MORNING UPDATE: PriceWatch Alerts for CMCSA and More... for 2014-01-17 |
| ----------------------------------------------------------------- MORNING UPDATE: PriceWatch Alerts for CMCSA, SCTY, ONVO and More... January 17, 9:00 AM ET - PriceWatch Alerts for CMCSA, BBBY, BRCM, OLED, APC, SCTY, QCOM, QCOR, DG, ONVO, Market Overview, News Leaders and Laggards, Today's Economic Calendar, and Index Support & Resistance Levels. PriceWatch Alerts for CMCSA, BBBY, BRCM, OLED, APC, SCTY, QCOM, QCOR, DG and ONVO. Comcast (NASDAQ: CMCSA) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $53.54 while simultaneously selling the July $52.50 call will result in a new position with a target return of 5.1%. Based on recent prices, this position will cost about $49.94, which is also the trade?s breakeven point. At that level, this covered call has 6.7% downside protection, while still providing a 5.1% return in 183 days as long as CMCSA is above $52.50 on 7/19/2014. For comparison purposes only, this Comcast covered call aims for an annualized return rate of 10.2%. Bed Bath and Beyond (NASDAQ: BBBY) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $67.15 while selling the May $65.00 call will produce a new covered call with a break-even point around $62.40. At that price, this position has a target return of 4.2%. This trade will have roughly 7.1% downside protection, while still aiming for a 4.2% return in 120 days. It will lock in that return as long as Bed Bath and Beyond is above $65.00 on 5/17/2014. For comparison purposes only, this BBBY covered call aims for an annualized return rate of 12.7%. Broadcom (NASDAQ: BRCM) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $29.31 while simultaneously selling the May $29.00 call will result in a new position with a target return of 6.2%. Based on recent prices, this position will cost about $27.31, which is also the trade?s breakeven point. At that level, this covered call has 6.8% downside protection, while still providing a 6.2% return in 120 days as long as BRCM is above $29.00 on 5/17/2014. For comparison purposes only, this Broadcom covered call aims for an annualized return rate of 18.8%. Universal Display (NASDAQ: OLED) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the February $34.00 call while at the same time buying OLED stock for $34.21 will produce a new covered call with a target return of 5.4%. Based on recent data, this trade will cost about $32.26, which is also the covered call?s breakeven point. At that price, this covered call has 5.7% downside protection, while seeking an assigned return of 5.4% return in 36 days. If OLED is higher than $34.00 on 2/22/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 54.6%. Anadarko Petroleum (NYSE: APC) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the May $80.00 call while simultaneously buying APC stock for $81.32 will result in a new position with a break-even point around $75.12. At that price, this position has a target return of 6.5%. This trade has 7.6% downside protection, while still providing a 6.5% return in 120 days as long as APC is above $80.00 on 5/17/2014. For comparison purposes only, this Anadarko Petroleum covered call targets an annualized return rate of 19.7%. SolarCity (NASDAQ: SCTY) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $76.80 while selling the February $75.00 call will produce a new covered call with a break-even point around $69.30. At that price, this position has a target return of 8.2%. This trade will have roughly 9.8% downside protection, while still aiming for a 8.2% return in 36 days. It will lock in that return as long as SolarCity is above $75.00 on 2/22/2014. For comparison purposes only, this SCTY covered call aims for an annualized return rate of 83.3%. Qualcomm (NASDAQ: QCOM) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $74.72 while simultaneously selling the July $75.00 call will result in a new position with a target return of 5.7%. Based on recent prices, this position will cost about $70.97, which is also the trade?s breakeven point. At that level, this covered call has 5.0% downside protection, while still providing a 5.7% return in 183 days as long as QCOM is above $75.00 on 7/19/2014. For comparison purposes only, this Qualcomm covered call aims for an annualized return rate of 11.3%. Questcor Pharmaceuticals (NASDAQ: QCOR) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the February $57.50 call while at the same time buying QCOR stock for $61.43 will produce a new covered call with a target return of 4.3%. Based on recent data, this trade will cost about $55.13, which is also the covered call?s breakeven point. At that price, this covered call has 10.3% downside protection, while seeking an assigned return of 4.3% return in 36 days. If QCOR is higher than $57.50 on 2/22/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 43.5%. Dollar General (NYSE: DG) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $60.57 while selling the May $57.50 call will produce a new covered call with a break-even point around $54.67. At that price, this position has a target return of 5.2%. This trade will have roughly 9.7% downside protection, while still aiming for a 5.2% return in 120 days. It will lock in that return as long as Dollar General is above $57.50 on 5/17/2014. For comparison purposes only, this DG covered call aims for an annualized return rate of 15.7%. Organovo (AMEX: ONVO) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the May $10.00 call while simultaneously buying ONVO stock for $11.58 will result in a new position with a break-even point around $8.88. At that price, this position has a target return of 12.6%. This trade has 23.3% downside protection, while still providing a 12.6% return in 120 days as long as ONVO is above $10.00 on 5/17/2014. For comparison purposes only, this Organovo covered call targets an annualized return rate of 38.4%. *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. 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The Shanghai SEC and the Mumbai Sensex dropped 0.9%, while the Japanese Nikkei, Australian All-Ordinaries and Taiwan TSEC each lost only a small amount. The Hong Kong Hang Seng finished in positive territory, gaining 0.6%. In Europe, so far today most markets are rising a small amount. British retail sales unexpectedly surged in December after two weak months prior. The German DAX and Swiss Market Index are higher by 0.3% this morning, while the French CAC 40 is up 0.2% and the FTSE 100 is higher by 0.1%. In commodities, crude oil higher again, with front-month West Texas Intermediate currently at $94.75, up 0.7%. Heating oil and gasoline are each up nearly 1% and natural gas is down 1% to $4.28. Gold and other metals are all in positive territory at last check. The U.S. Dollar is stronger against almost all world currencies this morning and Bitcoins are lower at $817. PUT/CALL RATIO Yesterday, 1,576,034 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 890,926 put contracts. The single-session put/call was 0.57, 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 $181 and is above resistance. The Nasdaq 100 (QQQ) has support at $85 and is above resistance. TODAY'S ECONOMIC CALENDAR 08:30 AM Dec Housing Starts 08:30 AM Dec Building Permits 09:15 AM Dec Industrial Production 09:15 AM Dec Capacity Utilization 09:55 AM Jan Mich Sentiment 10:00 AM Nov JOLTS ? Job Openings EARNINGS EXPECTED TODAY CMA MS 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 options carries substantial risk. Prior to buying or selling |
