MORNING UPDATE: PriceWatch Alerts for ZU and More... for 2014-02-26 |
| ------------------------------------------------------------------ MORNING UPDATE: PriceWatch Alerts for ITMN, ZU, JCI and More... February 26, 9:00 AM ET - PriceWatch Alerts for ITMN, INFI, ZU, XON, PPO, NDLS, PETM, GNC, DG, JCI, Market Overview, News Leaders and Laggards, Today's Economic Calendar, and Index Support & Resistance Levels. PriceWatch Alerts for ITMN, INFI, ZU, XON, PPO, NDLS, PETM, GNC, DG, JCI. InterMune (NASDAQ: ITMN) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $37.80 while selling the July $35.00 call will produce a new covered call with a break-even point around $29.15. At that price, this position has a target return of 20.1%. This trade will have roughly 22.9% downside protection, while still aiming for a 20.1% return in 143 days. It will lock in that return as long as InterMune is above $35.00 on 7/19/2014. For comparison purposes only, this ITMN covered call aims for an annualized return rate of 51.2%. Infinity Pharmaceuticals (NASDAQ: INFI) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $16.15 while simultaneously selling the July $16.00 call will result in a new position with a target return of 10.7%. Based on recent prices, this position will cost about $14.45, which is also the trade?s breakeven point. At that level, this covered call has 10.5% downside protection, while still providing a 10.7% return in 143 days as long as INFI is above $16.00 on 7/19/2014. For comparison purposes only, this Infinity Pharmaceuticals covered call aims for an annualized return rate of 27.4%. Zulily (NASDAQ: ZU) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $58.41 while selling the July $45.00 call will produce a new covered call with a break-even point around $41.56. At that price, this position has a target return of 8.3%. This trade will have roughly 28.8% downside protection, while still aiming for a 8.3% return in 143 days. It will lock in that return as long as Zulily is above $45.00 on 7/19/2014. For comparison purposes only, this ZU covered call aims for an annualized return rate of 21.1%. Intrexon (NYSE: XON) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the July $25.00 call while at the same time buying XON stock for $27.97 will produce a new covered call with a target return of 12.5%. Based on recent data, this trade will cost about $22.22, which is also the covered call?s breakeven point. At that price, this covered call has 20.6% downside protection, while seeking an assigned return of 12.5% return in 143 days. If XON is higher than $25.00 on 7/19/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 31.9%. Polypore (NYSE: PPO) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the June $30.00 call while simultaneously buying PPO stock for $32.50 will result in a new position with a break-even point around $28.25. At that price, this position has a target return of 6.2%. This trade has 13.1% downside protection, while still providing a 6.2% return in 115 days as long as PPO is above $30.00 on 6/21/2014. For comparison purposes only, this Polypore covered call targets an annualized return rate of 19.6%. Noodles & Co (NASDAQ: NDLS) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $36.65 while selling the May $35.00 call will produce a new covered call with a break-even point around $32.75. At that price, this position has a target return of 6.9%. This trade will have roughly 10.6% downside protection, while still aiming for a 6.9% return in 80 days. It will lock in that return as long as Noodles & Co is above $35.00 on 5/17/2014. For comparison purposes only, this NDLS covered call aims for an annualized return rate of 31.3%. PetSmart (NASDAQ: PETM) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $64.56 while simultaneously selling the July $62.50 call will result in a new position with a target return of 4.1%. Based on recent prices, this position will cost about $60.01, which is also the trade?s breakeven point. At that level, this covered call has 7.0% downside protection, while still providing a 4.1% return in 143 days as long as PETM is above $62.50 on 7/19/2014. For comparison purposes only, this PetSmart covered call aims for an annualized return rate of 10.6%. GNC (NYSE: GNC) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $48.37 while selling the June $47.50 call will produce a new covered call with a break-even point around $44.62. At that price, this position has a target return of 6.5%. This trade will have roughly 7.8% downside protection, while still aiming for a 6.5% return in 115 days. It will lock in that return as long as GNC is above $47.50 on 6/21/2014. For comparison purposes only, this GNC covered call aims for an annualized return rate of 20.5%. Dollar General (NYSE: DG) 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 DG stock for $58.02 will produce a new covered call with a target return of 5.3%. Based on recent data, this trade will cost about $54.62, which is also the covered call?s breakeven point. At that price, this covered call has 5.9% downside protection, while seeking an assigned return of 5.3% return in 80 days. If DG 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 24.0%. Johnson Controls (NYSE: JCI) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the July $49.00 call while simultaneously buying JCI stock for $49.72 will result in a new position with a break-even point around $46.57. At that price, this position has a target return of 5.2%. This trade has 6.3% downside protection, while still providing a 5.2% return in 143 days as long as JCI is above $49.00 on 7/19/2014. For comparison purposes only, this Johnson Controls covered call targets an annualized return rate of 13.3%. *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 TASER (TASR), Lowes (LOW) and Tesla (TSLA) are headed higher this morning, while QEP Resources (QEP), First Solar (FSLR) and Jazz Pharmaceuticals (JAZZ) are headed south. Glacier Bancorp (GBCI), Martha Stewart (MSO) and LinkedIn (LNKD) were upgraded by analysts this morning, while Newmont Mining (NEM), Ariad Pharmaceuticals (ARIA) and Halcon Resources (HK) were downgraded. MARKET OVERVIEW In Asia, the markets moved mostly higher overnight. In India, the Mumbai Sensex added 0.6%, the Hong Kong Hand Seng advanced 0.5%, and both the Shanghai SEC and Taiwan TSEC gained 0.3%. Heading in the opposite direction, the Nikkei 225 lost 0.5% as the Yen strengthened. The major European indices are all lower so far this morning. The FTSE 100, French CAC 40, German DAX and Euronext 100 are each losing at least 0.3% at last check. The only markets in positive territory in Europe are found in Belgium and Greece. In the futures pits, energy interests are mixed this morning, with West Texas Intermediate up 0.5% to $102.40, but natural gas is sharply lower, down another 3% to trade at $4.50. Gold is down $11 or 0.8% to $1,331 and other precious metals are also falling. The U.S. Dollar is stronger against all the major world currencies with the exception of the British Pound sterling. The Bitcoin global average has recovered some of its recent losses and is in the area of $550 early Wednesday morning. PUT/CALL RATIO Yesterday, 1,291,604 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 730,752 put contracts. The single-session put/call was 0.57, 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 and is above resistance. The Nasdaq 100 (QQQ) has support at $87.50 and is above resistance. TODAY'S ECONOMIC CALENDAR 07:00 AM 2/22 MBA Mortgage Index 10:00 AM Jan New Home Sales 10:30 AM 2/22 Crude Inventories EARNINGS EXPECTED TODAY ADSK AEGR AG BIDU CHK DLTR JCP LEAP LOW LITB NDLS SODA TASR TGT VALE WDAY 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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