MORNING UPDATE: PriceWatch Alerts for GE and More... for 2013-10-28 |
| ------------------------------------------------------------------ MORNING UPDATE: PriceWatch Alerts for GOOG, QCOM, GE and More... October 28, 9:00 AM ET - PriceWatch Alerts for GOOG, QCOM, BBY, NTLS, DG, GE, SNDK, TIF, SOHU and RPRX, Market Overview, News Leaders and Laggards, Today's Economic Calendar, and Index Support & Resistance Levels. PriceWatch Alerts for GOOG, QCOM, BBY, NTLS, DG, GE, SNDK, TIF, SOHU and RPRX. Google (NASDAQ: GOOG) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $1,015.20 while selling the March $980.00 call will produce a new covered call with a break-even point around $938.70. At that price, this position has a target return of 4.4%. This trade will have roughly 7.5% downside protection, while still aiming for a 4.4% return in 145 days. It will lock in that return as long as Google is above $980.00 on 3/22/2014. For comparison purposes only, this GOOG covered call aims for an annualized return rate of 11.1%. Qualcomm (NASDAQ: QCOM) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $68.27 while simultaneously selling the April $67.50 call will result in a new position with a target return of 5.3%. Based on recent prices, this position will cost about $64.12, which is also the trade?s breakeven point. At that level, this covered call has 6.1% downside protection, while still providing a 5.3% return in 173 days as long as QCOM is above $67.50 on 4/19/2014. For comparison purposes only, this Qualcomm covered call aims for an annualized return rate of 11.1%. Best Buy (NYSE: BBY) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $42.77 while simultaneously selling the December $40.00 call will result in a new position with a target return of 4.1%. Based on recent prices, this position will cost about $38.42, which is also the trade?s breakeven point. At that level, this covered call has 10.2% downside protection, while still providing a 4.1% return in 54 days as long as BBY is above $40.00 on 12/21/2013. For comparison purposes only, this Best Buy covered call aims for an annualized return rate of 27.8%. NTELOS (NASDAQ: NTLS) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the March $17.50 call while at the same time buying NTLS stock for $18.99 will produce a new covered call with a target return of 8.4%. Based on recent data, this trade will cost about $16.14, which is also the covered call?s breakeven point. At that price, this covered call has 15.0% downside protection, while seeking an assigned return of 8.4% return in 145 days. If NTLS is higher than $17.50 on 3/22/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 21.2%. Dollar General (NYSE: DG) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the February $57.50 call while simultaneously buying DG stock for $59.50 will result in a new position with a break-even point around $55.20. At that price, this position has a target return of 4.2%. This trade has 7.2% downside protection, while still providing a 4.2% return in 117 days as long as DG is above $57.50 on 2/22/2014. For comparison purposes only, this Dollar General covered call targets an annualized return rate of 13.0%. General Electric (NYSE: GE) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $25.88 while selling the June $26.00 call will produce a new covered call with a break-even point around $24.55. At that price, this position has a target return of 5.9%. This trade will have roughly 5.1% downside protection, while still aiming for a 5.9% return in 236 days. It will lock in that return as long as General Electric is above $26.00 on 6/21/2014. For comparison purposes only, this GE covered call aims for an annualized return rate of 9.1%. SanDisk (NASDAQ: SNDK) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $69.02 while simultaneously selling the January $67.50 call will result in a new position with a target return of 4.4%. Based on recent prices, this position will cost about $64.67, which is also the trade?s breakeven point. At that level, this covered call has 6.3% downside protection, while still providing a 4.4% return in 82 days as long as SNDK is above $67.50 on 1/18/2014. For comparison purposes only, this SanDisk covered call aims for an annualized return rate of 19.5%. Tiffany (NYSE: TIF) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $79.32 while simultaneously selling the February $77.50 call will result in a new position with a target return of 4.6%. Based on recent prices, this position will cost about $74.07, which is also the trade?s breakeven point. At that level, this covered call has 6.6% downside protection, while still providing a 4.6% return in 117 days as long as TIF is above $77.50 on 2/22/2014. For comparison purposes only, this Tiffany covered call aims for an annualized return rate of 14.4%. Sohu.com (NASDAQ: SOHU) 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 SOHU stock for $81.42 will produce a new covered call with a target return of 4.7%. Based on recent data, this trade will cost about $76.42, which is also the covered call?s breakeven point. At that price, this covered call has 6.1% downside protection, while seeking an assigned return of 4.7% return in 19 days. If SOHU 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 89.9%. Repros Therapeutics (NASDAQ: RPRX) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the December $17.50 call while simultaneously buying RPRX stock for $18.34 will result in a new position with a break-even point around $16.14. At that price, this position has a target return of 8.4%. This trade has 12.0% downside protection, while still providing a 8.4% return in 54 days as long as RPRX is above $17.50 on 12/21/2013. For comparison purposes only, this Repros Therapeutics covered call targets an annualized return rate of 56.9%. *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)! 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. 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NEWS LEADERS AND LAGGARDS Ariad Pharmaceuticals (ARIA), JinkoSolar (JKS) and Solar City (SCTY) are headed higher this morning, while Changyou.com (CYOU), Sohu.com (SOHU) and CTC Media (CTCM) are headed lower. Dendreon (DNDN) was upgraded by analysts this morning, while AutoNavi (AMAP), DuPont Fabros Technology (DFT) and Choice Hotels (CHH) were downgraded. MARKET OVERVIEW Asian markets mostly rose overnight, led higher by the Nikkei 225, which gained more than 2%. The Taiwan TSEC added 0.7% and the Australian All-Ordinaries picked up 1.0%. However, the Mumbai Sensex dropped 0.6%. Gains in Japan were credited to the Yen weakening slightly after the Nikkei fell on Friday when the reverse was the case. In Europe this morning, the major markets are mixed with earnings reports shaping up as the most obvious market driver. The Swiss Market Index is up 0.3%, the German DAX and the FTSE 100 are just about flat, while the French CAC 40 is down 0.5%. In the futures pits, energy futures are little changed so far this morning. Front-month West Texas Intermediate crude oil contract is off just 0.1% at $97.77. Natural gas is down 2.2%, but gasoline and heating oil are slightly higher. Gold, silver, and copper are all just about unchanged. The U.S. Dollar is stronger against the Yen and the Euro, and Bitcoins are back above $200 as of Sunday afternoon, up at $207 this morning. PUT/CALL RATIO Friday, 1,223,113 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 784,715 put contracts. The single-session put/call was 0.64, while the 20-day moving average is now at 0.61. SUPPORT & RESISTANCE LEVELS The S&P 500 Depository Receipts (SPY) ETF has support at $168 and is above resistance. The Nasdaq 100 (QQQ) has support at $78 and is above resistance. TODAY'S ECONOMIC CALENDAR 09:15 AM Sep Industrial Production 09:15 AM Sep Capacity Utilization 10:00 AM Sep Pending Home Sales EARNINGS EXPECTED TODAY AAPL AGNC BIIB BKW CNA HLF L OLN SOHU VLTR 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. 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