MORNING UPDATE: PriceWatch Alerts for AAPL and More... for 2013-08-23 |
| ------------------------------------------------------------------ MORNING UPDATE: PriceWatch Alerts for NWSA, SPLS, AAPL, and More... August 23, 9:00 AM ET - PriceWatch Alerts for NWSA, SPLS, DD, P, BKS, AAPL, AGN, ARMH, MGM, ISIS, Market Overview, News Leaders and Laggards, Today's Economic Calendar, and Index Support & Resistance Levels. PriceWatch Alerts for NWSA, SPLS, DD, P, BKS, AAPL, AGN, ARMH, MGM, ISIS. News Corp. (NASDAQ: NWSA) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $15.71 while selling the January $16.00 call will produce a new covered call with a break-even point around $14.71. At that price, this position has a target return of 8.8%. This trade will have roughly 6.4% downside protection, while still aiming for a 8.8% return in 148 days. It will lock in that return as long as News Corp. is above $16.00 on 1/18/2014. For comparison purposes only, this NWSA covered call aims for an annualized return rate of 21.6%. Staples (NASDAQ: SPLS) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $14.07 while simultaneously selling the March $14.00 call will result in a new position with a target return of 8.8%. Based on recent prices, this position will cost about $12.87, which is also the trade?s breakeven point. At that level, this covered call has 8.5% downside protection, while still providing a 8.8% return in 211 days as long as SPLS is above $14.00 on 3/22/2014. For comparison purposes only, this Staples covered call aims for an annualized return rate of 15.2%. Du Pont (NYSE: DD) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the January $57.50 call while at the same time buying DD stock for $57.55 will produce a new covered call with a target return of 4.6%. Based on recent data, this trade will cost about $54.95, which is also the covered call?s breakeven point. At that price, this covered call has 4.5% downside protection, while seeking an assigned return of 4.6% return in 148 days. If DD is higher than $57.50 on 1/18/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 11.4%. Pandora (NYSE: P) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $21.71 while simultaneously selling the September $21.00 call will result in a new position with a target return of 6.8%. Based on recent prices, this position will cost about $19.66, which is also the trade?s breakeven point. At that level, this covered call has 9.4% downside protection, while still providing a 6.8% return in 29 days as long as P is above $21.00 on 9/21/2013. For comparison purposes only, this Pandora covered call aims for an annualized return rate of 85.7%. Barnes & Noble (NYSE: BKS) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the January $14.00 call while simultaneously buying BKS stock for $14.46 will result in a new position with a break-even point around $12.61. At that price, this position has a target return of 11.0%. This trade has 12.8% downside protection, while still providing a 11.0% return in 148 days as long as BKS is above $14.00 on 1/18/2014. For comparison purposes only, this Barnes & Noble covered call targets an annualized return rate of 27.2%. Apple (NASDAQ: AAPL) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $502.96 while selling the October $500.00 call will produce a new covered call with a break-even point around $480.21. At that price, this position has a target return of 4.1%. This trade will have roughly 4.5% downside protection, while still aiming for a 4.1% return in 57 days. It will lock in that return as long as Apple is above $500.00 on 10/19/2013. For comparison purposes only, this AAPL covered call aims for an annualized return rate of 26.4%. Allergan (NYSE: AGN) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $90.80 while simultaneously selling the January $90.00 call will result in a new position with a target return of 6.0%. Based on recent prices, this position will cost about $84.90, which is also the trade?s breakeven point. At that level, this covered call has 6.5% downside protection, while still providing a 6.0% return in 148 days as long as AGN is above $90.00 on 1/18/2014. For comparison purposes only, this Allergan covered call aims for an annualized return rate of 14.8%. ARM Holdings (NASDAQ: ARMH) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the October $41.00 call while at the same time buying ARMH stock for $41.12 will produce a new covered call with a target return of 4.7%. Based on recent data, this trade will cost about $39.17, which is also the covered call?s breakeven point. At that price, this covered call has 4.7% downside protection, while seeking an assigned return of 4.7% return in 57 days. If ARMH is higher than $41.00 on 10/19/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 29.9%. MGM Mirage (NYSE: MGM) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $17.82 while simultaneously selling the December $17.00 call will result in a new position with a target return of 6.6%. Based on recent prices, this position will cost about $15.94, which is also the trade?s breakeven point. At that level, this covered call has 10.5% downside protection, while still providing a 6.6% return in 120 days as long as MGM is above $17.00 on 12/21/2013. For comparison purposes only, this MGM Mirage covered call aims for an annualized return rate of 20.2%. Isis Pharmaceuticals (NASDAQ: ISIS) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the September $25.00 call while simultaneously buying ISIS stock for $25.71 will result in a new position with a break-even point around $23.66. At that price, this position has a target return of 5.7%. This trade has 8.0% downside protection, while still providing a 5.7% return in 29 days as long as ISIS is above $25.00 on 9/21/2013. For comparison purposes only, this Isis Pharmaceuticals covered call targets an annualized return rate of 71.2%. *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! 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MARKET OVERVIEW In Asia, the Nikkei 225 led most indices higher overnight, gaining 2.2% to follow-up a strong session in the U.S. Australia and Mimbai also advanced about 1%, while the Shanghai SEC brought up the rear, down 0.5%. Japanese gains were tied to a stronger Dollar and a weaker Yen, while in China, financial stocks were weak as traders worried about liquidity. European markets have moved much smaller amounts so far today. The London FTSE 100 is higher by 0.5%, while the German DAX and Euronext 100 are each barely in positive territory. Updated GDP numbers put Germany at 0.7% and the euro-zone at 0.3% for the second quarter. In the futures pits, West Texas Intermediate crude oil futures are up 1.1% to $105, while natural gas is higher by 2.5% to $3.54. Gold, silver and copper are all just about unchanged, but platinum is up 1.4%. The U.S. Dollar is stronger across the board, and Bitcoins have slipped to $119. PUT/CALL RATIO Yesterday, 791,998 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 434,075 put contracts. The single-session put/call was 0.55, 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 $76 and is above resistance. TODAY'S ECONOMIC CALENDAR 10:00 AM Jul New Home Sales EARNINGS EXPECTED TODAY ANN HIBB 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 |
