MORNING UPDATE: PriceWatch Alerts for TWTR and More... for 2014-03-03 |
| ------------------------------------------------------------------ MORNING UPDATE: PriceWatch Alerts for V, TWTR, KO and More... March 3, 9:00 AM ET - PriceWatch Alerts for V, TWTR, AKAM, AMD, HLF, KO, NWSA, MGM, FSLR, CIEN, Market Overview, News Leaders and Laggards, Today's Economic Calendar, and Index Support & Resistance Levels. PriceWatch Alerts for V, TWTR, AKAM, AMD, HLF, KO, NWSA, MGM, FSLR, CIEN. Visa (NYSE: V) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $225.94 while selling the September $225.00 call will produce a new covered call with a break-even point around $210.39. At that price, this position has a target return of 6.9%. This trade will have roughly 6.9% downside protection, while still aiming for a 6.9% return in 201 days. It will lock in that return as long as Visa is above $225.00 on 9/20/2014. For comparison purposes only, this V covered call aims for an annualized return rate of 12.6%. Twitter (NYSE: TWTR) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $54.91 while simultaneously selling the May $52.50 call will result in a new position with a target return of 10.0%. Based on recent prices, this position will cost about $47.71, which is also the trade?s breakeven point. At that level, this covered call has 13.1% downside protection, while still providing a 10.0% return in 75 days as long as TWTR is above $52.50 on 5/17/2014. For comparison purposes only, this Twitter covered call aims for an annualized return rate of 48.8%. Akamai Technologies (NASDAQ: AKAM) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $61.13 while simultaneously selling the May $60.00 call will result in a new position with a target return of 6.4%. Based on recent prices, this position will cost about $56.38, which is also the trade?s breakeven point. At that level, this covered call has 7.8% downside protection, while still providing a 6.4% return in 75 days as long as AKAM is above $60.00 on 5/17/2014. For comparison purposes only, this Akamai Technologies covered call aims for an annualized return rate of 31.2%. Advanced Micro Devices (NYSE: AMD) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $3.71 while selling the January $4.00 call will produce a new covered call with a break- even point around $2.76. At that price, this position has a target return of 44.9%. This trade will have roughly 25.6% downside protection, while still aiming for a 44.9% return in 683 days. It will lock in that return as long as Advanced Micro Devices is above $4.00 on 1/15/2016. For comparison purposes only, this AMD covered call aims for an annualized return rate of 24.0%. Herbalife (NYSE: HLF) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the March $67.50 call while simultaneously buying HLF stock for $66.60 will result in a new position with a break-even point around $63.85. At that price, this position has a target return of 5.7%. This trade has 4.1% downside protection, while still providing a 5.7% return in 19 days as long as HLF is above $67.50 on 3/22/2014. For comparison purposes only, this Herbalife covered call targets an annualized return rate of 109.7%. Coca Cola (NYSE: KO) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $38.20 while selling the August $39.00 call will produce a new covered call with a break-even point around $37.22. At that price, this position has a target return of 4.8%. This trade will have roughly 2.6% downside protection, while still aiming for a 4.8% return in 166 days. It will lock in that return as long as Coca Cola is above $39.00 on 8/16/2014. For comparison purposes only, this KO covered call aims for an annualized return rate of 10.5%. News Corp. (NASDAQ: NWSA) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $18.33 while simultaneously selling the October $19.00 call will result in a new position with a target return of 9.6%. Based on recent prices, this position will cost about $17.33, which is also the trade?s breakeven point. At that level, this covered call has 5.5% downside protection, while still providing a 9.6% return in 229 days as long as NWSA is above $19.00 on 10/18/2014. For comparison purposes only, this News Corp. covered call aims for an annualized return rate of 15.3%. MGM Mirage (NYSE: MGM) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $27.55 while selling the April $28.00 call will produce a new covered call with a break-even point around $26.55. At that price, this position has a target return of 5.5%. This trade will have roughly 3.6% downside protection, while still aiming for a 5.5% return in 47 days. It will lock in that return as long as MGM Mirage is above $28.00 on 4/19/2014. For comparison purposes only, this MGM covered call aims for an annualized return rate of 42.4%. First Solar (NASDAQ: FSLR) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the April $55.00 call while at the same time buying FSLR stock for $57.07 will produce a new covered call with a target return of 6.1%. Based on recent data, this trade will cost about $51.82, which is also the covered call?s breakeven point. At that price, this covered call has 9.2% downside protection, while seeking an assigned return of 6.1% return in 47 days. If FSLR is higher than $55.00 on 4/19/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 47.6%. Ciena (NASDAQ: CIEN) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the March $24.00 call while simultaneously buying CIEN stock for $24.57 will result in a new position with a break-even point around $22.91. At that price, this position has a target return of 4.8%. This trade has 6.8% downside protection, while still providing a 4.8% return in 19 days as long as CIEN is above $24.00 on 3/22/2014. For comparison purposes only, this Ciena covered call targets an annualized return rate of 91.3%. *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. NEWS LEADERS AND LAGGARDS Dendreon (DNDN), Array BioPharma (ARRY) and Randgold Resources (GOLD) are on the rise this morning, while VimpelCom (VIP), YY (YY) and Xilinx (XLNX) are drifting downward. Access Midstream Partners (ACMP) was upgraded by analysts this morning, while MarkWest Energy Partners (MWE), Cobalt Energy (CIE) and Infosys (INFY) were downgraded. MARKET OVERVIEW Most Asian shares moved lower overnight, including the Nikkei 225, which lost 1.3% and the Hong Kong Hang Seng, which dropped 1.5%. China was one just a few bright spots, with the Shanghai SEC gaining 0.9% while the rest of the region struggled. Chinese private manufacturing PMI was announced and came in slightly higher than expected. In Europe, the Ukrainian crisis is weighing heavily on stock markets. The German DAX is off more than 2.8% so far today, while the French CAC 40, and Euronext 100 are losing slightly more than 2%. The FTSE 100 is down 1.6%. European PMI came is slightly stronger than expected, but that data pales in comparison to the potential threat posed by aggressive Russian policies in "sovereign" European nations. Energy futures are soaring as traders worry about the situation in Ukraine. Since Russia is a huge producer of oil, conflict with that country could affect the supply of crude. West Texas Intermediate is up 2% to $104.60, while Brent crude is up 2.8% to $111.20. As a safe haven investment, gold is sharply higher, up 1.8% to $1,346. Silver and platinum are also higher, but copper is down 0.7%. The U.S. Dollar is stronger against the Euro and most other world currencies, but weaker against the Yen. The Bitcoin global average has risen early this morning from $560 to $587 at last check. PUT/CALL RATIO On Friday, 1,422,140 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 895,915 put contracts. The single-session put/call was 0.63, while the 20-day moving average is now at 0.6. SUPPORT & RESISTANCE LEVELS The S&P 500 Depository Receipts (SPY) ETF has support at $182.50 and is above resistance. The Nasdaq 100 (QQQ) has support at $87.50 and is above resistance. TODAY'S ECONOMIC CALENDAR 08:30 AM Jan Personal Income 08:30 AM Jan Personal Spending 08:30 AM Jan PCE Prices ? Core 10:00 AM Feb ISM Index 10:00 AM Jan Construction Spending 02:00 PM Feb Auto Sales 02:00 PM Feb Truck Sales EARNINGS EXPECTED TODAY DNDN SCTY VIPS 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 investors and investing in |
