MORNING UPDATE: PriceWatch Alerts for NFLX and More... for 2013-08-16 |
| ------------------------------------------------------------------ MORNING UPDATE: PriceWatch Alerts for NFLX, KSS, CMCSA and More... August 16, 9:00 AM ET - PriceWatch Alerts for NFLX, KSS, FOX, BEAM, CAT, CMCSA, BUD, NVS, JNPR and YY, Market Overview, News Leaders and Laggards, Today's Economic Calendar, and Index Support & Resistance Levels. PriceWatch Alerts for NFLX, KSS, FOX, BEAM, CAT, CMCSA, BUD, NVS, JNPR and YY. Netflix (NASDAQ: NFLX) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $253.41 while selling the September $250.00 call will produce a new covered call with a break-even point around $239.21. At that price, this position has a target return of 4.5%. This trade will have roughly 5.6% downside protection, while still aiming for a 4.5% return in 36 days. It will lock in that return as long as Netflix is above $250.00 on 9/21/2013. For comparison purposes only, this NFLX covered call aims for an annualized return rate of 45.7%. Kohls (NYSE: KSS) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $53.51 while simultaneously selling the January $52.50 call will result in a new position with a target return of 4.4%. Based on recent prices, this position will cost about $50.31, which is also the trade?s breakeven point. At that level, this covered call has 6.0% downside protection, while still providing a 4.4% return in 155 days as long as KSS is above $52.50 on 1/18/2014. For comparison purposes only, this Kohls covered call aims for an annualized return rate of 10.2%. 21St Century Fox (NASDAQ: FOX) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the January $31.00 call while at the same time buying FOX stock for $31.95 will produce a new covered call with a target return of 5.3%. Based on recent data, this trade will cost about $29.45, which is also the covered call?s breakeven point. At that price, this covered call has 7.8% downside protection, while seeking an assigned return of 5.3% return in 155 days. If FOX is higher than $31.00 on 1/18/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 12.4%. Beam (NYSE: BEAM) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $62.08 while simultaneously selling the January $60.00 call will result in a new position with a target return of 4.6%. Based on recent prices, this position will cost about $57.38, which is also the trade?s breakeven point. At that level, this covered call has 7.6% downside protection, while still providing a 4.6% return in 155 days as long as BEAM is above $60.00 on 1/18/2014. For comparison purposes only, this Beam covered call aims for an annualized return rate of 10.7%. Caterpillar (NYSE: CAT) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the January $85.00 call while simultaneously buying CAT stock for $85.86 will result in a new position with a break-even point around $80.86. At that price, this position has a target return of 5.1%. This trade has 5.8% downside protection, while still providing a 5.1% return in 155 days as long as CAT is above $85.00 on 1/18/2014. For comparison purposes only, this Caterpillar covered call targets an annualized return rate of 12.0%. Comcast (NASDAQ: CMCSA) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $43.01 while selling the January $42.00 call will produce a new covered call with a break-even point around $40.10. At that price, this position has a target return of 4.7%. This trade will have roughly 6.8% downside protection, while still aiming for a 4.7% return in 155 days. It will lock in that return as long as Comcast is above $42.00 on 1/18/2014. For comparison purposes only, this CMCSA covered call aims for an annualized return rate of 11.1%. Anheuser-Busch InBev (NYSE: BUD) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $98.08 while simultaneously selling the December $97.50 call will result in a new position with a target return of 4.5%. Based on recent prices, this position will cost about $93.28, which is also the trade?s breakeven point. At that level, this covered call has 4.9% downside protection, while still providing a 4.5% return in 127 days as long as BUD is above $97.50 on 12/21/2013. For comparison purposes only, this Anheuser-Busch InBev covered call aims for an annualized return rate of 13.0%. Novartis AG (NYSE: NVS) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the January $75.00 call while at the same time buying NVS stock for $73.34 will produce a new covered call with a target return of 5.3%. Based on recent data, this trade will cost about $71.24, which is also the covered call?s breakeven point. At that price, this covered call has 2.9% downside protection, while seeking an assigned return of 5.3% return in 155 days. If NVS is higher than $75.00 on 1/18/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 12.4%. Juniper Networks (NYSE: JNPR) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $20.30 while simultaneously selling the January $19.00 call will result in a new position with a target return of 7.1%. Based on recent prices, this position will cost about $17.74, which is also the trade?s breakeven point. At that level, this covered call has 12.6% downside protection, while still providing a 7.1% return in 155 days as long as JNPR is above $19.00 on 1/18/2014. For comparison purposes only, this Juniper Networks covered call aims for an annualized return rate of 16.7%. YY (NASDAQ: YY) 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 YY stock for $38.57 will result in a new position with a break-even point around $33.07. At that price, this position has a target return of 5.8%. This trade has 14.3% downside protection, while still providing a 5.8% return in 36 days as long as YY is above $35.00 on 9/21/2013. For comparison purposes only, this YY covered call targets an annualized return rate of 59.1%. *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 Pandora (P), McEwen Mining (MUX) and Orbitz (OWW) are headed higher this morning, while Meritage (MTH), Universal Truckload Services (UACL) and Interoil (IOC) are headed lower. There were no major analyst upgrades this morning, though Volterra (VLTR) and STMicroelectronics were downgraded. MARKET OVERVIEW In Asia, the markets headed mostly lower overnight. The biggest drop came in India, where the Mumbai Sensex lost nearly 4% in an effort to catch up with its peers following a market holiday yesterday. Otherwise, most Asian indices were down just less than 1%, with the Shaghai SEC off 0.6% after briefly soaring more than 5% mid-session due to a so-called fat-finger trade on the yuan. The Nikkei 225 finishing down 0.8% in a subdued session, at least relative to recent performance. European shares are mostly flat so far today with traders seeing little consequence coming from June's euro-zone current account data, which showed a 13% lower surplus than the previous month. The French CAC 40 is up 0.2% at last check, while the FTSE 100 and Euronext 100 are hovering near break-even. The German DAX is down 0.2% and the Swiss Market Index is down 0.5%. In the futures pits, crude oil futures are higher this morning with the front-month West Texas Intermediate contract at $107.33 up $0.48. Natural gas is up by more than 2%. In metals, gold is higher by 2% to $1,361, while silver is up more than 5%. The U.S. Dollar is weaker against the Yen and the Euro, and Bitcoins are holding near $110. PUT/CALL RATIO Yesterday, 1,293,346 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 848,218 put contracts. The single-session put/call was 0.66, 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 $166 and is above resistance. The Nasdaq 100 (QQQ) has support at $74 and is above resistance. TODAY'S ECONOMIC CALENDAR 08:30 AM Jul Housing Starts 08:30 AM Jul Building Permits 08:30 AM Q2 Productivity-Prel 08:30 AM Q2 Unit Labor Costs 09:55 AM Aug Mich Sentiment EARNINGS EXPECTED TODAY There are no major earnings announcements expected this morning. 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 |
