MORNING UPDATE: PriceWatch Alerts for FSLR and More... for 2013-09-17 |
| ------------------------------------------------------------------ MORNING UPDATE: PriceWatch Alerts for FSLR, MU, TWX, and More... September 17, 9:00 AM ET - PriceWatch Alerts for FSLR, NVS, SAM, SAP, DISH, MU, CAT, NKE, STX, HUM, TWX, JNPR, LLY, CLF and TMUS, Market Overview, News Leaders and Laggards, Today's Economic Calendar, and Index Support & Resistance Levels. PriceWatch Alerts for FSLR, NVS, SAM, SAP, DISH, MU, CAT, NKE, STX, HUM, TWX, JNPR, LLY, CLF and TMUS. First Solar (NASDAQ: FSLR) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $38.48 while selling the October $38.00 call will produce a new covered call with a break- even point around $35.87. At that price, this position has a target return of 5.9%. This trade will have roughly 6.8% downside protection, while still aiming for a 5.9% return in 32 days. It will lock in that return as long as First Solar is above $38.00 on 10/19/2013. For comparison purposes only, this FSLR covered call aims for an annualized return rate of 67.6%. Novartis AG (NYSE: NVS) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $75.30 while simultaneously selling the January $77.50 call will result in a new position with a target return of 5.4%. Based on recent prices, this position will cost about $73.55, which is also the trade?s breakeven point. At that level, this covered call has 2.3% downside protection, while still providing a 5.4% return in 123 days as long as NVS is above $77.50 on 1/18/2014. For comparison purposes only, this Novartis AG covered call aims for an annualized return rate of 15.9%. Boston Beer Company (NYSE: SAM) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $231.99 while selling the December $230.00 call will produce a new covered call with a break-even point around $219.69. At that price, this position has a target return of 4.7%. This trade will have roughly 5.3% downside protection, while still aiming for a 4.7% return in 95 days. It will lock in that return as long as Boston Beer Company is above $230.00 on 12/21/2013. For comparison purposes only, this SAM covered call aims for an annualized return rate of 18.0%. SAP AG (NYSE: SAP) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the December $72.50 call while at the same time buying SAP stock for $72.91 will produce a new covered call with a target return of 4.6%. Based on recent data, this trade will cost about $69.31, which is also the covered call?s breakeven point. At that price, this covered call has 4.9% downside protection, while seeking an assigned return of 4.6% return in 95 days. If SAP is higher than $72.50 on 12/21/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 17.7%. Dish Network (NASDAQ: DISH) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the December $44.00 call while simultaneously buying DISH stock for $46.94 will result in a new position with a break-even point around $42.04. At that price, this position has a target return of 4.7%. This trade has 10.4% downside protection, while still providing a 4.7% return in 95 days as long as DISH is above $44.00 on 12/21/2013. For comparison purposes only, this Dish Network covered call targets an annualized return rate of 17.9%. Micron Technology (NASDAQ: MU) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $16.44 while selling the January $15.00 call will produce a new covered call with a break- even point around $13.79. At that price, this position has a target return of 8.8%. This trade will have roughly 16.1% downside protection, while still aiming for a 8.8% return in 123 days. It will lock in that return as long as Micron Technology is above $15.00 on 1/18/2014. For comparison purposes only, this MU covered call aims for an annualized return rate of 26.0%. Caterpillar (NYSE: CAT) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $87.18 while simultaneously selling the January $87.50 call will result in a new position with a target return of 6.4%. Based on recent prices, this position will cost about $82.23, which is also the trade?s breakeven point. At that level, this covered call has 5.7% downside protection, while still providing a 6.4% return in 123 days as long as CAT is above $87.50 on 1/18/2014. For comparison purposes only, this Caterpillar covered call aims for an annualized return rate of 19.0%. Nike (NYSE: NKE) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the January $67.50 call while at the same time buying NKE stock for $68.19 will produce a new covered call with a target return of 4.9%. Based on recent data, this trade will cost about $64.34, which is also the covered call?s breakeven point. At that price, this covered call has 5.6% downside protection, while seeking an assigned return of 4.9% return in 123 days. If NKE is higher than $67.50 on 1/18/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 14.6%. Seagate Technology (NASDAQ: STX) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $40.94 while simultaneously selling the November $40.00 call will result in a new position with a target return of 4.7%. Based on recent prices, this position will cost about $38.19, which is also the trade?s breakeven point. At that level, this covered call has 6.7% downside protection, while still providing a 4.7% return in 60 days as long as STX is above $40.00 on 11/16/2013. For comparison purposes only, this Seagate Technology covered call