MORNING UPDATE: PriceWatch Alerts for SPWR and More... for 2013-10-16 |
| ------------------------------------------------------------------ MORNING UPDATE: PriceWatch Alerts for SPWR, ACAD, AMZN and More... October 16, 9:00 AM ET - PriceWatch Alerts for SPWR, SBUX, ACAD, OPK, CYTK, AMZN, SODA, LOW, X and SCHW, Market Overview, News Leaders and Laggards, Today's Economic Calendar, and Index Support & Resistance Levels. PriceWatch Alerts for SPWR, SBUX, ACAD, OPK, CYTK, AMZN, SODA, LOW, X and SCHW. SunPower (NASDAQ: SPWR) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $30.91 while selling the November $30.00 call will produce a new covered call with a break-even point around $27.91. At that price, this position has a target return of 7.5%. This trade will have roughly 9.7% downside protection, while still aiming for a 7.5% return in 31 days. It will lock in that return as long as SunPower is above $30.00 on 11/16/2013. For comparison purposes only, this SPWR covered call aims for an annualized return rate of 88.1%. Starbucks (NASDAQ: SBUX) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $76.71 while simultaneously selling the January $75.00 call will result in a new position with a target return of 4.1%. Based on recent prices, this position will cost about $72.06, which is also the trade?s breakeven point. At that level, this covered call has 6.1% downside protection, while still providing a 4.1% return in 94 days as long as SBUX is above $75.00 on 1/18/2014. For comparison purposes only, this Starbucks covered call aims for an annualized return rate of 15.8%. Acadia (NASDAQ: ACAD) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $23.13 while simultaneously selling the November $21.00 call will result in a new position with a target return of 6.4%. Based on recent prices, this position will cost about $19.73, which is also the trade?s breakeven point. At that level, this covered call has 14.7% downside protection, while still providing a 6.4% return in 31 days as long as ACAD is above $21.00 on 11/16/2013. For comparison purposes only, this Acadia covered call aims for an annualized return rate of 75.7%. Opko Health (NYSE: OPK) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the December $12.00 call while at the same time buying OPK stock for $12.28 will produce a new covered call with a target return of 10.3%. Based on recent data, this trade will cost about $10.88, which is also the covered call?s breakeven point. At that price, this covered call has 11.4% downside protection, while seeking an assigned return of 10.3% return in 66 days. If OPK is higher than $12.00 on 12/21/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 56.9%. Cytokinetics (NASDAQ: CYTK) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the February $7.50 call while simultaneously buying CYTK stock for $6.78 will result in a new position with a break-even point around $5.58. At that price, this position has a target return of 34.4%. This trade has 17.7% downside protection, while still providing a 34.4% return in 129 days as long as CYTK is above $7.50 on 2/22/2014. For comparison purposes only, this Cytokinetics covered call targets an annualized return rate of 97.3%. Amazon (NASDAQ: AMZN) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $306.40 while selling the November $305.00 call will produce a new covered call with a break-even point around $293.10. At that price, this position has a target return of 4.1%. This trade will have roughly 4.3% downside protection, while still aiming for a 4.1% return in 31 days. It will lock in that return as long as Amazon is above $305.00 on 11/16/2013. For comparison purposes only, this AMZN covered call aims for an annualized return rate of 47.8%. SodaStream (NASDAQ: SODA) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $61.14 while simultaneously selling the November $55.00 call will result in a new position with a target return of 4.7%. Based on recent prices, this position will cost about $52.54, which is also the trade?s breakeven point. At that level, this covered call has 14.1% downside protection, while still providing a 4.7% return in 31 days as long as SODA is above $55.00 on 11/16/2013. For comparison purposes only, this SodaStream covered call aims for an annualized return rate of 55.1%. Lowe's (NYSE: LOW) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $48.45 while simultaneously selling the January $48.00 call will result in a new position with a target return of 4.5%. Based on recent prices, this position will cost about $45.94, which is also the trade?s breakeven point. At that level, this covered call has 5.2% downside protection, while still providing a 4.5% return in 94 days as long as LOW is above $48.00 on 1/18/2014. For comparison purposes only, this Lowe's covered call aims for an annualized return rate of 17.4%. US Steel (NYSE: X) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the December $23.00 call while at the same time buying X stock for $23.52 will produce a new covered call with a target return of 6.4%. Based on recent data, this trade will cost about $21.62, which is also the covered call?s breakeven point. At that price, this covered call has 8.1% downside protection, while seeking an assigned return of 6.4% return in 66 days. If X is higher than $23.00 on 12/21/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 35.3%. Schwab (NYSE: SCHW) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the December $23.00 call while simultaneously buying SCHW stock for $23.03 will result in a new position with a break-even point around $21.98. At that price, this position has a target return of 4.6%. This trade has 4.6% downside protection, while still providing a 4.6% return in 66 days as long as SCHW is above $23.00 on 12/21/2013. For comparison purposes only, this Schwab covered call targets an annualized return rate of 25.7%. *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 Advance Auto Parts (AAP), Mattel (MAT) and Yahoo (YHOO) are trading higher this morning, while Molycorp (MCP), Linear Technology (LLTC) and VIVUS (VVUS) are falling. Charles Schwab (SCHW) and Alaska Air (ALK) were upgraded by analysts this morning, while Lexington Realty Trust (LXP) and Schlumberger (SLB) were downgraded. MARKET OVERVIEW Asian markets faltered overnight with a few indices making small gains but bigger losses elsewhere. The Shanghai SEC dropped 1.8% and the Hong Kong Hang Seng and Taiwan TSEC each lost 0.4%. Japan's Nikkei 225 and Australia's All-Ordinaries advanced less than 0.3%. In Europe, the mood is almost entirely negative so far this morning. The French CAC 40 and Swiss Market Index are each down 0.8% at last check, while the Euronext 100 is off 0.7% and the FTSE 100 is down 0.5%. Danone and Moet Hennessy Louis Vuitton each dropped significant amounts today after weak earnings and forecast respectively. Energy traders are taking a wait-and-see approach this morning, with front-month West Texas Intermediate crude oil down 0.3% to $101.05 and heating oil and gasoline both slightly lower. Natural gas is higher by 1.1%, topping $4.00. Gold is up about 0.5% at $1,279 and silver, platinum and palladium are all in positive territory. The U.S. Dollar is stronger against the Yen but weaker against the Euro, and Bitcoins have moved higher again to top $160. PUT/CALL RATIO Yesterday, 1,076,966 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 711,160 put contracts. The single-session put/call was 0.66, 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 07:00 AM 10/12 MBA Mortgage Index 08:30 AM Sep CPI 08:30 AM Sep Core CPI 09:00 AM Aug Net Long-Term TIC Flows 10:00 AM Oct NAHB Housing Market Index 14:00 PM Oct Fed's Beige Book EARNINGS EXPECTED TODAY AAMRQ ABT AF ALB ASML AXP BAC BLK BLX CCK CMA CNS CTBI EBAY EWBC EXPO GWW GY HNI IBM KEY KMP KMR LHO MAT MTG NE NTRS PACW PEP PJC PNC PTP RLI SCSS SLM SNDK STJ STLD UHPI UMPQ URI USB WABC WSO WSTC XLNX 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 |
