MORNING UPDATE: PriceWatch Alerts for PM and More... for 2013-08-28 |
| ------------------------------------------------------------------ MORNING UPDATE: PriceWatch Alerts for GIS, WLT, PM and More... August 28, 9:00 AM ET - PriceWatch Alerts for GIS, WLT, LMT, NBR, CLF, PM, CELG, MET, GRMN and FFIV, Market Overview, News Leaders and Laggards, Today's Economic Calendar, and Index Support & Resistance Levels. PriceWatch Alerts for GIS, WLT, LMT, NBR, CLF, PM, CELG, MET, GRMN and FFIV. General Mills (NYSE: GIS) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $49.14 while selling the January $50.00 call will produce a new covered call with a break-even point around $47.66. At that price, this position has a target return of 4.9%. This trade will have roughly 3.0% downside protection, while still aiming for a 4.9% return in 143 days. It will lock in that return as long as General Mills is above $50.00 on 1/18/2014. For comparison purposes only, this GIS covered call aims for an annualized return rate of 12.5%. Walter Energy (NYSE: WLT) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $12.83 while simultaneously selling the October $12.00 call will result in a new position with a target return of 11.2%. Based on recent prices, this position will cost about $10.79, which is also the trade?s breakeven point. At that level, this covered call has 15.9% downside protection, while still providing a 11.2% return in 52 days as long as WLT is above $12.00 on 10/19/2013. For comparison purposes only, this Walter Energy covered call aims for an annualized return rate of 78.7%. Lockheed Martin (NYSE: LMT) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the December $125.00 call while at the same time buying LMT stock for $123.14 will produce a new covered call with a target return of 4.2%. Based on recent data, this trade will cost about $119.94, which is also the covered call?s breakeven point. At that price, this covered call has 2.6% downside protection, while seeking an assigned return of 4.2% return in 115 days. If LMT is higher than $125.00 on 12/21/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 13.4%. Nabors Industries (NYSE: NBR) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $15.38 while simultaneously selling the December $15.00 call will result in a new position with a target return of 7.6%. Based on recent prices, this position will cost about $13.94, which is also the trade?s breakeven point. At that level, this covered call has 9.4% downside protection, while still providing a 7.6% return in 115 days as long as NBR is above $15.00 on 12/21/2013. For comparison purposes only, this Nabors Industries covered call aims for an annualized return rate of 24.1%. Cliffs Natural Resources (NYSE: CLF) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the October $20.00 call while simultaneously buying CLF stock for $21.38 will result in a new position with a break-even point around $18.87. At that price, this position has a target return of 6.0%. This trade has 11.7% downside protection, while still providing a 6.0% return in 52 days as long as CLF is above $20.00 on 10/19/2013. For comparison purposes only, this Cliffs Natural Resources covered call targets an annualized return rate of 42.0%. Philip Morris International (NYSE: PM) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $84.11 while simultaneously selling the December $85.00 call will result in a new position with a target return of 4.2%. Based on recent prices, this position will cost about $81.59, which is also the trade?s breakeven point. At that level, this covered call has 3.0% downside protection, while still providing a 4.2% return in 115 days as long as PM is above $85.00 on 12/21/2013. For comparison purposes only, this Philip Morris International covered call aims for an annualized return rate of 13.2%. Celgene (NASDAQ: CELG) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $136.96 while selling the October $135.00 call will produce a new covered call with a break-even point around $129.61. At that price, this position has a target return of 4.2%. This trade will have roughly 5.4% downside protection, while still aiming for a 4.2% return in 52 days. It will lock in that return as long as Celgene is above $135.00 on 10/19/2013. For comparison purposes only, this CELG covered call aims for an annualized return rate of 29.1%. MetLife (NYSE: MET) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $45.85 while selling the November $45.00 call will produce a new covered call with a break-even point around $43.01. At that price, this position has a target return of 4.6%. This trade will have roughly 6.2% downside protection, while still aiming for a 4.6% return in 80 days. It will lock in that return as long as MetLife is above $45.00 on 11/16/2013. For comparison purposes only, this MET covered call aims for an annualized return rate of 21.1%. Garmin (NASDAQ: GRMN) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the January $39.00 call while at the same time buying GRMN stock for $39.73 will produce a new covered call with a target return of 4.6%. Based on recent data, this trade will cost about $37.28, 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 4.6% return in 143 days. If GRMN is higher than $39.00 on 1/18/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 11.8%. F5 Networks (NASDAQ: FFIV) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the October $82.50 call while simultaneously buying FFIV stock for $82.84 will result in a new position with a break-even point around $78.34. At that price, this position has a target return of 5.3%. This trade has 5.4% downside protection, while still providing a 5.3% return in 52 days as long as FFIV is above $82.50 on 10/19/2013. For comparison purposes only, this F5 Networks covered call targets an annualized return rate of 37.3%. *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. 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NEWS LEADERS AND LAGGARDS Astex Pharmaceuticals (ASTX), Express (EXPR) and Avago Technologies (AVGO) are headed higher this morning, while Chico's Fas (CHS), Qihoo (QIHU) and Joy Global (JOY) are falling. There were no major analyst upgrades or downgrades this morning. MARKET OVERVIEW Asian indices put in a mixed session overnight, with the Nikkei 225 and the Hong Kong Hang Seng losing more than 1.5% and the Australian All-Ordinaries dropping 1.0%. The Mumbai Sensenx and Indonesian JSX recovered from significant losses early in the session to be among the few Asian bourses to close in positive territory today. Indian shares continued to fall early as the Rupee plunged, but the turnaround is attributed to a report that the Reserve Bank of India stepped in to stabilize the currency. In Europe, nearly all markets are lower so far today. The German DAX is off by 1.4% while most of the other major indices are down about 0.5%. German consumer sentiment missed estimates and fell for the first time in 2013. In the futures pits, crude oil futures have spiked, with the front-month West Texas Intermediate contract up 2.9% to $109 per barrel. Heating oil and gasoline are also higher by more than 2%. Gold has advanced 1.9% to $1,420, silver is up 2.7%, but platinum is down 0.8%. The U.S. Dollar is weaker against the Euro and the Yen, and Bitcoins have remained above $128. PUT/CALL RATIO Yesterday, 919,663 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 625,133 put contracts. The single-session put/call was 0.68, 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 $156 and resistance at $166. The Nasdaq 100 (QQQ) has support at $74.50 and is above resistance. TODAY'S ECONOMIC CALENDAR 07:00 AM 8/24 MBA Mortgage Index 10:00 AM Jul Pending Home Sales 10:30 AM 8/24 Crude Inventories EARNINGS EXPECTED TODAY BF.B GES EXPR JOY 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 |
