MORNING UPDATE: PriceWatch Alerts for AAPL and More... for 2014-03-21 |
| ------------------------------------------------------------------ MORNING UPDATE FOR MARCH 21, 2014 PriceWatch Alerts for INTC, YUM, PEP, GS, JKS, AAPL, FB, USB, CVC and SPWR. Intel (NASDAQ: INTC) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $25.43 while selling the October $26.00 call will produce a new covered call with a break-even point around $24.25. At that price, this position has a target return of 7.2%. This trade will have roughly 4.6% downside protection, while still aiming for a 7.2% return in 211 days. It will lock in that return as long as Intel is above $26.00 on 10/18/2014. For comparison purposes only, this INTC covered call aims for an annualized return rate of 12.5%. Yum Brands (NYSE: YUM) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $75.25 while simultaneously selling the July $75.00 call will result in a new position with a target return of 5.0%. Based on recent prices, this position will cost about $71.40, which is also the trade?s breakeven point. At that level, this covered call has 5.1% downside protection, while still providing a 5.0% return in 120 days as long as YUM is above $75.00 on 7/19/2014. For comparison purposes only, this Yum Brands covered call aims for an annualized return rate of 15.3%. PepsiCo (NYSE: PEP) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $81.86 while selling the October $85.00 call will produce a new covered call with a break-even point around $79.76. At that price, this position has a target return of 6.6%. This trade will have roughly 2.6% downside protection, while still aiming for a 6.6% return in 211 days. It will lock in that return as long as PepsiCo is above $85.00 on 10/18/2014. For comparison purposes only, this PEP covered call aims for an annualized return rate of 11.3%. Goldman Sachs (NYSE: GS) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the July $170.00 call while at the same time buying GS stock for $169.22 will produce a new covered call with a target return of 5.0%. Based on recent data, this trade will cost about $161.87, which is also the covered call?s breakeven point. At that price, this covered call has 4.3% downside protection, while seeking an assigned return of 5.0% return in 120 days. If GS is higher than $170.00 on 7/19/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 15.3%. JinkoSolar (NYSE: JKS) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the April $33.00 call while simultaneously buying JKS stock for $33.07 will result in a new position with a break-even point around $30.32. At that price, this position has a target return of 8.8%. This trade has 8.3% downside protection, while still providing a 8.8% return in 29 days as long as JKS is above $33.00 on 4/19/2014. For comparison purposes only, this JinkoSolar covered call targets an annualized return rate of 111.1%. Apple (NASDAQ: AAPL) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $528.70 while selling the July $525.00 call will produce a new covered call with a break-even point around $501.00. At that price, this position has a target return of 4.8%. This trade will have roughly 5.2% downside protection, while still aiming for a 4.8% return in 120 days. It will lock in that return as long as Apple is above $525.00 on 7/19/2014. For comparison purposes only, this AAPL covered call aims for an annualized return rate of 14.6%. Facebook (NASDAQ: FB) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $66.97 while simultaneously selling the May $62.50 call will result in a new position with a target return of 5.7%. Based on recent prices, this position will cost about $59.12, which is also the trade?s breakeven point. At that level, this covered call has 11.7% downside protection, while still providing a 5.7% return in 57 days as long as FB is above $62.50 on 5/17/2014. For comparison purposes only, this Facebook covered call aims for an annualized return rate of 36.6%. US Bancorp (NYSE: USB) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $42.90 while selling the September $44.00 call will produce a new covered call with a break-even point around $41.75. At that price, this position has a target return of 5.4%. This trade will have roughly 2.7% downside protection, while still aiming for a 5.4% return in 183 days. It will lock in that return as long as US Bancorp is above $44.00 on 9/20/2014. For comparison purposes only, this USB covered call aims for an annualized return rate of 10.7%. Cablevision Systems (NYSE: CVC) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the September $16.00 call while at the same time buying CVC stock for $16.55 will produce a new covered call with a target return of 7.0%. Based on recent data, this trade will cost about $14.95, which is also the covered call?s breakeven point. At that price, this covered call has 9.7% downside protection, while seeking an assigned return of 7.0% return in 183 days. If CVC is higher than $16.00 on 9/20/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 14.0%. SunPower (NASDAQ: SPWR) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the April $34.00 call while simultaneously buying SPWR stock for $34.25 will result in a new position with a break-even point around $32.31. At that price, this position has a target return of 5.2%. This trade has 5.7% downside protection, while still providing a 5.2% return in 29 days as long as SPWR is above $34.00 on 4/19/2014. For comparison purposes only, this SunPower covered call targets an annualized return rate of 65.8%. *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 Merck (MRK), Sears (SHLD) and JDS Uniphase (JDSU) are rising this morning, while Symantec (SYMC), China Mobil Games and Entertainment (CMGE) and Medivation (MDVN) are falling. Emerson Electric (EMR) was upgraded by analysts this morning, while Equity One (EQY) and Symantec (SYMC) were downgraded. INTERNATIONAL MARKETS International stock markets moved mostly higher overnight with just a couple scattered negative performances. In Asia, the Shanghai SEC gained 2.7% and the Hong Kong Hang Seng picked up 1.2%. Meanwhile the Nikkei 225 was closed for the day and the Taiwan TSEC dipped 0.2%. As for European markets, all the major indices are moving higher at last check, including the German DAX leading the way up 0.6%. The FTSE 100, French CAC 40 and Euronext 100 are each up about 0.4%. Losers in the region include Greece, Latvia, Iceland and Denmark. FUTURES & CURRENCIES Turning to commodity futures, front-month West Texas Intermediate crude is up 0.4% to $99.32 and both heating oil and gasoline are also higher. Natural gas is down 0.8% at $4.31. Precious metals are all higher, with front-month gold up $10.50 to $1,341. The U.S. Dollar is weaker against both the Euro and the Yen, as well as most other international currencies. The Bitcoin global average has fallen again in the early Friday morning hours and is now at $579. TODAY'S ECONOMIC CALENDAR There are no major economic reports scheduled for today. EARNINGS EXPECTED TODAY DRI TIF 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 |
