MORNING UPDATE: PriceWatch Alerts for BAC and More... for 2014-02-16 |
| ------------------------------------------------------------------ MORNING UPDATE: PriceWatch Alerts for BAC, JCP, MO and More... February 6, 9:00 AM ET - PriceWatch Alerts for BAC, JCP, VALE, CRM, SAP, MO, ASML, ACET, SOHU, GNTX, Market Overview, News Leaders and Laggards, Today's Economic Calendar, and Index Support & Resistance Levels. PriceWatch Alerts for BAC, JCP, VALE, CRM, SAP, MO, ASML, ACET, SOHU, GNTX. Bank of America (NYSE: BAC) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $16.40 while selling the November $17.00 call will produce a new covered call with a break- even point around $15.11. At that price, this position has a target return of 12.5%. This trade will have roughly 7.9% downside protection, while still aiming for a 12.5% return in 279 days. It will lock in that return as long as Bank of America is above $17.00 on 11/12/2014. For comparison purposes only, this BAC covered call aims for an annualized return rate of 16.4%. JC Penney (NYSE: JCP) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $5.22 while simultaneously selling the August $5.00 call will result in a new position with a target return of 30.2%. Based on recent prices, this position will cost about $3.84, which is also the trade?s breakeven point. At that level, this covered call has 26.4% downside protection, while still providing a 30.2% return in 191 days as long as JCP is above $5.00 on 8/16/2014. For comparison purposes only, this JC Penney covered call aims for an annualized return rate of 57.7%. Vale (NYSE: VALE) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $14.02 while selling the June $14.00 call will produce a new covered call with a break-even point around $12.95. At that price, this position has a target return of 8.1%. This trade will have roughly 7.6% downside protection, while still aiming for a 8.1% return in 135 days. It will lock in that return as long as Vale is above $14.00 on 6/21/2014. For comparison purposes only, this VALE covered call aims for an annualized return rate of 21.9%. Salesforce.com (NYSE: CRM) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the March $60.00 call while at the same time buying CRM stock for $61.63 will produce a new covered call with a target return of 5.0%. Based on recent data, this trade will cost about $57.13, which is also the covered call?s breakeven point. At that price, this covered call has 7.3% downside protection, while seeking an assigned return of 5.0% return in 44 days. If CRM is higher than $60.00 on 3/22/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 41.6%. SAP AG (NYSE: SAP) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the June $75.00 call while simultaneously buying SAP stock for $75.03 will result in a new position with a break- even point around $71.23. At that price, this position has a target return of 5.3%. This trade has 5.1% downside protection, while still providing a 5.3% return in 135 days as long as SAP is above $75.00 on 6/21/2014. For comparison purposes only, this SAP AG covered call targets an annualized return rate of 14.3%. Altria Group (NYSE: MO) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $34.00 while selling the September $35.00 call will produce a new covered call with a break-even point around $32.95. At that price, this position has a target return of 6.2%. This trade will have roughly 3.1% downside protection, while still aiming for a 6.2% return in 226 days. It will lock in that return as long as Altria Group is above $35.00 on 9/20/2014. For comparison purposes only, this MO covered call aims for an annualized return rate of 10.0%. ASML (NASDAQ: ASML) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $85.16 while simultaneously selling the April $85.00 call will result in a new position with a target return of 5.3%. Based on recent prices, this position will cost about $80.76, which is also the trade?s breakeven point. At that level, this covered call has 5.2% downside protection, while still providing a 5.3% return in 72 days as long as ASML is above $85.00 on 4/19/2014. For comparison purposes only, this ASML covered call aims for an annualized return rate of 26.6%. Aceto (NASDAQ: ACET) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the August $17.50 call while at the same time buying ACET stock for $19.92 will produce a new covered call with a target return of 6.6%. Based on recent data, this trade will cost about $16.42, which is also the covered call?s breakeven point. At that price, this covered call has 17.6% downside protection, while seeking an assigned return of 6.6% return in 191 days. If ACET is higher than $17.50 on 8/16/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 12.6%. Sohu.com (NASDAQ: SOHU) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the February $67.50 call while at the same time buying SOHU stock for $67.78 will produce a new covered call with a target return of 5.8%. Based on recent data, this trade will cost about $63.78, 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 5.8% return in 16 days. If SOHU is higher than $67.50 on 2/22/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 133.0%. Gentex (NASDAQ: GNTX) 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 GNTX stock for $30.59 will result in a new position with a break-even point around $28.44. At that price, this position has a target return of 5.5%. This trade has 7.0% downside protection, while still providing a 5.5% return in 135 days as long as GNTX is above $30.00 on 6/21/2014. For comparison purposes only, this Gentex covered call targets an annualized return rate of 14.8%. *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'. 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 Green Mountain Coffee Roasters (GMCR), SodaStream (SODA) and Chesapeake Energy (CHK) are advancing this morning, while Twitter (TWTR), General Motors (GM) and Shutterfly (SFLY) are in retreat. Level 3 (LVLT) and Green Mountain Coffee Roasters (GMCR) were upgraded this morning, while Twitter (TWTR) and RenaissanceRe Holdings (RNR) were downgraded. MARKET OVERVIEW Global stock markets rose overnight, including Asian indices which were almost entirely in positive territory. The Hong Kong Hang Seng rose 0.7%, the Taiwan TSEC picked up 0.5%, and the Indian Sensex added 0.2%. Japanese stocks were alone in moving lower, with the Nikkei 225 losing 0.2%. Shanghai remained closed for their week-long celebration of the lunar new year. In Europe, the major markets were all higher by between one-half and one percent. The Euronext 100 and the French CAC 40 led the way higher, up 0.9% while the German DAX lagged behind but still gained 0.6%. Both the European Central Bank and the Bank of England held their target interest rates steady in announcements early this morning. Energy futures are moving higher so far this morning, including West Texas Intermediate crude oil up $0.72 at $98.10. Natural gas continues to make large swings, up 6% to $5.34 after trading everywhere from $4.99 to $5.74 on Wednesday, which is a 15% range. Metals are all just marginally higher, including gold, which is up 0.3% to $1,260. The U.S. Dollar is stronger against both the Euro and the Yen. The Bitcoin global average is down sharply in the past day off nearly 4% to $806. PUT/CALL RATIO Yesterday, 1,254,114 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 772,771 put contracts. The single-session put/call was 0.62, while the 20-day moving average is now at 0.57. SUPPORT & RESISTANCE LEVELS The S&P 500 Depository Receipts (SPY) ETF has support at $172 and resistance at $182. The Nasdaq 100 (QQQ) has support at $79 and resistance at $86.50. TODAY'S ECONOMIC CALENDAR 07:30 AM Jan Challenger Job Cuts 08:30 AM 2/01 Initial Claims 08:30 AM 1/25 Continuing Claims 08:30 AM Dec Trade Balance 08:30 AM Q4 Productivity-Prel 08:30 AM Q4 Unit Labor Costs 10:30 AM 2/1 Natural Gas Inventories EARNINGS EXPECTED TODAY AAP ACET AET AOL ATVI AZN CS DNKN ED EXC EXPE FOXA GM K LNKD NWSA PM SNE VRSN UBNT THRX TEVA ZNGA 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 |
