MORNING UPDATE: PriceWatch Alerts for AMAT and More... for 2013-11-19 |
| ------------------------------------------------------------------ MORNING UPDATE: PriceWatch Alerts for NFLX, VIAB, AMAT and More... November 19, 9:00 AM ET - PriceWatch Alerts for NFLX, CRM, GS, MRK, VLO, VIAB, ACN, GMCR, LVS, NOV, AMAT, TSN, BIIB, DOW, CVS, Market Overview, News Leaders and Laggards, Today's Economic Calendar, and Index Support & Resistance Levels. PriceWatch Alerts for NFLX, CRM, GS, MRK, VLO, VIAB, ACN, GMCR, LVS, NOV, AMAT, TSN, BIIB, DOW and CVS. Netflix (NASDAQ: NFLX) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $341.77 while selling the December $340.00 call will produce a new covered call with a break-even point around $325.97. At that price, this position has a target return of 4.3%. This trade will have roughly 4.6% downside protection, while still aiming for a 4.3% return in 32 days. It will lock in that return as long as Netflix is above $340.00 on 12/21/2013. For comparison purposes only, this NFLX covered call aims for an annualized return rate of 49.0%. Salesforce.com (NYSE: CRM) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $55.51 while simultaneously selling the December $55.00 call will result in a new position with a target return of 5.3%. Based on recent prices, this position will cost about $52.21, which is also the trade?s breakeven point. At that level, this covered call has 5.9% downside protection, while still providing a 5.3% return in 32 days as long as CRM is above $55.00 on 12/21/2013. For comparison purposes only, this Salesforce.com covered call aims for an annualized return rate of 60.9%. Goldman Sachs (NYSE: GS) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $165.68 while simultaneously selling the April $160.00 call will result in a new position with a target return of 4.1%. Based on recent prices, this position will cost about $153.73, which is also the trade?s breakeven point. At that level, this covered call has 7.2% downside protection, while still providing a 4.1% return in 151 days as long as GS is above $160.00 on 4/19/2014. For comparison purposes only, this Goldman Sachs covered call aims for an annualized return rate of 9.8%. Merck (NYSE: MRK) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the April $49.00 call while at the same time buying MRK stock for $48.01 will produce a new covered call with a target return of 4.8%. Based on recent data, this trade will cost about $46.75, which is also the covered call?s breakeven point. At that price, this covered call has 2.6% downside protection, while seeking an assigned return of 4.8% return in 151 days. If MRK is higher than $49.00 on 4/19/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 11.6%. Valero Energy (NYSE: VLO) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the March $42.00 call while simultaneously buying VLO stock for $42.92 will result in a new position with a break-even point around $39.72. At that price, this position has a target return of 5.7%. This trade has 7.5% downside protection, while still providing a 5.7% return in 123 days as long as VLO is above $42.00 on 3/22/2014. For comparison purposes only, this Valero Energy covered call targets an annualized return rate of 17.0%. Viacom (NASDAQ: VIAB) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $79.54 while selling the March $77.50 call will produce a new covered call with a break-even point around $74.34. At that price, this position has a target return of 4.3%. This trade will have roughly 6.5% downside protection, while still aiming for a 4.3% return in 123 days. It will lock in that return as long as Viacom is above $77.50 on 3/22/2014. For comparison purposes only, this VIAB covered call aims for an annualized return rate of 12.6%. Accenture (NYSE: ACN) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $78.52 while simultaneously selling the May $77.50 call will result in a new position with a target return of 5.0%. Based on recent prices, this position will cost about $73.82, which is also the trade?s breakeven point. At that level, this covered call has 6.0% downside protection, while still providing a 5.0% return in 179 days as long as ACN is above $77.50 on 5/17/2014. For comparison purposes only, this Accenture covered call aims for an annualized return rate of 10.2%. Green Mountain Coffee Roasters (NASDAQ: GMCR) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $63.41 while simultaneously selling the December $57.50 call will result in a new position with a target return of 4.4%. Based on recent prices, this position will cost about $55.06, which is also the trade?s breakeven point. At that level, this covered call has 13.2% downside protection, while still providing a 4.4% return in 32 days as long as GMCR is above $57.50 on 12/21/2013. For comparison purposes only, this Green Mountain Coffee Roasters covered call aims for an annualized return rate of 50.5%. Las Vegas Sands (NYSE: LVS) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the February $70.00 call while at the same time buying LVS stock for $70.77 will produce a new covered call with a target return of 5.2%. Based on recent data, this trade will cost about $66.52, which is also the covered call?s breakeven point. At that price, this covered call has 6.0% downside protection, while seeking an assigned return of 5.2% return in 95 days. If