MORNING UPDATE: PriceWatch Alerts for MSFT and More... for 2013-11-04 |
| ------------------------------------------------------------------ MORNING UPDATE: PriceWatch Alerts for MSFT, PG, BAC, and More... November 1, 9:00 AM ET - PriceWatch Alerts for MSFT, PG, AMGN, EXPE, BSX, BAC, CLF, HAL, DLTR and MGM, Market Overview, News Leaders and Laggards, Today's Economic Calendar, and Index Support & Resistance Levels. PriceWatch Alerts for MSFT, PG, AMGN, EXPE, BSX, BAC, CLF, HAL, DLTR and MGM. Microsoft (NASDAQ: MSFT) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $35.53 while selling the April $35.00 call will produce a new covered call with a break-even point around $33.36. At that price, this position has a target return of 4.9%. This trade will have roughly 6.1% downside protection, while still aiming for a 4.9% return in 166 days. It will lock in that return as long as Microsoft is above $35.00 on 4/19/2014. For comparison purposes only, this MSFT covered call aims for an annualized return rate of 10.8%. Procter and Gamble (NYSE: PG) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $81.15 while simultaneously selling the April $82.50 call will result in a new position with a target return of 4.9%. Based on recent prices, this position will cost about $78.65, which is also the trade?s breakeven point. At that level, this covered call has 3.1% downside protection, while still providing a 4.9% return in 166 days as long as PG is above $82.50 on 4/19/2014. For comparison purposes only, this Procter and Gamble covered call aims for an annualized return rate of 10.8%. Amgen (NASDAQ: AMGN) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $118.69 while simultaneously selling the April $115.00 call will result in a new position with a target return of 5.1%. Based on recent prices, this position will cost about $109.44, which is also the trade?s breakeven point. At that level, this covered call has 7.8% downside protection, while still providing a 5.1% return in 166 days as long as AMGN is above $115.00 on 4/19/2014. For comparison purposes only, this Amgen covered call aims for an annualized return rate of 11.2%. Expedia (NASDAQ: EXPE) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the December $60.00 call while at the same time buying EXPE stock for $60.11 will produce a new covered call with a target return of 4.1%. Based on recent data, this trade will cost about $57.61, which is also the covered call?s breakeven point. At that price, this covered call has 4.2% downside protection, while seeking an assigned return of 4.1% return in 47 days. If EXPE is higher than $60.00 on 12/21/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 32.2%. Boston Scientific (NYSE: BSX) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the May $12.00 call while simultaneously buying BSX stock for $11.75 will result in a new position with a break-even point around $10.75. At that price, this position has a target return of 11.6%. This trade has 8.5% downside protection, while still providing a 11.6% return in 194 days as long as BSX is above $12.00 on 5/17/2014. For comparison purposes only, this Boston Scientific covered call targets an annualized return rate of 21.9%. Bank of America (NYSE: BAC) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the May $14.00 call while simultaneously buying BAC stock for $14.02 will result in a new position with a break-even point around $13.00. At that price, this position has a target return of 7.7%. This trade has 7.3% downside protection, while still providing a 7.7% return in 194 days as long as BAC is above $14.00 on 5/17/2014. For comparison purposes only, this Bank of America covered call targets an annualized return rate of 14.5%. Cliffs Natural Resources (NYSE: CLF) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the December $26.00 call while at the same time buying CLF stock for $27.34 will produce a new covered call with a target return of 4.4%. Based on recent data, this trade will cost about $24.91, which is also the covered call?s breakeven point. At that price, this covered call has 8.9% downside protection, while seeking an assigned return of 4.4% return in 47 days. If CLF is higher than $26.00 on 12/21/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 33.9%. Halliburton (NYSE: HAL) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $53.23 while simultaneously selling the April $52.50 call will result in a new position with a target return of 6.3%. Based on recent prices, this position will cost about $49.38, which is also the trade?s breakeven point. At that level, this covered call has 7.2% downside protection, while still providing a 6.3% return in 166 days as long as HAL is above $52.50 on 4/19/2014. For comparison purposes only, this Halliburton covered call aims for an annualized return rate of 13.9%. Dollar Tree (NASDAQ: DLTR) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $58.17 while simultaneously selling the February $57.50 call will result in a new position with a target return of 4.6%. Based on recent prices, this position will cost about $54.97, which is also the trade?s breakeven point. At that level, this covered call has 5.5% downside protection, while still providing a 4.6% return in 110 days as long as DLTR is above $57.50 on 2/22/2014. For comparison purposes only, this Dollar Tree covered call aims for an annualized return rate of 15.3%. MGM Mirage (NYSE: MGM) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the March $19.00 call while simultaneously buying MGM stock for $19.30 will result in a new position with a break-even point around $17.64. At that price, this position has a target return of 7.7%. This trade has 8.6% downside protection, while still providing a 7.7% return in 138 days as long as MGM is above $19.00 on 3/22/2014. 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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 Affymetrix (AFFX), Berry Petroleum (BRY) and AK Steel (AKS) are headed higher this morning, while Blackberry (BBRY), Credit Suisse (CS) and UBS (UBS) are headed lower. EverBank Financial (EVER), Boston Beer (SAM) and Potash (POT) were upgraded by analysts this morning, while Digital Realty Trust (DLR) and Calumet Specialty Products (CLMT) were downgraded. MARKET OVERVIEW Asian indices moved predominantly lower overnight. The Taiwan TSEC and the Australian All-Ordinaries each dipped 0.4%, while the Hong Kong Hang Seng lost 0.3%. The Shanghai SEC finished just about unchanged after official Chinese non-manufacturing PMI came in at 56.3, well above the threshold for expansion. In Europe, markets are moving higher so far this morning. The FTSE 100 is up 0.6%, the German DAX and Euronext 100 are each rising 0.4%, and the French CAC 40 is up 0.3%. European manufacturing PMI rose slightly, led by gains in Germany, Austria and the Netherlands but drops for France and Greece. Crude oil futures are down yet again in early trading. Front-month West Texas Intermediate crude is off 0.4% at $94.27 while other energy issues are showing larger losses. Natural gas is off 2.6%, while gasoline is down 0.8% and heating oil is slipping 0.6%. Precious metals are slightly higher with gold up $5.80 or 0.4%, but copper is down 0.9%. The U.S. Dollar is weaker against all major world currencies so far today, and Bitcoins are trading neat $228, rising once more to approach their all-time highs. PUT/CALL RATIO Friday, 1,166,171 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 708,134 put contracts. The single-session put/call was 0.61, while the 20-day moving average is now at 0.59. 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 Aug Factory Orders 10:00 AM Sep Factory Orders EARNINGS EXPECTED TODAY BSFT CME ED K MNKD MRO NGLS RKT SE SF SYY THC 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 |
