MORNING UPDATE: PriceWatch Alerts for CSCO and More... for 2013-12-24 |
| ------------------------------------------------------------------ MORNING UPDATE: PriceWatch Alerts for CSCO, CMG, M and More... December 24, 9:00 AM ET - PriceWatch Alerts for CSCO, CMG, M, Market Overview, News Leaders and Laggards, Today's Economic Calendar, and Index Support & Resistance Levels. PriceWatch Alerts for CSCO, CMG and M. Cisco Systems (NASDAQ: CSCO) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $21.57 while selling the July 22 call will produce a new covered call with a break-even point of $20.47. At that price, this position has a target return of 7.5%. This trade will have roughly 5.1% downside protection, while still aiming for a 7.5% return in 207 days. It will lock in that return as long as CSCO is above $22 on 7/19/2014. For comparison purposes only, this Cisco Systems covered call aims for an annualized return rate of 13.2%. Chipotle Mexican Grill (NYSE: CMG) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $532.03 while simultaneously selling the February $530 call will result in a new position with a target return of 4.8%. Based on recent prices, this position will cost about $505.60, which is also the trade?s breakeven point. At that level, this covered call has 5% downside protection, while still providing a 4.8% return in 60 days as long as CMG is above $530 on 2/22/2014. For comparison purposes only, this Chipotle Mexican Grill covered call aims for an annualized return rate of 13.2%. Macy's (NYSE: M) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $52.85 while simultaneously selling the May $52.50 call will result in a new position with a target return of 6.3%. Based on recent prices, this position will cost about $49.40, which is also the trade?s breakeven point. At that level, this covered call has 6.5% downside protection, while still providing a 6.3% return in 144 days as long as M is above $52.50 on 5/17/2014. For comparison purposes only, this Macy's covered call aims for an annualized return rate of 15.9%. *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. 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NEWS LEADERS AND LAGGARDS Tesla (TSLA), Ubiquiti Networks (UBNT) and Vertex Pharmaceuticals (VRTX) are pushing higher this morning, while Vipshop Holdings (VIPS), Isis Pharmaceuticals (ISIS) and SouFun Holdings (SFUN) are pulling back. There were no major analyst upgrades, but Heartland Express (HTLD) was downgraded. MARKET OVERVIEW In Asia, the major indices were for the most part higher, led by the Hong Kong Hang Seng, which gained 1.1% overnight. The Australian All-Ordinaries picked up 0.6%, while both the Shanghai SEC and the Nikkei 225 were up just 0.1%. On the other side of things, India's Sensex dipped 0.3%. Chinese interbank lending rates eased significantly, reversing a two-week trend higher. European trading is not showing too much activity on Christmas Eve. Several exchanges are closed today and of the ones open for a half-session, most aren't making big moves. The FTSE 100 added 0.2% while the French CAC 40 was slightly lower. In the commodities pits, there is not too much action this morning. Crude oil futures are slightly higher, with the front- month West Texas Intermediate crude oil above $99 again by just a few cents. Natural gas is down by 0.6%, while heating oil and gasoline are both less than a penny in positive territory. Gold is up 0.2% to $1,199, while copper is higher by 0.6%. The U.S. Dollar is stronger against almost all foreign currencies, including both the Euro and the Yen, and Bitcoins are trading around $630. PUT/CALL RATIO Yesterday, 1,329,187 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 654,076 put contracts. The single-session put/call was 0.49, while the 20-day moving average is now at 0.55. SUPPORT & RESISTANCE LEVELS The S&P 500 Depository Receipts (SPY) ETF has support at $177.50 and is above resistance. The Nasdaq 100 (QQQ) has support at $83.50 and is above resistance. TODAY'S ECONOMIC CALENDAR 07:00 AM 12/21 MBA Mortgage Index 08:30 AM Nov Durable Orders 08:30 AM Nov Durable Goods ex-transportation 09:00 AM Oct FHFA Housing Price Index 10:00 AM Nov New Home Sales EARNINGS EXPECTED TODAY There are no major earnings reports today. 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 |
