MORNING UPDATE: PriceWatch Alerts for BAC and More... for 2013-09-03 |
| ------------------------------------------------------------------ MORNING UPDATE: PriceWatch Alerts for C, JPM, BAC, and More... September 3, 9:00 AM ET - PriceWatch Alerts for C, JPM, SNE, DWA, XLNX, BAC, PG, TWC, CCL and ROSE, Market Overview, News Leaders and Laggards, Today's Economic Calendar, and Index Support & Resistance Levels. PriceWatch Alerts for C, JPM, SNE, DWA, XLNX, BAC, PG, TWC, CCL and ROSE. Citigroup (NYSE: C) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $48.33 while selling the November $48.00 call will produce a new covered call with a break-even point around $45.79. At that price, this position has a target return of 4.8%. This trade will have roughly 5.3% downside protection, while still aiming for a 4.8% return in 74 days. It will lock in that return as long as Citigroup is above $48.00 on 11/16/2013. For comparison purposes only, this C covered call aims for an annualized return rate of 23.8%. JPMorgan (NYSE: JPM) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the December $50.00 call while at the same time buying JPM stock for $50.53 will produce a new covered call with a target return of 4.3%. Based on recent data, this trade will cost about $47.93, which is also the covered call?s breakeven point. At that price, this covered call has 5.1% downside protection, while seeking an assigned return of 4.3% return in 109 days. If JPM is higher than $50.00 on 12/21/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 14.4%. Sony (NYSE: SNE) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $19.96 while selling the January $19.00 call will produce a new covered call with a break-even point around $17.76. At that price, this position has a target return of 7.0%. This trade will have roughly 11.0% downside protection, while still aiming for a 7.0% return in 137 days. It will lock in that return as long as Sony is above $19.00 on 1/18/2014. For comparison purposes only, this SNE covered call aims for an annualized return rate of 18.6%. DreamWorks Animation (NASDAQ: DWA) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the December $25.00 call while at the same time buying DWA stock for $28.30 will produce a new covered call with a target return of 4.2%. Based on recent data, this trade will cost about $24.00, which is also the covered call?s breakeven point. At that price, this covered call has 15.2% downside protection, while seeking an assigned return of 4.2% return in 109 days. If DWA is higher than $25.00 on 12/21/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 13.9%. Xilinx (NASDAQ: XLNX) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $43.42 while simultaneously selling the December $43.00 call will result in a new position with a target return of 5.0%. Based on recent prices, this position will cost about $40.95, which is also the trade?s breakeven point. At that level, this covered call has 5.7% downside protection, while still providing a 5.0% return in 109 days as long as XLNX is above $43.00 on 12/21/2013. For comparison purposes only, this Xilinx covered call aims for an annualized return rate of 16.7%. Bank of America (NYSE: BAC) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $14.12 while simultaneously selling the February $14.00 call will result in a new position with a target return of 7.7%. Based on recent prices, this position will cost about $13.00, which is also the trade?s breakeven point. At that level, this covered call has 7.9% downside protection, while still providing a 7.7% return in 172 days as long as BAC is above $14.00 on 2/22/2014. For comparison purposes only, this Bank of America covered call aims for an annualized return rate of 16.3%. Procter and Gamble (NYSE: PG) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the November $80.00 call while simultaneously buying PG stock for $77.89 will result in a new position with a break-even point around $76.57. At that price, this position has a target return of 4.5%. This trade has 1.7% downside protection, while still providing a 4.5% return in 74 days as long as PG is above $80.00 on 11/16/2013. For comparison purposes only, this Procter and Gamble covered call targets an annualized return rate of 22.0%. Time Warner Cable Inc. (NYSE: TWC) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $107.35 while simultaneously selling the January $100.00 call will result in a new position with a target return of 4.7%. Based on recent prices, this position will cost about $95.55, which is also the trade?s breakeven point. At that level, this covered call has 11.0% downside protection, while still providing a 4.7% return in 137 days as long as TWC is above $100.00 on 1/18/2014. For comparison purposes only, this Time Warner Cable Inc. covered call aims for an annualized return rate of 12.4%. Carnival (NYSE: CCL) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the January $36.00 call while simultaneously buying CCL stock for $36.09 will result in a new position with a break-even point around $34.04. At that price, this position has a target return of 5.8%. This trade has 5.7% downside protection, while still providing a 5.8% return in 137 days as long as CCL is above $36.00 on 1/18/2014. For comparison purposes only, this Carnival covered call targets an annualized return rate of 15.3%. Rosetta Resources (NASDAQ: ROSE) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $46.53 while selling the January $45.00 call will produce a new covered call with a break- even point around $41.93. At that price, this position has a target return of 7.3%. This trade will have roughly 9.9% downside protection, while still aiming for a 7.3% return in 137 days. It will lock in that return as long as Rosetta Resources is above $45.00 on 1/18/2014. For comparison purposes only, this ROSE covered call aims for an annualized return rate of 19.5%. *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 Nokia (NOK), Alcatel Lucent (ALU) and Murphy Oil (MUR) are headed higher this morning, while ADT (ADT), Microsoft (MSFT) and Verizon (VZ) are headed lower. Nokia (NOK), Green Dot (GDOT) and Finish Line (FINL) were upgraded by analysts this morning, while Corning (GSW) and Williams-Sonoma (WSM) were downgraded. MARKET OVERVIEW In overnight trading, Asian markets almost universally advanced, but the Mumbai Sensex bucked the trend, losing 3.5% as the rupee weakened again. The Nikkei 225 advanced 3.0%, the Shanghai SEC gained 1.2% and the Hong Kong Hang Seng rose 1.0%. Chinese official government PMI was announced over the weekend, coming in at 51.0, up from July's 50.3, above the expected 50.6 and the highest since early 2012. In Europe, sentiment is less optimistic, as most indices are either struggling to stay in positive territory or already in the red this morning. At last check, the German DAX is down 0.3%, the FTSE 100 is down 0.2%, while the Euronext 100 and French CAC 40 are just barely holding on to gains. The region made strong gains yesterday after strong PMI readings were announced, including expansion for Spain and Italy, which had been among the weaker continental economies. In futures, West Texas Intermediate crude oil futures are lower again, trading at $107.65, down 1.1%, while natural, gasoline, and heating oil have each dropped more than 1% as well. Metals are also lower, with gold falling 1.2% to $1,395. The U.S. Dollar is stronger against the Euro but weaker against the Yen this morning, and Bitcoins had a strong weekend, advancing late on Friday and trading near $142 this morning, up around 12% from Friday morning. PUT/CALL RATIO Friday, 696,974 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 470,454 put contracts. The single- session put/call was 0.67, while the 20-day moving average is now at 0.59. 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 10:00 AM Aug ISM Index 10:00 AM Jul Construction Spending EARNINGS EXPECTED TODAY HRB 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 |
