MORNING UPDATE: PriceWatch Alerts for FSLR and More... for 2013-10-18 |
| ------------------------------------------------------------------ MORNING UPDATE: PriceWatch Alerts for FSLR, FB, ASML, and More... October 18, 9:00 AM ET - PriceWatch Alerts for FSLR, NQ, MGA, SCCO, CAT, MU, BITA, BWA, M, SAM, Market Overview, News Leaders and Laggards, Today's Economic Calendar, and Index Support & Resistance Levels. PriceWatch Alerts for FSLR, NQ, MGA, SCCO, CAT, MU, BITA, BWA, M, SAM. First Solar (NASDAQ: FSLR) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $45.97 while selling the November $43.00 call will produce a new covered call with a break- even point around $40.82. At that price, this position has a target return of 5.3%. This trade will have roughly 11.2% downside protection, while still aiming for a 5.3% return in 29 days. It will lock in that return as long as First Solar is above $43.00 on 11/16/2013. For comparison purposes only, this FSLR covered call aims for an annualized return rate of 67.2%. NQ Mobile (NYSE: NQ) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $24.44 while simultaneously selling the November $21.00 call will result in a new position with a target return of 8.0%. Based on recent prices, this position will cost about $19.44, which is also the trade?s breakeven point. At that level, this covered call has 20.5% downside protection, while still providing a 8.0% return in 29 days as long as NQ is above $21.00 on 11/16/2013. For comparison purposes only, this NQ Mobile covered call aims for an annualized return rate of 100.9%. Magna (NYSE: MGA) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $85.25 while simultaneously selling the March $85.00 call will result in a new position with a target return of 6.4%. Based on recent prices, this position will cost about $79.85, which is also the trade?s breakeven point. At that level, this covered call has 6.3% downside protection, while still providing a 6.4% return in 155 days as long as MGA is above $85.00 on 3/22/2014. For comparison purposes only, this Magna covered call aims for an annualized return rate of 15.2%. Southern Copper (NYSE: SCCO) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the January $28.00 call while at the same time buying SCCO stock for $28.64 will produce a new covered call with a target return of 4.3%. Based on recent data, this trade will cost about $26.84, which is also the covered call?s breakeven point. At that price, this covered call has 6.3% downside protection, while seeking an assigned return of 4.3% return in 92 days. If SCCO is higher than $28.00 on 1/18/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 17.1%. Caterpillar (NYSE: CAT) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the February $85.00 call while simultaneously buying CAT stock for $85.85 will result in a new position with a break-even point around $81.60. At that price, this position has a target return of 4.2%. This trade has 5.0% downside protection, while still providing a 4.2% return in 127 days as long as CAT is above $85.00 on 2/22/2014. For comparison purposes only, this Caterpillar covered call targets an annualized return rate of 12.0%. Micron Technology (NASDAQ: MU) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $17.15 while selling the January $17.00 call will produce a new covered call with a break- even point around $15.46. At that price, this position has a target return of 10.0%. This trade will have roughly 9.9% downside protection, while still aiming for a 10.0% return in 92 days. It will lock in that return as long as Micron Technology is above $17.00 on 1/18/2014. For comparison purposes only, this MU covered call aims for an annualized return rate of 39.5%. BitAuto (NYSE: BITA) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $25.46 while simultaneously selling the November $25.00 call will result in a new position with a target return of 7.7%. Based on recent prices, this position will cost about $23.21, which is also the trade?s breakeven point. At that level, this covered call has 8.8% downside protection, while still providing a 7.7% return in 29 days as long as BITA is above $25.00 on 11/16/2013. For comparison purposes only, this BitAuto covered call aims for an annualized return rate of 97.0%. BorgWarner (NYSE: BWA) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $104.66 while simultaneously selling the April $100.00 call will result in a new position with a target return of 5.9%. Based on recent prices, this position will cost about $94.46, which is also the trade?s breakeven point. At that level, this covered call has 9.7% downside protection, while still providing a 5.9% return in 183 days as long as BWA is above $100.00 on 4/19/2014. For comparison purposes only, this BorgWarner covered call aims for an annualized return rate of 11.7%. Macy's (NYSE: M) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the January $44.00 call while at the same time buying M stock for $44.46 will produce a new covered call with a target return of 4.5%. Based on recent data, this trade will cost about $42.10, which is also the covered call?s breakeven point. At that price, this covered call has 5.3% downside protection, while seeking an assigned return of 4.5% return in 92 days. If M is higher than $44.00 on 1/18/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 17.9%. Boston Beer Company (NYSE: SAM) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the March $240.00 call while simultaneously buying SAM stock for $248.77 will result in a new position with a break-even point around $227.07. At that price, this position has a target return of 5.7%. This trade has 8.7% downside protection, while still providing a 5.7% return in 155 days as long as SAM is above $240.00 on 3/22/2014. For comparison purposes only, this Boston Beer Company covered call targets an annualized return rate of 13.4%. *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. 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 trading was strong across the board overnight. In Asia, most markets made sizable gains. The Mumbai Sensex rose 2.3% and the Hong Kong Hang Seng added 1.1% while the Taiwan TSEC and Australia All-Ordinaries each rose 0.7%. Chinese GDP met expectations, growing from last quarter. Japan's Nikkei 225 was one of just a few losers, off 0.2% as the Yen strengthened. European markets are modestly higher so far this morning. The Euronext 100 and French CAC 40 are each up 0.5% at last check, while the FTSE 100 and Swiss Market Index are 0.4% higher. In the futures pits energy contracts are mostly higher this morning, with front-month West Texas Intermediate crude oil up 0.9% to $101.75 and heating oil and gasoline up more than 1%. Natural gas is off by 1.0%, dipping back below $4.00. Gold is down about 0.5% at $1,317. The U.S. Dollar is slightly weaker against the Yen and the Euro, and Bitcoins have moved back north of $160. PUT/CALL RATIO Yesterday, 1,420,025 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 768,132 put contracts. The single-session put/call was 0.54, while the 20-day moving average is now at 0.62. SUPPORT & RESISTANCE LEVELS The S&P 500 Depository Receipts (SPY) ETF has support at $167 and is above resistance. The Nasdaq 100 (QQQ) has support at $77.50 and is above resistance. TODAY'S ECONOMIC CALENDAR 10:00 AM Sep Leading Indicators EARNINGS EXPECTED TODAY GE GPC HON IPG IR MS SLB 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 |
