MORNING UPDATE: PriceWatch Alerts for GOOG and More... for 2014-01-03 |
| ------------------------------------------------------------------ MORNING UPDATE: PriceWatch Alerts for GOOG, CRM, AMZN, and More... January 3, 9:00 AM ET - PriceWatch Alerts for GOOG, CELG, CRM, CHK, ENDP, AMZN, MYGN, ADI, UBNT, CROX, Market Overview, News Leaders and Laggards, Today's Economic Calendar, and Index Support & Resistance Levels. PriceWatch Alerts for GOOG, CELG, CRM, CHK, ENDP, AMZN, MYGN, ADI, UBNT and CROX. Google (NASDAQ: GOOG) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $1,113.12 while selling the March $1,110.00 call will produce a new covered call with a break-even point around $1,067.02. At that price, this position has a target return of 4.0%. This trade will have roughly 4.1% downside protection, while still aiming for a 4.0% return in 78 days. It will lock in that return as long as Google is above $1,110.00 on 3/22/2014. For comparison purposes only, this GOOG covered call aims for an annualized return rate of 18.8%. Celgene (NASDAQ: CELG) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $171.94 while simultaneously selling the February $170.00 call will result in a new position with a target return of 4.4%. Based on recent prices, this position will cost about $162.89, which is also the trade?s breakeven point. At that level, this covered call has 5.3% downside protection, while still providing a 4.4% return in 50 days as long as CELG is above $170.00 on 2/22/2014. For comparison purposes only, this Celgene covered call aims for an annualized return rate of 31.8%. Salesforce.com (NYSE: CRM) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $54.86 while selling the March $55.00 call will produce a new covered call with a break- even point around $51.36. At that price, this position has a target return of 7.1%. This trade will have roughly 6.4% downside protection, while still aiming for a 7.1% return in 78 days. It will lock in that return as long as Salesforce.com is above $55.00 on 3/22/2014. For comparison purposes only, this CRM covered call aims for an annualized return rate of 33.1%. Chesapeake Energy (NYSE: CHK) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the March $27.00 call while at the same time buying CHK stock for $26.62 will produce a new covered call with a target return of 6.3%. Based on recent data, this trade will cost about $25.39, which is also the covered call?s breakeven point. At that price, this covered call has 4.6% downside protection, while seeking an assigned return of 6.3% return in 78 days. If CHK is higher than $27.00 on 3/22/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 29.7%. Endo Pharmaceuticals (NASDAQ: ENDP) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the February $65.00 call while simultaneously buying ENDP stock for $65.50 will result in a new position with a break-even point around $61.90. At that price, this position has a target return of 5.0%. This trade has 5.5% downside protection, while still providing a 5.0% return in 50 days as long as ENDP is above $65.00 on 2/22/2014. For comparison purposes only, this Endo Pharmaceuticals covered call targets an annualized return rate of 36.5%. Amazon (NASDAQ: AMZN) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $397.00 while selling the February $395.00 call will produce a new covered call with a break-even point around $375.70. At that price, this position has a target return of 5.1%. This trade will have roughly 5.4% downside protection, while still aiming for a 5.1% return in 50 days. It will lock in that return as long as Amazon is above $395.00 on 2/22/2014. For comparison purposes only, this AMZN covered call aims for an annualized return rate of 37.4%. Myriad Genetics (NASDAQ: MYGN) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $21.72 while simultaneously selling the February $21.00 call will result in a new position with a target return of 5.2%. Based on recent prices, this position will cost about $19.97, which is also the trade?s breakeven point. At that level, this covered call has 8.1% downside protection, while still providing a 5.2% return in 50 days as long as MYGN is above $21.00 on 2/22/2014. For comparison purposes only, this Myriad Genetics covered call aims for an annualized return rate of 37.6%. Analog Devices (NYSE: ADI) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $49.28 while selling the March $50.00 call will produce a new covered call with a break- even point around $47.93. At that price, this position has a target return of 4.3%. This trade will have roughly 2.7% downside protection, while still aiming for a 4.3% return in 78 days. It will lock in that return as long as Analog Devices is above $50.00 on 3/22/2014. For comparison purposes only, this ADI covered call aims for an annualized return rate of 20.2%. Ubiquiti Networks (NASDAQ: UBNT) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the February $44.00 call while at the same time buying UBNT stock for $45.70 will produce a new covered call with a target return of 7.6%. Based on recent data, this trade will cost about $40.90, which is also the covered call?s breakeven point. At that price, this covered call has 10.5% downside protection, while seeking an assigned return of 7.6% return in 50 days. If UBNT is higher than $44.00 on 2/22/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 55.3%. Crocs (NASDAQ: CROX) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the June $16.00 call while simultaneously buying CROX stock for $16.49 will result in a new position with a break-even point around $14.59. At that price, this position has a target return of 9.7%. This trade has 11.5% downside protection, while still providing a 9.7% return in 169 days as long as CROX is above $16.00 on 6/21/2014. For comparison purposes only, this Crocs covered call targets an annualized return rate of 20.9%. *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. 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 Telecom Italia (TI), Rockwell Medical (RMTI) and Yahoo (YHOO) are advancing this morning, while Sprint (S), T-Mobile (TMUS) and Micron Technology (MU) are in retreat. There were no major analyst upgrades this morning, but Sprint (S) and Micron Technology (MU) were downgraded. MARKET OVERVIEW In Asia, trading was mixed overnight. The Shanghai SEC gained 0.9%, but the Taiwan TSEC fell 0.8% and the Hong Kong Hang Seng dropped 2.2%. Japanese markets continued their holiday break. Chinese PMI fell in December, but remained in expansion mode. European indices are almost all slightly higher so far this morning. The French CAC 40 and Euronext 100 are each up about 0.5%. The German DAX is gaining 0.4% and the FTSE 100 is up just 0.2%. Turning to futures, crude oil lost major ground yesterday, with the front-month West Texas Intermediate contract closing at $95.44, off 2% from morning trading. Currently, WTI is holding steady so far today along with heating oil and gasoline, while natural gas is off 0.7%. Gold has is up $4 or 0.3% to $1,229. Silver is slightly lower and copper is down 0.9%. The U.S. Dollar is stronger against the Euro and the Swiss Franc, but weaker against the Yen. Bitcoins are up to $810, up nearly 10% from yesterday. PUT/CALL RATIO Yesterday, 1,095,587 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 616,347 put contracts. The single-session put/call was 0.56, 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 $84.50 and is above resistance. TODAY'S ECONOMIC CALENDAR 10:30 AM 12/28 Natural Gas Inventories 11:00 AM 12/28 Crude Inventories 02:00 PM Dec Auto Sales 02:00 PM Dec Truck Sales EARNINGS EXPECTED TODAY CTB 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 |
