MORNING UPDATE: PriceWatch Alerts for V and More... for 2013-09-06 |
| ------------------------------------------------------------------ MORNING UPDATE: PriceWatch Alerts for V, BIIB, FDX and More... September 6, 9:00 AM ET - PriceWatch Alerts for V, BIIB, UNP, HPQ, OLED, FDX, ABC, YELP, PFE, MON, Market Overview, News Leaders and Laggards, Today's Economic Calendar, and Index Support & Resistance Levels. PriceWatch Alerts for V, BIIB, UNP, HPQ, OLED, FDX, ABC, YELP, PFE and MON. Visa (NYSE: V) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $176.21 while selling the December $170.00 call will produce a new covered call with a break-even point around $163.46. At that price, this position has a target return of 4.0%. This trade will have roughly 7.2% downside protection, while still aiming for a 4.0% return in 106 days. It will lock in that return as long as Visa is above $170.00 on 12/21/2013. For comparison purposes only, this V covered call aims for an annualized return rate of 13.8%. Biogen Idec (NASDAQ: BIIB) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the January $210.00 call while at the same time buying BIIB stock for $227.70 will produce a new covered call with a target return of 5.6%. Based on recent data, this trade will cost about $198.80, which is also the covered call?s breakeven point. At that price, this covered call has 12.7% downside protection, while seeking an assigned return of 5.6% return in 134 days. If BIIB is higher than $210.00 on 1/18/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 15.3%. Union Pacific (NYSE: UNP) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the January $155.00 call while simultaneously buying UNP stock for $156.12 will result in a new position with a break-even point around $147.77. At that price, this position has a target return of 4.9%. This trade has 5.3% downside protection, while still providing a 4.9% return in 134 days as long as UNP is above $155.00 on 1/18/2014. For comparison purposes only, this Union Pacific covered call targets an annualized return rate of 13.3%. Hewlett Packard (NYSE: HPQ) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the November $22.00 call while at the same time buying HPQ stock for $22.12 will produce a new covered call with a target return of 5.6%. Based on recent data, this trade will cost about $20.84, which is also the covered call?s breakeven point. At that price, this covered call has 5.8% downside protection, while seeking an assigned return of 5.6% return in 71 days. If HPQ is higher than $22.00 on 11/16/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 28.6%. Universal Display (NASDAQ: OLED) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the October $35.00 call while simultaneously buying OLED stock for $37.28 will result in a new position with a break-even point around $33.58. At that price, this position has a target return of 4.2%. This trade has 9.9% downside protection, while still providing a 4.2% return in 43 days as long as OLED is above $35.00 on 10/19/2013. For comparison purposes only, this Universal Display covered call targets an annualized return rate of 35.8%. FedEx (NYSE: FDX) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $109.05 while simultaneously selling the January $105.00 call will result in a new position with a target return of 4.9%. Based on recent prices, this position will cost about $100.10, which is also the trade?s breakeven point. At that level, this covered call has 8.2% downside protection, while still providing a 4.9% return in 134 days as long as FDX is above $105.00 on 1/18/2014. For comparison purposes only, this FedEx covered call aims for an annualized return rate of 13.3%. AmerisourceBergen (NYSE: ABC) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the January $57.50 call while simultaneously buying ABC stock for $58.15 will result in a new position with a break-even point around $54.65. At that price, this position has a target return of 5.2%. This trade has 6.0% downside protection, while still providing a 5.2% return in 138 days as long as ABC is above $57.50 on 1/22/2014. For comparison purposes only, this AmerisourceBergen covered call targets an annualized return rate of 13.8%. Yelp (NYSE: YELP) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $58.91 while simultaneously selling the October $55.00 call will result in a new position with a target return of 5.3%. Based on recent prices, this position will cost about $52.21, which is also the trade?s breakeven point. At that level, this covered call has 11.4% downside protection, while still providing a 5.3% return in 43 days as long as YELP is above $55.00 on 10/19/2013. For comparison purposes only, this Yelp covered call aims for an annualized return rate of 45.3%. Pfizer (NYSE: PFE) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the March $29.00 call while simultaneously buying PFE stock for $28.27 will result in a new position with a break- even point around $27.18. At that price, this position has a target return of 6.7%. This trade has 3.9% downside protection, while still providing a 6.7% return in 197 days as long as PFE is above $29.00 on 3/22/2014. For comparison purposes only, this Pfizer covered call targets an annualized return rate of 12.4%. Monsanto (NYSE: MON) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $101.49 while simultaneously selling the January $100.00 call will result in a new position with a target return of 4.9%. Based on recent prices, this position will cost about $95.34, which is also the trade?s breakeven point. At that level, this covered call has 6.1% downside protection, while still providing a 4.9% return in 134 days as long as MON is above $100.00 on 1/18/2014. For comparison purposes only, this Monsanto covered call aims for an annualized return rate of 13.3%. *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 Quicksilver (ZQK), Infoblox (BLOX) and Verifone (PAY) are headed higher this morning, while Mannkind (MNKD), Emeritus (ESC) and Smith and Wesson (SWHC) are losing ground. Brandywine Realty (BDN), EZchip Semiconductor (EZCH) and Korn/Ferry (KFY) were upgraded by analysts this morning, while Interxion Holding (INXN) was downgraded. MARKET OVERVIEW International markets were mixed overnight. The Mumbai Sensex jumped 1.5% and the Shanghai SEC rose 0.8% on the session while the Japanese Nikkei 225 lost 1.5%. Other bourses in the region made smaller moves, with Hong Kong and Australia notching small advances and Taiwan losing a small amount. European markets are trading slightly lower. The markets were in a holding pattern ahead of the US jobs report, which will give the international community better insight into what direction the Federal Reserve will take with its monetary easing program. The Swiss Market Index is down 0.2%, the French CAC 40 is down 0.1% do far this morning, while the Euronext 100 is off 0.15%. The German DAX and the FTSE 100 are closer to breakeven, but still down from yesterday's close. In commodities, West Texas Intermediate crude oil is up 1.1% to $108.37. Heating oil is also higher, while gasoline, and natural gas are both lower. In metals, gold is down 1.2% to $1,373, and copper is slightly higher, up 0.1% to $3.24. The US Dollar is stronger against the Yen and Euro this morning, and Bitcoins are holding steady at $131.80. PUT/CALL RATIO Yesterday, 923,418 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 481,843 put contracts. The single-session put/call was 0.52, 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 $157 and resistance at $166. The Nasdaq 100 (QQQ) has support at $75 and is above resistance. TODAY'S ECONOMIC CALENDAR 08:30 AM Aug Nonfarm Payrolls 08:30 AM Aug Nonfarm Private Payrolls 08:30 AM Aug Unemployment Rate 08:30 AM Aug Hourly Earnings 08:30 AM Aug Average Workweek EARNINGS EXPECTED TODAY There are no major earnings reports scheduled today. 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 |
