MORNING UPDATE: PriceWatch Alerts for GS and More... for 2013-10-17 |
| ------------------------------------------------------------------ MORNING UPDATE: PriceWatch Alerts for DDD, FOXA, GS and More... October 17, 9:00 AM ET - PriceWatch Alerts for DDD, FOXA, DOW, TRV, AU, GS, NFLX, NDAQ, AET and KERX, Market Overview, News Leaders and Laggards, Today's Economic Calendar, and Index Support & Resistance Levels. PriceWatch Alerts for DDD, FOXA, DOW, TRV, AU, GS, NFLX, NDAQ, AET and KERX. 3D Systems (AMEX: DDD) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $55.25 while selling the November $55.00 call will produce a new covered call with a break-even point around $51.55. At that price, this position has a target return of 6.7%. This trade will have roughly 6.7% downside protection, while still aiming for a 6.7% return in 30 days. It will lock in that return as long as 3D Systems is above $55.00 on 11/16/2013. For comparison purposes only, this DDD covered call aims for an annualized return rate of 81.4%. Twenty-First Century Fox (NASDAQ: FOXA) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $33.94 while simultaneously selling the January $34.00 call will result in a new position with a target return of 5.0%. Based on recent prices, this position will cost about $32.39, which is also the trade?s breakeven point. At that level, this covered call has 4.6% downside protection, while still providing a 5.0% return in 93 days as long as FOXA is above $34.00 on 1/18/2014. For comparison purposes only, this Twenty-First Century Fox covered call aims for an annualized return rate of 19.5%. Dow Chemical (NYSE: DOW) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $41.13 while simultaneously selling the December $41.00 call will result in a new position with a target return of 4.4%. Based on recent prices, this position will cost about $39.28, which is also the trade?s breakeven point. At that level, this covered call has 4.5% downside protection, while still providing a 4.4% return in 65 days as long as DOW is above $41.00 on 12/21/2013. For comparison purposes only, this Dow Chemical covered call aims for an annualized return rate of 24.5%. Travelers (NYSE: TRV) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the January $87.50 call while at the same time buying TRV stock for $86.08 will produce a new covered call with a target return of 4.1%. Based on recent data, this trade will cost about $84.03, which is also the covered call?s breakeven point. At that price, this covered call has 2.4% downside protection, while seeking an assigned return of 4.1% return in 93 days. If TRV is higher than $87.50 on 1/18/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 16.2%. AngloGold Ashanti (NYSE: AU) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the January $13.00 call while simultaneously buying AU stock for $13.58 will result in a new position with a break-even point around $11.88. At that price, this position has a target return of 9.4%. This trade has 12.5% downside protection, while still providing a 9.4% return in 93 days as long as AU is above $13.00 on 1/18/2014. For comparison purposes only, this AngloGold Ashanti covered call targets an annualized return rate of 37.0%. Goldman Sachs (NYSE: GS) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $162.25 while selling the January $160.00 call will produce a new covered call with a break-even point around $153.55. At that price, this position has a target return of 4.2%. This trade will have roughly 5.4% downside protection, while still aiming for a 4.2% return in 93 days. It will lock in that return as long as Goldman Sachs is above $160.00 on 1/18/2014. For comparison purposes only, this GS covered call aims for an annualized return rate of 16.5%. Netflix (NASDAQ: NFLX) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $322.88 while simultaneously selling the November $305.00 call will result in a new position with a target return of 5.0%. Based on recent prices, this position will cost about $290.48, which is also the trade?s breakeven point. At that level, this covered call has 10.0% downside protection, while still providing a 5.0% return in 30 days as long as NFLX is above $305.00 on 11/16/2013. For comparison purposes only, this Netflix covered call aims for an annualized return rate of 60.7%. Nasdaq Stock Market (NASDAQ: NDAQ) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $33.68 while simultaneously selling the March $33.00 call will result in a new position with a target return of 5.2%. Based on recent prices, this position will cost about $31.38, which is also the trade?s breakeven point. At that level, this covered call has 6.8% downside protection, while still providing a 5.2% return in 156 days as long as NDAQ is above $33.00 on 3/22/2014. For comparison purposes only, this Nasdaq Stock Market covered call aims for an annualized return rate of 12.1%. Aetna (NYSE: AET) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the January $65.00 call while at the same time buying AET stock for $65.65 will produce a new covered call with a target return of 4.8%. Based on recent data, this trade will cost about $62.00, which is also the covered call?s breakeven point. At that price, this covered call has 5.6% downside protection, while seeking an assigned return of 4.8% return in 93 days. If AET is higher than $65.00 on 1/18/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 19.0%. Keryx Biopharmaceuticals (NASDAQ: KERX) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the November $10.00 call while simultaneously buying KERX stock for $10.49 will result in a new position with a break-even point around $8.89. At that price, this position has a target return of 12.5%. This trade has 15.3% downside protection, while still providing a 12.5% return in 30 days as long as KERX is above $10.00 on 11/16/2013. For comparison purposes only, this Keryx Biopharmaceuticals covered call targets an annualized return rate of 151.8%. *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 PacificNet (PACT), Peabody Energy (BTU) and First Majestic Silver (AG) are headed higher this morning, while Amarin (AMRN), IBM (IBM) and E-Bay (EBAY) are falling. Xilinx (XLNX), Alliant Techsystems (ATK) and Cliffs Natural Resources (CLF) were upgraded by analysts this morning, while Omnicom (OMC), Breitburn Energy (BBEP) and Targa Resources (TRGP). MARKET OVERVIEW In Asia, markets put in a mixed session overnight. The Nikkei 225 gained 0.8% and the Taiwan TSEC added 0.5%. Meanwhile, the Hong Kong Hang Seng and Mumbai Sensex each lost 0.6%. European trading is even less enthusiastic at last check, with most major continental indices down a small amount. The German DAX is down 0.6%, the French CAC 40 is off 0.5%, the Euronext 100 is slipping 0.3% and the FTSE 100 is down 0.2%. In futures, energy issues are modestly lower this morning, with front-month West Texas Intermediate crude oil down 0.5% to $101.94 plus heating oil, gasoline, and natural gas all lower as well. Gold is up sharply at $1,317, up $35.50 or 2.7%. Silver and platinum are also significantly higher, but copper is down 0.6%. The U.S. Dollar is weaker across the board and Bitcoins have retreated from recent short-term highs, but are still above $150. PUT/CALL RATIO Yesterday, 1,220,545 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 659,086 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 $167.50 and is above resistance. The Nasdaq 100 (QQQ) has support at $77.50 and is above resistance. TODAY'S ECONOMIC CALENDAR 08:30 AM 10/12 Initial Claims 08:30 AM 10/5 Continuing Claims 08:30 AM Sep Housing Starts 08:30 AM Sep Building Permits 09:15 AM Sep Industrial Production 09:15 AM Sep Capacity Utilization 10:00 AM Oct Philadelphia Fed 10:30 AM 10/12 Natural Gas Inventories 11:00 AM 10/12 Crude Inventories EARNINGS EXPECTED TODAY ADS ALGN AMD BBT BTU CMG COF GOOG GS HBAN ISRG LVS PM RMBS UNH UNP VZ 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 |
