MORNING UPDATE: PriceWatch Alerts for DDD and More... for 2014-02-13 |
| ------------------------------------------------------------------ MORNING UPDATE: PriceWatch Alerts for DDD, ILMN, PRU and More... February 13, 9:00 AM ET - PriceWatch Alerts for DDD, JASO, APOL, ILMN, CLVS, PRU, CVX, SNDK, TRV, ADP, Market Overview, News Leaders and Laggards, Today's Economic Calendar, and Index Support & Resistance Levels. PriceWatch Alerts for DDD, JASO, APOL, ILMN, CLVS, PRU, CVX, SNDK, TRV and ADP. 3D Systems (NYSE: DDD) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $67.17 while selling the March $65.00 call will produce a new covered call with a break-even point around $61.02. At that price, this position has a target return of 6.5%. This trade will have roughly 9.2% downside protection, while still aiming for a 6.5% return in 37 days. It will lock in that return as long as 3D Systems is above $65.00 on 3/22/2014. For comparison purposes only, this DDD covered call aims for an annualized return rate of 64.3%. JA Solar (NASDAQ: JASO) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $9.65 while simultaneously selling the June $9.00 call will result in a new position with a target return of 14.6%. Based on recent prices, this position will cost about $7.85, which is also the trade?s breakeven point. At that level, this covered call has 18.7% downside protection, while still providing a 14.6% return in 128 days as long as JASO is above $9.00 on 6/21/2014. For comparison purposes only, this JA Solar covered call aims for an annualized return rate of 41.7%. Apollo Group (NASDAQ: APOL) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the March $32.00 call while simultaneously buying APOL stock for $32.13 will result in a new position with a break-even point around $30.67. At that price, this position has a target return of 4.3%. This trade has 4.5% downside protection, while still providing a 4.3% return in 37 days as long as APOL is above $32.00 on 3/22/2014. For comparison purposes only, this Apollo Group covered call targets an annualized return rate of 42.7%. Illumina (NASDAQ: ILMN) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the June $155.00 call while at the same time buying ILMN stock for $158.94 will produce a new covered call with a target return of 10.0%. Based on recent data, this trade will cost about $140.94, which is also the covered call?s breakeven point. At that price, this covered call has 11.3% downside protection, while seeking an assigned return of 10.0% return in 128 days. If ILMN is higher than $155.00 on 6/21/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 28.4%. Clovis Oncology (NASDAQ: CLVS) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the March $65.00 call while simultaneously buying CLVS stock for $69.31 will result in a new position with a break-even point around $61.31. At that price, this position has a target return of 6.0%. This trade has 11.5% downside protection, while still providing a 6.0% return in 37 days as long as CLVS is above $65.00 on 3/22/2014. For comparison purposes only, this Clovis Oncology covered call targets an annualized return rate of 59.3%. Prudential Financial (NYSE: PRU) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $84.34 while selling the June $82.50 call will produce a new covered call with a break-even point around $79.19. At that price, this position has a target return of 4.2%. This trade will have roughly 6.1% downside protection, while still aiming for a 4.2% return in 128 days. It will lock in that return as long as Prudential Financial is above $82.50 on 6/21/2014. For comparison purposes only, this PRU covered call aims for an annualized return rate of 11.9%. Chevron (NYSE: CVX) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $112.03 while simultaneously selling the June $115.00 call will result in a new position with a target return of 4.9%. Based on recent prices, this position will cost about $109.63, which is also the trade?s breakeven point. At that level, this covered call has 2.1% downside protection, while still providing a 4.9% return in 128 days as long as CVX is above $115.00 on 6/21/2014. For comparison purposes only, this Chevron covered call aims for an annualized return rate of 13.9%. SanDisk (NASDAQ: SNDK) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $72.09 while selling the April $72.50 call will produce a new covered call with a break-even point around $68.59. At that price, this position has a target return of 5.7%. This trade will have roughly 4.9% downside protection, while still aiming for a 5.7% return in 65 days. It will lock in that return as long as SanDisk is above $72.50 on 4/19/2014. For comparison purposes only, this SNDK covered call aims for an annualized return rate of 32.0%. Travelers (NYSE: TRV) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the July $82.50 call while at the same time buying TRV stock for $82.26 will produce a new covered call with a target return of 4.3%. Based on recent data, this trade will cost about $79.11, which is also the covered call?s breakeven point. At that price, this covered call has 3.8% downside protection, while seeking an assigned return of 4.3% return in 156 days. If TRV is higher than $82.50 on 7/19/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 10.0%. Automatic Data Processing (NASDAQ: ADP) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the August $77.50 call while simultaneously buying ADP stock for $75.58 will result in a new position with a break-even point around $73.13. At that price, this position has a target return of 6.0%. This trade has 3.2% downside protection, while still providing a 6.0% return in 184 days as long as ADP is above $77.50 on 8/16/2014. For comparison purposes only, this Automatic Data Processing covered call targets an annualized return rate of 11.8%. *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. 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MARKET OVERVIEW World stock markets stumbled overnight, with most Asian indices dropping at least half a percent. The Nikkei 225 fell 1.8% and the Mumbai Sensex lost 1.2%, while Shanghai, Taiwan, and Hong Kong were all down 0.5%. Toyota Motors (TM) dropped after announcing a Prius recall. European markets are less volatile than the Asian group this morning, as is usually the case. Sentiment is still broadly negative, with the FTSE 100 down 0.5%, the French CAC 40 off 0.3%, and the German DAX losing 0.2% at last check. BNP Paribas and Lloyds Banking Group each lost more than 3% and weighed on financial stocks in the region after reporting quarterly results. In the commodities futures pits, West Texas Intermediate crude oil futures has dipped back below $100, down 0.6% today at $99.80. Gasoline is lower by about 1%, but natural gas is up more than 2% to $4.93. Gold and other metals are sliding slightly lower this morning. The U.S. Dollar is weaker against the Euro and the Yen. The Bitcoin global average is at $654. PUT/CALL RATIO Yesterday, 1,091,205 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 698,278 put contracts. The single-session put/call was 0.64, 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 2/08 Initial Claims 08:30 AM 2/01 Continuing Claims 08:30 AM Jan Retail Sales 08:30 AM Jan Retail Sales ex-auto 10:00 AM Dec Business Inventories 10:30 AM 2/08 Natural Gas Inventories EARNINGS EXPECTED TODAY A AIG BKW BWA CLF CRAY ED HIMX KRFT MPEL Q TRLA VNDA 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 |
