MORNING UPDATE: PriceWatch Alerts for TWX and More... for 2013-10-25 |
| ------------------------------------------------------------------ MORNING UPDATE: PriceWatch Alerts for VIPS, TWX, CELG, and More... October 25, 9:00 AM ET - PriceWatch Alerts for VIPS, LMT, PM, WLT, P, TWX, AXP, NBR, CELG and AKAM, Market Overview, News Leaders and Laggards, Today's Economic Calendar, and Index Support & Resistance Levels. PriceWatch Alerts for VIPS, LMT, PM, WLT, P, TWX, AXP, NBR, CELG and AKAM. Vipshop (NYSE: VIPS) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $73.30 while selling the November $67.50 call will produce a new covered call with a break-even point around $64.40. At that price, this position has a target return of 4.8%. This trade will have roughly 12.1% downside protection, while still aiming for a 4.8% return in 22 days. It will lock in that return as long as Vipshop is above $67.50 on 11/16/2013. For comparison purposes only, this VIPS covered call aims for an annualized return rate of 79.8%. Lockheed Martin (NYSE: LMT) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $132.62 while simultaneously selling the March $135.00 call will result in a new position with a target return of 4.9%. Based on recent prices, this position will cost about $128.72, which is also the trade?s breakeven point. At that level, this covered call has 2.9% downside protection, while still providing a 4.9% return in 148 days as long as LMT is above $135.00 on 3/22/2014. For comparison purposes only, this Lockheed Martin covered call aims for an annualized return rate of 12.0%. Philip Morris International (NYSE: PM) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $88.18 while simultaneously selling the March $90.00 call will result in a new position with a target return of 4.8%. Based on recent prices, this position will cost about $85.85, which is also the trade?s breakeven point. At that level, this covered call has 2.6% downside protection, while still providing a 4.8% return in 148 days as long as PM is above $90.00 on 3/22/2014. For comparison purposes only, this Philip Morris International covered call aims for an annualized return rate of 11.9%. Walter Energy (NYSE: WLT) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the December $15.00 call while at the same time buying WLT stock for $15.67 will produce a new covered call with a target return of 9.3%. Based on recent data, this trade will cost about $13.72, which is also the covered call?s breakeven point. At that price, this covered call has 12.4% downside protection, while seeking an assigned return of 9.3% return in 57 days. If WLT is higher than $15.00 on 12/21/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 59.7%. Pandora (NYSE: P) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the November $26.00 call while simultaneously buying P stock for $26.68 will result in a new position with a break-even point around $24.83. At that price, this position has a target return of 4.7%. This trade has 6.9% downside protection, while still providing a 4.7% return in 22 days as long as P is above $26.00 on 11/16/2013. For comparison purposes only, this Pandora covered call targets an annualized return rate of 78.1%. Time Warner (NYSE: TWX) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $70.31 while selling the April $70.00 call will produce a new covered call with a break-even point around $66.26. At that price, this position has a target return of 5.6%. This trade will have roughly 5.8% downside protection, while still aiming for a 5.6% return in 176 days. It will lock in that return as long as Time Warner is above $70.00 on 4/19/2014. For comparison purposes only, this TWX covered call aims for an annualized return rate of 11.7%. American Express (NYSE: AXP) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $80.90 while simultaneously selling the April $80.00 call will result in a new position with a target return of 5.0%. Based on recent prices, this position will cost about $76.20, which is also the trade?s breakeven point. At that level, this covered call has 5.8% downside protection, while still providing a 5.0% return in 176 days as long as AXP is above $80.00 on 4/19/2014. For comparison purposes only, this American Express covered call aims for an annualized return rate of 10.3%. Nabors Industries (NYSE: NBR) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $16.69 while simultaneously selling the March $16.00 call will result in a new position with a target return of 6.9%. Based on recent prices, this position will cost about $14.97, which is also the trade?s breakeven point. At that level, this covered call has 10.3% downside protection, while still providing a 6.9% return in 148 days as long as NBR is above $16.00 on 3/22/2014. For comparison purposes only, this Nabors Industries covered call aims for an annualized return rate of 17.0%. Celgene (NASDAQ: CELG) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the December $155.00 call while at the same time buying CELG stock for $157.96 will produce a new covered call with a target return of 4.4%. Based on recent data, this trade will cost about $148.51, 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 4.4% return in 57 days. If CELG is higher than $155.00 on 12/21/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 28.0%. Akamai Technologies (NASDAQ: AKAM) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the January $45.00 call while simultaneously buying AKAM stock for $46.06 will result in a new position with a break-even point around $42.96. At that price, this position has a target return of 4.7%. This trade has 6.7% downside protection, while still providing a 4.7% return in 85 days as long as AKAM is above $45.00 on 1/18/2014. For comparison purposes only, this Akamai Technologies covered call targets an annualized return rate of 20.4%. *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 Callaway Golf (ELY), Zynga (ZYNG) and Amazon (AMZN) are headed higher this morning, while Healthways (HWAY), Qlik Technologies (QLIK) and Rentech Nitrogen Partners (RNF) are in decline. Equifax (EFX), Brinker (EAT) and Advance Auto Parts (AAP) were upgraded by analysts this morning, while Zimmer Holdings (ZMH), PAREXEL (PRXL) and Ixia (XXIA) were downgraded. MARKET OVERVIEW In Asian trading overnight, most markets slid lower, led by the Nikkei 225, which lost more than 2.7%. The Shanghai SEC dropped 1.4% and the Taiwan TSEC fell 0.8%. Both Chinese money market rates and housing prices rose, which spooked traders on both counts. One lone bright spot was the Australian market, which gained 0.2%. European markets are relatively steady so far this morning, with the German DAX and FTSE each rising 0.2%, but the French CAC 40 and the Euronext 100 both barely slipping into negative territory. The biggest news on the continent was the German Ifo, which fell in October, and the United Kingdom's GDP, which grew to meet the high side of analysts' targets. West Texas Intermediate crude oil is holding steady this morning, nearly unchanged at $97.19. Other energy issues are also not too notable, with gasoline losing 0.8% and natural gas adding 0.4%. Gold is down 0.9% to $1,338, silver has dropped more than 2%, and platinum, palladium, and copper are all lower as well. The U.S. Dollar is stronger against the major international currencies and Bitcoins have dropped about 20% from their Wednesday highs, now trading at $190. PUT/CALL RATIO Yesterday, 1,320,529 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 786,479 put contracts. The single-session put/call was 0.6, 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 08:30 AM Sep Durable Orders 08:30 AM Sep Durable Goods ?ex transportation 09:55 AM Oct Michigan Sentiment ? Final 10:00 AM Aug Wholesale Inventories EARNINGS EXPECTED TODAY ABBV IMGN MCO NOV PBR PG VTR WY 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 |
