MORNING UPDATE: PriceWatch Alerts for CMCSA and More... for 2013-09-11 |
| ------------------------------------------------------------------ MORNING UPDATE: PriceWatch Alerts for CRM, NBIX, CMCSA, and More... September 11, 9:00 AM ET - PriceWatch Alerts for CRM, MRVL, ACAD, NBIX, URBN, CMCSA, CMI, HDS, JOY and AFL, Market Overview, News Leaders and Laggards, Today's Economic Calendar, and Index Support & Resistance Levels. PriceWatch Alerts for CRM, MRVL, ACAD, NBIX, URBN, CMCSA, CMI, HDS, JOY and AFL. Salesforce.com (NYSE: CRM) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $50.02 while simultaneously selling the November $48.75 call will result in a new position with a target return of 4.1%. Based on recent prices, this position will cost about $46.82, which is also the trade?s breakeven point. At that level, this covered call has 6.4% downside protection, while still providing a 4.1% return in 66 days as long as CRM is above $48.75 on 11/16/2013. For comparison purposes only, this Salesforce.com covered call aims for an annualized return rate of 22.8%. Marvell Technology (NASDAQ: MRVL) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $12.80 while selling the January $13.00 call will produce a new covered call with a break- even point around $11.78. At that price, this position has a target return of 10.4%. This trade will have roughly 8.0% downside protection, while still aiming for a 10.4% return in 129 days. It will lock in that return as long as Marvell Technology is above $13.00 on 1/18/2014. For comparison purposes only, this MRVL covered call aims for an annualized return rate of 29.3%. Acadia (NASDAQ: ACAD) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $22.93 while simultaneously selling the October $22.00 call will result in a new position with a target return of 5.4%. Based on recent prices, this position will cost about $20.88, which is also the trade?s breakeven point. At that level, this covered call has 8.9% downside protection, while still providing a 5.4% return in 38 days as long as ACAD is above $22.00 on 10/19/2013. For comparison purposes only, this Acadia covered call aims for an annualized return rate of 51.5%. Neurocrine Biosciences (NASDAQ: NBIX) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the November $12.00 call while at the same time buying NBIX stock for $11.74 will produce a new covered call with a target return of 11.7%. Based on recent data, this trade will cost about $10.74, which is also the covered call?s breakeven point. At that price, this covered call has 8.5% downside protection, while seeking an assigned return of 11.7% return in 66 days. If NBIX is higher than $12.00 on 11/16/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 64.9%. Urban Outfitters (NASDAQ: URBN) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the December $37.00 call while simultaneously buying URBN stock for $38.35 will result in a new position with a break-even point around $35.15. At that price, this position has a target return of 5.3%. This trade has 8.3% downside protection, while still providing a 5.3% return in 101 days as long as URBN is above $37.00 on 12/21/2013. For comparison purposes only, this Urban Outfitters covered call targets an annualized return rate of 19.0%. Comcast (NASDAQ: CMCSA) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $42.84 while selling the January $42.00 call will produce a new covered call with a break-even point around $40.08. At that price, this position has a target return of 4.8%. This trade will have roughly 6.4% downside protection, while still aiming for a 4.8% return in 129 days. It will lock in that return as long as Comcast is above $42.00 on 1/18/2014. For comparison purposes only, this CMCSA covered call aims for an annualized return rate of 13.6%. Cummins (NYSE: CMI) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $131.75 while simultaneously selling the December $130.00 call will result in a new position with a target return of 5.1%. Based on recent prices, this position will cost about $123.65, which is also the trade?s breakeven point. At that level, this covered call has 6.1% downside protection, while still providing a 5.1% return in 101 days as long as CMI is above $130.00 on 12/21/2013. For comparison purposes only, this Cummins covered call aims for an annualized return rate of 18.5%. HD Supply (NASDAQ: HDS) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $21.97 while selling the March $20.00 call will produce a new covered call with a break-even point around $18.97. At that price, this position has a target return of 5.4%. This trade will have roughly 13.7% downside protection, while still aiming for a 5.4% return in 192 days. It will lock in that return as long as HD Supply is above $20.00 on 3/22/2014. For comparison purposes only, this HDS covered call aims for an annualized return rate of 10.3%. Joy Global (NYSE: JOY) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the January $50.00 call while at the same time buying JOY stock for $54.35 will produce a new covered call with a target return of 4.8%. Based on recent data, this trade will cost about $47.70, which is also the covered call?s breakeven point. At that price, this covered call has 12.2% downside protection, while seeking an assigned return of 4.8% return in 129 days. If JOY is higher than $50.00 on 1/18/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 13.6%. AFLAC (NYSE: AFL) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the January $60.00 call while simultaneously buying AFL stock for $59.92 will result in a new position with a break- even point around $57.20. At that price, this position has a target return of 4.9%. This trade has 4.5% downside protection, while still providing a 4.9% return in 129 days as long as AFL is above $60.00 on 1/18/2014. For comparison purposes only, this AFLAC covered call targets an annualized return rate of 13.8%. *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 Internationally, there was not much action to note overnight. The major Asian indices barely notched gains, including the Shanghai SEC and Nikkei 225, which both closed just above break-even levels. The Hong Kong Hang Seng and Indonesian JSX fell, but the Australian All-Ordinaries rose 0.6%. In Europe, there is similarly little major movement so far this morning even after European unemployment fell a small amount in July. The German DAX has gained 0.4% and the Swiss Market Index has added 0.2% but the FTSE 100, French CAC 40, and Euronext 100 are all down a small amount. In futures, crude oil futures are down nearly 2% this morning, with West Texas Intermediate trading at $107.39, gasoline down 2.4% and natural gas off 0.6%. Gold is down 1.6% and silver is off 2.9%. The U.S. Dollar is weaker against most international currencies, but stronger against the Yen. Bitcoins have had a volatile past two weeks and are trading near $135. PUT/CALL RATIO Yesterday, 1,178,951 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 566,417 put contracts. The single-session put/call was 0.48, while the 20-day moving average is now at 0.57, continuing its sharp, recent downturn. 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 $75.50 and is above resistance. TODAY'S ECONOMIC CALENDAR 07:00 AM 9/07 MBA Mortgage Index 10:00 AM Jul Wholesale Inventories 10:30 AM 9/07 Crude Inventories EARNINGS EXPECTED TODAY MW VRA 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 |
