MORNING UPDATE: PriceWatch Alerts for JNJ and More... for 2013-11-13 |
| ------------------------------------------------------------------ MORNING UPDATE: PriceWatch Alerts for JNJ, AGNC, ONVO and More... November 13, 9:00 AM ET - PriceWatch Alerts for JNJ, ABBV, APD, AGNC, AFL, DHI, ONVO, CHK, BRCM, PHM, Market Overview, News Leaders and Laggards, Today's Economic Calendar, and Index Support & Resistance Levels. PriceWatch Alerts for JNJ, ABBV, APD, AGNC, AFL, DHI, ONVO, CHK, BRCM and PHM. Johnson and Johnson (NYSE: JNJ) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $93.56 while selling the April $97.50 call will produce a new covered call with a break- even point around $92.20. At that price, this position has a target return of 5.7%. This trade will have roughly 1.5% downside protection, while still aiming for a 5.7% return in 157 days. It will lock in that return as long as Johnson and Johnson is above $97.50 on 4/19/2014. For comparison purposes only, this JNJ covered call aims for an annualized return rate of 13.3%. AbbVie (NYSE: ABBV) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $47.48 while simultaneously selling the February $47.50 call will result in a new position with a target return of 4.8%. Based on recent prices, this position will cost about $45.33, which is also the trade?s breakeven point. At that level, this covered call has 4.5% downside protection, while still providing a 4.8% return in 101 days as long as ABBV is above $47.50 on 2/22/2014. For comparison purposes only, this AbbVie covered call aims for an annualized return rate of 17.3%. Air Products and Chemicals (NYSE: APD) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $107.97 while simultaneously selling the January $110.00 call will result in a new position with a target return of 4.6%. Based on recent prices, this position will cost about $105.12, which is also the trade?s breakeven point. At that level, this covered call has 2.6% downside protection, while still providing a 4.6% return in 66 days as long as APD is above $110.00 on 1/18/2014. For comparison purposes only, this Air Products and Chemicals covered call aims for an annualized return rate of 25.7%. American Capital Agency (NASDAQ: AGNC) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the June $21.00 call while at the same time buying AGNC stock for $21.07 will produce a new covered call with a target return of 5.0%. Based on recent data, this trade will cost about $20.00, which is also the covered call?s breakeven point. At that price, this covered call has 5.1% downside protection, while seeking an assigned return of 5.0% return in 220 days. If AGNC is higher than $21.00 on 6/21/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 8.3%. AFLAC (NYSE: AFL) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the May $67.50 call while simultaneously buying AFL stock for $65.25 will result in a new position with a break-even point around $63.02. At that price, this position has a target return of 7.1%. This trade has 3.4% downside protection, while still providing a 7.1% return in 185 days as long as AFL is above $67.50 on 5/17/2014. For comparison purposes only, this AFLAC covered call targets an annualized return rate of 14.0%. D R Horton (NYSE: DHI) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $18.91 while selling the February $18.00 call will produce a new covered call with a break-even point around $16.87. At that price, this position has a target return of 6.7%. This trade will have roughly 10.8% downside protection, while still aiming for a 6.7% return in 101 days. It will lock in that return as long as D R Horton is above $18.00 on 2/22/2014. For comparison purposes only, this DHI covered call aims for an annualized return rate of 24.2%. Organovo (AMEX: ONVO) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $9.36 while simultaneously selling the May $7.50 call will result in a new position with a target return of 19.8%. Based on recent prices, this position will cost about $6.26, which is also the trade?s breakeven point. At that level, this covered call has 33.1% downside protection, while still providing a 19.8% return in 185 days as long as ONVO is above $7.50 on 5/17/2014. For comparison purposes only, this Organovo covered call aims for an annualized return rate of 39.1%. Chesapeake Energy (NYSE: CHK) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $25.55 while simultaneously selling the April $25.00 call will result in a new position with a target return of 6.8%. Based on recent prices, this position will cost about $23.41, which is also the trade?s breakeven point. At that level, this covered call has 8.4% downside protection, while still providing a 6.8% return in 157 days as long as CHK is above $25.00 on 4/19/2014. For comparison purposes only, this Chesapeake Energy covered call aims for an annualized return rate of 15.8%. Broadcom (NASDAQ: BRCM) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the February $27.00 call while at the same time buying BRCM stock for $27.23 will produce a new covered call with a target return of 6.2%. Based on recent data, this trade will cost about $25.43, which is also the covered call?s breakeven point. At that price, this covered call has 6.6% downside protection, while seeking an assigned return of 6.2% return in 101 days. If BRCM is higher than $27.00 on 2/22/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 22.3%. Pulte Homes (NYSE: PHM) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the April $16.00 call while simultaneously buying PHM stock for $16.76 will result in a new position with a break-even point around $14.70. At that price, this position has a target return of 8.8%. This trade has 12.3% downside protection, while still providing a 8.8% return in 157 days as long as PHM is above $16.00 on 4/19/2014. For comparison purposes only, this Pulte Homes covered call targets an annualized return rate of 20.6%. *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 Sina (SINA), Macy's (M) and Health Management Associates (HMA) are headed higher this morning, while Dendreon (DND), Perry Ellis (PERY) and Safe Bulkers (SB) are dropping. Rockwood Holdings (ROC) was upgraded by analysts this morning, while Sarepta Therapeutics (SRPT), Dendreon (DNDN) and Air Methods (AIRM) were downgraded. MARKET OVERVIEW International trading was weak overnight, especially among Asian indices. The Hong Kong Hang Seng and the Shanghai SEC dropped almost 2%, while the Taiwan TSEC and Australian All-Ordinaries fell a little more than 1% each. The Japanese Nikkei was the strongest in the region, but still dropped 0.1%. In Europe, all the major indices are also lower so far this morning, keying in the disappointing event in China. The FTSE 100 is down about 1.4%, while the French CAC 40, German DAX and Euronext 100 are all off around 0.7%. West Texas Intermediate crude oil futures are higher this morning by 0.3% to trade at $93.37 after falling sharply yesterday. Heating oil, gasoline, and natural gas are all higher by a few pennies as well. Gold is up a 0.5% to $1,277, while copper is down 1.4%. The U.S. Dollar is weaker against the Yen but slightly stronger against the Euro. Bitcoins have notched a new all-time high and have breached the $400 mark in early action today. PUT/CALL RATIO Yesterday, 1,130,728 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 625,004 put contracts. The single-session put/call was 0.55, while the 20-day moving average is now at 0.55. Barring only a tiny blip, it has now been falling since 10/15/2013. SUPPORT & RESISTANCE LEVELS The S&P 500 Depository Receipts (SPY) ETF has support at $172 and is above resistance. The Nasdaq 100 (QQQ) has support at $80 and is above resistance. TODAY'S ECONOMIC CALENDAR 07:00 AM 11/9 MBA Mortgage Index 02:00 PM Oct Treasury Budget EARNINGS EXPECTED TODAY CSCO CSIQ M NGL NTAP TTM XONE 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 |
