MORNING UPDATE: PriceWatch Alerts for FB and More... for 2013-10-10 |
| ------------------------------------------------------------------ MORNING UPDATE: PriceWatch Alerts for FB, DIS, BIDU and More... October 10, 9:00 AM ET - PriceWatch Alerts for FB, DIS, RCL, HLF, RHT, BIDU, HD, GY, NVO and SLW, Market Overview, News Leaders and Laggards, Today's Economic Calendar, and Index Support & Resistance Levels. PriceWatch Alerts for FB, DIS, RCL, HLF, RHT, BIDU, HD, GY, NVO and SLW. Facebook (NASDAQ: FB) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $46.77 while selling the November $43.00 call will produce a new covered call with a break-even point around $40.57. At that price, this position has a target return of 6.0%. This trade will have roughly 13.3% downside protection, while still aiming for a 6.0% return in 37 days. It will lock in that return as long as Facebook is above $43.00 on 11/16/2013. For comparison purposes only, this FB covered call aims for an annualized return rate of 59.0%. Walt Disney (NYSE: DIS) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $63.59 while simultaneously selling the April $62.50 call will result in a new position with a target return of 5.6%. Based on recent prices, this position will cost about $59.19, which is also the trade?s breakeven point. At that level, this covered call has 6.9% downside protection, while still providing a 5.6% return in 191 days as long as DIS is above $62.50 on 4/19/2014. For comparison purposes only, this Walt Disney covered call aims for an annualized return rate of 10.7%. Royal Caribbean Cruises (NYSE: RCL) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $36.51 while simultaneously selling the November $36.00 call will result in a new position with a target return of 4.3%. Based on recent prices, this position will cost about $34.51, which is also the trade?s breakeven point. At that level, this covered call has 5.5% downside protection, while still providing a 4.3% return in 37 days as long as RCL is above $36.00 on 11/16/2013. For comparison purposes only, this Royal Caribbean Cruises covered call aims for an annualized return rate of 42.5%. Herbalife (NYSE: HLF) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the November $55.00 call while at the same time buying HLF stock for $63.29 will produce a new covered call with a target return of 4.8%. Based on recent data, this trade will cost about $52.49, which is also the covered call?s breakeven point. At that price, this covered call has 17.1% downside protection, while seeking an assigned return of 4.8% return in 37 days. If HLF is higher than $55.00 on 11/16/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 47.2%. Red Hat (NYSE: RHT) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the December $42.00 call while simultaneously buying RHT stock for $43.10 will result in a new position with a break-even point around $40.00. At that price, this position has a target return of 5.0%. This trade has 7.2% downside protection, while still providing a 5.0% return in 72 days as long as RHT is above $42.00 on 12/21/2013. For comparison purposes only, this Red Hat covered call targets an annualized return rate of 25.3%. Baidu.com (NASDAQ: BIDU) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $146.54 while selling the November $140.00 call will produce a new covered call with a break-even point around $132.94. At that price, this position has a target return of 5.3%. This trade will have roughly 9.3% downside protection, while still aiming for a 5.3% return in 37 days. It will lock in that return as long as Baidu.com is above $140.00 on 11/16/2013. For comparison purposes only, this BIDU covered call aims for an annualized return rate of 52.4%. Home Depot (NYSE: HD) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $74.14 while simultaneously selling the February $72.50 call will result in a new position with a target return of 4.3%. Based on recent prices, this position will cost about $69.49, which is also the trade?s breakeven point. At that level, this covered call has 6.3% downside protection, while still providing a 4.3% return in 135 days as long as HD is above $72.50 on 2/22/2014. For comparison purposes only, this Home Depot covered call aims for an annualized return rate of 11.7%. GenCorp (NYSE: GY) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $15.71 while simultaneously selling the February $15.00 call will result in a new position with a target return of 7.8%. Based on recent prices, this position will cost about $13.91, which is also the trade?s breakeven point. At that level, this covered call has 11.5% downside protection, while still providing a 7.8% return in 135 days as long as GY is above $15.00 on 2/22/2014. For comparison purposes only, this GenCorp covered call aims for an annualized return rate of 21.2%. Novo Nordisk (NYSE: NVO) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the February $160.00 call while at the same time buying NVO stock for $163.61 will produce a new covered call with a target return of 5.0%. Based on recent data, this trade will cost about $152.41, which is also the covered call?s breakeven point. At that price, this covered call has 6.8% downside protection, while seeking an assigned return of 5.0% return in 135 days. If NVO is higher than $160.00 on 2/22/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 13.4%. Silver Wheaton (NYSE: SLW) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the November $22.00 call while simultaneously buying SLW stock for $22.58 will result in a new position with a break-even point around $20.82. At that price, this position has a target return of 5.7%. This trade has 7.8% downside protection, while still providing a 5.7% return in 37 days as long as SLW is above $22.00 on 11/16/2013. For comparison purposes only, this Silver Wheaton covered call targets an annualized return rate of 55.8%. *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 PVR Partners (PVR), Alkermes (ALKS) and Ezcorp (EZPW) are headed higher this morning, while Ruby Tuesday (RT), Pharmacyclics (PCYC) and Iron Mountain (IRM) are heading south. Potlach (PCH), Rock- Tenn (RCT) and Hewlett Packard (HPQ) were upgraded this morning, while Ariad Pharmaceuticals (ARIA) and Aixtron (AIXG) were downgraded. MARKET OVERVIEW In Asia, stocks put in a mixed session overnight, with the Nikkei 225 gaining 1.1% leading gainers. The Mumbai Sensex and Australian All-Ordinaries each held near break-even, while the Shanghai SEC lost 0.9%. European stocks are rising so far this morning, with most major indices up more than 1%. The French CAC 40 is up 1.5% and the German DAX is up 1.4% in the first continental trading after a glimmer of optimism in the U.S. political realm. Energy futures are modestly higher this morning with front-month West Texas Intermediate crude oil up 0.2% to $101.86. Gasoline is up more than 1%, and natural gas is higher by more than 2%. Precious metals are holding steady and the U.S. Dollar is stronger against the Yen but weaker against the Euro. Bitcoins are up this morning near $140. PUT/CALL RATIO Yesterday, 1,141,280 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 784,876 put contracts. The single-session put/call was 0.69, while the 20-day moving average is now at 0.62, continuing its recent upward swing. SUPPORT & RESISTANCE LEVELS The S&P 500 Depository Receipts (SPY) ETF has support at $160 and resistance at $168. The Nasdaq 100 (QQQ) is testing its $77 support level. Its next support is at $72. TODAY'S ECONOMIC CALENDAR 08:30 AM 10/5 Initial Claims 08:30 AM 9/28 Continuing Claims 08:30 AM Sep Export Prices ex-Ag 08:30 AM Sep Import Prices ex-Oil 10:30 AM 10/5 Natural Gas Inventories 02:00 PM Sep Treasury Budget EARNINGS EXPECTED TODAY MU VAC SWY LNN IGTE 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 |
