MORNING UPDATE: PriceWatch Alerts for SSYS and More... for 2013-10-21 |
| ------------------------------------------------------------------ MORNING UPDATE: PriceWatch Alerts for SSYS, CSCO, SCTY, and More... October 21, 9:00 AM ET - PriceWatch Alerts for SSYS, CBS, CTRP, MAR, NKE, CSCO, CMG, REGN, SCTY and ARMH, Market Overview, News Leaders and Laggards, Today's Economic Calendar, and Index Support & Resistance Levels. PriceWatch Alerts for SSYS, CBS, CTRP, MAR, NKE, CSCO, CMG, REGN, SCTY and ARMH. Stratasys (NASDAQ: SSYS) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $110.85 while selling the December $105.00 call will produce a new covered call with a break-even point around $98.95. At that price, this position has a target return of 6.1%. This trade will have roughly 10.7% downside protection, while still aiming for a 6.1% return in 61 days. It will lock in that return as long as Stratasys is above $105.00 on 12/21/2013. For comparison purposes only, this SSYS covered call aims for an annualized return rate of 36.6%. CBS (NYSE: CBS) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $59.20 while simultaneously selling the January $60.00 call will result in a new position with a target return of 5.4%. Based on recent prices, this position will cost about $56.90, which is also the trade?s breakeven point. At that level, this covered call has 3.9% downside protection, while still providing a 5.4% return in 89 days as long as CBS is above $60.00 on 1/18/2014. For comparison purposes only, this CBS covered call aims for an annualized return rate of 22.3%. Ctrip.com (NASDAQ: CTRP) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $59.58 while simultaneously selling the November $57.50 call will result in a new position with a target return of 5.7%. Based on recent prices, this position will cost about $54.38, which is also the trade?s breakeven point. At that level, this covered call has 8.7% downside protection, while still providing a 5.7% return in 26 days as long as CTRP is above $57.50 on 11/16/2013. For comparison purposes only, this Ctrip.com covered call aims for an annualized return rate of 80.4%. Marriott (NYSE: MAR) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the April $43.00 call while at the same time buying MAR stock for $43.50 will produce a new covered call with a target return of 5.8%. Based on recent data, this trade will cost about $40.65, which is also the covered call?s breakeven point. At that price, this covered call has 6.6% downside protection, while seeking an assigned return of 5.8% return in 180 days. If MAR is higher than $43.00 on 4/19/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 11.7%. Nike (NYSE: NKE) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the April $75.00 call while simultaneously buying NKE stock for $75.93 will result in a new position with a break- even point around $70.78. At that price, this position has a target return of 6.0%. This trade has 6.8% downside protection, while still providing a 6.0% return in 180 days as long as NKE is above $75.00 on 4/19/2014. For comparison purposes only, this Nike covered call targets an annualized return rate of 12.1%. Cisco Systems (NASDAQ: CSCO) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $22.96 while selling the January $23.00 call will produce a new covered call with a break- even point around $21.96. At that price, this position has a target return of 4.7%. This trade will have roughly 4.4% downside protection, while still aiming for a 4.7% return in 89 days. It will lock in that return as long as Cisco Systems is above $23.00 on 1/18/2014. For comparison purposes only, this CSCO covered call aims for an annualized return rate of 19.4%. Chipotle Mexican Grill (NYSE: CMG) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $509.74 while simultaneously selling the January $505.00 call will result in a new position with a target return of 4.3%. Based on recent prices, this position will cost about $484.14, which is also the trade?s breakeven point. At that level, this covered call has 5.0% downside protection, while still providing a 4.3% return in 89 days as long as CMG is above $505.00 on 1/18/2014. For comparison purposes only, this Chipotle Mexican Grill covered call aims for an annualized return rate of 17.6%. Regeneron Pharmaceuticals (NASDAQ: REGN) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $303.56 while simultaneously selling the November $300.00 call will result in a new position with a target return of 4.8%. Based on recent prices, this position will cost about $286.16, which is also the trade?s breakeven point. At that level, this covered call has 5.7% downside protection, while still providing a 4.8% return in 26 days as long as REGN is above $300.00 on 11/16/2013. For comparison purposes only, this Regeneron Pharmaceuticals covered call aims for an annualized return rate of 67.8%. SolarCity (NASDAQ: SCTY) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the November $52.50 call while at the same time buying SCTY stock for $59.46 will produce a new covered call with a target return of 4.2%. Based on recent data, this trade will cost about $50.36, which is also the covered call?s breakeven point. At that price, this covered call has 15.3% downside protection, while seeking an assigned return of 4.2% return in 26 days. If SCTY is higher than $52.50 on 11/16/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 59.5%. ARM Holdings (NASDAQ: ARMH) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the November $49.00 call while simultaneously buying ARMH stock for $49.62 will result in a new position with a break-even point around $47.12. At that price, this position has a target return of 4.0%. This trade has 5.0% downside protection, while still providing a 4.0% return in 26 days as long as ARMH is above $49.00 on 11/16/2013. For comparison purposes only, this ARM Holdings covered call targets an annualized return rate of 55.9%. *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. 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. The RadioActive Home Study Kit comes with a money back guarantee and a free month of access to the patented PowerOptions Suite of Tools! 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 Apple (AAPL), A.O. Smith (AOS) and SAP (SAP) are headed higher this morning, while Royal Bank of Scotland (RBS), Caesars Entertainment (CZR) and MGM Resorts (MGM) are headed lower. Parker Hannifin (PH) was upgraded by analysts this morning, while Chipotle Mexican Grill (CMG) and Ariad Pharmaceuticals (ARIA) were downgraded. MARKET OVERVIEW Asian markets headed higher overnight to start off the week. The Shanghai SEC added 1.6%, the Hong Kong Hang Seng gained 0.4% and the Nikkei 225 lifted 0.9%. Stocks in Thailand and Taiwan fell slightly to finish in red territory. In Europe, performance is more varied so far this morning. The French CAC 40 is off 0.3% and the German DAX has also moved lower, while the FTSE 100 and Swiss Market Index each added a small amount. In the futures pits energy contracts are mostly lower this morning, as front-month West Texas Intermediate crude oil has dropped below $100 for the first time in months, down 1.2% to $99.86. Heating oil and gasoline are also lower, but natural gas is up a small amount. Gold is holding steady at $1,316 while silver has added 1.1% to $22.15. The U.S. Dollar is stronger against the Yen and the Euro, and Bitcoins have enjoyed gains all weekend pushing them above $195 early this morning. PUT/CALL RATIO Yesterday, 2,062,165 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 944,934 put contracts. The single-session put/call was 0.46, 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 10:00 AM Sep Existing Home Sales 10:30 AM 10/12 Crude Inventories EARNINGS EXPECTED TODAY GCI DFS FWRD LII MAN MCD NFLX PETS RCII SAP TXN VFC VMW ZION 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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