MORNING UPDATE: PriceWatch Alerts for WFC and More... for 2013-08-22 |
| ------------------------------------------------------------------ MORNING UPDATE: PriceWatch Alerts for CBS, GOLD, WFC, and More... August 22, 9:00 AM ET - PriceWatch Alerts for CBS, USB, TXN, JCI, GOLD, WFC, SUNE, DE, SWY and INCY, Market Overview, News Leaders and Laggards, Today's Economic Calendar, and Index Support & Resistance Levels. PriceWatch Alerts for CBS, USB, TXN, JCI, GOLD, WFC, SUNE, DE, SWY and INCY. CBS (NYSE: CBS) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $50.85 while selling the December $50.00 call will produce a new covered call with a break-even point around $47.25. At that price, this position has a target return of 5.8%. This trade will have roughly 7.1% downside protection, while still aiming for a 5.8% return in 121 days. It will lock in that return as long as CBS is above $50.00 on 12/21/2013. For comparison purposes only, this CBS covered call aims for an annualized return rate of 17.6%. US Bancorp (NYSE: USB) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $36.79 while simultaneously selling the January $37.00 call will result in a new position with a target return of 4.3%. Based on recent prices, this position will cost about $35.47, which is also the trade?s breakeven point. At that level, this covered call has 3.6% downside protection, while still providing a 4.3% return in 149 days as long as USB is above $37.00 on 1/18/2014. For comparison purposes only, this US Bancorp covered call aims for an annualized return rate of 10.6%. Texas Instruments (NASDAQ: TXN) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the January $38.00 call while at the same time buying TXN stock for $38.45 will produce a new covered call with a target return of 5.0%. Based on recent data, this trade will cost about $36.18, which is also the covered call?s breakeven point. At that price, this covered call has 5.9% downside protection, while seeking an assigned return of 5.0% return in 149 days. If TXN is higher than $38.00 on 1/18/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 12.3%. Johnson Controls (NYSE: JCI) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $40.58 while simultaneously selling the January $40.00 call will result in a new position with a target return of 5.3%. Based on recent prices, this position will cost about $37.98, which is also the trade?s breakeven point. At that level, this covered call has 6.4% downside protection, while still providing a 5.3% return in 149 days as long as JCI is above $40.00 on 1/18/2014. For comparison purposes only, this Johnson Controls covered call aims for an annualized return rate of 13.0%. Randgold Resources (NASDAQ: GOLD) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the September $77.50 call while simultaneously buying GOLD stock for $77.46 will result in a new position with a break-even point around $73.96. At that price, this position has a target return of 4.8%. This trade has 4.5% downside protection, while still providing a 4.8% return in 30 days as long as GOLD is above $77.50 on 9/21/2013. For comparison purposes only, this Randgold Resources covered call targets an annualized return rate of 58.2%. Wells Fargo (NYSE: WFC) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $42.36 while selling the January $42.00 call will produce a new covered call with a break-even point around $40.18. At that price, this position has a target return of 4.5%. This trade will have roughly 5.1% downside protection, while still aiming for a 4.5% return in 149 days. It will lock in that return as long as Wells Fargo is above $42.00 on 1/18/2014. For comparison purposes only, this WFC covered call aims for an annualized return rate of 11.1%. SunEdison (NYSE: SUNE) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $6.81 while simultaneously selling the January $7.00 call will result in a new position with a target return of 21.1%. Based on recent prices, this position will cost about $5.78, which is also the trade?s breakeven point. At that level, this covered call has 15.1% downside protection, while still providing a 21.1% return in 149 days as long as SUNE is above $7.00 on 1/18/2014. For comparison purposes only, this SunEdison covered call aims for an annualized return rate of 51.7%. Deere (NYSE: DE) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the December $82.50 call while at the same time buying DE stock for $82.51 will produce a new covered call with a target return of 4.9%. Based on recent data, this trade will cost about $78.61, 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 4.9% return in 121 days. If DE is higher than $82.50 on 12/21/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 14.9%. Safeway (NYSE: SWY) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $26.26 while simultaneously selling the December $26.00 call will result in a new position with a target return of 5.9%. Based on recent prices, this position will cost about $24.56, which is also the trade?s breakeven point. At that level, this covered call has 6.5% downside protection, while still providing a 5.9% return in 121 days as long as SWY is above $26.00 on 12/21/2013. For comparison purposes only, this Safeway covered call aims for an annualized return rate of 17.7%. Incyte (NASDAQ: INCY) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the September $35.00 call while simultaneously buying INCY stock for $36.04 will result in a new position with a break-even point around $33.09. At that price, this position has a target return of 5.8%. This trade has 8.2% downside protection, while still providing a 5.8% return in 30 days as long as INCY is above $35.00 on 9/21/2013. For comparison purposes only, this Incyte covered call targets an annualized return rate of 70.2%. *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! 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 Nabors Industries (NBR), Men's Wearhouse (MW) and Noah (NOAH) are headed higher this morning, while Abercrombie and Fitch (ANF), Hewlett Packard (HPQ) and Sears (SHLD) are down. There were no major analyst upgrades this morning, and John Wood (WDGJF) was downgraded. MARKET OVERVIEW In Asian trading, the Mumbai Sensex turned things around after several big losing sessions and rose 2.3%, while the Hong Kong Hang Seng added 0.4% but the other major bourses fell 0.2% to 0.5%. HSBC's preliminary Chinese PMI showed an uptick for August compared to recent contraction, but the Shanghai SEC still dropped 0.3%. In Europe, indices moved higher by significant amounts. The German DAX, French CAC 40, and Swiss Market Index are all up 1.1% so far today, while the FTSE 100 and Euronext 100 have made gains of 0.9%. Euro-zone PMI was strong, at more than a two-year high of 51.7. German PMI also rose, but French PMI fell. In the futures pits, West Texas Intermediate crude oil futures are down to $103.85 off more than 1% again this morning, while gasoline and natural gas are each slightly higher. Gold, silver and platinum are all relatively flat, but copper is down 0.9%. The U.S. Dollar is stronger against the Yen and the Euro, and Bitcoins are consolidating near $122. PUT/CALL RATIO Yesterday, 938,774 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 605,156 put contracts. The single-session put/call was 0.64, 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 and is above resistance. TODAY'S ECONOMIC CALENDAR 08:30 AM 8/17 Initial Claims 08:30 AM 8/10 Continuing Claims 09:00 AM Jun FHFA Housing Price Index 10:00 AM Jul Leading Indicators 10:30 AM 8/17 Natural Gas Inventories EARNINGS EXPECTED TODAY ANF ARO ADSK DLTR GME GPS HRL MRVL P PDCO ROST 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 |
