MORNING UPDATE: PriceWatch Alerts for LNKD and More... for 2013-10-24 |
| ------------------------------------------------------------------ MORNING UPDATE: PriceWatch Alerts for LNKD, MA, PCLN and More... October 24, 9:00 AM ET - PriceWatch Alerts for LNKD, MA, NWSA, LLY, ASML, PCLN, GLW, ALTR, SWY and GNTX, Market Overview, News Leaders and Laggards, Today's Economic Calendar, and Index Support & Resistance Levels. PriceWatch Alerts for LNKD, MA, NWSA, LLY, ASML, PCLN, GLW, ALTR, SWY and GNTX. LinkedIn (NYSE: LNKD) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $240.83 while selling the November $230.00 call will produce a new covered call with a break-even point around $220.68. At that price, this position has a target return of 4.2%. This trade will have roughly 8.4% downside protection, while still aiming for a 4.2% return in 23 days. It will lock in that return as long as LinkedIn is above $230.00 on 11/16/2013. For comparison purposes only, this LNKD covered call aims for an annualized return rate of 67.0%. MasterCard (NYSE: MA) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $710.97 while simultaneously selling the January $710.00 call will result in a new position with a target return of 4.1%. Based on recent prices, this position will cost about $681.82, which is also the trade?s breakeven point. At that level, this covered call has 4.1% downside protection, while still providing a 4.1% return in 86 days as long as MA is above $710.00 on 1/18/2014. For comparison purposes only, this MasterCard covered call aims for an annualized return rate of 17.5%. News Corp. (NASDAQ: NWSA) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the April $17.00 call while at the same time buying NWSA stock for $17.11 will produce a new covered call with a target return of 6.3%. Based on recent data, this trade will cost about $16.00, which is also the covered call?s breakeven point. At that price, this covered call has 6.5% downside protection, while seeking an assigned return of 6.3% return in 177 days. If NWSA is higher than $17.00 on 4/19/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 12.9%. Eli Lilly (NYSE: LLY) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $50.31 while simultaneously selling the April $52.50 call will result in a new position with a target return of 6.8%. Based on recent prices, this position will cost about $49.16, which is also the trade?s breakeven point. At that level, this covered call has 2.3% downside protection, while still providing a 6.8% return in 177 days as long as LLY is above $52.50 on 4/19/2014. For comparison purposes only, this Eli Lilly covered call aims for an annualized return rate of 14.0%. ASML (NASDAQ: ASML) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the January $92.50 call while simultaneously buying ASML stock for $93.32 will result in a new position with a break-even point around $88.22. At that price, this position has a target return of 4.9%. This trade has 5.5% downside protection, while still providing a 4.9% return in 86 days as long as ASML is above $92.50 on 1/18/2014. For comparison purposes only, this ASML covered call targets an annualized return rate of 20.6%. Priceline.com (NASDAQ: PCLN) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $1,065.97 while selling the November $1,065.00 call will produce a new covered call with a break-even point around $1,020.77. At that price, this position has a target return of 4.3%. This trade will have roughly 4.2% downside protection, while still aiming for a 4.3% return in 23 days. It will lock in that return as long as Priceline.com is above $1,065.00 on 11/16/2013. For comparison purposes only, this PCLN covered call aims for an annualized return rate of 68.7%. Corning (NYSE: GLW) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $17.52 while simultaneously selling the May $17.00 call will result in a new position with a target return of 6.6%. Based on recent prices, this position will cost about $15.94, which is also the trade?s breakeven point. At that level, this covered call has 9.0% downside protection, while still providing a 6.6% return in 205 days as long as GLW is above $17.00 on 5/17/2014. For comparison purposes only, this Corning covered call aims for an annualized return rate of 11.8%. Altera (NASDAQ: ALTR) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $32.30 while simultaneously selling the January $32.00 call will result in a new position with a target return of 4.1%. Based on recent prices, this position will cost about $30.75, which is also the trade?s breakeven point. At that level, this covered call has 4.8% downside protection, while still providing a 4.1% return in 86 days as long as ALTR is above $32.00 on 1/18/2014. For comparison purposes only, this Altera covered call aims for an annualized return rate of 17.2%. Safeway (NYSE: SWY) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the December $35.00 call while at the same time buying SWY stock for $35.58 will produce a new covered call with a target return of 4.4%. Based on recent data, this trade will cost about $33.53, which is also the covered call?s breakeven point. At that price, this covered call has 5.8% downside protection, while seeking an assigned return of 4.4% return in 58 days. If SWY is higher than $35.00 on 12/21/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 27.6%. Gentex (NASDAQ: GNTX) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the March $30.00 call while simultaneously buying GNTX stock for $30.47 will result in a new position with a break-even point around $28.32. At that price, this position has a target return of 5.9%. This trade has 7.1% downside protection, while still providing a 5.9% return in 149 days as long as GNTX is above $30.00 on 3/22/2014. For comparison purposes only, this Gentex covered call targets an annualized return rate of 14.5%. *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. 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MARKET OVERVIEW International markets were mixed. The Japanese Nikkei 225 ended the day down 0.54%, and the Shanghai SEC lost 0.24% on the session. The Mumbai Sensex rose 1.2%. Australia All-Ordinaries traded up 0.4%, while the Hong Kong Hang Seng and the Taiwan TSEC both traded lower. European markets are all trading higher following the upbeat factory report out of China, but the gains are being limited by a report showing that manufacturing and services output in the euro zone grew less than expected in October. The FTSE 100 is trading up 0.5% and the German DAX is up 0.6%. The French CAC 40 is up 0.2%, and the Euronext 100 and Swiss Market Index are both also trading slightly higher. In commodities, West Texas Intermediate crude oil is up 0.2% to $96.88. Natural gas is down 0.7%, heating oil is down 0.3%, and gasoline is relatively unchanged. In metals, gold is up 0.8% an ounce to $1,345.30, and copper is up 0.2% at $3.06. The US Dollar is lower against the Euro and lower against the Yen. Bitcoins are currently trading at $209.75. PUT/CALL RATIO Yesterday, 1,323,496 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 772,000 put contracts. The single-session put/call was 0.58, while the 20-day moving average is now at 0.60. 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 10/19 Initial Claims 08:30 AM 10/12 Continuing Claims 08:30 AM Aug Trade Balance 10:00 AM Aug JOLTS ? Job Openings 10:30 AM 10/19 Natural Gas Inventories EARNINGS EXPECTED TODAY AB ALK ALXN AMZN BCS BG BMRN BSX CELG CERN CLF COG CS DECK DNKN DOW ELY ESRX F FLIR FLS GG ICLR IMAX IP LINE MPD MMM MO MSFT POT NBL QLGC RCL SCCO SHPG SIRI SYNA TCK TROW UA VRSN WDC WYNN XRX ZNGA 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 |
