MORNING UPDATE: PriceWatch Alerts for SYY and More... for 2013-12-10 |
| ------------------------------------------------------------------ MORNING UPDATE: PriceWatch Alerts for SYY, WMT, DIS and More... December 10, 9:00 AM ET - PriceWatch Alerts for PRU, GM, SYY, MMM, BKS, WMT, SINA, HD, GRPN, TMUS, DIS, YELP, SCHW, GRMN, CLF, Market Overview, News Leaders and Laggards, Today's Economic Calendar, and Index Support & Resistance Levels. PriceWatch Alerts for PRU, GM, SYY, MMM, BKS, WMT, SINA, HD, GRPN, TMUS, DIS, YELP, SCHW, GRMN and CLF. Prudential Financial (NYSE: PRU) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $88.98 while selling the March $87.50 call will produce a new covered call with a break- even point around $83.83. At that price, this position has a target return of 4.4%. This trade will have roughly 5.8% downside protection, while still aiming for a 4.4% return in 102 days. It will lock in that return as long as Prudential Financial is above $87.50 on 3/22/2014. For comparison purposes only, this PRU covered call aims for an annualized return rate of 15.6%. GM (NYSE: GM) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $40.90 while simultaneously selling the March $39.00 call will result in a new position with a target return of 4.7%. Based on recent prices, this position will cost about $37.25, which is also the trade?s breakeven point. At that level, this covered call has 8.9% downside protection, while still providing a 4.7% return in 102 days as long as GM is above $39.00 on 3/22/2014. For comparison purposes only, this GM covered call aims for an annualized return rate of 16.8%. Sysco (NYSE: SYY) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $37.62 while selling the February $38.00 call will produce a new covered call with a break-even point around $36.57. At that price, this position has a target return of 3.9%. This trade will have roughly 2.8% downside protection, while still aiming for a 3.9% return in 74 days. It will lock in that return as long as Sysco is above $38.00 on 2/22/2014. For comparison purposes only, this SYY covered call aims for an annualized return rate of 19.3%. 3M (NYSE: MMM) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the April $130.00 call while at the same time buying MMM stock for $128.57 will produce a new covered call with a target return of 4.4%. Based on recent data, this trade will cost about $124.52, which is also the covered call?s breakeven point. At that price, this covered call has 3.2% downside protection, while seeking an assigned return of 4.4% return in 130 days. If MMM is higher than $130.00 on 4/19/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 12.4%. Barnes & Noble (NYSE: BKS) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the April $14.00 call while simultaneously buying BKS stock for $14.69 will result in a new position with a break-even point around $12.69. At that price, this position has a target return of 10.3%. This trade has 13.6% downside protection, while still providing a 10.3% return in 130 days as long as BKS is above $14.00 on 4/19/2014. For comparison purposes only, this Barnes & Noble covered call targets an annualized return rate of 29.0%. Walmart Stores (NYSE: WMT) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $79.95 while selling the March $82.50 call will produce a new covered call with a break- even point around $78.80. At that price, this position has a target return of 4.7%. This trade will have roughly 1.4% downside protection, while still aiming for a 4.7% return in 102 days. It will lock in that return as long as Walmart Stores is above $82.50 on 3/22/2014. For comparison purposes only, this WMT covered call aims for an annualized return rate of 16.8%. SINA com (NASDAQ: SINA) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $75.83 while simultaneously selling the January $75.00 call will result in a new position with a target return of 5.1%. Based on recent prices, this position will cost about $71.38, which is also the trade?s breakeven point. At that level, this covered call has 5.9% downside protection, while still providing a 5.1% return in 39 days as long as SINA is above $75.00 on 1/18/2014. For comparison purposes only, this SINA com covered call aims for an annualized return rate of 47.5%. Home Depot (NYSE: HD) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $79.60 while selling the May $80.00 call will produce a new covered call with a break-even point around $75.90. At that price, this position has a target return of 5.4%. This trade will have roughly 4.6% downside protection, while still aiming for a 5.4% return in 158 days. It will lock in that return as long as Home Depot is above $80.00 on 5/17/2014. For comparison purposes only, this HD covered call aims for an annualized return rate of 12.5%. Groupon (NASDAQ: GRPN) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the April $10.00 call while at the same time buying GRPN stock for $9.62 will produce a new covered call with a target return of 21.1%. Based on recent data, this trade will cost about $8.26, which is also the covered call?s breakeven point. At that price, this covered call has 14.1% downside protection, while seeking an assigned return of 21.1% return in 130 days. If GRPN is higher