MORNING UPDATE: PriceWatch Alerts for GE and More... for 2013-09-25 |
| ------------------------------------------------------------------ MORNING UPDATE: PriceWatch Alerts for DD, GE, COST and More... September 25, 9:00 AM ET - PriceWatch Alerts for DD, VZ, DG, LFC, JKS, AMAT, GE, COST, BKS and ISIS, Market Overview, News Leaders and Laggards, Today's Economic Calendar, and Index Support & Resistance Levels. PriceWatch Alerts for DD, VZ, DG, LFC, JKS, AMAT, GE, COST, BKS and ISIS. Du Pont (NYSE: DD) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $59.32 while selling the January $60.00 call will produce a new covered call with a break-even point around $57.40. At that price, this position has a target return of 4.5%. This trade will have roughly 3.2% downside protection, while still aiming for a 4.5% return in 115 days. It will lock in that return as long as Du Pont is above $60.00 on 1/18/2014. For comparison purposes only, this DD covered call aims for an annualized return rate of 14.3%. Verizon Communications (NYSE: VZ) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $47.27 while simultaneously selling the January $48.00 call will result in a new position with a target return of 4.3%. Based on recent prices, this position will cost about $46.03, which is also the trade?s breakeven point. At that level, this covered call has 2.6% downside protection, while still providing a 4.3% return in 115 days as long as VZ is above $48.00 on 1/18/2014. For comparison purposes only, this Verizon Communications covered call aims for an annualized return rate of 13.6%. Dollar General (NYSE: DG) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $58.11 while simultaneously selling the January $57.50 call will result in a new position with a target return of 5.5%. Based on recent prices, this position will cost about $54.51, which is also the trade?s breakeven point. At that level, this covered call has 6.2% downside protection, while still providing a 5.5% return in 115 days as long as DG is above $57.50 on 1/18/2014. For comparison purposes only, this Dollar General covered call aims for an annualized return rate of 17.4%. China Life Insurance (NYSE: LFC) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the January $40.00 call while at the same time buying LFC stock for $40.39 will produce a new covered call with a target return of 6.3%. Based on recent data, this trade will cost about $37.64, 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 6.3% return in 115 days. If LFC is higher than $40.00 on 1/18/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 19.9%. JinkoSolar (NYSE: JKS) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the October $18.00 call while simultaneously buying JKS stock for $18.78 will result in a new position with a break-even point around $16.98. At that price, this position has a target return of 6.0%. This trade has 9.6% downside protection, while still providing a 6.0% return in 24 days as long as JKS is above $18.00 on 10/19/2013. For comparison purposes only, this JinkoSolar covered call targets an annualized return rate of 91.3%. Applied Materials (NASDAQ: AMAT) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $17.45 while selling the April $17.00 call will produce a new covered call with a break- even point around $16.00. At that price, this position has a target return of 6.3%. This trade will have roughly 8.3% downside protection, while still aiming for a 6.3% return in 206 days. It will lock in that return as long as Applied Materials is above $17.00 on 4/19/2014. For comparison purposes only, this AMAT covered call aims for an annualized return rate of 11.1%. General Electric (NYSE: GE) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $24.32 while simultaneously selling the June $25.00 call will result in a new position with a target return of 7.7%. Based on recent prices, this position will cost about $23.21, which is also the trade?s breakeven point. At that level, this covered call has 4.6% downside protection, while still providing a 7.7% return in 269 days as long as GE is above $25.00 on 6/21/2014. For comparison purposes only, this General Electric covered call aims for an annualized return rate of 10.5%. Costco Wholesale (NASDAQ: COST) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the January $118.00 call while at the same time buying COST stock for $116.34 will produce a new covered call with a target return of 4.8%. Based on recent data, this trade will cost about $112.64, which is also the covered call?s breakeven point. At that price, this covered call has 3.2% downside protection, while seeking an assigned return of 4.8% return in 115 days. If COST is higher than $118.00 on 1/18/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 15.1%. Barnes & Noble (NYSE: BKS) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $13.43 while simultaneously selling the January $13.00 call will result in a new position with a target return of 8.4%. Based on recent prices, this position will cost about $11.99, which is also the trade?s breakeven point. At that level, this covered call has 10.7% downside protection, while still providing a 8.4% return in 115 days as long as BKS is above $13.00 on 1/18/2014. For comparison purposes only, this Barnes & Noble covered call aims for an annualized return rate of 26.7%. Isis Pharmaceuticals (NASDAQ: ISIS) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the October $37.00 call while simultaneously buying ISIS stock for $37.65 will result in a new position with a break-even point around $35.20. At that price, this position has a target return of 5.1%. This trade has 6.5% downside protection, while still providing a 5.1% return in 24 days as long as ISIS is above $37.00 on 10/19/2013. For comparison purposes only, this Isis Pharmaceuticals covered call targets an annualized return rate of 77.7%. *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. 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NEWS LEADERS AND LAGGARDS Ascena Retail Group (ASNA), Men's Wearhouse (MW) and Rio Tinto (RIO) are headed higher this morning, while Clovis Oncology (CLVS), Copart (CPRT) and Advantest (ATE) are moving down. Infosys (INFY) and Ascena Retail Group (ASNA) were upgraded by analysts this morning, while Raptor Pharmaceuticals was downgraded. MARKET OVERVIEW In Asia overnight, the major indices finished with a mixed performance. The Nikkei 225 fell 0.8% and the Shanghai SEC dropped 0.4%, but the Australian All-Ordinaries rose 0.8% with large bank stocks leading the advance down under. European markets are predominantly in negative territory so far this morning. The Euronext 100 and French CAC 40 are each down 0.5%, the FTSE 100 is losing 0.4% and the German DAX is off 0.3%. Consumer confidence in Germany rose to its highest level since before the financial crash, but traders seem more focused on the U.S. Congressional morass. In the futures pits, crude oil futures are staging a comeback from short-term lows, with West Texas Intermediate crude up 0.5% to $103.65 at last check. Gold other metals futures are slightly higher as well. The U.S. Dollar is weaker against the Yen and the Euro but stronger against many of the smaller international currencies. Bitcoins are up 2% in the past day and are now just above $136. PUT/CALL RATIO Yesterday, 1,213,513 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 684,217 put contracts. The single-session put/call was 0.56, while the 20-day moving average is now at 0.57. 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 and is above resistance. TODAY'S ECONOMIC CALENDAR 08:30 AM AUG Durable Orders 08:30 AM Aug Durable Goods ? ex transportation 10:00 AM Aug New Home Sales 10:30 AM 9/21 Crude Inventories EARNINGS EXPECTED TODAY AZO BBBY JBL PRGS THO 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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