MORNING UPDATE: PriceWatch Alerts for INTC and More... for 2013-08-21 |
| ------------------------------------------------------------------ MORNING UPDATE: PriceWatch Alerts for INTC, AXP, Q and More... August 21, 9:00 AM ET - PriceWatch Alerts for INTC, UNH, HAL, TWX, STJ, AXP, VZ, GSK, ADM and Q, Market Overview, News Leaders and Laggards, Today's Economic Calendar, and Index Support & Resistance Levels. PriceWatch Alerts for INTC, UNH, HAL, TWX, STJ, AXP, VZ, GSK, ADM and Q. Intel (NASDAQ: INTC) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $22.52 while selling the April $23.00 call will produce a new covered call with a break-even point around $21.24. At that price, this position has a target return of 8.3%. This trade will have roughly 5.7% downside protection, while still aiming for a 8.3% return in 241 days. It will lock in that return as long as Intel is above $23.00 on 4/19/2014. For comparison purposes only, this INTC covered call aims for an annualized return rate of 12.5%. UnitedHealth Group (NYSE: UNH) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $72.46 while simultaneously selling the January $70.00 call will result in a new position with a target return of 4.2%. Based on recent prices, this position will cost about $67.16, which is also the trade?s breakeven point. At that level, this covered call has 7.3% downside protection, while still providing a 4.2% return in 150 days as long as UNH is above $70.00 on 1/18/2014. For comparison purposes only, this UnitedHealth Group covered call aims for an annualized return rate of 10.3%. Halliburton (NYSE: HAL) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the November $47.00 call while at the same time buying HAL stock for $47.35 will produce a new covered call with a target return of 4.8%. Based on recent data, this trade will cost about $44.84, 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 4.8% return in 87 days. If HAL is higher than $47.00 on 11/16/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 20.2%. Time Warner (NYSE: TWX) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $61.89 while simultaneously selling the January $62.50 call will result in a new position with a target return of 8.4%. Based on recent prices, this position will cost about $57.64, which is also the trade?s breakeven point. At that level, this covered call has 6.9% downside protection, while still providing a 8.4% return in 150 days as long as TWX is above $62.50 on 1/18/2014. For comparison purposes only, this Time Warner covered call aims for an annualized return rate of 20.5%. St Jude Medical (NYSE: STJ) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the January $50.00 call while simultaneously buying STJ stock for $52.11 will result in a new position with a break-even point around $47.71. At that price, this position has a target return of 4.8%. This trade has 8.4% downside protection, while still providing a 4.8% return in 150 days as long as STJ is above $50.00 on 1/18/2014. For comparison purposes only, this St Jude Medical covered call targets an annualized return rate of 11.7%. American Express (NYSE: AXP) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $74.28 while selling the January $72.50 call will produce a new covered call with a break- even point around $69.38. At that price, this position has a target return of 4.5%. This trade will have roughly 6.6% downside protection, while still aiming for a 4.5% return in 150 days. It will lock in that return as long as American Express is above $72.50 on 1/18/2014. For comparison purposes only, this AXP covered call aims for an annualized return rate of 10.9%. Verizon Communications (NYSE: VZ) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $47.92 while simultaneously selling the January $48.00 call will result in a new position with a target return of 4.1%. Based on recent prices, this position will cost about $46.10, which is also the trade?s breakeven point. At that level, this covered call has 3.8% downside protection, while still providing a 4.1% return in 150 days as long as VZ is above $48.00 on 1/18/2014. For comparison purposes only, this Verizon Communications covered call aims for an annualized return rate of 10.0%. GlaxoSmithKline PLC (NYSE: GSK) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the January $52.50 call while at the same time buying GSK stock for $51.85 will produce a new covered call with a target return of 4.7%. Based on recent data, this trade will cost about $50.15, which is also the covered call?s breakeven point. At that price, this covered call has 3.3% downside protection, while seeking an assigned return of 4.7% return in 150 days. If GSK is higher than $52.50 on 1/18/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 11.4%. Archer Daniels Midland (NYSE: ADM) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $36.59 while simultaneously selling the December $36.00 call will result in a new position with a target return of 5.3%. Based on recent prices, this position will cost about $34.18, which is also the trade?s breakeven point. At that level, this covered call has 6.6% downside protection, while still providing a 5.3% return in 122 days as long as ADM is above $36.00 on 12/21/2013. For comparison purposes only, this Archer Daniels Midland covered call aims for an annualized return rate of 15.9%. Quintiles (NYSE: Q) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the October $45.00 call while simultaneously buying Q stock for $44.29 will result in a new position with a break-even point around $43.09. At that price, this position has a target return of 4.4%. This trade has 2.7% downside protection, while still providing a 4.4% return in 59 days as long as Q is above $45.00 on 10/19/2013. For comparison purposes only, this Quintiles covered call targets an annualized return rate of 27.4%. *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 In Asia, the Indian Sensex lost 1.9%, the South Korea Kospi fell 1.0% and the Hong Kong Hang Seng dropped 0.7% overnight. However, the Japanese Nikkei 225 and Shanghai SEC both made small gains. Like the rest of the world's trading community, focus for Asian traders is on the Fed minutes. Major European indices are all down so far today, but not in a significant manner. The FTSE 100 is off 0.6%, but the German DAX, French CAC 40 and Euronext 100 have all dipped less than 0.2%. Dutch brewer Heineken fell after its earnings. In the futures pits, West Texas Intermediate crude oil futures are down sharply with the front-month contract at $105.11 off more than 1.6%. In metals, gold is higher by 0.5% to $1,372, while platinum is up more than 1%. The U.S. Dollar is weaker versus the Yen and the Euro, and Bitcoins are holding above $122. PUT/CALL RATIO Yesterday, 992,955 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 603,745 put contracts. The single-session put/call was 0.61, 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 $155 and resistance at $166. The Nasdaq 100 (QQQ) has support at $74 and is above resistance. TODAY'S ECONOMIC CALENDAR 07:00 AM 8/17 MBA Mortgage Index 10:00 AM Jul Existing Home Sales 10:30 AM 8/17 Crude Inventories 02:00 PM 7/31 FOMC Minutes EARNINGS EXPECTED TODAY AEO HPQ SJM LTD LOW PETM SPLS TGT 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 |
