MORNING UPDATE: PriceWatch Alerts for CMCSA and More... for 2014-02-14 |
| ------------------------------------------------------------------ MORNING UPDATE: PriceWatch Alerts for CMCSA, BBY, BUD and More... February 14, 9:00 AM ET - PriceWatch Alerts for CMCSA, BBY, BMRN, CREE, AIG, BUD, ABT, CSX, NQ, HOLX, Market Overview, News Leaders and Laggards, Today's Economic Calendar, and Index Support & Resistance Levels. PriceWatch Alerts for CMCSA, BBY, BMRN, CREE, AIG, BUD, ABT, CSX, NQ, HOLX. Comcast (NASDAQ: CMCSA) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $52.97 while selling the July $52.50 call will produce a new covered call with a break-even point around $50.02. At that price, this position has a target return of 5.0%. This trade will have roughly 5.6% downside protection, while still aiming for a 5.0% return in 155 days. It will lock in that return as long as Comcast is above $52.50 on 7/19/2014. For comparison purposes only, this CMCSA covered call aims for an annualized return rate of 11.7%. Best Buy (NYSE: BBY) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $24.68 while simultaneously selling the March $24.00 call will result in a new position with a target return of 6.1%. Based on recent prices, this position will cost about $22.62, which is also the trade?s breakeven point. At that level, this covered call has 8.3% downside protection, while still providing a 6.1% return in 36 days as long as BBY is above $24.00 on 3/22/2014. For comparison purposes only, this Best Buy covered call aims for an annualized return rate of 61.8%. BioMarin Pharmaceutical (NASDAQ: BMRN) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $75.93 while selling the March $75.00 call will produce a new covered call with a break- even point around $69.98. At that price, this position has a target return of 7.2%. This trade will have roughly 7.8% downside protection, while still aiming for a 7.2% return in 36 days. It will lock in that return as long as BioMarin Pharmaceutical is above $75.00 on 3/22/2014. For comparison purposes only, this BMRN covered call aims for an annualized return rate of 72.7%. Cree (NASDAQ: CREE) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the March $62.50 call while at the same time buying CREE stock for $60.81 will produce a new covered call with a target return of 6.1%. Based on recent data, this trade will cost about $58.91, which is also the covered call?s breakeven point. At that price, this covered call has 3.1% downside protection, while seeking an assigned return of 6.1% return in 36 days. If CREE is higher than $62.50 on 3/22/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 61.7%. American International Group (NYSE: AIG) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the April $50.00 call while simultaneously buying AIG stock for $49.59 will result in a new position with a break-even point around $47.90. At that price, this position has a target return of 4.4%. This trade has 3.4% downside protection, while still providing a 4.4% return in 64 days as long as AIG is above $50.00 on 4/19/2014. For comparison purposes only, this American International Group covered call targets an annualized return rate of 25.0%. Anheuser-Busch InBev (NYSE: BUD) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $100.25 while selling the June $100.00 call will produce a new covered call with a break- even point around $95.65. At that price, this position has a target return of 4.5%. This trade will have roughly 4.6% downside protection, while still aiming for a 4.5% return in 127 days. It will lock in that return as long as Anheuser-Busch InBev is above $100.00 on 6/21/2014. For comparison purposes only, this BUD covered call aims for an annualized return rate of 13.0%. Abbott Laboratories (NYSE: ABT) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $38.72 while simultaneously selling the May $39.00 call will result in a new position with a target return of 4.0%. Based on recent prices, this position will cost about $37.50, which is also the trade?s breakeven point. At that level, this covered call has 3.2% downside protection, while still providing a 4.0% return in 92 days as long as ABT is above $39.00 on 5/17/2014. For comparison purposes only, this Abbott Laboratories covered call aims for an annualized return rate of 15.9%. CSX (NYSE: CSX) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $27.37 while selling the August $27.50 call will produce a new covered call with a break-even point around $25.94. At that price, this position has a target return of 6.0%. This trade will have roughly 5.2% downside protection, while still aiming for a 6.0% return in 183 days. It will lock in that return as long as CSX is above $27.50 on 8/16/2014. For comparison purposes only, this CSX covered call aims for an annualized return rate of 12.0%. NQ Mobile (NYSE: NQ) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the March $16.00 call while at the same time buying NQ stock for $18.24 will produce a new covered call with a target return of 9.3%. Based on recent data, this trade will cost about $14.64, which is also the covered call?s breakeven point. At that price, this covered call has 19.7% downside protection, while seeking an assigned return of 9.3% return in 36 days. If NQ is higher than $16.00 on 3/22/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 94.1%. Hologic (NASDAQ: HOLX) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the June $21.00 call while simultaneously buying HOLX stock for $21.32 will result in a new position with a break-even point around $19.67. At that price, this position has a target return of 6.8%. This trade has 7.7% downside protection, while still providing a 6.8% return in 127 days as long as HOLX is above $21.00 on 6/21/2014. For comparison purposes only, this Hologic covered call targets an annualized return rate of 19.4%. *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 Cliffs Natural Resources (CLF), Discovery Communications (DISCA) and Rockwell Media (RMTI) are rising this morning, while VF Corporation (VFC), Healthways (HWAY) and Jos. A Bank Clothiers (JOSB) are falling. Itron (ITRI), EastGroup (EGP) and W.W. Grainger (GWW) were upgraded by analysts this morning, while Avago Technologies (AVGO) and Tractor Supply Company (TSCO) were downgraded. MARKET OVERVIEW International trading was mostly positive overnight, with the vast majority of major Asian markets moving higher. The Shanghai SEC, Taiwan TSEC, Hong Kong Hang Seng, and Mumbai Sensex all gained between 0.5% and 1.0%. However, the weak economic data out Thursday morning in the U.S. put pressure on the dollar, which fell relative to the Japanese Yen. Right in line with what has been the case for about a year now, a stronger Yen means weakness in Japanese stocks. The Nikkei 225 dropped 1.5% overnight. Turning to Europe, the major stock markets are all higher so far this morning. The French CAC 40 and Euronext 100 are each up 0.5%. The German DAX is at the head of the pack, up 0.6%, while the FTSE lags behind, up just 0.2%. Eurozone GDP was reported to be 0.3% for the fourth quarter, including advances of 0.4% in Germany, 0.3% in France and 0.1% in Italy, which marks the first growth there in three years. West Texas Intermediate crude oil futures are holding onto the $100 level, down 0.3% this morning at $100.07. Natural gas is up another 1% after gaining 6% on Thursday. Gold is up 1.3% and is above $1,300 for the first time early November. Silver is up 3%, but copper is nearly unchanged. The U.S. Dollar is weaker against both the Euro and the Yen as well as other international currencies. The Bitcoin global average is at $630 after dropping as low as $550 overnight. PUT/CALL RATIO Yesterday, 1,353,117 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 768,603 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 and is above resistance. TODAY'S ECONOMIC CALENDAR 08:30 AM Jan Export Prices ex-ag 08:30 AM Jan Import Prices ex-oil 09:15 AM Jan Industrial Production 09:15 AM Jan Capacity Utilization 09:55 AM Feb Michegan Sentiment EARNINGS EXPECTED TODAY CPB PBR SJM SNI 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 |
