MORNING UPDATE: PriceWatch Alerts for XONE and More... for 2014-01-06 |
| ----------------------------------------------------------------- MORNING UPDATE: PriceWatch Alerts for XONE, MCD, LNKD, and More... January 6, 9:00 AM ET - PriceWatch Alerts for XONE, V, MCD, VALE, QIHU, MSFT, PG, KO, LNKD, JOBS, Market Overview, News Leaders and Laggards, Today's Economic Calendar, and Index Support & Resistance Levels. PriceWatch Alerts for XONE, V, MCD, VALE, QIHU, MSFT, PG, KO, LNKD, JOBS. ExOne (NASDAQ: XONE) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $66.91 while selling the February $65.00 call will produce a new covered call with a break-even point around $61.71. At that price, this position has a target return of 5.3%. This trade will have roughly 7.8% downside protection, while still aiming for a 5.3% return in 47 days. It will lock in that return as long as ExOne is above $65.00 on 2/22/2014. For comparison purposes only, this XONE covered call aims for an annualized return rate of 41.4%. Visa (NYSE: V) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $221.16 while simultaneously selling the March $220.00 call will result in a new position with a target return of 4.1%. Based on recent prices, this position will cost about $211.36, which is also the trade?s breakeven point. At that level, this covered call has 4.4% downside protection, while still providing a 4.1% return in 75 days as long as V is above $220.00 on 3/22/2014. For comparison purposes only, this Visa covered call aims for an annualized return rate of 19.9%. McDonald's (NYSE: MCD) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $96.54 while selling the June $100.00 call will produce a new covered call with a break-even point around $94.94. At that price, this position has a target return of 5.3%. This trade will have roughly 1.7% downside protection, while still aiming for a 5.3% return in 166 days. It will lock in that return as long as McDonald's is above $100.00 on 6/21/2014. For comparison purposes only, this MCD covered call aims for an annualized return rate of 11.7%. Vale (NYSE: VALE) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the June $14.00 call while at the same time buying VALE stock for $14.33 will produce a new covered call with a target return of 7.9%. Based on recent data, this trade will cost about $12.98, which is also the covered call?s breakeven point. At that price, this covered call has 9.4% downside protection, while seeking an assigned return of 7.9% return in 166 days. If VALE is higher than $14.00 on 6/21/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 17.3%. Qihoo 360 Technology (NYSE: QIHU) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the February $77.50 call while simultaneously buying QIHU stock for $79.78 will result in a new position with a break-even point around $72.98. At that price, this position has a target return of 6.2%. This trade has 8.5% downside protection, while still providing a 6.2% return in 47 days as long as QIHU is above $77.50 on 2/22/2014. For comparison purposes only, this Qihoo 360 Technology covered call targets an annualized return rate of 48.1%. Microsoft (NASDAQ: MSFT) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $36.91 while selling the July $36.00 call will produce a new covered call with a break-even point around $34.21. At that price, this position has a target return of 5.2%. This trade will have roughly 7.3% downside protection, while still aiming for a 5.2% return in 184 days. It will lock in that return as long as Microsoft is above $36.00 on 7/19/2014. For comparison purposes only, this MSFT covered call aims for an annualized return rate of 10.4%. Procter and Gamble (NYSE: PG) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $80.45 while simultaneously selling the March $82.50 call will result in a new position with a target return of 4.1%. Based on recent prices, this position will cost about $79.22, which is also the trade?s breakeven point. At that level, this covered call has 1.5% downside protection, while still providing a 4.1% return in 65 days as long as PG is above $82.50 on 3/22/2014. For comparison purposes only, this Procter and Gamble covered call aims for an annualized return rate of 23.2%. Coca Cola (NYSE: KO) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $40.46 while selling the May $41.00 call will produce a new covered call with a break-even point around $39.32. At that price, this position has a target return of 4.3%. This trade will have roughly 2.8% downside protection, while still aiming for a 4.3% return in 121 days. It will lock in that return as long as Coca Cola is above $41.00 on 5/17/2014. For comparison purposes only, this KO covered call aims for an annualized return rate of 12.9%. LinkedIn (NYSE: LNKD) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the February $205.00 call while at the same time buying LNKD stock for $207.42 will produce a new covered call with a target return of 7.1%. Based on recent data, this trade will cost about $191.42, which is also the covered call?s breakeven point. At that price, this covered call has 7.7% downside protection, while seeking an assigned return of 7.1% return in 37 days. If LNKD is higher than $205.00 on 2/22/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 69.9%. 51Job (NASDAQ: JOBS) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the April $75.00 call while simultaneously buying JOBS stock for $78.60 will result in a new position with a break-even point around $71.80. At that price, this position has a target return of 4.5%. This trade has 8.7% downside protection, while still providing a 4.5% return in 93 days as long as JOBS is above $75.00 on 4/19/2014. For comparison purposes only, this 51Job covered call targets an annualized return rate of 17.5%. *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 SolarCity (SCTY), Sirius XM Radio (SIRI) and Rambus (RMBS) are headed higher this morning, while First Solar (FSLR), Twitter (TWTR) and Sarepta Therapeutics (SRPT) are headed lower. Liberty Media (LMCA), Wabash National (WNC) and Prologis (PLD) were upgraded by analysts this morning, while Riverbed Technology (RVBD), Saul Centers (BFS) and Washington REIT (WRE) were downgraded. MARKET OVERVIEW Asian markets moved lower overnight. The Nikkei 225 plunged 2.3% and the Shanghai SEC dropped 1.8%. Japan was catching up with the rest of the region after its extended holiday break, while Chinese issues continued to fight against the fear that too many upcoming IPOs will flood the market. Other regional indices, including the Hong Kong Hang Seng and the Taiwan TSEC were off about 0.5% in today's trading. In Europe, performance is muted but mixed so far this morning, with the French CAC 40 and German DAX each higher by a small amount, but the Euronext 100 and Swiss Market Index lower by even less. Continent-wide PMI met expectations with a small expansion reported for December. Turning to commodities futures, crude oil is lower again since our last report, with the front-month West Texas Intermediate contract at $94.30, up 0.3% today but sharply lower from a week ago. Natural gas is up 1.0%, while gasoline is down 0.9%. Gold is holding steady at $1,238 and the U.S. Dollar is weaker against the Euro and the Yen, but stronger against smaller world currencies. Bitcoins are up to $945, up another 15% from Friday morning. PUT/CALL RATIO Friday, 1,148,373 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 623,494 put contracts. The single-session put/call was 0.54, while the 20-day moving average is now at 0.54. SUPPORT & RESISTANCE LEVELS The S&P 500 Depository Receipts (SPY) ETF has support at $179 and is above resistance. The Nasdaq 100 (QQQ) has support at $85 and is above resistance. TODAY'S ECONOMIC CALENDAR 10:00 AM Nov Factory Orders 10:00 AM Dec ISM Services EARNINGS EXPECTED TODAY There are no major 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 |