aims for an annualized return rate of 28.8%. Humana (NYSE: HUM) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the January $97.50 call while simultaneously buying HUM stock for $99.56 will result in a new position with a break- even point around $92.96. At that price, this position has a target return of 4.9%. This trade has 6.6% downside protection, while still providing a 4.9% return in 123 days as long as HUM is above $97.50 on 1/18/2014. For comparison purposes only, this Humana covered call targets an annualized return rate of 14.5%. Time Warner (NYSE: TWX) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $62.72 while selling the January $62.50 call will produce a new covered call with a break-even point around $59.67. At that price, this position has a target return of 4.7%. This trade will have roughly 4.9% downside protection, while still aiming for a 4.7% return in 123 days. It will lock in that return as long as Time Warner is above $62.50 on 1/18/2014. For comparison purposes only, this TWX covered call aims for an annualized return rate of 14.1%. Juniper Networks (NYSE: JNPR) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $21.06 while simultaneously selling the January $20.00 call will result in a new position with a target return of 6.7%. Based on recent prices, this position will cost about $18.75, which is also the trade?s breakeven point. At that level, this covered call has 11.0% downside protection, while still providing a 6.7% return in 123 days as long as JNPR is above $20.00 on 1/18/2014. For comparison purposes only, this Juniper Networks covered call aims for an annualized return rate of 19.8%. Eli Lilly (NYSE: LLY) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the January $55.00 call while at the same time buying LLY stock for $53.64 will produce a new covered call with a target return of 5.7%. Based on recent data, this trade will cost about $52.01, which is also the covered call?s breakeven point. At that price, this covered call has 3.0% downside protection, while seeking an assigned return of 5.7% return in 123 days. If LLY is higher than $55.00 on 1/18/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 17.0%. Cliffs Natural Resources (NYSE: CLF) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $22.03 while simultaneously selling the October $22.00 call will result in a new position with a target return of 6.3%. Based on recent prices, this position will cost about $20.69, which is also the trade?s breakeven point. At that level, this covered call has 6.1% downside protection, while still providing a 6.3% return in 32 days as long as CLF is above $22.00 on 10/19/2013. For comparison purposes only, this Cliffs Natural Resources covered call aims for an annualized return rate of 72.2%. T-Mobile US (NYSE: TMUS) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the November $23.00 call while simultaneously buying TMUS stock for $24.67 will result in a new position with a break-even point around $21.92. At that price, this position has a target return of 4.9%. This trade has 11.1% downside protection, while still providing a 4.9% return in 60 days as long as TMUS is above $23.00 on 11/16/2013. For comparison purposes only, this T- Mobile US covered call targets an annualized return rate of 29.9%. *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)! 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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 Aeropostale (ARO), Discover Financial (DIS) and Take-two Interactive (TTWO) are headed higher this morning, while Pandora (P), Exone (XONE) and Tesla (TSLA) are in decline. Apache (APA) and American States Water (AWR) were upgraded by analysts this morning, and there were no major analyst upgrades. MARKET OVERVIEW In Asia, the major indices were mostly lower overnight, with just a few outliers that went the other way. China's Shanghai SEC fell 2.0% with that country's banking stocks leading the losers. The Japanese Nikkei 225 fell 0.7% and the Hong Kong Hang Seng dropped 0.3%. On the flip side, India's Mumbai Sensex gained 0.3%, making it the strongest Asian market overnight. European markets are all lower so far today, with the losses being blamed on tomorrow's U.S. Federal Reserve announcement. The FTSE 100 and Swiss Market Index each are down 0.5%, while the German DAX is down only 0.2% after a stronger-than-expected ZEW reading. European new car registrations fell sharply in August, undoing good news from July when they unexpectedly advanced. In the futures pits, crude oil futures are down this morning, with West Texas Intermediate crude down 1.3% to $106.19 at last check. Heating oil and gasoline are down 1.6% and 1.9% respectively, while natural gas is up 1.6%. Gold is up $9.40 an ounce or 0.7%, bouncing back from a big dip, while silver is back above $22. The U.S. Dollar is weaker against most international currencies and Bitcoins are holding steady at $138. PUT/CALL RATIO Yesterday, 990,144 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 567,465 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 $167.50 and is above resistance. The Nasdaq 100 (QQQ) has support at $73 and is above resistance. TODAY'S ECONOMIC CALENDAR 08:30 AM Aug CPI 08:30 AM Aug Core CPI 09:00 AM Jul Net Long-Term TIC Flows 10:00 AM Sep NAHB Housing Market Index EARNINGS EXPECTED TODAY ADBE CMRO FDS 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 |
