MORNING UPDATE: PriceWatch Alerts for MU and More... for 2013-12-11 |
| ------------------------------------------------------------------ MORNING UPDATE: PriceWatch Alerts for MU, NPSP, RMBS and More... December 11, 9:00 AM ET - PriceWatch Alerts for MU, ISIS, ABX, SAM, NPSP, RDS.A, VRSK, Z, RMBS, SPLK, Market Overview, News Leaders and Laggards, Today's Economic Calendar, and Index Support & Resistance Levels. PriceWatch Alerts for MU, ISIS, ABX, SAM, NPSP, RDS.A, VRSK, Z, RMBS and SPLK. Micron Technology (NASDAQ: MU) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $23.14 while simultaneously selling the January $23.00 call will result in a new position with a target return of 7.0%. Based on recent prices, this position will cost about $21.50, which is also the trade?s breakeven point. At that level, this covered call has 7.1% downside protection, while still providing a 7.0% return in 38 days as long as MU is above $23.00 on 1/18/2014. For comparison purposes only, this Micron Technology covered call aims for an annualized return rate of 66.9%. Isis Pharmaceuticals (NASDAQ: ISIS) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $37.76 while selling the January $37.00 call will produce a new covered call with a break- even point around $34.56. At that price, this position has a target return of 7.1%. This trade will have roughly 8.5% downside protection, while still aiming for a 7.1% return in 38 days. It will lock in that return as long as Isis Pharmaceuticals is above $37.00 on 1/18/2014. For comparison purposes only, this ISIS covered call aims for an annualized return rate of 67.8%. Barrick Gold (NYSE: ABX) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $16.87 while simultaneously selling the April $16.00 call will result in a new position with a target return of 8.2%. Based on recent prices, this position will cost about $14.79, which is also the trade?s breakeven point. At that level, this covered call has 12.3% downside protection, while still providing a 8.2% return in 129 days as long as ABX is above $16.00 on 4/19/2014. For comparison purposes only, this Barrick Gold covered call aims for an annualized return rate of 23.1%. Boston Beer Company (NYSE: SAM) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the March $230.00 call while simultaneously buying SAM stock for $233.83 will result in a new position with a break-even point around $218.43. At that price, this position has a target return of 5.3%. This trade has 6.6% downside protection, while still providing a 5.3% return in 101 days as long as SAM is above $230.00 on 3/22/2014. For comparison purposes only, this Boston Beer Company covered call targets an annualized return rate of 19.1%. NPS Pharmaceuticals (NASDAQ: NPSP) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the January $23.00 call while at the same time buying NPSP stock for $23.78 will produce a new covered call with a target return of 6.1%. Based on recent data, this trade will cost about $21.68, which is also the covered call?s breakeven point. At that price, this covered call has 8.8% downside protection, while seeking an assigned return of 6.1% return in 38 days. If NPSP is higher than $23.00 on 1/18/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 58.4%. Royal Dutch Shell (NYSE: RDS.A) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $68.20 while selling the April $70.00 call will produce a new covered call with a break- even point around $67.05. At that price, this position has a target return of 4.4%. This trade will have roughly 1.7% downside protection, while still aiming for a 4.4% return in 129 days. It will lock in that return as long as Royal Dutch Shell is above $70.00 on 4/19/2014. For comparison purposes only, this RDS.A covered call aims for an annualized return rate of 12.4%. Verisk Analytics (NASDAQ: VRSK) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $66.23 while simultaneously selling the June $70.00 call will result in a new position with a target return of 7.8%. Based on recent prices, this position will cost about $64.93, which is also the trade?s breakeven point. At that level, this covered call has 2.0% downside protection, while still providing a 7.8% return in 192 days as long as VRSK is above $70.00 on 6/21/2014. For comparison purposes only, this Verisk Analytics covered call aims for an annualized return rate of 14.8%. Zillow (NASDAQ: Z) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $75.12 while simultaneously selling the January $75.00 call will result in a new position with a target return of 6.4%. Based on recent prices, this position will cost about $70.52, which is also the trade?s breakeven point. At that level, this covered call has 6.1% downside protection, while still providing a 6.4% return in 38 days as long as Z is above $75.00 on 1/18/2014. For comparison purposes only, this Zillow covered call aims for an annualized return rate of 61.0%. Rambus (NASDAQ: RMBS) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the May $10.00 call while at the same time buying RMBS stock for $9.58 will produce a new covered call with a target return of 16.3%. Based on recent data, this trade will cost about $8.60, which is also the covered call?s breakeven point. At that price, this covered call has 10.2% downside protection, while seeking an assigned return of 16.3% return in 157 days. If RMBS is higher than $10.00 on 5/17/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 37.8%. Splunk (NASDAQ: SPLK) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the January $67.50 call while simultaneously buying SPLK stock for $68.43 will result in a new position with a break-even point around $64.83. At that price, this position has a target return of 4.1%. This trade has 5.3% downside protection, while still providing a 4.1% return in 38 days as long as SPLK is above $67.50 on 1/18/2014. For comparison purposes only, this Splunk covered call targets an annualized return rate of 39.5%. *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 Scripps Networks (SNI), Smith and Wesson (SWHC) and Urban Outfitters (URBN) are advancing this morning, while Avanir Pharmaceuticals (AVNR), Laboratory Holdings (LH) and HomeAway (AWAY) are pulling back. General Dynamics (GD), NanoString Technologies (NSTG) and Children's Place (PLCE) were upgraded by analysts this morning, while W.R. Grace (GRA) and Avanir Pharmaceuticals were downgraded. MARKET OVERVIEW In Asia overnight, the major indices all moved lower. The Mumbai Sensex and the Shanghai SEC each fell about 1.5%, while the Nikkei 225 was off 0.6%. The Taiwan TSEC was essentially flat. Chinese banks lost ground as concerns about changing government policy created uncertainty and the Yen grew stronger as the dollar weakened. European markets are moving in the opposite direction this morning. The French CAC 40 is up 0.6%, the Euronext 100 and Swiss Market Index have gained 0.5% each at last check, and the FTSE 100 and German DAX are also in positive territory. European traders were enthused by the news of the potential U.S. budget deal. In the futures pits, energy contracts are all at least slightly lower this morning. West Texas Intermediate crude oil is down just 0.1%, but natural gas is off 1.3% and gasoline is down 0.9%. Gold is falling 0.4% at $1,255 but silver and copper are advancing slightly. The U.S. Dollar is weaker against the Euro and the Yen, and Bitcoins are 12% lower than their high point yesterday, currently at $925. PUT/CALL RATIO Yesterday, 933,277 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 537,039 put contracts. The single-session put/call was 0.58, while the 20-day moving average is now at 0.57. SUPPORT & RESISTANCE LEVELS The S&P 500 Depository Receipts (SPY) ETF has support at $176 and is above resistance. The Nasdaq 100 (QQQ) has support at $82.50 and is above resistance. TODAY'S ECONOMIC CALENDAR 08:30 AM 12/7 Initial Claims 08:30 AM 11/30 Continuing Claims 08:30 AM Nov Retail Sales 08:30 AM Nov Retail Sales ex-auto 08:30 AM Nov Export Prices ex-ag. 08:30 AM Nov Import Prices ex-oil 10:00 AM Oct Business Inventories 10:30 AM 12/7 Natural Gas Inventories EARNINGS EXPECTED TODAY COST JOY MW VRA 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 |
