MORNING UPDATE: PriceWatch Alerts for IBM and More... for 2013-08-13 |
| ------------------------------------------------------------------ MORNING UPDATE: PriceWatch Alerts for YHOO, IBM, ORCL and More... August 13, 9:00 AM ET - PriceWatch Alerts for YHOO, ADBE, NPSP, AU, MNST, IBM, FCX, TEAR, CLF, CTRP, ORCL, NSC, KKD, PIR and SHPG, Market Overview, News Leaders and Laggards, Today's Economic Calendar, and Index Support & Resistance Levels. PriceWatch Alerts for YHOO, ADBE, NPSP, AU, MNST, IBM, FCX, TEAR, CLF, CTRP, ORCL, NSC, KKD, PIR and SHPG. Yahoo (NASDAQ: YHOO) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $28.35 while selling the October $28.00 call will produce a new covered call with a break-even point around $26.75. At that price, this position has a target return of 4.7%. This trade will have roughly 5.6% downside protection, while still aiming for a 4.7% return in 67 days. It will lock in that return as long as Yahoo is above $28.00 on 10/19/2013. For comparison purposes only, this YHOO covered call aims for an annualized return rate of 25.4%. Adobe Systems (NASDAQ: ADBE) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $47.20 while simultaneously selling the September $47.00 call will result in a new position with a target return of 4.1%. Based on recent prices, this position will cost about $45.16, which is also the trade?s breakeven point. At that level, this covered call has 4.3% downside protection, while still providing a 4.1% return in 39 days as long as ADBE is above $47.00 on 9/21/2013. For comparison purposes only, this Adobe Systems covered call aims for an annualized return rate of 38.1%. NPS Pharmaceuticals (NASDAQ: NPSP) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the November $22.00 call while at the same time buying NPSP stock for $23.51 will produce a new covered call with a target return of 6.2%. Based on recent data, this trade will cost about $20.71, which is also the covered call?s breakeven point. At that price, this covered call has 11.9% downside protection, while seeking an assigned return of 6.2% return in 95 days. If NPSP is higher than $22.00 on 11/16/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 23.9%. AngloGold Ashanti (NYSE: AU) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $13.48 while simultaneously selling the January $12.00 call will result in a new position with a target return of 9.3%. Based on recent prices, this position will cost about $10.98, which is also the trade?s breakeven point. At that level, this covered call has 18.5% downside protection, while still providing a 9.3% return in 158 days as long as AU is above $12.00 on 1/18/2014. For comparison purposes only, this AngloGold Ashanti covered call aims for an annualized return rate of 21.4%. Monster Beverage (NASDAQ: MNST) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the September $62.50 call while simultaneously buying MNST stock for $62.76 will result in a new position with a break-even point around $59.96. At that price, this position has a target return of 4.2%. This trade has 4.5% downside protection, while still providing a 4.2% return in 39 days as long as MNST is above $62.50 on 9/21/2013. For comparison purposes only, this Monster Beverage covered call targets an annualized return rate of 39.6%. International Business Machines (NYSE: IBM) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $189.09 while selling the October $190.00 call will produce a new covered call with a break- even point around $180.99. At that price, this position has a target return of 5.0%. This trade will have roughly 4.3% downside protection, while still aiming for a 5.0% return in 67 days. It will lock in that return as long as International Business Machines is above $190.00 on 10/19/2013. For comparison purposes only, this IBM covered call aims for an annualized return rate of 27.1%. Freeport McMoran (NYSE: FCX) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $31.85 while simultaneously selling the October $31.00 call will result in a new position with a target return of 4.0%. Based on recent prices, this position will cost about $29.81, which is also the trade?s breakeven point. At that level, this covered call has 6.4% downside protection, while still providing a 4.0% return in 67 days as long as FCX is above $31.00 on 10/19/2013. For comparison purposes only, this Freeport McMoran covered call aims for an annualized return rate of 21.7%. TearLab (NASDAQ: TEAR) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the December $12.50 call while at the same time buying TEAR stock for $13.19 will produce a new covered call with a target return of 12.2%. Based on recent data, this trade will cost about $11.14, which is also the covered call?s breakeven point. At that price, this covered call has 15.5% downside protection, while seeking an assigned return of 12.2% return in 130 days. If TEAR is higher than $12.50 on 12/21/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 34.3%. Cliffs Natural Resources (NYSE: CLF) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $24.47 while simultaneously selling the September $24.00 call will result in a new position with a target return of 6.3%. Based on recent prices, this position