MORNING UPDATE: PriceWatch Alerts for GILD and More... for 2013-10-29 |
| ------------------------------------------------------------------ MORNING UPDATE: PriceWatch Alerts for CVX, YHOO, GILD and More... October 29, 9:00 AM ET - PriceWatch Alerts for CVX, FIO, SUNE, QIHU, ADBE, YHOO, EBAY, BTU, CERN, AG, GILD, TSL, TROW, SU, MS, Market Overview, News Leaders and Laggards, Today's Economic Calendar, and Index Support & Resistance Levels. PriceWatch Alerts for CVX, FIO, SUNE, QIHU, ADBE, YHOO, EBAY, BTU, CERN, AG, GILD, TSL, TROW, SU and MS. Chevron (NYSE: CVX) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $120.91 while selling the January $125.00 call will produce a new covered call with a break-even point around $119.79. At that price, this position has a target return of 4.3%. This trade will have roughly 0.9% downside protection, while still aiming for a 4.3% return in 81 days. It will lock in that return as long as Chevron is above $125.00 on 1/18/2014. For comparison purposes only, this CVX covered call aims for an annualized return rate of 19.6%. Fusion-io (NYSE: FIO) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $11.09 while simultaneously selling the January $11.00 call will result in a new position with a target return of 12.4%. Based on recent prices, this position will cost about $9.79, which is also the trade?s breakeven point. At that level, this covered call has 11.7% downside protection, while still providing a 12.4% return in 81 days as long as FIO is above $11.00 on 1/18/2014. For comparison purposes only, this Fusion-io covered call aims for an annualized return rate of 55.7%. SunEdison (NYSE: SUNE) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $9.13 while simultaneously selling the January $9.00 call will result in a new position with a target return of 12.9%. Based on recent prices, this position will cost about $7.97, which is also the trade?s breakeven point. At that level, this covered call has 12.7% downside protection, while still providing a 12.9% return in 81 days as long as SUNE is above $9.00 on 1/18/2014. For comparison purposes only, this SunEdison covered call aims for an annualized return rate of 58.2%. Qihoo 360 Technology (NYSE: QIHU) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the November $80.00 call while at the same time buying QIHU stock for $81.90 will produce a new covered call with a target return of 5.4%. Based on recent data, this trade will cost about $75.90, which is also the covered call?s breakeven point. At that price, this covered call has 7.3% downside protection, while seeking an assigned return of 5.4% return in 18 days. If QIHU is higher than $80.00 on 11/16/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 109.5%. Adobe Systems (NASDAQ: ADBE) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the January $52.50 call while simultaneously buying ADBE stock for $53.93 will result in a new position with a break-even point around $50.33. At that price, this position has a target return of 4.3%. This trade has 6.7% downside protection, while still providing a 4.3% return in 81 days as long as ADBE is above $52.50 on 1/18/2014. For comparison purposes only, this Adobe Systems covered call targets an annualized return rate of 19.4%. Yahoo (NASDAQ: YHOO) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $32.35 while selling the December $32.00 call will produce a new covered call with a break-even point around $30.53. At that price, this position has a target return of 4.8%. This trade will have roughly 5.6% downside protection, while still aiming for a 4.8% return in 53 days. It will lock in that return as long as Yahoo is above $32.00 on 12/21/2013. For comparison purposes only, this YHOO covered call aims for an annualized return rate of 33.1%. eBay (NASDAQ: EBAY) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $51.97 while simultaneously selling the April $50.00 call will result in a new position with a target return of 6.1%. Based on recent prices, this position will cost about $47.12, which is also the trade?s breakeven point. At that level, this covered call has 9.3% downside protection, while still providing a 6.1% return in 172 days as long as EBAY is above $50.00 on 4/19/2014. For comparison purposes only, this eBay covered call aims for an annualized return rate of 13.0%. Peabody Energy (NYSE: BTU) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $19.40 while simultaneously selling the January $19.00 call will result in a new position with a target return of 6.2%. Based on recent prices, this position will cost about $17.89, which is also the trade?s breakeven point. At that level, this covered call has 7.8% downside protection, while still providing a 6.2% return in 81 days as long as BTU is above $19.00 on 1/18/2014. For comparison purposes only, this Peabody Energy covered call aims for an annualized return rate of 27.9%. Cerner (NASDAQ: CERN) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the March $55.00 call while at the same time buying CERN stock for $56.54 will produce a new covered call with a target return of 6.3%. Based on recent data, this trade will cost about $51.74, which is also the covered call?s breakeven point. At that price, this covered call has 8.5% downside protection, while seeking an assigned return of 6.3% return in 144 days. If CERN is higher than $55.00 on 3/22/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 16.0%. First