MORNING UPDATE: PriceWatch Alerts for IBM and More... for 2013-09-13 |
| ------------------------------------------------------------------ MORNING UPDATE: PriceWatch Alerts for IBM, YHOO, NPSP, and More... September 13, 9:00 AM ET - PriceWatch Alerts for IBM, CYTK, FCX, PRAA, SE, YHOO, CTRP, NPSP, KKD, NDAQ, Market Overview, News Leaders and Laggards, Today's Economic Calendar, and Index Support & Resistance Levels. PriceWatch Alerts for IBM, CYTK, FCX, PRAA, SE, YHOO, CTRP, NPSP, KKD, NDAQ. International Business Machines (NYSE: IBM) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $190.73 while selling the January $190.00 call will produce a new covered call with a break- even point around $182.78. At that price, this position has a target return of 4.0%. This trade will have roughly 4.2% downside protection, while still aiming for a 4.0% return in 127 days. It will lock in that return as long as International Business Machines is above $190.00 on 1/18/2014. For comparison purposes only, this IBM covered call aims for an annualized return rate of 11.4%. Cytokinetics (NASDAQ: CYTK) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $8.62 while simultaneously selling the February $10.00 call will result in a new position with a target return of 33.0%. Based on recent prices, this position will cost about $7.52, which is also the trade?s breakeven point. At that level, this covered call has 12.8% downside protection, while still providing a 33.0% return in 162 days as long as CYTK is above $10.00 on 2/22/2014. For comparison purposes only, this Cytokinetics covered call aims for an annualized return rate of 74.3%. Freeport McMoran (NYSE: FCX) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the November $33.00 call while at the same time buying FCX stock for $33.15 will produce a new covered call with a target return of 4.8%. Based on recent data, this trade will cost about $31.49, which is also the covered call?s breakeven point. At that price, this covered call has 5.0% downside protection, while seeking an assigned return of 4.8% return in 64 days. If FCX is higher than $33.00 on 11/16/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 27.3%. Portfolio Recovery Associates (NASDAQ: PRAA) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the December $55.00 call while simultaneously buying PRAA stock for $58.47 will result in a new position with a break-even point around $52.67. At that price, this position has a target return of 4.4%. This trade has 9.9% downside protection, while still providing a 4.4% return in 99 days as long as PRAA is above $55.00 on 12/21/2013. For comparison purposes only, this Portfolio Recovery Associates covered call targets an annualized return rate of 16.3%. Spectra Energy (NYSE: SE) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $33.03 while selling the January $33.00 call will produce a new covered call with a break-even point around $31.63. At that price, this position has a target return of 4.3%. This trade will have roughly 4.2% downside protection, while still aiming for a 4.3% return in 127 days. It will lock in that return as long as Spectra Energy is above $33.00 on 1/18/2014. For comparison purposes only, this SE covered call aims for an annualized return rate of 12.4%. Yahoo (NASDAQ: YHOO) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $29.65 while selling the November $29.00 call will produce a new covered call with a break-even point around $27.58. At that price, this position has a target return of 5.1%. This trade will have roughly 7.0% downside protection, while still aiming for a 5.1% return in 64 days. It will lock in that return as long as Yahoo is above $29.00 on 11/16/2013. For comparison purposes only, this YHOO covered call aims for an annualized return rate of 29.3%. Ctrip.com (NASDAQ: CTRP) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $49.50 while simultaneously selling the October $49.00 call will result in a new position with a target return of 4.1%. Based on recent prices, this position will cost about $47.05, which is also the trade?s breakeven point. At that level, this covered call has 4.9% downside protection, while still providing a 4.1% return in 36 days as long as CTRP is above $49.00 on 10/19/2013. For comparison purposes only, this Ctrip.com covered call aims for an annualized return rate of 42.0%. NPS Pharmaceuticals (NASDAQ: NPSP) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the October $27.00 call while at the same time buying NPSP stock for $27.26 will produce a new covered call with a target return of 5.6%. Based on recent data, this trade will cost about $25.56, which is also the covered call?s breakeven point. At that price, this covered call has 6.2% downside protection, while seeking an assigned return of 5.6% return in 36 days. If NPSP is higher than $27.00 on 10/19/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 57.1%. Krispy Kreme Doughnuts (NYSE: KKD) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $19.30 while simultaneously selling the November $19.00 call will result in a new position with a target return of 6.7%. Based on recent prices, this position will cost about $17.80, which is also the trade?s breakeven point. At that level, this covered call has 7.8% downside protection, while still providing a 6.7% return in 64 days as long as KKD is above $19.00 on 11/16/2013. For comparison purposes only, this Krispy Kreme Doughnuts covered call aims for an annualized return rate of 38.4%. Nasdaq Stock Market (NASDAQ: NDAQ) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the December $31.00 call while simultaneously buying NDAQ stock for $31.29 will result in a new position with a break-even point around $29.59. At that price, this position has a target return of 4.8%. This trade has 5.4% downside protection, while still providing a 4.8% return in 99 days as long as NDAQ is above $31.00 on 12/21/2013. For comparison purposes only, this Nasdaq Stock Market covered call targets an annualized return rate of 17.5%. *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 Ulta Salon Cosmetics (ULTA), Sina (SINA) and Linn Energy (LINE) are headed higher this morning, while Stratasys (SSYS), News Corp (NWSA) and Yahoo (YHOO) are falling. MGM Resorts (MGM) and WGL Holdings (WGL) were upgraded by analysts this morning, while Brady (BRC) was downgraded. MARKET OVERVIEW Asian trading overnight was weak, with the Shanghai SEC and the Taiwan TSEC losing 0.9% and 0.7% respectively. Most other indices in the region finished the week with smaller losses and the Japanese Nikkei 225 actually closed slightly higher today. In Europe, once again, there is not much of note going on so far today. The London FTSE 100 and the Swiss Market Index have each lost a small amount, while the Euronext 100 and German DAX are up 0.1%. Energy futures are heading higher, with West Texas Intermediate crude up 1.0% to $108.60 and heating oil, natural gas and gasoline all up more than that. In metals, gold is plunging $33 an ounce or 2.4% to trade at $1,330, silver is lower by 4.4% and copper and platinum are both down smaller amounts. The U.S. Dollar is weaker against the Yen but stronger against the Euro and Bitcoins are near $142. PUT/CALL RATIO Yesterday, 985,262 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 624,424 put contracts. The single-session put/call was 0.63, 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 $167.50 and is above resistance. The Nasdaq 100 (QQQ) has support at $76 and is above resistance. TODAY'S ECONOMIC CALENDAR 08:30 AM Aug Retail Sales 08:30 AM Aug Retail Sales ex-auto 08:30 AM Aug PPI 08:30 AM Aug Core PPI 09:55 AM Sep Mich Sentiment 10:00 AM Jul Business Inventories EARNINGS EXPECTED TODAY There are no major earnings announcements expected this morning. 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 |
