idec (NASDAQ: BIIB) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $305.93 while simultaneously selling the May $305.00 call will result in a new position with a target return of 6.4%. Based on recent prices, this position will cost about $286.73, which is also the trade?s breakeven point. At that level, this covered call has 6.3% downside protection, while still providing a 6.4% return in 51 days as long as BIIB is above $305.00 on 5/17/2014. For comparison purposes only, this Biogen Idec covered call aims for an annualized return rate of 45.6%. Time Warner (NYSE: TWX) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $64.65 while selling the July $65.00 call will produce a new covered call with a break-even point around $62.20. At that price, this position has a target return of 4.5%. This trade will have roughly 3.8% downside protection, while still aiming for a 4.5% return in 114 days. It will lock in that return as long as Time Warner is above $65.00 on 7/19/2014. For comparison purposes only, this TWX covered call aims for an annualized return rate of 14.4%. Isis Pharmaceuticals (NASDAQ: ISIS) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the April $41.00 call while at the same time buying ISIS stock for $42.07 will produce a new covered call with a target return of 5.8%. Based on recent data, this trade will cost about $38.77, which is also the covered call?s breakeven point. At that price, this covered call has 7.8% downside protection, while seeking an assigned return of 5.8% return in 23 days. If ISIS is higher than $41.00 on 4/19/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 91.3%. DreamWorks Animation (NASDAQ: DWA) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the May $26.00 call while simultaneously buying DWA stock for $26.02 will result in a new position with a break-even point around $24.37. At that price, this position has a target return of 6.7%. This trade has 6.3% downside protection, while still providing a 6.7% return in 51 days as long as DWA is above $26.00 on 5/17/2014. For comparison purposes only, this DreamWorks Animation covered call targets an annualized return rate of 47.8%. *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? 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'. 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STOCKS ON THE MOVE Baxter International (BAX), Conns (CONN) and Capstone Turbine (CPST) are headed higher this morning, while Citigroup (C), Blackberry (BBRY) and Canadian Solar (CSIQ) are falling. There were no major analyst upgrades or downgrades this morning. INTERNATIONAL MARKETS International market performance was mixed overnight. Asian trading started off mostly negative, but the Nikkei 225 turned things around and finished the session 1.0% higher. Toyota Motors (TM) led things higher after announcing a new share buyback program. The Indian Sensex and Taiwanese TSEC each gained about 0.5%, while the Shanghai SEC lost 0.8%. In Europe, trading this morning kicked off on the negative side. French consumer confidence and United Kingdom retail sales data were both positive, but at last check, most major European indices were in red territory. The FTSE 100 is off 0.5% while the French CAC 40 and German DAX are each lower by 0.2%. FUTURES & CURRENCIES Energy futures are higher across the board on Thursday morning, with front-month West Texas Intermediate crude is up 0.8% at $101.10. Heating oil, gasoline, and natural gas are all higher as well. Most precious metals are falling, with gold down 0.6% to dip below $1,300, but copper is higher by 1%. In currencies, recent trends are continuing, with the U.S. Dollar is gaining versus the Euro and the Yen, but falling against the Peso, the Canadian and Australian Dollars as well as the British Pound. The Bitcoin global average has lost about 6% in the past day and is now down to $556. PUT/CALL RATIO Yesterday, 1,190,334 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 765,067 put contracts. The single-session put/call was 0.64, while the 20-day moving average is now at 0.59. TODAY'S ECONOMIC CALENDAR 08:30 AM 3/22 Initial Claims 08:30 AM 3/15 Continuing Claims 08:30 AM Q4 GDP ? Third Estimate 08:30 AM Q4 GDP Deflator ? Third Estimate 10:00 AM Feb Pending Home Sales 10:30 AM 3/22 Natural Gas Inventories EARNINGS EXPECTED TODAY GME LULU RHT VJET XON 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 |
