MORNING UPDATE: PriceWatch Alerts for SSYS and More... for 2014-03-20 |
| ------------------------------------------------------------------ MORNING UPDATE FOR MARCH 20, 2014 PriceWatch Alerts for FF, KBH, SWHC, SAM, JCP, VIAB, SSYS, RFMD, KORS and EBAY. FutureFuel (NYSE: FF) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $21.00 while selling the August $20.00 call will produce a new covered call with a break-even point around $18.70. At that price, this position has a target return of 7.0%. This trade will have roughly 11.0% downside protection, while still aiming for a 7.0% return in 149 days. It will lock in that return as long as FutureFuel is above $20.00 on 8/16/2014. For comparison purposes only, this FF covered call aims for an annualized return rate of 17.0%. KB Home (NYSE: KBH) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $18.72 while simultaneously selling the July $18.00 call will result in a new position with a target return of 7.3%. Based on recent prices, this position will cost about $16.77, which is also the trade?s breakeven point. At that level, this covered call has 10.4% downside protection, while still providing a 7.3% return in 121 days as long as KBH is above $18.00 on 7/19/2014. For comparison purposes only, this KB Home covered call aims for an annualized return rate of 22.1%. Smith and Wesson (NASDAQ: SWHC) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $13.88 while selling the September $13.00 call will produce a new covered call with a break-even point around $11.93. At that price, this position has a target return of 9.0%. This trade will have roughly 14.0% downside protection, while still aiming for a 9.0% return in 184 days. It will lock in that return as long as Smith and Wesson is above $13.00 on 9/20/2014. For comparison purposes only, this SWHC covered call aims for an annualized return rate of 17.8%. Boston Beer Company (NYSE: SAM) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the June $230.00 call while at the same time buying SAM stock for $238.61 will produce a new covered call with a target return of 5.9%. Based on recent data, this trade will cost about $217.11, which is also the covered call?s breakeven point. At that price, this covered call has 9.0% downside protection, while seeking an assigned return of 5.9% return in 93 days. If SAM is higher than $230.00 on 6/21/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 23.3%. JC Penney (NYSE: JCP) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the August $8.00 call while simultaneously buying JCP stock for $8.27 will result in a new position with a break-even point around $6.84. At that price, this position has a target return of 17.0%. This trade has 17.3% downside protection, while still providing a 17.0% return in 149 days as long as JCP is above $8.00 on 8/16/2014. For comparison purposes only, this JC Penney covered call targets an annualized return rate of 41.5%. Viacom (NASDAQ: VIAB) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $87.85 while selling the June $87.50 call will produce a new covered call with a break-even point around $84.05. At that price, this position has a target return of 4.1%. This trade will have roughly 4.3% downside protection, while still aiming for a 4.1% return in 93 days. It will lock in that return as long as Viacom is above $87.50 on 6/21/2014. For comparison purposes only, this VIAB covered call aims for an annualized return rate of 16.1%. Stratasys (NASDAQ: SSYS) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $116.23 while simultaneously selling the April $115.00 call will result in a new position with a target return of 4.2%. Based on recent prices, this position will cost about $110.38, which is also the trade?s breakeven point. At that level, this covered call has 5.0% downside protection, while still providing a 4.2% return in 30 days as long as SSYS is above $115.00 on 4/19/2014. For comparison purposes only, this Stratasys covered call aims for an annualized return rate of 50.9%. RF Micro Devices (NASDAQ: RFMD) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $7.70 while selling the January $7.00 call will produce a new covered call with a break-even point around $6.00. At that price, this position has a target return of 16.7%. This trade will have roughly 22.1% downside protection, while still aiming for a 16.7% return in 666 days. It will lock in that return as long as RF Micro Devices is above $7.00 on 1/15/2016. For comparison purposes only, this RFMD covered call aims for an annualized return rate of 9.1%. Michael Kors (NYSE: KORS) 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 KORS stock for $98.71 will result in a new position with a break-even point around $93.66. At that price, this position has a target return of 4.1%. This trade has 5.1% downside protection, while still providing a 4.1% return in 58 days as long as KORS is above $97.50 on 5/17/2014. For comparison purposes only, this Michael Kors covered call targets an annualized return rate of 25.7%. eBay (NASDAQ: EBAY) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the May $57.50 call while at the same time buying EBAY stock for $57.30 will produce a new covered call with a target return of 4.9%. Based on recent data, this trade will cost about $54.81, 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 4.9% return in 58 days. If EBAY is higher than $57.50 on 5/17/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 30.8%. *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 Synta Pharmaceuticals (SNTA), Mannkind (MNKD) and First Solar (FSLR) are headed higher this morning, while The ExOne Company (XONE), FuelCell Energy (FCEL) and Kandi Technologies (KNDI) are losing ground. Infinera (INFN) was upgraded by analysts this morning, while Oracle (ORCL) and Signature Bank (SBNY) was downgraded. INTERNATIONAL MARKETS Overseas trading also took a nosedive overnight, following U.S. markets lower. Most major Asian indices lost upwards of 1%, with the Hong Kong Hang Seng dropping 1.8% and Japan's Nikkei 225 falling 1.6%. Of the bigger players, India was the strongest, losing only 0.4%. In Europe, performance so far this morning is not much better as focus remains on the latest dispatch from the FOMC. At last check, the FTSE 100 is down 1.0% on the day, while the other continental indices are down across the board but by less than 1% each. FUTURES & CURRENCIES Crude oil futures are down again this morning but have been doing a strange dance over the past few days where they fall in the morning but recover later in the day. Front-month West Texas Intermediate crude is currently down 0.4% to $98.73 while natural gas is off 0.2% at $4.38. Precious metals are all lower, with front-month gold down $19.70 to $1,321, silver down more than 3%, and copper off more than 2%. The U.S. Dollar is stronger against the Euro and most other major currencies but slightly weaker versus the Yen. The Bitcoin global average has dipped below $600. TODAY'S ECONOMIC CALENDAR 08:30 AM 3/15 Initial Claims 08:30 AM 3/08 Continuing Claims 10:00 AM Feb Existing Home Sales 10:00 AM Mar Philadelphia Fed 10:00 AM Feb Leading Indicators 10:30 AM 3/15 Natural Gas Inventories EARNINGS EXPECTED TODAY CAG 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 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. 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