MORNING UPDATE: PriceWatch Alerts for T and More... for 2014-02-12 |
| ------------------------------------------------------------------ MORNING UPDATE: PriceWatch Alerts for T, JNJ, IBM, and More... February 12, 9:00 AM ET - PriceWatch Alerts for T, MA, DIS, DD, CLDX, JNJ, GLD, DNKN, SHLD, M, IBM, AWAY, XLNX, XOM, ARMH, Market Overview, News Leaders and Laggards, Today's Economic Calendar, and Index Support & Resistance Levels. PriceWatch Alerts for T, MA, DIS, DD, CLDX, JNJ, GLD, DNKN, SHLD, M, IBM, AWAY, XLNX, XOM and ARMH. AT&T (NYSE: T) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $32.95 while selling the October $34.00 call will produce a new covered call with a break-even point around $31.95. At that price, this position has a target return of 6.4%. This trade will have roughly 3.0% downside protection, while still aiming for a 6.4% return in 248 days. It will lock in that return as long as AT&T is above $34.00 on 10/18/2014. For comparison purposes only, this T covered call aims for an annualized return rate of 9.4%. MasterCard (NYSE: MA) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $76.19 while simultaneously selling the July $76.00 call will result in a new position with a target return of 6.6%. Based on recent prices, this position will cost about $71.29, which is also the trade?s breakeven point. At that level, this covered call has 6.4% downside protection, while still providing a 6.6% return in 157 days as long as MA is above $76.00 on 7/19/2014. For comparison purposes only, this MasterCard covered call aims for an annualized return rate of 15.3%. Walt Disney (NYSE: DIS) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $77.79 while selling the July $77.50 call will produce a new covered call with a break-even point around $73.09. At that price, this position has a target return of 6.0%. This trade will have roughly 6.0% downside protection, while still aiming for a 6.0% return in 157 days. It will lock in that return as long as Walt Disney is above $77.50 on 7/19/2014. For comparison purposes only, this DIS covered call aims for an annualized return rate of 14.0%. Du Pont (NYSE: DD) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the July $65.00 call while at the same time buying DD stock for $64.29 will produce a new covered call with a target return of 5.1%. Based on recent data, this trade will cost about $61.82, 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 5.1% return in 157 days. If DD is higher than $65.00 on 7/19/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 11.9%. Celldex Therapeutics (NASDAQ: CLDX) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the March $26.00 call while simultaneously buying CLDX stock for $26.12 will result in a new position with a break-even point around $23.47. At that price, this position has a target return of 10.8%. This trade has 10.1% downside protection, while still providing a 10.8% return in 38 days as long as CLDX is above $26.00 on 3/22/2014. For comparison purposes only, this Celldex Therapeutics covered call targets an annualized return rate of 103.4%. Johnson and Johnson (NYSE: JNJ) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $92.97 while selling the July $95.00 call will produce a new covered call with a break-even point around $90.83. At that price, this position has a target return of 4.6%. This trade will have roughly 2.3% downside protection, while still aiming for a 4.6% return in 157 days. It will lock in that return as long as Johnson and Johnson is above $95.00 on 7/19/2014. For comparison purposes only, this JNJ covered call aims for an annualized return rate of 10.7%. Gold SPDR (AMEX: GLD) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $124.36 while simultaneously selling the June $126.00 call will result in a new position with a target return of 4.6%. Based on recent prices, this position will cost about $120.51, which is also the trade?s breakeven point. At that level, this covered call has 3.1% downside protection, while still providing a 4.6% return in 129 days as long as GLD is above $126.00 on 6/21/2014. For comparison purposes only, this Gold SPDR covered call aims for an annualized return rate of 12.9%. Dunkin (NASDAQ: DNKN) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $49.15 while selling the June $50.00 call will produce a new covered call with a break-even point around $47.10. At that price, this position has a target return of 6.2%. This trade will have roughly 4.2% downside protection, while still aiming for a 6.2% return in 129 days. It will lock in that return as long as Dunkin is above $50.00 on 6/21/2014. For comparison purposes only, this DNKN covered call aims for an annualized return rate of 17.4%. Sears (NASDAQ: SHLD) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the March $37.00 call while at the same time buying SHLD stock for $38.72 will produce a new covered call with a target return of 9.2%. Based on recent data, this trade will cost about $33.87, which is also the covered call?s breakeven point. At that price, this covered call has 12.5% downside protection, while seeking an assigned return of 9.2% return in 38 days. If SHLD is higher than $37.00 on 3/22/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 88.8%. Macy's (NYSE: M) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the May $52.50 call