MORNING UPDATE: PriceWatch Alerts for BA and More... for 2013-10-03 |
| ------------------------------------------------------------------ MORNING UPDATE: PriceWatch Alerts for BA, XOM, C and More... October 3, 9:00 AM ET - PriceWatch Alerts for BA, MDT, DRI, BMRN, HFC, XOM, C, DLTR, ORCL and SGEN, Market Overview, News Leaders and Laggards, Today's Economic Calendar, and Index Support & Resistance Levels. PriceWatch Alerts for BA, MDT, DRI, BMRN, HFC, XOM, C, DLTR, ORCL and SGEN. Boeing (NYSE: BA) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $117.84 while selling the January $115.00 call will produce a new covered call with a break-even point around $110.54. At that price, this position has a target return of 4.0%. This trade will have roughly 6.2% downside protection, while still aiming for a 4.0% return in 107 days. It will lock in that return as long as Boeing is above $115.00 on 1/18/2014. For comparison purposes only, this BA covered call aims for an annualized return rate of 13.7%. Medtronic (NYSE: MDT) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $53.52 while simultaneously selling the February $52.50 call will result in a new position with a target return of 4.0%. Based on recent prices, this position will cost about $50.47, which is also the trade?s breakeven point. At that level, this covered call has 5.7% downside protection, while still providing a 4.0% return in 142 days as long as MDT is above $52.50 on 2/22/2014. For comparison purposes only, this Medtronic covered call aims for an annualized return rate of 10.3%. Darden Restaurants (NYSE: DRI) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $46.57 while simultaneously selling the January $47.00 call will result in a new position with a target return of 5.0%. Based on recent prices, this position will cost about $44.77, which is also the trade?s breakeven point. At that level, this covered call has 3.9% downside protection, while still providing a 5.0% return in 107 days as long as DRI is above $47.00 on 1/18/2014. For comparison purposes only, this Darden Restaurants covered call aims for an annualized return rate of 17.0%. BioMarin Pharmaceutical (NASDAQ: BMRN) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the November $75.00 call while at the same time buying BMRN stock for $75.09 will produce a new covered call with a target return of 6.9%. Based on recent data, this trade will cost about $70.19, which is also the covered call?s breakeven point. At that price, this covered call has 6.5% downside protection, while seeking an assigned return of 6.9% return in 44 days. If BMRN is higher than $75.00 on 11/16/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 56.8%. Hollyfrontier (NYSE: HFC) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the November $42.00 call while simultaneously buying HFC stock for $42.18 will result in a new position with a break-even point around $40.18. At that price, this position has a target return of 4.5%. This trade has 4.7% downside protection, while still providing a 4.5% return in 44 days as long as HFC is above $42.00 on 11/16/2013. For comparison purposes only, this Hollyfrontier covered call targets an annualized return rate of 37.5%. Exxon Mobil (NYSE: XOM) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $86.08 while selling the January $90.00 call will produce a new covered call with a break-even point around $85.04. At that price, this position has a target return of 5.8%. This trade will have roughly 1.2% downside protection, while still aiming for a 5.8% return in 107 days. It will lock in that return as long as Exxon Mobil is above $90.00 on 1/18/2014. For comparison purposes only, this XOM covered call aims for an annualized return rate of 19.9%. Citigroup (NYSE: C) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $48.71 while simultaneously selling the December $48.00 call will result in a new position with a target return of 4.2%. Based on recent prices, this position will cost about $46.08, which is also the trade?s breakeven point. At that level, this covered call has 5.4% downside protection, while still providing a 4.2% return in 79 days as long as C is above $48.00 on 12/21/2013. For comparison purposes only, this Citigroup covered call aims for an annualized return rate of 19.2%. Dollar Tree (NASDAQ: DLTR) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the January $57.50 call while simultaneously buying DLTR stock for $58.95 will result in a new position with a break-even point around $55.25. At that price, this position has a target return of 4.1%. This trade has 6.3% downside protection, while still providing a 4.1% return in 107 days as long as DLTR is above $57.50 on 1/18/2014. For comparison purposes only, this Dollar Tree covered call targets an annualized return rate of 13.9%. Oracle (NASDAQ: ORCL) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the March $33.00 call while at the same time buying ORCL stock for $33.68 will produce a new covered call with a target return of 5.0%. Based on recent data, this trade will cost about $31.43, which is also the covered call?s breakeven point. At that price, this covered call has 6.7% downside protection, while seeking an assigned return of 5.0% return in 170 days. If ORCL is higher than $33.00 on 3/22/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 10.7%. Seattle Genetics (NASDAQ: SGEN) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the November $45.00 call while simultaneously buying SGEN stock for $45.50 will result in a new position with a break-even point around $42.40. At that price, this position has a target return of 6.1%. This trade has 6.8% downside protection, while still providing a 6.1% return in 44 days as long as SGEN is above $45.00 on 11/16/2013. For comparison purposes only, this Seattle Genetics covered call targets an annualized return rate of 50.9%. *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. 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MARKET OVERVIEW In Asia, the markets moved higher overnight for the most part, with gains of more than 1.7% made by both the Taiwan TSEC and the Mumbai Sensex while Hong Kong's Hang Seng added 1.0%. The Japanese Nikkei 225 dipped a small amount, losing 0.1%. Despite China's markets being closed, the Chinese government released PMI data for September, which rose to its highest level since March. European markets are putting in a mixed session so far with no major movement in either direction. The FTSE 100 is up 0.3%, the French CAC 40 is down 0.3% and the other major indices all fall somewhere in between. In the futures pits, crude oil futures rose sharply yesterday and still holds just shy of $104 for the front-month contract despite pulling back a small amount today. Most other energy futures are moving higher. Gold is down $17.00 or 1.3% to $1,303, while silver is off 1.9%. The U.S. Dollar is stronger against the Yen but weaker against the Euro. Bitcoins dropped precipitously yesterday afternoon and are trading near $124 this morning. PUT/CALL RATIO Yesterday, 989,049 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 598,837 put contracts. The single-session put/call was 0.61, while the 20-day moving average is now at 0.58. SUPPORT & RESISTANCE LEVELS The S&P 500 Depository Receipts (SPY) ETF has support at $168 and is above resistance. The Nasdaq 100 (QQQ) has support at $77 and is above resistance. TODAY'S ECONOMIC CALENDAR 07:30 AM Sep Challenger Job Cuts 08:30 AM 9/28 Initial Claims 08:30 AM 9/28 Continuing Claims 10:00 AM Aug Factory Orders 10:00 AM Sep ISM Services 10:30 AM 9/28 Natural Gas Inventories EARNINGS EXPECTED TODAY STZ 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 |
