MORNING UPDATE: PriceWatch Alerts for FB and More... for 2014-01-09 |
| ------------------------------------------------------------------ MORNING UPDATE: PriceWatch Alerts for FB, BIDU, TWC and More... January 09, 9:00 AM ET - PriceWatch Alerts for FB, DTV, DD, BIDU, CLDX, TWC, TXN, TTS, YY, AMAT, Market Overview, News Leaders and Laggards, Today's Economic Calendar, and Index Support & Resistance Levels. PriceWatch Alerts for FB, DTV, DD, BIDU, CLDX, TWC, TXN, TTS, YY, AMAT. Facebook (NASDAQ: FB) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $58.23 while selling the February $57.50 call will produce a new covered call with a break-even point around $53.58. At that price, this position has a target return of 7.3%. This trade will have roughly 8.0% downside protection, while still aiming for a 7.3% return in 44 days. It will lock in that return as long as Facebook is above $57.50 on 2/22/2014. For comparison purposes only, this FB covered call aims for an annualized return rate of 60.6%. DirecTV (NASDAQ: DTV) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $69.28 while simultaneously selling the June $67.50 call will result in a new position with a target return of 5.3%. Based on recent prices, this position will cost about $64.13, which is also the trade?s breakeven point. At that level, this covered call has 7.4% downside protection, while still providing a 5.3% return in 163 days as long as DTV is above $67.50 on 6/21/2014. For comparison purposes only, this DirecTV covered call aims for an annualized return rate of 11.8%. Du Pont (NYSE: DD) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $63.13 while selling the April $65.00 call will produce a new covered call with a break-even point around $61.63. At that price, this position has a target return of 5.5%. This trade will have roughly 2.4% downside protection, while still aiming for a 5.5% return in 100 days. It will lock in that return as long as Du Pont is above $65.00 on 4/19/2014. For comparison purposes only, this DD covered call aims for an annualized return rate of 19.9%. Baidu.com (NASDAQ: BIDU) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the February $180.00 call while at the same time buying BIDU stock for $181.79 will produce a new covered call with a target return of 5.8%. Based on recent data, this trade will cost about $170.14, which is also the covered call?s breakeven point. At that price, this covered call has 6.4% downside protection, while seeking an assigned return of 5.8% return in 44 days. If BIDU is higher than $180.00 on 2/22/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 48.0%. 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 February $23.00 call while simultaneously buying CLDX stock for $23.30 will result in a new position with a break-even point around $21.20. At that price, this position has a target return of 8.5%. This trade has 9.0% downside protection, while still providing a 8.5% return in 44 days as long as CLDX is above $23.00 on 2/22/2014. For comparison purposes only, this Celldex Therapeutics covered call targets an annualized return rate of 70.4%. Time Warner Cable Inc. (NYSE: TWC) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $132.55 while selling the February $135.00 call will produce a new covered call with a break-even point around $129.35. At that price, this position has a target return of 4.4%. This trade will have roughly 2.4% downside protection, while still aiming for a 4.4% return in 44 days. It will lock in that return as long as Time Warner Cable Inc. is above $135.00 on 2/22/2014. For comparison purposes only, this TWC covered call aims for an annualized return rate of 36.2%. Texas Instruments (NASDAQ: TXN) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $43.29 while simultaneously selling the April $44.00 call will result in a new position with a target return of 4.6%. Based on recent prices, this position will cost about $42.08, which is also the trade?s breakeven point. At that level, this covered call has 2.8% downside protection, while still providing a 4.6% return in 100 days as long as TXN is above $44.00 on 4/19/2014. For comparison purposes only, this Texas Instruments covered call aims for an annualized return rate of 16.6%. Tile Shop (NASDAQ: TTS) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $18.01 while selling the May $20.00 call will produce a new covered call with a break-even point around $16.41. At that price, this position has a target return of 21.9%. This trade will have roughly 8.9% downside protection, while still aiming for a 21.9% return in 128 days. It will lock in that return as long as Tile Shop is above $20.00 on 5/17/2014. For comparison purposes only, this TTS covered call aims for an annualized return rate of 62.4%. YY (NASDAQ: YY) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the February $60.00 call while at the same time buying YY stock for $63.38 will produce a new covered call with a target return of 5.7%. Based on recent data, this trade will cost about $56.78, which is also the covered call?s breakeven point. At that price, this covered call has 10.4% downside protection, while seeking an assigned return of 5.7% return in 44 days. If YY is higher than $60.00 on 2/22/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 47.0%. Applied Materials (NASDAQ: AMAT) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the January $17.00 call while simultaneously buying AMAT stock for $17.42 will result in a new position with a break-even point around $15.57. At that price, this position has a target return of 9.2%. This trade has 10.6% downside protection, while still providing a 9.2% return in 373 days as long as AMAT is above $17.00 on 1/17/2015. For comparison purposes only, this Applied Materials covered call targets an annualized return rate of 9.0%. *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 SolarCity (SCTY), Angie's List (ANGI) and Macy's (M) are headed higher this morning, while Bed Bath & Beyond (BBBY), Family Dollar (FDO) and Arm Holdings (ARMH) are pulling back. Halliburton (HAL), Forum Energy Tech (FET) and Williams-Sonoma (WSM) were upgraded by analysts this morning, while Frank's International (FI), Ensco (ESV) and Diamond Offshore (DO) were downgraded. MARKET OVERVIEW Asian indices mostly moved lower overnight. The Nikkei 225 dropped 1.5%, the Hong Kong Hang Seng lost 0.9%, and the Shanghai SEC fell 0.8%. Of the data released today, December Chinese inflation data showed weaker producer pricing, but Australian retail sales were stronger than expected. The Australian All-Ordinaries gained a meager 0.2% for the session. In Europe, traders are more optimistic this morning, with most major indices slightly in positive territory. The German DAX is up 0.3% at last check, while the FTSE 100 is higher by 0.2% and the French CAC 40 and Euronext 100 have made smaller gains. Today is European Central Bank day, and despite no change in the interest rate target, Mario Draghi's press conference will be a point of focus for traders. Crude oil fell yesterday, but is higher again in this morning's trading. The front-month West Texas Intermediate contract is currently below $93, up 0.5% from yesterday's close. Natural gas is off by 1.5%, but gasoline and heating oil both higher. Gold is holding steady at $1,228, but platinum is advancing 0.6% and copper is off 1.0%. The U.S. Dollar is stronger against the Yen, but weaker versus the Euro. Bitcoins are trading at $825 at last check. PUT/CALL RATIO Yesterday, 1,414,755 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 710,741 put contracts. The single-session put/call was 0.5, 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 07:30 AM Dec Challenger Job Cuts 08:30 AM 1/04 Initial Claims 08:30 AM 12/28 Continuing Claims 10:30 AM 1/04 Natural Gas Inventories EARNINGS EXPECTED TODAY AA FDO INFY 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. 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