will cost about $22.57, which is also the trade?s breakeven point. At that level, this covered call has 7.8% downside protection, while still providing a 6.3% return in 39 days as long as CLF is above $24.00 on 9/21/2013. For comparison purposes only, this Cliffs Natural Resources covered call aims for an annualized return rate of 59.2%. Ctrip.com (NASDAQ: CTRP) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the September $43.00 call while simultaneously buying CTRP stock for $43.25 will result in a new position with a break-even point around $41.05. At that price, this position has a target return of 4.8%. This trade has 5.1% downside protection, while still providing a 4.8% return in 39 days as long as CTRP is above $43.00 on 9/21/2013. For comparison purposes only, this Ctrip.com covered call targets an annualized return rate of 44.5%. Oracle (NASDAQ: ORCL) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $33.25 while selling the December $33.00 call will produce a new covered call with a break-even point around $31.39. At that price, this position has a target return of 5.1%. This trade will have roughly 5.6% downside protection, while still aiming for a 5.1% return in 130 days. It will lock in that return as long as Oracle is above $33.00 on 12/21/2013. For comparison purposes only, this ORCL covered call aims for an annualized return rate of 14.4%. Norfolk Southern (NYSE: NSC) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $74.35 while simultaneously selling the December $75.00 call will result in a new position with a target return of 5.3%. Based on recent prices, this position will cost about $71.25, which is also the trade?s breakeven point. At that level, this covered call has 4.2% downside protection, while still providing a 5.3% return in 130 days as long as NSC is above $75.00 on 12/21/2013. For comparison purposes only, this Norfolk Southern covered call aims for an annualized return rate of 14.8%. Krispy Kreme Doughnuts (NYSE: KKD) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the September $22.00 call while at the same time buying KKD stock for $22.52 will produce a new covered call with a target return of 5.4%. Based on recent data, this trade will cost about $20.87, which is also the covered call?s breakeven point. At that price, this covered call has 7.3% downside protection, while seeking an assigned return of 5.4% return in 39 days. If KKD is higher than $22.00 on 9/21/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 50.6%. Pier 1 Imports (NYSE: PIR) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $22.93 while simultaneously selling the December $22.00 call will result in a new position with a target return of 5.4%. Based on recent prices, this position will cost about $20.88, which is also the trade?s breakeven point. At that level, this covered call has 8.9% downside protection, while still providing a 5.4% return in 130 days as long as PIR is above $22.00 on 12/21/2013. For comparison purposes only, this Pier 1 Imports covered call aims for an annualized return rate of 15.0%. Shire (NASDAQ: SHPG) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the January $105.00 call while simultaneously buying SHPG stock for $110.13 will result in a new position with a break-even point around $100.23. At that price, this position has a target return of 4.8%. This trade has 9.0% downside protection, while still providing a 4.8% return in 158 days as long as SHPG is above $105.00 on 1/18/2014. 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MARKET OVERVIEW International markets are almost all in positive territory this morning, with most Asian indices moving strongly higher. The Japanese Nikkei 225 gained 2.6% overnight after a report that the government may cut corporate taxes. The Mumbai Sensex rose 1.5%, the Hong Kong Hang Seng gained 1.2%, and the Taiwan TSEC added 1.0% overnight. European markets are not as strong as their Asian counterparts, but the mood is still wholly bullish. The German DAX is advancing 0.7% so far in today's trading after the ZEW economic sentiment indicator rose sharply and handily beat predications. Elsewhere in Europe, the FTSE 100 is up 0.5% and the Swiss Market Index is higher by 0.4%. Home prices in the United Kingdom rose more than expected and at their fastest rate since 2007. In the futures pits, West Texas Intermediate crude oil futures are higher this morning with the front-month contract at $106.60 at last check. In metals, gold is up again at $1,335. The U.S. Dollar is stronger against the Euro and the Yen, while Bitcoins are at $105. PUT/CALL RATIO Yesterday, 1,034,464 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 571,858 put contracts. The single-session put/call was 0.55, while the 20-day moving average is now at 0.60. SUPPORT & RESISTANCE LEVELS The S&P 500 Depository Receipts (SPY) ETF has support at $165 and is above resistance. The Nasdaq 100 (QQQ) has support at $73.75 and is above resistance. TODAY'S ECONOMIC CALENDAR 08:30 AM Jul Retail Sales 08:30 AM Jul Retail Sales ex-auto 08:30 AM Jul Export Prices ex-ag. 08:30 AM Jul Import Prices ex-oil 10:00 AM Jun Business Inventories EARNINGS EXPECTED TODAY JDSU 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 |
