MORNING UPDATE: PriceWatch Alerts for AMZN and More... for 2013-11-25 |
| ------------------------------------------------------------------ MORNING UPDATE: PriceWatch Alerts for AMZN, ILMN, AXP and More... November 25, 9:00 AM ET - PriceWatch Alerts for AMZN, AKAM, ILMN, DFS, SAP, AXP, CELG, ALTR, JCP, COH, Market Overview, News Leaders and Laggards, Today's Economic Calendar, and Index Support & Resistance Levels. PriceWatch Alerts for AMZN, AKAM, ILMN, DFS, SAP, AXP, CELG, ALTR, JCP and COH. Amazon (NASDAQ: AMZN) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $372.31 while selling the February $360.00 call will produce a new covered call with a break-even point around $342.91. At that price, this position has a target return of 5.0%. This trade will have roughly 7.9% downside protection, while still aiming for a 5.0% return in 89 days. It will lock in that return as long as Amazon is above $360.00 on 2/22/2014. For comparison purposes only, this AMZN covered call aims for an annualized return rate of 20.4%. Akamai Technologies (NASDAQ: AKAM) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $44.20 while simultaneously selling the February $43.00 call will result in a new position with a target return of 5.9%. Based on recent prices, this position will cost about $40.60, which is also the trade?s breakeven point. At that level, this covered call has 8.1% downside protection, while still providing a 5.9% return in 89 days as long as AKAM is above $43.00 on 2/22/2014. For comparison purposes only, this Akamai Technologies covered call aims for an annualized return rate of 24.2%. Illumina (NASDAQ: ILMN) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $99.83 while selling the January $97.50 call will produce a new covered call with a break-even point around $93.33. At that price, this position has a target return of 4.5%. This trade will have roughly 6.5% downside protection, while still aiming for a 4.5% return in 54 days. It will lock in that return as long as Illumina is above $97.50 on 1/18/2014. For comparison purposes only, this ILMN covered call aims for an annualized return rate of 30.1%. Discover (NYSE: DFS) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the April $50.00 call while at the same time buying DFS stock for $52.40 will produce a new covered call with a target return of 4.2%. Based on recent data, this trade will cost about $48.00, which is also the covered call?s breakeven point. At that price, this covered call has 8.4% downside protection, while seeking an assigned return of 4.2% return in 145 days. If DFS is higher than $50.00 on 4/19/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 10.5%. SAP AG (NYSE: SAP) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the January $85.00 call while simultaneously buying SAP stock for $82.22 will result in a new position with a break- even point around $80.97. At that price, this position has a target return of 5.0%. This trade has 1.5% downside protection, while still providing a 5.0% return in 54 days as long as SAP is above $85.00 on 1/18/2014. For comparison purposes only, this SAP AG covered call targets an annualized return rate of 33.6%. American Express (NYSE: AXP) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $83.85 while selling the April $82.50 call will produce a new covered call with a break- even point around $79.10. At that price, this position has a target return of 4.3%. This trade will have roughly 5.7% downside protection, while still aiming for a 4.3% return in 145 days. It will lock in that return as long as American Express is above $82.50 on 4/19/2014. For comparison purposes only, this AXP covered call aims for an annualized return rate of 10.8%. Celgene (NASDAQ: CELG) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $163.33 while simultaneously selling the April $150.00 call will result in a new position with a target return of 5.5%. Based on recent prices, this position will cost about $142.18, which is also the trade?s breakeven point. At that level, this covered call has 12.9% downside protection, while still providing a 5.5% return in 145 days as long as CELG is above $150.00 on 4/19/2014. For comparison purposes only, this Celgene covered call aims for an annualized return rate of 13.8%. Altera (NASDAQ: ALTR) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $32.34 while simultaneously selling the March $31.00 call will result in a new position with a target return of 4.4%. Based on recent prices, this position will cost about $29.69, which is also the trade?s breakeven point. At that level, this covered call has 8.2% downside protection, while still providing a 4.4% return in 117 days as long as ALTR is above $31.00 on 3/22/2014. For comparison purposes only, this Altera covered call aims for an annualized return rate of 13.8%. JC Penney (NYSE: JCP) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the March $8.00 call while at the same time buying JCP stock for $8.87 will produce a new covered call with a target return of 15.8%. Based on recent data, this trade will cost about $6.91, which is also the covered call?s breakeven point. At that price, this covered call has 22.1% downside protection, while seeking an assigned return of 15.8% return in 117 days. If JCP is higher than $8.00 on 3/22/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 49.2%. Coach (NYSE: COH) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the May $52.50 call while simultaneously buying COH stock for $54.22 will result in a new position with a break-even point around $49.82. At that price, this position has a target return of 5.4%. This trade has 8.1% downside protection, while still providing a 5.4% return in 173 days as long as COH is above $52.50 on 5/17/2014. For comparison purposes only, this Coach covered call targets an annualized return rate of 11.3%. *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 indices were of two minds overnight to kick off the new week. There were a few bourses that closed with big gains, but also a few that finished with small losses. The Mumbai Sensex gained 1.9% and the Nikkei 225 advanced 1.5%, while the Shaghai SEC fell 0.5%. Japan was lifted by a further weakening of the Yen. In Europe so far this morning, bulls are winning the day. The Euronext 100 and French CAC 40 are each higher by 0.5% and the German DAX is up 1.0%. Peugeot is up a big chunk after its CEO announced his retirement and the agreement reached with Iran has put traders in a generally positive mood. In the futures pits, crude oil is on the decline as more inventory is expected to hit the market out of Iran. West Texas Intermediate crude is trading at $93.50, down more than 1.4% this morning. Heating oil and gasoline are also lower but upwards of 1%, while natural gas is higher by 1.1%. Gold is down about 1% to $1,230. The U.S. Dollar is stronger against other currencies, including the Euro and the Yen. Bitcoins are trading above $830, defying all reason for the time being and seemingly settling into a range above $800. PUT/CALL RATIO Friday, 1,114,386 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 632,839 put contracts. The single-session put/call was 0.57, while the 20-day moving average is now at 0.58. SUPPORT & RESISTANCE LEVELS The S&P 500 Depository Receipts (SPY) ETF has support at $170 and is above resistance. The Nasdaq 100 (QQQ) has support at $79 and is above resistance. TODAY'S ECONOMIC CALENDAR 10:00 AM Oct Pending Home Sales EARNINGS EXPECTED TODAY GFI NM QIHU 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 |
