MORNING UPDATE: PriceWatch Alerts for XONE and More... for 2013-12-05 |
| ------------------------------------------------------------------ MORNING UPDATE: PriceWatch Alerts for XONE, MSFT, BAC and More... December 5, 9:00 AM ET - PriceWatch Alerts for XONE, MSFT, UTX, DD, NKE, BAC, UNH, CVX, AMGN, X, Market Overview, News Leaders and Laggards, Today's Economic Calendar, and Index Support & Resistance Levels. PriceWatch Alerts for XONE, MSFT, UTX, DD, NKE, BAC, UNH, CVX, AMGN and X. ExOne (NASDAQ: XONE) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $57.19 while selling the January $55.00 call will produce a new covered call with a break-even point around $52.39. At that price, this position has a target return of 5.0%. This trade will have roughly 8.4% downside protection, while still aiming for a 5.0% return in 44 days. It will lock in that return as long as ExOne is above $55.00 on 1/18/2014. For comparison purposes only, this XONE covered call aims for an annualized return rate of 41.3%. Microsoft (NASDAQ: MSFT) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $38.94 while simultaneously selling the March $38.00 call will result in a new position with a target return of 4.1%. Based on recent prices, this position will cost about $36.51, which is also the trade?s breakeven point. At that level, this covered call has 6.2% downside protection, while still providing a 4.1% return in 107 days as long as MSFT is above $38.00 on 3/22/2014. For comparison purposes only, this Microsoft covered call aims for an annualized return rate of 13.9%. United Technologies (NYSE: UTX) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the May $110.00 call while at the same time buying UTX stock for $108.94 will produce a new covered call with a target return of 5.2%. Based on recent data, this trade will cost about $104.54, which is also the covered call?s breakeven point. At that price, this covered call has 4.0% downside protection, while seeking an assigned return of 5.2% return in 163 days. If UTX is higher than $110.00 on 5/17/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 11.7%. Du Pont (NYSE: DD) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $60.26 while selling the April $60.00 call will produce a new covered call with a break-even point around $57.47. At that price, this position has a target return of 4.4%. This trade will have roughly 4.6% downside protection, while still aiming for a 4.4% return in 135 days. It will lock in that return as long as Du Pont is above $60.00 on 4/19/2014. For comparison purposes only, this DD covered call aims for an annualized return rate of 11.9%. Nike (NYSE: NKE) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the April $77.50 call while simultaneously buying NKE stock for $78.82 will result in a new position with a break- even point around $73.92. At that price, this position has a target return of 4.8%. This trade has 6.2% downside protection, while still providing a 4.8% return in 135 days as long as NKE is above $77.50 on 4/19/2014. For comparison purposes only, this Nike covered call targets an annualized return rate of 13.1%. Bank of America (NYSE: BAC) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $15.63 while selling the August $15.00 call will produce a new covered call with a break- even point around $13.92. At that price, this position has a target return of 7.8%. This trade will have roughly 10.9% downside protection, while still aiming for a 7.8% return in 254 days. It will lock in that return as long as Bank of America is above $15.00 on 8/16/2014. For comparison purposes only, this BAC covered call aims for an annualized return rate of 11.1%. UnitedHealth Group (NYSE: UNH) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $73.65 while simultaneously selling the March $72.50 call will result in a new position with a target return of 4.2%. Based on recent prices, this position will cost about $69.60, which is also the trade?s breakeven point. At that level, this covered call has 5.5% downside protection, while still providing a 4.2% return in 107 days as long as UNH is above $72.50 on 3/22/2014. For comparison purposes only, this UnitedHealth Group covered call aims for an annualized return rate of 14.2%. Chevron (NYSE: CVX) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the February $125.00 call while at the same time buying CVX stock for $121.77 will produce a new covered call with a target return of 4.3%. Based on recent data, this trade will cost about $119.87, which is also the covered call?s breakeven point. At that price, this covered call has 1.6% downside protection, while seeking an assigned return of 4.3% return in 79 days. If CVX is higher than $125.00 on 2/22/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 19.7%. Amgen (NASDAQ: AMGN) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $113.07 while selling the April $110.00 call will produce a new covered call with a break-even point around $104.67. At that price, this position has a target return of 5.1%. This trade will have roughly 7.4% downside protection, while still aiming for a 5.1% return in 135 days. It will lock in that return as long as Amgen is above $110.00 on 4/19/2014. For comparison purposes only, this AMGN covered call aims for an annualized return rate of 13.8%. US Steel (NYSE: X) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the January $27.00 call while simultaneously buying X stock for $27.06 will result in a new position with a break-even point around $25.60. At that price, this position has a target return of 5.5%. This trade has 5.4% downside protection, while still providing a 5.5% return in 44 days as long as X is above $27.00 on 1/18/2014. For comparison purposes only, this US Steel covered call targets an annualized return rate of 45.3%. *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. 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MARKET OVERVIEW Asian performance overnight was nearly all negative, but with one standout performer. India's Sensex rallied 1.2% while Japan's Nikkei 225 fell 1.5%, Australia's All-Ordinaries dropped 1.3%, and the Taiwan TSEC lost 0.5%. Qantas Airways and Standard Chartered each fell a large amount overnight. In Europe, stock markets are relatively flat this morning following the European Central Bank's decision to hold steady, which was in line with expectations. The Euronext 100 and CAC 40 are slightly lower at last check, while the German DAX and Swiss Market Index are each barely in positive territory. Traders are waiting for EDB President Mario Draghi's comments which are expected very soon. In commodities, energy issues are relatively flat this morning. West Texas Intermediate crude is up slightly at $97.38. Natural gas is higher by 0.7% while gasoline and heating oil are both slightly lower. Gold is down by 1.4% to $1,229 and silver is off 2.2% at $19.39. The U.S. Dollar is slightly stronger against the Euro and slightly weaker versus the Yen. Bitcoins touched record highs again overnight at $1,240, but have dropped as low as $870 this morning. PUT/CALL RATIO Yesterday, 1,021,052 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 576,083 put contracts. The single-session put/call was 0.56, 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 $175 and is above resistance. The Nasdaq 100 (QQQ) has support at $82 and is above resistance. TODAY'S ECONOMIC CALENDAR 07:30 AM Nov Challenger Job Cuts 08:30 AM 11/30 Initial Claims 08:30 AM 11/23 Continuing Claims 08:30 AM Q3 GDP - Second Estimate 08:30 AM Q3 GDP Deflator - Second Estimate 10:00 AM Oct Factory Orders 10:30 AM 11/30 Natural Gas Inventories EARNINGS EXPECTED TODAY DG FIVE FNSR FRAN KR ULTA 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 |
