MORNING UPDATE: PriceWatch Alerts for KO and More... for 2013-10-08 |
| ------------------------------------------------------------------ MORNING UPDATE: PriceWatch Alerts for KO, JPM, TWC, and More... October 8, 9:00 AM ET - PriceWatch Alerts for KO, BIIB, HPQ, YUM, SRPT, ROSE, JPM, ABC, TGT, SNE, TTWO, TWC, GIS, FCX, and VOD, Market Overview, News Leaders and Laggards, Today's Economic Calendar, and Index Support & Resistance Levels. PriceWatch Alerts for KO, BIIB, HPQ, YUM, SRPT, ROSE, JPM, ABC, TGT, SNE, TTWO, TWC, GIS, FCX and VOD. Coca Cola (NYSE: KO) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $37.03 while selling the January $37.50 call will produce a new covered call with a break-even point around $35.97. At that price, this position has a target return of 4.3%. This trade will have roughly 2.9% downside protection, while still aiming for a 4.3% return in 102 days. It will lock in that return as long as Coca Cola is above $37.50 on 1/18/2014. For comparison purposes only, this KO covered call aims for an annualized return rate of 15.2%. Biogen Idec (NASDAQ: BIIB) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $236.51 while simultaneously selling the November $235.00 call will result in a new position with a target return of 4.4%. Based on recent prices, this position will cost about $225.01, which is also the trade?s breakeven point. At that level, this covered call has 4.9% downside protection, while still providing a 4.4% return in 39 days as long as BIIB is above $235.00 on 11/16/2013. For comparison purposes only, this Biogen Idec covered call aims for an annualized return rate of 41.5%. Hewlett Packard (NYSE: HPQ) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $20.94 while simultaneously selling the December $20.00 call will result in a new position with a target return of 5.3%. Based on recent prices, this position will cost about $19.00, which is also the trade?s breakeven point. At that level, this covered call has 9.3% downside protection, while still providing a 5.3% return in 74 days as long as HPQ is above $20.00 on 12/21/2013. For comparison purposes only, this Hewlett Packard covered call aims for an annualized return rate of 25.9%. Yum Brands (NYSE: YUM) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the April $70.00 call while at the same time buying YUM stock for $71.43 will produce a new covered call with a target return of 5.7%. Based on recent data, this trade will cost about $66.23, which is also the covered call?s breakeven point. At that price, this covered call has 7.3% downside protection, while seeking an assigned return of 5.7% return in 193 days. If YUM is higher than $70.00 on 4/19/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 10.8%. Sarepta Therapeutics (NASDAQ: SRPT) 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 SRPT stock for $53.78 will result in a new position with a break-even point around $46.88. At that price, this position has a target return of 4.5%. This trade has 12.8% downside protection, while still providing a 4.5% return in 39 days as long as SRPT is above $49.00 on 11/16/2013. For comparison purposes only, this Sarepta Therapeutics covered call targets an annualized return rate of 42.3%. Rosetta Resources (NASDAQ: ROSE) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $56.52 while selling the April $50.00 call will produce a new covered call with a break- even point around $47.32. At that price, this position has a target return of 5.7%. This trade will have roughly 16.3% downside protection, while still aiming for a 5.7% return in 193 days. It will lock in that return as long as Rosetta Resources is above $50.00 on 4/19/2014. For comparison purposes only, this ROSE covered call aims for an annualized return rate of 10.7%. JPMorgan (NYSE: JPM) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $51.84 while simultaneously selling the March $50.00 call will result in a new position with a target return of 4.8%. Based on recent prices, this position will cost about $47.69, which is also the trade?s breakeven point. At that level, this covered call has 8.0% downside protection, while still providing a 4.8% return in 165 days as long as JPM is above $50.00 on 3/22/2014. For comparison purposes only, this JPMorgan covered call aims for an annualized return rate of 10.7%. AmerisourceBergen (NYSE: ABC) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $61.97 while simultaneously selling the January $65.00 call will result in a new position with a target return of 7.1%. Based on recent prices, this position will cost about $60.67, which is also the trade?s breakeven point. At that level, this covered call has 2.1% downside protection, while still providing a 7.1% return in 102 days as long as ABC is above $65.00 on 1/18/2014. For comparison purposes only, this AmerisourceBergen covered call aims for an annualized return rate of 25.5%. Target (NYSE: TGT) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the April $65.00 call while at the same time buying TGT stock for $62.67 will produce a new covered call with a target return of 6.0%. Based on recent data, this trade will cost about $61.31, which is also the covered call?s breakeven point. At that price, this covered call has 2.2% downside protection, while seeking an assigned return of 6.0% return in 193 days. If TGT is higher than $65.00 on 4/19/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 11.4%. Sony (NYSE: SNE) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the January $20.00 call while simultaneously buying SNE stock for $20.27 will result in a new position with a break- even point around $18.62. At that price, this position has a target return of 7.4%. This trade has 8.1% downside protection, while still providing a 7.4% return in 102 days as long as SNE is above $20.00 on 1/18/2014. For comparison purposes only, this Sony covered call targets an annualized return rate of 26.5%. TakeTwo Interactive (NASDAQ: TTWO) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $17.40 while selling the December $17.00 call will produce a new covered call with a break- even point around $15.65. At that price, this position has a target return of 8.6%. This trade will have roughly 10.1% downside protection, while still aiming for a 8.6% return in 74 days. It will lock in that return as long as TakeTwo Interactive is above $17.00 on 12/21/2013. For comparison purposes only, this TTWO covered call aims for an annualized return rate of 42.5%. Time Warner Cable Inc. (NYSE: TWC) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $111.03 while simultaneously selling the November $110.00 call will result in a new position with a target return of 5.0%. Based on recent prices, this position will cost about $104.73, which is also the trade?s breakeven point. At that level, this covered call has 5.7% downside protection, while still providing a 5.0% return in 39 days as long as TWC is above $110.00 on 11/16/2013. For comparison purposes only, this Time Warner Cable Inc. covered call aims for an annualized return rate of 47.1%. General Mills (NYSE: GIS) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $47.98 while simultaneously selling the April $49.00 call will result in a new position with a target return of 5.6%. Based on recent prices, this position will cost about $46.41, which is also the trade?s breakeven point. At that level, this covered call has 3.3% downside protection, while still providing a 5.6% return in 193 days as long as GIS is above $49.00 on 4/19/2014. For comparison purposes only, this General Mills covered call aims for an annualized return rate of 10.6%. Freeport McMoran (NYSE: FCX) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the December $33.00 call while at the same time buying FCX stock for $33.43 will produce a new covered call with a target return of 4.7%. Based on recent data, this trade will cost about $31.53, which is also the covered call?s breakeven point. At that price, this covered call has 5.7% downside protection, while seeking an assigned return of 4.7% return in 74 days. If FCX is higher than $33.00 on 12/21/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 23.0%. Vodafone Group (NASDAQ: VOD) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the April $35.00 call while simultaneously buying VOD stock for $35.13 will result in a new position with a break-even point around $33.23. At that price, this position has a target return of 5.3%. This trade has 5.4% downside protection, while still providing a 5.3% return in 193 days as long as VOD is above $35.00 on 4/19/2014. For comparison purposes only, this Vodafone Group covered call targets an annualized return rate of 10.1%. *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)! 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NOTE: All stocks and options shown are examples only. These are not recommendations to buy or sell any security. NEWS LEADERS AND LAGGARDS JC Penney (JCP), Talisman Energy (TLM) and Allied Nevada Gold (ANV) are headed higher this morning, while Netqin Mobile (NQ), Clean Energy Fuels (CLNE) and Tellabs (TLAB) are in decline. Cloud Peak Energy (CLD), Bristow (BRS) and Abiomed (ABMD) were upgraded by analysts this morning, while there were no major analyst downgrades. MARKET OVERVIEW Asian markets rose overnight, led higher by the Shanghai SEC which reopened after a week-long holiday and gained more than 1% on a PMI report that still shows expansion. The Hong Kong Hang Seng gained 0.9%, the Taiwan TSEC rose 0.5% and the Nikkei 225 advanced 0.3%. In Europe, the story is reversed so far this morning, with most stock markets moving lower. German factory orders fell in August, but that country's exports rose 1%, which caused the DAX to lose 0.1%, but that is stronger than most exchanges in other European countries today. The FTSE 100 is down 0.7% and the French CAC 40 is off 0.4% at last check. Energy futures are higher across the board with front-month West Texas Intermediate crude oil up 0.5% to $103.60. Natural gas is higher by 1.3% at $3.68. Gold is down $5.50 or 0.4% to $1,319 and silver is also lower, but copper and platinum are both in the green. The U.S. Dollar is stronger against the Yen and the Euro, while Bitcoins are holding near $136. PUT/CALL RATIO Yesterday, 900,560 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 543,556 put contracts. The single-session put/call was 0.59, while the 20-day moving average is now at 0.6. SUPPORT & RESISTANCE LEVELS The S&P 500 Depository Receipts (SPY) ETF has support at $160 and resistance at 168. The Nasdaq 100 (QQQ) has support at $77 and is above resistance. TODAY'S ECONOMIC CALENDAR 08:30 AM Aug Trade Balance 10:00 AM Aug JOLTS ? Job Openings EARNINGS EXPECTED TODAY AA ADTN HCSG MG YUM 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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