MORNING UPDATE: PriceWatch Alerts for SCTY and More... for 2013-09-20 |
| ------------------------------------------------------------------ MORNING UPDATE: PriceWatch Alerts for SCTY, SFUN, SSYS and More... September 20, 9:00 AM ET - PriceWatch Alerts for SCTY, SFUN, YY, ASML, SLB, SSYS, CLVS, SHLD, MDLZ and CLDX, Market Overview, News Leaders and Laggards, Today's Economic Calendar, and Index Support & Resistance Levels. PriceWatch Alerts for SCTY, SFUN, YY, ASML, SLB, SSYS, CLVS, SHLD, MDLZ and CLDX. SolarCity (NASDAQ: SCTY) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $38.43 while selling the October $37.50 call will produce a new covered call with a break-even point around $35.43. At that price, this position has a target return of 5.8%. This trade will have roughly 7.8% downside protection, while still aiming for a 5.8% return in 29 days. It will lock in that return as long as SolarCity is above $37.50 on 10/19/2013. For comparison purposes only, this SCTY covered call aims for an annualized return rate of 73.5%. SouFun (NYSE: SFUN) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $48.75 while simultaneously selling the October $45.00 call will result in a new position with a target return of 4.0%. Based on recent prices, this position will cost about $43.25, which is also the trade?s breakeven point. At that level, this covered call has 11.3% downside protection, while still providing a 4.0% return in 29 days as long as SFUN is above $45.00 on 10/19/2013. For comparison purposes only, this SouFun covered call aims for an annualized return rate of 50.8%. YY (NASDAQ: YY) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the October $45.00 call while at the same time buying YY stock for $50.07 will produce a new covered call with a target return of 4.2%. Based on recent data, this trade will cost about $43.17, which is also the covered call?s breakeven point. At that price, this covered call has 13.8% downside protection, while seeking an assigned return of 4.2% return in 29 days. If YY is higher than $45.00 on 10/19/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 53.2%. ASML (NASDAQ: ASMl) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $95.64 while simultaneously selling the January $90.00 call will result in a new position with a target return of 4.5%. Based on recent prices, this position will cost about $86.14, which is also the trade?s breakeven point. At that level, this covered call has 9.9% downside protection, while still providing a 4.5% return in 120 days as long as ASMl is above $90.00 on 1/18/2014. For comparison purposes only, this ASML covered call aims for an annualized return rate of 13.6%. Schlumberger (NYSE: SLB) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the January $87.50 call while simultaneously buying SLB stock for $88.79 will result in a new position with a break-even point around $83.79. At that price, this position has a target return of 4.4%. This trade has 5.6% downside protection, while still providing a 4.4% return in 120 days as long as SLB is above $87.50 on 1/18/2014. For comparison purposes only, this Schlumberger covered call targets an annualized return rate of 13.4%. Stratasys (NASDAQ: SSYS) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $99.15 while selling the December $85.00 call will produce a new covered call with a break-even point around $80.85. At that price, this position has a target return of 5.1%. This trade will have roughly 18.5% downside protection, while still aiming for a 5.1% return in 92 days. It will lock in that return as long as Stratasys is above $85.00 on 12/21/2013. For comparison purposes only, this SSYS covered call aims for an annualized return rate of 20.4%. Clovis Oncology (NASDAQ: CLVS) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $75.23 while simultaneously selling the October $70.00 call will result in a new position with a target return of 4.1%. Based on recent prices, this position will cost about $67.23, which is also the trade?s breakeven point. At that level, this covered call has 10.6% downside protection, while still providing a 4.1% return in 29 days as long as CLVS is above $70.00 on 10/19/2013. For comparison purposes only, this Clovis Oncology covered call aims for an annualized return rate of 51.9%. Sears (NASDAQ: SHLD) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the October $57.50 call while at the same time buying SHLD stock for $58.11 will produce a new covered call with a target return of 5.2%. Based on recent data, this trade will cost about $54.66, which is also the covered call?s breakeven point. At that price, this covered call has 5.9% downside protection, while seeking an assigned return of 5.2% return in 29 days. If SHLD is higher than $57.50 on 10/19/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 65.3%. Mondelez (NASDAQ: MDLZ) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $32.94 while simultaneously selling the December $33.00 call will result in a new position with a target return of 4.0%. Based on recent prices, this position will cost about $31.73, which is also the trade?s breakeven point. At that level, this covered call has 3.7% downside protection, while still providing a 4.0% return in 92 days as long as MDLZ is above $33.00 on 12/21/2013. For comparison purposes only, this Mondelez covered call aims for an annualized return rate of 15.9%. Celldex Therapeutics (NASDAQ: CLDX) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the October $27.00 call while simultaneously buying CLDX stock for $28.60 will result in a new position with a break-even point around $25.75. At that price, this position has a target return of 4.9%. This trade has 10.0% downside protection, while still providing a 4.9% return in 29 days as long as CLDX is above $27.00 on 10/19/2013. For comparison purposes only, this Celldex Therapeutics covered call targets an annualized return rate of 61.0%. *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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Techne (TECH), Synaptics (SYNA) and Urban Outfitters (URBN) were upgraded by analysts this morning, while Sigma-Aldrich (SIAL) and Cardinal Financial (CFNL) were downgraded. MARKET OVERVIEW Asian markets finished with weak performance overnight, but many indices were closed for a holiday. The Mumbai Sensex fell 1.9% after the Reserve Bank of India hiked rates unexpectedly. The Nikkei 225 and the Australian All-Ordinaries each dropped by a smaller amount. In Europe, traders are slightly bullish this morning, with most continental exchanges holding steady or just barely in positive territory. The Swiss Market Index is up 0.3%, while the FTSE 100, the Euronext 100, the German DAX and the French CAC 40 are all closer to flat. In the futures pits, crude oil futures retreated yesterday and are down again this morning, with West Texas Intermediate crude losing $0.57 to $105.29 at last check. Gold is falling back to earth as well, down 1.3% at $1,350, while silver is back down to $22.62. The U.S. Dollar strengthened against most international currencies, and Bitcoins have slipped to $135. PUT/CALL RATIO Yesterday, 1,334,625 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 764,473 put contracts. The single-session put/call was 0.57, 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 and is above resistance. The Nasdaq 100 (QQQ) has support at $76 and is above resistance. TODAY'S ECONOMIC CALENDAR There are no major economic reports scheduled for today. EARNINGS EXPECTED TODAY DRI 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 |