while simultaneously buying M stock for $53.57 will result in a new position with a break-even point around $50.22. At that price, this position has a target return of 4.5%. This trade has 6.3% downside protection, while still providing a 4.5% return in 94 days as long as M is above $52.50 on 5/17/2014. For comparison purposes only, this Macy's covered call targets an annualized return rate of 17.6%. International Business Machines (NYSE: IBM) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $179.70 while selling the April $185.00 call will produce a new covered call with a break- even point around $176.71. At that price, this position has a target return of 4.7%. This trade will have roughly 1.7% downside protection, while still aiming for a 4.7% return in 66 days. It will lock in that return as long as International Business Machines is above $185.00 on 4/19/2014. For comparison purposes only, this IBM covered call aims for an annualized return rate of 25.9%. HomeAway (NASDAQ: AWAY) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $40.00 while simultaneously selling the July $35.00 call will result in a new position with a target return of 6.1%. Based on recent prices, this position will cost about $33.00, which is also the trade?s breakeven point. At that level, this covered call has 17.5% downside protection, while still providing a 6.1% return in 157 days as long as AWAY is above $35.00 on 7/19/2014. For comparison purposes only, this HomeAway covered call aims for an annualized return rate of 14.1%. Xilinx (NASDAQ: XLNX) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $47.96 while selling the June $47.00 call will produce a new covered call with a break-even point around $45.03. At that price, this position has a target return of 4.4%. This trade will have roughly 6.1% downside protection, while still aiming for a 4.4% return in 129 days. It will lock in that return as long as Xilinx is above $47.00 on 6/21/2014. For comparison purposes only, this XLNX covered call aims for an annualized return rate of 12.4%. Exxon Mobil (NYSE: XOM) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the July $95.50 call while at the same time buying XOM stock for $90.84 will produce a new covered call with a target return of 8.5%. Based on recent data, this trade will cost about $88.05, 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 8.5% return in 157 days. If XOM is higher than $95.50 on 7/19/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 19.7%. ARM Holdings (NASDAQ: ARMH) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the April $46.00 call while simultaneously buying ARMH stock for $46.33 will result in a new position with a break-even point around $43.58. At that price, this position has a target return of 5.6%. This trade has 5.9% downside protection, while still providing a 5.6% return in 66 days as long as ARMH is above $46.00 on 4/19/2014. For comparison purposes only, this ARM Holdings covered call targets an annualized return rate of 30.7%. *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 Owens Corning (OC), Fossil Group (FOSL) and Cliffs Natural Resources (CLF) are advancing in pre-market trading, while Brocade Communications (BRCD), Western Union (WU) and Federal Express are in retreat. Itron (ITRI), ComScore (SCOR) and TripAdvisor were upgraded this morning, while Dean Foods (DF), Apartment Investment Management Company (AIV) and Royal Gold (RGLD) were downgraded. MARKET OVERVIEW Asian stock markets moved higher overnight, led by the Hong Kong Hang Seng again, which added 1.5%. The Taiwan TSEC and the Australian All-Ordinaries each rose 1.0%, and the Nikkei 225 and the Shanghai SEC finished in positive territory, but trailed behind. China reported strong trade data, with both imports and exports picking up more than 10%, while analysts were projecting much smaller gains. In Europe, the major markets are all moderately higher so far this morning, but many of the smaller indices are retreating. The German DAX is leading the way higher, up 0.8%, while the French CAC 40 and the Euronext 100 are rising 0.4% each. The Bank of England raised its GDP outlook and said that the economic recovery is gaining momentum, but reiterated that rates will remain low until the unemployment rate hits their target of 7%. West Texas Intermediate crude oil futures remain above $100, up 0.8% today. Heating oil, gasoline, and natural gas are all higher as well, with natural gas threatening the $5.00 mark again. Gold and other metals are mostly unchanged this morning. The U.S. Dollar is stronger against the Euro and weaker versus the Yen. The Bitcoin global average is $663 at last check, down 5% in the past day. PUT/CALL RATIO Yesterday, 1,282,550 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 707,899 put contracts. The single-session put/call was 0.55, while the 20-day moving average is now at 0.59. SUPPORT & RESISTANCE LEVELS The S&P 500 Depository Receipts (SPY) ETF has climbed back above its 50-day moving average at $182. The Nasdaq 100 (QQQ) has support at $86.50 and is above resistance. TODAY'S ECONOMIC CALENDAR 07:00 AM 2/08 MBA Mortgage Index 10:30 AM 2/08 Crude Inventories 02:00 PM Jan Treasury Budget EARNINGS EXPECTED TODAY AMAT ANGI CAKE CAR CBS CTRP DE LO MET NTAP NVDA SRPT SPWR WFM Z 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 |