Majestic Silver (NYSE: AG) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the January $12.50 call while simultaneously buying AG stock for $12.18 will result in a new position with a break-even point around $11.08. At that price, this position has a target return of 12.8%. This trade has 9.0% downside protection, while still providing a 12.8% return in 81 days as long as AG is above $12.50 on 1/18/2014. For comparison purposes only, this First Majestic Silver covered call targets an annualized return rate of 57.7%. Gilead Sciences (NASDAQ: GILD) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $68.73 while selling the January $67.50 call will produce a new covered call with a break- even point around $64.48. At that price, this position has a target return of 4.7%. This trade will have roughly 6.2% downside protection, while still aiming for a 4.7% return in 81 days. It will lock in that return as long as Gilead Sciences is above $67.50 on 1/18/2014. For comparison purposes only, this GILD covered call aims for an annualized return rate of 21.1%. Trina Solar (NYSE: TSL) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $14.81 while simultaneously selling the December $14.00 call will result in a new position with a target return of 10.8%. Based on recent prices, this position will cost about $12.64, which is also the trade?s breakeven point. At that level, this covered call has 14.7% downside protection, while still providing a 10.8% return in 53 days as long as TSL is above $14.00 on 12/21/2013. For comparison purposes only, this Trina Solar covered call aims for an annualized return rate of 74.0%. T Rowe Price (NASDAQ: TROW) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $77.78 while simultaneously selling the December $80.00 call will result in a new position with a target return of 4.2%. Based on recent prices, this position will cost about $76.78, which is also the trade?s breakeven point. At that level, this covered call has 1.3% downside protection, while still providing a 4.2% return in 53 days as long as TROW is above $80.00 on 12/21/2013. For comparison purposes only, this T Rowe Price covered call aims for an annualized return rate of 28.9%. Suncor Energy (NYSE: SU) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the March $35.00 call while at the same time buying SU stock for $35.90 will produce a new covered call with a target return of 4.5%. Based on recent data, this trade will cost about $33.49, which is also the covered call?s breakeven point. At that price, this covered call has 6.7% downside protection, while seeking an assigned return of 4.5% return in 144 days. If SU is higher than $35.00 on 3/22/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 11.4%. Morgan Stanley (NYSE: MS) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the April $28.00 call while simultaneously buying MS stock for $28.97 will result in a new position with a break-even point around $26.52. At that price, this position has a target return of 5.6%. This trade has 8.5% downside protection, while still providing a 5.6% return in 172 days as long as MS is above $28.00 on 4/19/2014. For comparison purposes only, this Morgan Stanley covered call targets an annualized return rate of 11.8%. *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 Datatrak (DATA), Cobalt International Energy (CIE) and Renren (RENN) are headed higher this morning, while Volcano (VOLC), Eagle Rock Energy partners (EROC) and UBS (UBS) are in decline. Apple (AAPL) was upgraded by analysts this morning while Corporate Office Properties Trust (OFC), Textainer (TGH) and TAL International Group (TAL) were downgraded. MARKET OVERVIEW In Asia, stock markets were mixed overnight, led higher by traders in India, where the Mumbai Sensex gained more than 1.7%. The Taiwan TSEC and the Hong Kong Hang Seng each added a small amount as well. However, the Nikkei 225 and the Australian All-Ordinaries fell 0.5% while the Shanghai SEC dipped 0.2%. European stocks are mostly headed higher this morning. The FTSE 100 is up 0.5%, the Euronext 100 and the CAC 40 are up 0.4% and the German DAX is advancing 0.2%. Earnings and a dividend boost from BP (BP) sent energy stocks higher, but weak earnings and legal issues sent banking stocks lower, including Deutsche Bank (DB) and UBS (UBS). In the futures pits, energy futures are mostly lower so far this morning. Front-month West Texas Intermediate crude oil contract is down 0.7% at $97.92. Natural gas is up a penny, but gasoline and heating oil are falling. Gold is down 0.5%while copper is up 0.7%. The U.S. Dollar is stronger against most international currencies, including the Yen and the Euro. Bitcoins have flattened out around $208 for the past day. PUT/CALL RATIO Yesterday, 1,255,765 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 659,765 put contracts. The single-session put/call was 0.53, 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 $168.50 and is above resistance. The Nasdaq 100 (QQQ) has support at $78.50 and is above resistance. TODAY'S ECONOMIC CALENDAR 08:30 AM Sep Retail Sales 08:30 AM Sep Retail Sales ex-Auto 08:30 AM Sep PPI 08:30 AM Sep Core PPI 09:00 AM Aug Case-Shiller 20-city Index 10:00 AM Aug Business Inventories 10:00 AM Oct Consumer Confidence EARNINGS EXPECTED TODAY ACT AET AFL AGN AMP BIDU BP BWLD CMI DB DDD EA GILD GT JCI NOK PBI QCOR TRI TTWO YELP 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 |
