MORNING UPDATE: PriceWatch Alerts for KO and More... for 2013-12-04 |
| ------------------------------------------------------------------ MORNING UPDATE: PriceWatch Alerts for MCD, KO, EXPE and More... December 4, 9:00 AM ET - PriceWatch Alerts for MCD, KRFT, LLTC, SNDK, TRV, KO, MXIM, WDC, CTSH, EXPE, Market Overview, News Leaders and Laggards, Today's Economic Calendar, and Index Support & Resistance Levels. PriceWatch Alerts for MCD, KRFT, LLTC, SNDK, TRV, KO, MXIM, WDC, CTSH, EXPE. McDonald's (NYSE: MCD) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $96.38 while selling the March $100.00 call will produce a new covered call with a break-even point around $95.23. At that price, this position has a target return of 5.0%. This trade will have roughly 1.2% downside protection, while still aiming for a 5.0% return in 108 days. It will lock in that return as long as McDonald's is above $100.00 on 3/22/2014. For comparison purposes only, this MCD covered call aims for an annualized return rate of 16.9%. Kraft (NASDAQ: KRFT) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $53.03 while simultaneously selling the March $55.00 call will result in a new position with a target return of 5.7%. Based on recent prices, this position will cost about $52.03, which is also the trade?s breakeven point. At that level, this covered call has 1.9% downside protection, while still providing a 5.7% return in 108 days as long as KRFT is above $55.00 on 3/22/2014. For comparison purposes only, this Kraft covered call aims for an annualized return rate of 19.3%. Linear Technology (NASDAQ: LLTC) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $43.20 while selling the May $43.00 call will produce a new covered call with a break-even point around $40.95. At that price, this position has a target return of 5.0%. This trade will have roughly 5.2% downside protection, while still aiming for a 5.0% return in 164 days. It will lock in that return as long as Linear Technology is above $43.00 on 5/17/2014. For comparison purposes only, this LLTC covered call aims for an annualized return rate of 11.1%. SanDisk (NASDAQ: SNDK) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the April $65.00 call while at the same time buying SNDK stock for $67.90 will produce a new covered call with a target return of 6.0%. Based on recent data, this trade will cost about $61.30, which is also the covered call?s breakeven point. At that price, this covered call has 9.7% downside protection, while seeking an assigned return of 6.0% return in 136 days. If SNDK is higher than $65.00 on 4/19/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 16.2%. Travelers (NYSE: TRV) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the April $90.00 call while simultaneously buying TRV stock for $89.03 will result in a new position with a break-even point around $86.38. At that price, this position has a target return of 4.2%. This trade has 3.0% downside protection, while still providing a 4.2% return in 136 days as long as TRV is above $90.00 on 4/19/2014. For comparison purposes only, this Travelers covered call targets an annualized return rate of 11.2%. Coca Cola (NYSE: KO) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $40.35 while selling the May $41.00 call will produce a new covered call with a break-even point around $39.13. At that price, this position has a target return of 4.8%. This trade will have roughly 3.0% downside protection, while still aiming for a 4.8% return in 164 days. It will lock in that return as long as Coca Cola is above $41.00 on 5/17/2014. For comparison purposes only, this KO covered call aims for an annualized return rate of 10.6%. Maxim Integrated Products (NASDAQ: MXIM) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $28.44 while simultaneously selling the May $28.00 call will result in a new position with a target return of 5.1%. Based on recent prices, this position will cost about $26.64, which is also the trade?s breakeven point. At that level, this covered call has 6.3% downside protection, while still providing a 5.1% return in 164 days as long as MXIM is above $28.00 on 5/17/2014. For comparison purposes only, this Maxim Integrated Products covered call aims for an annualized return rate of 11.4%. Western Digital (NYSE: WDC) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the April $70.00 call while at the same time buying WDC stock for $75.53 will produce a new covered call with a target return of 4.9%. Based on recent data, this trade will cost about $66.73, which is also the covered call?s breakeven point. At that price, this covered call has 11.7% downside protection, while seeking an assigned return of 4.9% return in 136 days. If WDC is higher than $70.00 on 4/19/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 13.2%. Cognizant Technology (NASDAQ: CTSH) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the April $90.00 call while at the same time buying CTSH stock for $93.85 will produce a new covered call with a target return of 5.1%. Based on recent data, this trade will cost about $85.65, which is also the covered call?s breakeven point. At that price, this covered call has 8.7% downside protection, while seeking an assigned return of 5.1% return in 136 days. If CTSH is higher than $90.00 on 4/19/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 13.6%. Expedia (NASDAQ: EXPE) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the April $55.00 call while simultaneously buying EXPE stock for $62.56 will result in a new position with a break-even point around $52.56. At that price, this position has a target return of 4.6%. This trade has 16.0% downside protection, while still providing a 4.6% return in 136 days as long as EXPE is above $55.00 on 4/19/2014. For comparison purposes only, this Expedia covered call targets an annualized return rate of 12.5%. *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 Amarin (AMRN), Linn Energy (LINE) and Fresh Market (TFM) are headed higher this morning, while Office Depot (ODP), Celldex (CLDX) and Sears (SHLD) are dropping. Johnson Controls (JCI) was upgraded by analysts this morning, while there were no major analyst downgrades. MARKET OVERVIEW In Asia, stock market performance overnight was widely varied again. The Shanghai SEC rose 1.3%, while the Taiwan TSEC and the Australian All-Ordinaries both gained 0.3%. However, the Mumbai Sensex and the Hong Kong Hang Seng both dropped 0.7% and the Japanese Nikkei 225 lost 2.2%. Australian GDP was weaker than expected. The Yen strengthened against the U.S. dollar, which caused weakness in international companies that ship goods to the U.S. European indices are lower across the board so far this morning. The Swiss Market Index is down 0.7% at last check, while the French CAC 40, the FTSE 100 and the German DAX are each lower by about 0.3%. European traders are likely waiting for tomorrow's session, when both the European Central Bank and the Bank of England will announce interest rate decisions. In futures, American crude oil has made a sharp move higher on currency fluctuations. West Texas Intermediate crude is up 1.0% this morning to $96.98 after rising more than $2 yesterday. Heating oil and gasoline are both lower, while natural gas is thus far unchanged and Brent crude is actually lower. Gold is basically flat, while silver and copper are both moving higher. The U.S. Dollar is fractionally weaker against the Euro and the Yen after rising yesterday. Bitcoins are currently at $1,184. PUT/CALL RATIO Yesterday, 998,346 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 605,372 put contracts. The single-session put/call was 0.61, 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 $174 and is above resistance. The Nasdaq 100 (QQQ) has support at $81.50 and is above resistance. TODAY'S ECONOMIC CALENDAR 07:00 AM 11/30 MBA Mortgage Index 08:15 AM Nov ADP Employment Change 08:30 AM Oct Trade Balance 10:00 AM Sep New Home Sales 10:00 AM Oct New Home Sales 10:00 AM Nov ISM Services 10:30 AM 11/30 Crude Inventories 02:00 PM Dec Fed's Beige Book EARNINGS EXPECTED TODAY ARO BF-B GES 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 |
