MORNING UPDATE: PriceWatch Alerts for AAPL and More... for 2013-10-04 |
| ------------------------------------------------------------------ MORNING UPDATE: PriceWatch Alerts for MSFT, PG, AAPL, and More... October 4, 9:00 AM ET - PriceWatch Alerts for MSFT, PG, DPZ, JWN, EA, AAPL, AMGN, SCHW, TJX and MAT, Market Overview, News Leaders and Laggards, Today's Economic Calendar, and Index Support & Resistance Levels. PriceWatch Alerts for MSFT, PG, DPZ, JWN, EA, AAPL, AMGN, SCHW, TJX and MAT. Microsoft (NASDAQ: MSFT) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the January $34.00 call while simultaneously buying MSFT stock for $33.86 will result in a new position with a break-even point around $32.38. At that price, this position has a target return of 5.0%. This trade has 4.4% downside protection, while still providing a 5.0% return in 106 days as long as MSFT is above $34.00 on 1/18/2014. For comparison purposes only, this Microsoft covered call targets an annualized return rate of 17.2%. Procter and Gamble (NYSE: PG) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $75.84 while simultaneously selling the January $77.50 call will result in a new position with a target return of 4.6%. Based on recent prices, this position will cost about $74.08, which is also the trade?s breakeven point. At that level, this covered call has 2.3% downside protection, while still providing a 4.6% return in 106 days as long as PG is above $77.50 on 1/18/2014. For comparison purposes only, this Procter and Gamble covered call aims for an annualized return rate of 15.9%. Dominos Pizza (NYSE: DPZ) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the March $65.00 call while at the same time buying DPZ stock for $68.34 will produce a new covered call with a target return of 4.9%. Based on recent data, this trade will cost about $61.94, which is also the covered call?s breakeven point. At that price, this covered call has 9.4% downside protection, while seeking an assigned return of 4.9% return in 169 days. If DPZ is higher than $65.00 on 3/22/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 10.7%. Nordstrom (NYSE: JWN) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $56.84 while selling the January $57.50 call will produce a new covered call with a break-even point around $54.66. At that price, this position has a target return of 5.2%. This trade will have roughly 3.8% downside protection, while still aiming for a 5.2% return in 106 days. It will lock in that return as long as Nordstrom is above $57.50 on 1/18/2014. For comparison purposes only, this JWN covered call aims for an annualized return rate of 17.9%. Electronic Arts (NASDAQ: EA) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the November $25.00 call while simultaneously buying EA stock for $25.08 will result in a new position with a break-even point around $23.49. At that price, this position has a target return of 6.4%. This trade has 6.3% downside protection, while still providing a 6.4% return in 43 days as long as EA is above $25.00 on 11/16/2013. For comparison purposes only, this Electronic Arts covered call targets an annualized return rate of 54.5%. Apple (NASDAQ: AAPL) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $483.41 while selling the December $475.00 call will produce a new covered call with a break-even point around $455.41. At that price, this position has a target return of 4.3%. This trade will have roughly 5.8% downside protection, while still aiming for a 4.3% return in 78 days. It will lock in that return as long as Apple is above $475.00 on 12/21/2013. For comparison purposes only, this AAPL covered call aims for an annualized return rate of 20.1%. Amgen (NASDAQ: AMGN) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $111.12 while simultaneously selling the January $110.00 call will result in a new position with a target return of 5.1%. Based on recent prices, this position will cost about $104.67, which is also the trade?s breakeven point. At that level, this covered call has 5.8% downside protection, while still providing a 5.1% return in 106 days as long as AMGN is above $110.00 on 1/18/2014. For comparison purposes only, this Amgen covered call aims for an annualized return rate of 17.5%. Schwab (NYSE: SCHW) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $21.15 while simultaneously selling the December $21.00 call will result in a new position with a target return of 5.0%. Based on recent prices, this position will cost about $20.00, which is also the trade?s breakeven point. At that level, this covered call has 5.4% downside protection, while still providing a 5.0% return in 78 days as long as SCHW is above $21.00 on 12/21/2013. For comparison purposes only, this Schwab covered call aims for an annualized return rate of 23.4%. TJX (NYSE: TJX) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the April $55.00 call while at the same time buying TJX stock for $56.19 will produce a new covered call with a target return of 5.4%. Based on recent data, this trade will cost about $52.19, which is also the covered call?s breakeven point. At that price, this covered call has 7.1% downside protection, while seeking an assigned return of 5.4% return in 197 days. If TJX is higher than $55.00 on 4/19/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 10.0%. Mattel (NASDAQ: MAT) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the January $42.00 call while simultaneously buying MAT stock for $42.18 will result in a new position with a break-even point around $40.33. At that price, this position has a target return of 4.1%. This trade has 4.4% downside protection, while still providing a 4.1% return in 106 days as long as MAT is above $42.00 on 1/18/2014. For comparison purposes only, this Mattel covered call targets an annualized return rate of 14.3%. *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 Forest Oil (FST), Abiomed (ABMD) and National Bank of Greece (NBG) are headed higher this morning, while Lannett (LCI), Zalicus (ZLCS) and Igate (IGTE) are falling. ServiceNow (NOW), Moneygram (MGI) and PAREXEL (PRXL) were upgraded by analysts this morning, while US Airways (LCC), Valero Energy (VLO) and Phillips 66 (PSX) were downgraded. MARKET OVERVIEW Asian stock markets turned lower overnight for the most part, with the Nikkei 225 losing 0.9%, the Australian All-Ordinaries falling 0.5% and the Hong Kong Hang Seng off 0.3%. The indices that did manage to rise only notched small gains, including the Taiwan TSEC and the Mumbai Sensex, each up less than 0.1%. Among major movers, China Mobile (CHL) fell 2.4% in Hong Kong after reports surfaced about the company cutting fees it charges other wireless providers to use its network. In Europe, performance is mixed so far this morning, with the Euronext 100 and French CAC 40 higher by 0.4% and 0.5% respectively. The German DAX and the FTSE 100 are both very close to break-even at last check, but the Swiss Market Index fell 0.4%. Moving to futures, West Texas Intermediate crude oil futures are higher this morning, up 0.5% to $103.80. Most other energy futures are higher a smaller amount. Gold is down $7.50 or 0.6% to $1,310 and silver is also lower, but platinum and copper are both in positive territory. The U.S. Dollar is weaker against the Yen but stronger against the Euro. Bitcoins are rising in the aftermath of the Silk Road shutdown panic, with the virtual currency rising to $134.50 at last check. PUT/CALL RATIO Yesterday, 1,025,559 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 712,575 put contracts. The single-session put/call was 0.69, while the 20-day moving average is now at 0.59. SUPPORT & RESISTANCE LEVELS The S&P 500 Depository Receipts (SPY) ETF is testing support at $168 with its next support level at $160. The Nasdaq 100 (QQQ) has support at $77 and is above resistance. TODAY'S ECONOMIC CALENDAR NOTE: The Bureau of Labor Statistics has been affected by the government shutdown and is not likely to release employment numbers today. 08:30 AM Sep Nonfarm Payrolls (Delayed) 08:30 AM Sep Nonfarm Private Payrolls (Delayed) 08:30 AM Sep Unemployment Rate (Delayed) 08:30 AM Sep Hourly Earnings (Delayed) 08:30 AM Sep Average Workweek (Delayed) EARNINGS EXPECTED TODAY STZ XRTX 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 |