than $10.00 on 4/19/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 59.1%. T-Mobile US (NYSE: TMUS) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the February $26.00 call while simultaneously buying TMUS stock for $26.61 will result in a new position with a break-even point around $24.56. At that price, this position has a target return of 5.9%. This trade has 7.7% downside protection, while still providing a 5.9% return in 74 days as long as TMUS is above $26.00 on 2/22/2014. For comparison purposes only, this T- Mobile US covered call targets an annualized return rate of 28.9%. Walt Disney (NYSE: DIS) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $71.11 while selling the February $72.50 call will produce a new covered call with a break-even point around $69.49. At that price, this position has a target return of 4.3%. This trade will have roughly 2.3% downside protection, while still aiming for a 4.3% return in 74 days. It will lock in that return as long as Walt Disney is above $72.50 on 2/22/2014. For comparison purposes only, this DIS covered call aims for an annualized return rate of 21.4%. Yelp (NYSE: YELP) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $63.79 while simultaneously selling the January $60.00 call will result in a new position with a target return of 4.9%. Based on recent prices, this position will cost about $57.19, which is also the trade?s breakeven point. At that level, this covered call has 10.3% downside protection, while still providing a 4.9% return in 39 days as long as YELP is above $60.00 on 1/18/2014. For comparison purposes only, this Yelp covered call aims for an annualized return rate of 46.0%. Schwab (NYSE: SCHW) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $25.04 while selling the March $25.00 call will produce a new covered call with a break-even point around $23.69. At that price, this position has a target return of 5.5%. This trade will have roughly 5.4% downside protection, while still aiming for a 5.5% return in 102 days. It will lock in that return as long as Schwab is above $25.00 on 3/22/2014. For comparison purposes only, this SCHW covered call aims for an annualized return rate of 19.8%. Garmin (NASDAQ: GRMN) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the April $48.00 call while at the same time buying GRMN stock for $49.02 will produce a new covered call with a target return of 4.4%. Based on recent data, this trade will cost about $45.97, which is also the covered call?s breakeven point. At that price, this covered call has 6.2% downside protection, while seeking an assigned return of 4.4% return in 130 days. If GRMN is higher than $48.00 on 4/19/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 12.4%. Cliffs Natural Resources (NYSE: CLF) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the January $24.00 call while simultaneously buying CLF stock for $25.00 will result in a new position with a break-even point around $22.98. At that price, this position has a target return of 4.4%. This trade has 8.1% downside protection, while still providing a 4.4% return in 39 days as long as CLF is above $24.00 on 1/18/2014. For comparison purposes only, this Cliffs Natural Resources covered call targets an annualized return rate of 41.5%. *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. 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NEWS LEADERS AND LAGGARDS Rambus (RMBS), Ariad Pharmaceuticals (ARIA) and Telecom Italia (TI) are headed higher this morning, while Icahn Enterprises (IEP), Dow Chemical (DOW) and Xerox (XRX) are in decline. Geron (GERN), United Rentals (URI) and Johnson Controls (JCI) were upgraded by analysts this morning, while Tenneco (TEN) was downgraded. MARKET OVERVIEW Asian trading was relatively subdued overnight. The Japanese Nikkei 225, the Mumbai Sensex, and the Hong Kong Hang Seng each lost about 0.3%. Meanwhile the Taiwan TSEC and Shanghai SEC were essentially flat. New Chinese economic data showed slowing growth for industrial output, but stronger than expected retail gains. In Europe, the major markets are also mostly modestly lower this morning. The Swiss Market Index is off 0.3%, the French CAC 40 is down 0.2% and the Euronext 100 has dipped 0.1% at last check, while the German DAX is just barely in positive territory. French October industrial output, which was expected to rise slightly, dropped a small amount instead. In the futures pits, West Texas Intermediate crude oil is higher by more than 1% this morning at $98.38. Natural gas, heating oil, and gasoline are also significantly higher. Gold is up 1.8% at $1,256 and silver is advancing 2.6%, while platinum and copper are making smaller gains. The U.S. Dollar is weaker across the board, including against the Euro and the Yen, and Bitcoins are currently at $936. PUT/CALL RATIO Yesterday, 987,552 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 610,511 put contracts. The single-session put/call was 0.62, while the 20-day moving average is now at 0.56. 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 and is above resistance. TODAY'S ECONOMIC CALENDAR 10:00 AM Oct Wholesale Inventories 10:00 AM Oct JOLTS ? Job Openings EARNINGS EXPECTED TODAY AZO HRB 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 |
