MORNING UPDATE: PriceWatch Alerts for MU and More... for 2014-01-13 |
| ------------------------------------------------------------------ MORNING UPDATE: PriceWatch Alerts for MU, SHLD, GM, and More... January 13, 9:00 AM ET - PriceWatch Alerts for MU, YELP, SHLD, KRFT, NPSP, GM, ISIS, SAM, MA, M, Market Overview, News Leaders and Laggards, Today's Economic Calendar, and Index Support & Resistance Levels. PriceWatch Alerts for MU, YELP, SHLD, KRFT, NPSP, GM, ISIS, SAM, MA and M. Micron Technology (NASDAQ: MU) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $23.71 while selling the February $23.00 call will produce a new covered call with a break- even point around $21.99. At that price, this position has a target return of 4.6%. This trade will have roughly 7.3% downside protection, while still aiming for a 4.6% return in 40 days. It will lock in that return as long as Micron Technology is above $23.00 on 2/22/2014. For comparison purposes only, this MU covered call aims for an annualized return rate of 41.9%. Yelp (NYSE: YELP) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $82.21 while simultaneously selling the February $77.50 call will result in a new position with a target return of 7.6%. Based on recent prices, this position will cost about $72.01, which is also the trade?s breakeven point. At that level, this covered call has 12.4% downside protection, while still providing a 7.6% return in 40 days as long as YELP is above $77.50 on 2/22/2014. For comparison purposes only, this Yelp covered call aims for an annualized return rate of 69.5%. Sears (NASDAQ: SHLD) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $36.71 while selling the February $34.00 call will produce a new covered call with a break-even point around $32.41. At that price, this position has a target return of 4.9%. This trade will have roughly 11.7% downside protection, while still aiming for a 4.9% return in 40 days. It will lock in that return as long as Sears is above $34.00 on 2/22/2014. For comparison purposes only, this SHLD covered call aims for an annualized return rate of 44.7%. Kraft (NASDAQ: KRFT) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the June $55.00 call while at the same time buying KRFT stock for $53.80 will produce a new covered call with a target return of 5.4%. Based on recent data, this trade will cost about $52.20, 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 5.4% return in 159 days. If KRFT is higher than $55.00 on 6/21/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 12.3%. NPS Pharmaceuticals (NASDAQ: NPSP) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the February $35.00 call while simultaneously buying NPSP stock for $36.37 will result in a new position with a break-even point around $33.17. At that price, this position has a target return of 5.5%. This trade has 8.8% downside protection, while still providing a 5.5% return in 40 days as long as NPSP is above $35.00 on 2/22/2014. For comparison purposes only, this NPS Pharmaceuticals covered call targets an annualized return rate of 50.3%. GM (NYSE: GM) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $40.03 while selling the February $41.00 call will produce a new covered call with a break-even point around $38.94. At that price, this position has a target return of 5.3%. This trade will have roughly 2.7% downside protection, while still aiming for a 5.3% return in 40 days. It will lock in that return as long as GM is above $41.00 on 2/22/2014. For comparison purposes only, this GM covered call aims for an annualized return rate of 48.3%. Isis Pharmaceuticals (NASDAQ: ISIS) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $47.60 while simultaneously selling the February $45.00 call will result in a new position with a target return of 6.4%. Based on recent prices, this position will cost about $42.30, which is also the trade?s breakeven point. At that level, this covered call has 11.1% downside protection, while still providing a 6.4% return in 40 days as long as ISIS is above $45.00 on 2/22/2014. For comparison purposes only, this Isis Pharmaceuticals covered call aims for an annualized return rate of 58.2%. Boston Beer Company (NYSE: SAM) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $225.08 while selling the March $220.00 call will produce a new covered call with a break- even point around $209.98. At that price, this position has a target return of 4.8%. This trade will have roughly 6.7% downside protection, while still aiming for a 4.8% return in 68 days. It will lock in that return as long as Boston Beer Company is above $220.00 on 3/22/2014. For comparison purposes only, this SAM covered call aims for an annualized return rate of 25.6%. MasterCard (NYSE: MA) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the April $820.00 call while at the same time buying MA stock for $834.76 will produce a new covered call with a target return of 4.4%. Based on recent data, this trade will cost about $785.21, which is also the covered call?s breakeven point. At that price, this covered call has 5.9% downside protection, while seeking an assigned return of 4.4% return in 96 days. If MA is higher than $820.00 on 4/19/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 16.8%. 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 $55.00 call while simultaneously buying M stock for $55.84 will result in a new position with a break-even point around $52.24. At that price, this position has a target return of 5.3%. This trade has 6.4% downside protection, while still providing a 5.3% return in 124 days as long as M is above $55.00 on 5/17/2014. For comparison purposes only, this Macy's covered call targets an annualized return rate of 15.5%. *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 Beam (BEAM), Clovis Oncology (CLVS), and Wendy's (WEN) are headed higher this morning, while Intercept Technologies (ICPT), Lululemon (LULU) and SodaStream (SODA) are trading lower. Qihoo 360 technology (QIHU) Garmin (GRMN) and Ventas (VTR) were upgrade this morning, while SAP AG (SAP), Cree (CREE) and Atmel (ATML) were downgraded. MARKET OVERVIEW Asian market performance was mixed overnight to kick off the new week. India's Mumbai Sensex added 1.8%, the Hong Kong Hang Seng and Taiwan TSEC each picked up 0.4%, but China's Shanghai SEC fell 0.2% and Australia's All-Ordinaries lost 0.4%. Japanese markets were not open today. Several companies in China that were expected to IPO soon have postponed that action after new rules from Chinese regulators were announced. In Europe, indices are slightly higher almost across the board. The German DAX has gained 0.3% and most other major European exchanges are up by smaller amounts. Most banks are posting gains after regulators relaxed a leverage requirement. Crude oil is down this morning, with front-month West Texas Intermediate is currently at $92.02, off 0.7%. Natural gas is up 2.7% at $4.13. Gold and other metals are down a small amount so far today and the U.S. Dollar is stronger against the Euro, but weaker versus the Yen. Bitcoins have fallen below $800, trading at $793 at last check. PUT/CALL RATIO Yesterday, 1,608,895 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 849,179 put contracts. The single-session put/call was 0.53, 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 $180 and is above resistance. The Nasdaq 100 (QQQ) has support at $85 and is above resistance. TODAY'S ECONOMIC CALENDAR 02:00 PM Dec Treasury Budget EARNINGS EXPECTED TODAY There are no earnings announcements scheduled for this morning. 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 |
