MORNING UPDATE: PriceWatch Alerts for GE and More... for 2014-01-24 |
| ------------------------------------------------------------------ MORNING UPDATE: PriceWatch Alerts for GE, LINE, CSCO and More... January 24, 9:00 AM ET - PriceWatch Alerts for GE, SODA, BIIB, LINE, MDRX, CSCO, PRLB, SUNE, INVN, ORCL, Market Overview, News Leaders and Laggards, Today's Economic Calendar, and Index Support & Resistance Levels. PriceWatch Alerts for GE, SODA, BIIB, LINE, MDRX, CSCO, PRLB, SUNE, INVN and ORCL. General Electric (NYSE: GE) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $25.82 while selling the September $26.00 call will produce a new covered call with a break-even point around $24.54. At that price, this position has a target return of 5.9%. This trade will have roughly 5.0% downside protection, while still aiming for a 5.9% return in 239 days. It will lock in that return as long as General Electric is above $26.00 on 9/20/2014. For comparison purposes only, this GE covered call aims for an annualized return rate of 9.1%. SodaStream (NASDAQ: SODA) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $38.51 while simultaneously selling the March $37.50 call will result in a new position with a target return of 6.5%. Based on recent prices, this position will cost about $35.21, which is also the trade?s breakeven point. At that level, this covered call has 8.6% downside protection, while still providing a 6.5% return in 57 days as long as SODA is above $37.50 on 3/22/2014. For comparison purposes only, this SodaStream covered call aims for an annualized return rate of 41.6%. Biogen Idec (NASDAQ: BIIB) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $314.96 while selling the March $310.00 call will produce a new covered call with a break- even point around $294.26. At that price, this position has a target return of 5.3%. This trade will have roughly 6.6% downside protection, while still aiming for a 5.3% return in 57 days. It will lock in that return as long as Biogen Idec is above $310.00 on 3/22/2014. For comparison purposes only, this BIIB covered call aims for an annualized return rate of 34.2%. Linn Energy (NASDAQ: LINE) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the July $34.00 call while at the same time buying LINE stock for $33.45 will produce a new covered call with a target return of 4.8%. Based on recent data, this trade will cost about $32.45, which is also the covered call?s breakeven point. At that price, this covered call has 3.0% downside protection, while seeking an assigned return of 4.8% return in 176 days. If LINE is higher than $34.00 on 7/19/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 9.9%. Allscripts Healthcare Solutions (NASDAQ: MDRX) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the June $17.00 call while simultaneously buying MDRX stock for $17.42 will result in a new position with a break-even point around $15.77. At that price, this position has a target return of 7.8%. This trade has 9.5% downside protection, while still providing a 7.8% return in 148 days as long as MDRX is above $17.00 on 6/21/2014. For comparison purposes only, this Allscripts Healthcare Solutions covered call targets an annualized return rate of 19.2%. Cisco Systems (NASDAQ: CSCO) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $22.56 while selling the July $22.00 call will produce a new covered call with a break-even point around $20.99. At that price, this position has a target return of 4.8%. This trade will have roughly 7.0% downside protection, while still aiming for a 4.8% return in 176 days. It will lock in that return as long as Cisco Systems is above $22.00 on 7/19/2014. For comparison purposes only, this CSCO covered call aims for an annualized return rate of 10.0%. Proto Labs (NYSE: PRLB) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $75.99 while simultaneously selling the February $75.00 call will result in a new position with a target return of 5.9%. Based on recent prices, this position will cost about $70.79, which is also the trade?s breakeven point. At that level, this covered call has 6.8% downside protection, while still providing a 5.9% return in 29 days as long as PRLB is above $75.00 on 2/22/2014. For comparison purposes only, this Proto Labs covered call aims for an annualized return rate of 74.8%. SunEdison (NYSE: SUNE) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $14.35 while selling the March $14.00 call will produce a new covered call with a break-even point around $12.79. At that price, this position has a target return of 9.5%. This trade will have roughly 10.9% downside protection, while still aiming for a 9.5% return in 57 days. It will lock in that return as long as SunEdison is above $14.00 on 3/22/2014. For comparison purposes only, this SUNE covered call aims for an annualized return rate of 60.6%. Invensense (NYSE: INVN) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the February $20.00 call while at the same time buying INVN stock for $20.97 will produce a new covered call with a target return of 6.0%. Based on recent data, this trade will cost about $18.87, which is also the covered call?s breakeven point. At that price, this covered call has 10.0% downside protection, while seeking an assigned return of 6.0% return in 29 days. If INVN is higher than $20.00 on 2/22/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 75.3%. Oracle (NASDAQ: ORCL) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the June $38.00 call while simultaneously buying ORCL stock for $38.15 will result in a new position with a break-even point around $36.11. At that price, this position has a target return of 5.2%. This trade has 5.3% downside protection, while still providing a 5.2% return in 148 days as long as ORCL is above $38.00 on 6/21/2014. For comparison purposes only, this Oracle covered call targets an annualized return rate of 12.9%. *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 Most Asia indices were lower overnight, including the Japanese Nikkei 225, which lost 1.9%. The Hong Kong Hang Seng dropped 1.2% and the Mumbai Sensex fell 1.1%, while the Taiwan TSEC made a small gain and the Shanghai SEC rose 0.6%. The Yen gained strength, which contributed to Japan's weakness. In Europe, all the major stock markets moved lower by a significant amount, following the lead of the U.S. on Thursday. The Euronext 100, German DAX, and French CAC 40 are each lower by upward of 1%. As the morning shapes up for U.S. stocks to fall again, European markets are faring even worse. In the futures pits, crude oil is holding steady, with the front- month WTI contract down 0.2% but still above $97. Heating oil and gasoline are weaker, and natural gas continues its wild swings up another 4% at $4.76 after giving up some of those gains late Thursday. Gold is higher so far this morning, up 0.5% to $1,270. The U.S. Dollar is weaker against the Yen but stronger versus the Euro. Bitcoins are trading at $790, down 3.5% from yesterday morning. PUT/CALL RATIO Yesterday, 1,346,004 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 879,643 put contracts. The single-session put/call was 0.65, while the 20-day moving average is now at 0.53. 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 $86 and is above resistance. TODAY'S ECONOMIC CALENDAR There are no major economic reports scheduled for this morning. EARNINGS EXPECTED TODAY BMY CNBC COV HON IMGN KSU PG 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 |