LVS is higher than $70.00 on 2/22/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 20.1%. National Oilwell Varco (NYSE: NOV) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the February $82.50 call while simultaneously buying NOV stock for $83.45 will result in a new position with a break-even point around $79.30. At that price, this position has a target return of 4.0%. This trade has 5.0% downside protection, while still providing a 4.0% return in 95 days as long as NOV is above $82.50 on 2/22/2014. For comparison purposes only, this National Oilwell Varco covered call targets an annualized return rate of 15.5%. Applied Materials (NASDAQ: AMAT) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $16.94 while selling the July $17.00 call will produce a new covered call with a break-even point around $15.69. At that price, this position has a target return of 8.3%. This trade will have roughly 7.4% downside protection, while still aiming for a 8.3% return in 242 days. It will lock in that return as long as Applied Materials is above $17.00 on 7/19/2014. For comparison purposes only, this AMAT covered call aims for an annualized return rate of 12.6%. Tyson Foods (NYSE: TSN) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $29.42 while simultaneously selling the April $29.00 call will result in a new position with a target return of 5.4%. Based on recent prices, this position will cost about $27.52, which is also the trade?s breakeven point. At that level, this covered call has 6.5% downside protection, while still providing a 5.4% return in 151 days as long as TSN is above $29.00 on 4/19/2014. For comparison purposes only, this Tyson Foods covered call aims for an annualized return rate of 13.0%. Biogen Idec (NASDAQ: BIIB) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $241.27 while simultaneously selling the December $240.00 call will result in a new position with a target return of 4.8%. Based on recent prices, this position will cost about $229.07, which is also the trade?s breakeven point. At that level, this covered call has 5.1% downside protection, while still providing a 4.8% return in 32 days as long as BIIB is above $240.00 on 12/21/2013. For comparison purposes only, this Biogen Idec covered call aims for an annualized return rate of 54.4%. Dow Chemical (NYSE: DOW) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $39.87 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 $37.24, which is also the trade?s breakeven point. At that level, this covered call has 6.6% downside protection, while still providing a 4.7% return in 123 days as long as DOW is above $39.00 on 3/22/2014. For comparison purposes only, this Dow Chemical covered call aims for an annualized return rate of 14.0%. CVS Caremark (NYSE: CVS) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the May $65.00 call while simultaneously buying CVS stock for $65.44 will result in a new position with a break-even point around $61.99. At that price, this position has a target return of 4.9%. This trade has 5.3% downside protection, while still providing a 4.9% return in 179 days as long as CVS is above $65.00 on 5/17/2014. For comparison purposes only, this CVS Caremark covered call targets an annualized return rate of 9.9%. *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)! 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NOTE: All stocks and options shown are examples only. These are not recommendations to buy or sell any security. NEWS LEADERS AND LAGGARDS Trina Solar (TSL), Brocade Communications (BRCD) and Illumina (ILMN) are trading higher this morning, while LightInTheBox (LITB), Best Buy (BBY) and Urban Outfitters (URBN) are in decline. There were no major analyst upgrades this morning; ViroPharma (VPHM) and HCP (HCP) were downgraded. MARKET OVERVIEW In Asia, the major markets put in mixed results overnight. The Taiwan TSEC added 0.8% and the Mumbai Sensex picked up 0.2%for the gainers, while the Nikkei 225 and Shanghai SEC dipped 0.2% and the Australian All-Ordinaries lost 0.5%. European indices are almost entirely in the red at last check. The French CAC 40 is down 1.0%, the Euronext 100 is off 0.7%, and both the FTSE 100 and Swiss Market Index are sliding 0.5%. The German ZEW Economic Sentiment indicator came in lower than expected for November, but is at its highest point in four years. The German DAX is one of the smaller losers so far this session, down just 0.3%. West Texas Intermediate crude remains just above $93 this morning, down 0.2% from yesterday's close. Heating oil, gasoline, and natural gas have all moved less than a penny. Gold is slightly higher at $1,275 and most other metal futures are also in positive territory. The U.S. Dollar is weaker against the Yen and the Euro, but stronger against the Canadian Dollar and the Mexican Peso. Bitcoins peaked above $900 late last night before tumbling 50% from that level to reach the price where they were early yesterday morning. PUT/CALL RATIO Yesterday, 1,403,036 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 816,473 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 $172.50 and is above resistance. The Nasdaq 100 (QQQ) has support at $80.50 and is above resistance. TODAY'S ECONOMIC CALENDAR 08:30 AM Q3 Employment Cost Index EARNINGS EXPECTED TODAY BBY HD MDT TJX TSL 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 |
