MORNING UPDATE: PriceWatch Alerts for MCD and More... for 2013-08-30 |
| ------------------------------------------------------------------ MORNING UPDATE: PriceWatch Alerts for PRU, ABX, MCD and More... August 30, 9:00 AM ET - PriceWatch Alerts for PRU, VOD, M, DNKN, BTU, ABX, MCD, VALE, TTWO, AG, Market Overview, News Leaders and Laggards, Today's Economic Calendar, and Index Support & Resistance Levels. PriceWatch Alerts for PRU, VOD, M, DNKN, BTU, ABX, MCD, VALE, TTWO and AG. Prudential Financial (NYSE: PRU) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $75.41 while selling the December $72.50 call will produce a new covered call with a break- even point around $69.21. At that price, this position has a target return of 4.8%. This trade will have roughly 8.2% downside protection, while still aiming for a 4.8% return in 113 days. It will lock in that return as long as Prudential Financial is above $72.50 on 12/21/2013. For comparison purposes only, this PRU covered call aims for an annualized return rate of 15.3%. Vodafone Group (NASDAQ: VOD) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $31.80 while simultaneously selling the January $31.00 call will result in a new position with a target return of 4.6%. Based on recent prices, this position will cost about $29.65, which is also the trade?s breakeven point. At that level, this covered call has 6.8% downside protection, while still providing a 4.6% return in 141 days as long as VOD is above $31.00 on 1/18/2014. For comparison purposes only, this Vodafone Group covered call aims for an annualized return rate of 11.8%. Macy's (NYSE: M) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the November $44.00 call while at the same time buying M stock for $44.61 will produce a new covered call with a target return of 4.2%. Based on recent data, this trade will cost about $42.24, which is also the covered call?s breakeven point. At that price, this covered call has 5.3% downside protection, while seeking an assigned return of 4.2% return in 78 days. If M is higher than $44.00 on 11/16/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 19.5%. Dunkin (NASDAQ: DNKN) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $43.07 while simultaneously selling the December $42.50 call will result in a new position with a target return of 4.5%. Based on recent prices, this position will cost about $40.67, which is also the trade?s breakeven point. At that level, this covered call has 5.6% downside protection, while still providing a 4.5% return in 113 days as long as DNKN is above $42.50 on 12/21/2013. For comparison purposes only, this Dunkin covered call aims for an annualized return rate of 14.5%. Peabody Energy (NYSE: BTU) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the October $17.00 call while simultaneously buying BTU stock for $17.22 will result in a new position with a break-even point around $15.97. At that price, this position has a target return of 6.4%. This trade has 7.3% downside protection, while still providing a 6.4% return in 50 days as long as BTU is above $17.00 on 10/19/2013. For comparison purposes only, this Peabody Energy covered call targets an annualized return rate of 47.0%. Barrick Gold (NYSE: ABX) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $19.69 while selling the October $19.00 call will produce a new covered call with a break-even point around $17.92. At that price, this position has a target return of 6.0%. This trade will have roughly 9.0% downside protection, while still aiming for a 6.0% return in 50 days. It will lock in that return as long as Barrick Gold is above $19.00 on 10/19/2013. For comparison purposes only, this ABX covered call aims for an annualized return rate of 43.9%. McDonald's (NYSE: MCD) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $94.86 while simultaneously selling the December $97.50 call will result in a new position with a target return of 4.6%. Based on recent prices, this position will cost about $93.17, which is also the trade?s breakeven point. At that level, this covered call has 1.8% downside protection, while still providing a 4.6% return in 113 days as long as MCD is above $97.50 on 12/21/2013. For comparison purposes only, this McDonald's covered call aims for an annualized return rate of 15.0%. Vale (NYSE: VALE) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the March $14.00 call while at the same time buying VALE stock for $14.47 will produce a new covered call with a target return of 8.8%. Based on recent data, this trade will cost about $12.87, which is also the covered call?s breakeven point. At that price, this covered call has 11.1% downside protection, while seeking an assigned return of 8.8% return in 204 days. If VALE is higher than $14.00 on 3/22/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 15.7%. TakeTwo Interactive (NASDAQ: TTWO) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $18.87 while simultaneously selling the December $18.00 call will result in a new position with a target return of 7.7%. Based on recent prices, this position will cost about $16.72, which is also the trade?s breakeven point. At that level, this covered call has 11.4% downside protection, while still providing a 7.7% return in 113 days as long as TTWO is above $18.00 on 12/21/2013. For comparison purposes only, this TakeTwo Interactive covered call aims for an annualized return rate of 24.7%. First Majestic Silver (NYSE: AG) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the January $12.50 call while simultaneously buying AG stock for $14.36 will result in a new position with a break-even point around $11.41. At that price, this position has a target return of 9.6%. This trade has 20.5% downside protection, while still providing a 9.6% return in 141 days as long as AG is above $12.50 on 1/18/2014. For comparison purposes only, this First Majestic Silver covered call targets an annualized return rate of 24.7%. *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. 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NEWS LEADERS AND LAGGARDS SalesForce.com (CRM), Splunk (SPLK) and Telecom Italia (TI) are headed higher this morning, while Omnivision Technologies (OVTI), Krispy Kreme Doughnuts (KKD) and Gold Fields (GFI) are dropping. Splunk (SPLK) was upgraded by analysts this morning, while Omnivision (OVTI) was downgraded. MARKET OVERVIEW Most stock markets in Asia moved higher overnight, led higher by the Taiwan TSEC and the Mumbai Sensex, each of which has gained more than 1%. The Nikkei 225 slipped 0.5%, while Shanghai and Hong Kong were both slightly higher, but still relatively flat. On the other hand, European markets are declining so far this morning. Parliament in the United Kingdom decided not to pursue military action in Syria for the time being, which has eased the demand for gold and oil futures, but the FTSE 100 is still off 0.5%. The German DAX is down 0.7%, the French CAC 40 is lower by 0.6% and the Euronext 100 slipped 0.5% as well. In futures action, West Texas Intermediate crude oil futures have retreated from recent highs, but are still at $108.80, down 1.2%. Gasoline and heating oil are also lower, while natural gas is up 1.0%. Metals are falling today, with gold down 0.4%, silver off 1.3%, and copper dropping 1.8%. The U.S. Dollar is stronger across the board, and Bitcoins have set up camp near $129 for the past few days. PUT/CALL RATIO Yesterday, 767,414 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 461,727 put contracts. The single-session put/call was 0.6, while the 20-day moving average is now at 0.6. SUPPORT & RESISTANCE LEVELS The S&P 500 Depository Receipts (SPY) ETF has support at $156 and resistance at $166. The Nasdaq 100 (QQQ) has support at $75 and is above resistance. TODAY'S ECONOMIC CALENDAR 08:30 AM Jul Personal Income 08:30 AM Jul Personal Spending 08:30 AM Jul PCE Prices - Core 09:45 AM Aug Chicago PMI 09:55 AM Aug Michigan Sentiment - Final EARNINGS EXPECTED TODAY BIG YGE 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. 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