MORNING UPDATE: PriceWatch Alerts for AMZN and More... for 2013-08-09 |
| ------------------------------------------------------------------ MORNING UPDATE: PriceWatch Alerts for DIS, MRK, AMZN, and More... August 9, 9:00 AM ET - PriceWatch Alerts for DIS, MRK, WFM, GILD, ESRX, AMZN, TEVA, SCHW, VMW and LVLT, Market Overview, News Leaders and Laggards, Today's Economic Calendar, and Index Support & Resistance Levels. PriceWatch Alerts for DIS, MRK, WFM, GILD, ESRX, AMZN, TEVA, SCHW, VMW and LVLT. Walt Disney (NYSE: DIS) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $65.75 while selling the January $65.00 call will produce a new covered call with a break-even point around $62.00. At that price, this position has a target return of 4.8%. This trade will have roughly 5.7% downside protection, while still aiming for a 4.8% return in 162 days. It will lock in that return as long as Walt Disney is above $65.00 on 1/18/2014. For comparison purposes only, this DIS covered call aims for an annualized return rate of 10.9%. Merck (NYSE: MRK) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $48.47 while simultaneously selling the January $49.00 call will result in a new position with a target return of 4.9%. Based on recent prices, this position will cost about $46.73, which is also the trade?s breakeven point. At that level, this covered call has 3.6% downside protection, while still providing a 4.9% return in 162 days as long as MRK is above $49.00 on 1/18/2014. For comparison purposes only, this Merck covered call aims for an annualized return rate of 10.9%. Whole Foods (NASDAQ: WFM) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the November $55.00 call while at the same time buying WFM stock for $55.90 will produce a new covered call with a target return of 4.6%. Based on recent data, this trade will cost about $52.60, 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 4.6% return in 99 days. If WFM is higher than $55.00 on 11/16/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 16.8%. Gilead Sciences (NASDAQ: GILD) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $59.30 while simultaneously selling the October $57.50 call will result in a new position with a target return of 4.2%. Based on recent prices, this position will cost about $55.20, which is also the trade?s breakeven point. At that level, this covered call has 6.9% downside protection, while still providing a 4.2% return in 71 days as long as GILD is above $57.50 on 10/19/2013. For comparison purposes only, this Gilead Sciences covered call aims for an annualized return rate of 21.4%. Express Scripts (NASDAQ: ESRX) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the November $65.00 call while simultaneously buying ESRX stock for $65.88 will result in a new position with a break-even point around $62.48. At that price, this position has a target return of 4.0%. This trade has 5.2% downside protection, while still providing a 4.0% return in 99 days as long as ESRX is above $65.00 on 11/16/2013. For comparison purposes only, this Express Scripts covered call targets an annualized return rate of 14.9%. Amazon (NASDAQ: AMZN) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $295.74 while selling the October $295.00 call will produce a new covered call with a break-even point around $282.74. At that price, this position has a target return of 4.3%. This trade will have roughly 4.4% downside protection, while still aiming for a 4.3% return in 71 days. It will lock in that return as long as Amazon is above $295.00 on 10/19/2013. For comparison purposes only, this AMZN covered call aims for an annualized return rate of 22.3%. Teva Pharmaceutical (NASDAQ: TEVA) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $39.15 while simultaneously selling the December $40.00 call will result in a new position with a target return of 5.2%. Based on recent prices, this position will cost about $38.02, which is also the trade?s breakeven point. At that level, this covered call has 2.9% downside protection, while still providing a 5.2% return in 134 days as long as TEVA is above $40.00 on 12/21/2013. For comparison purposes only, this Teva Pharmaceutical covered call aims for an annualized return rate of 14.2%. Schwab (NYSE: SCHW) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the December $22.00 call while at the same time buying SCHW stock for $22.31 will produce a new covered call with a target return of 5.7%. Based on recent data, this trade will cost about $20.81, which is also the covered call?s breakeven point. At that price, this covered call has 6.7% downside protection, while seeking an assigned return of 5.7% return in 134 days. If SCHW is higher than $22.00 on 12/21/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 15.6%. VMware (NYSE: VMW) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $84.95 while simultaneously selling the October $82.50 call will result in a new position with a target return of 4.0%. Based on recent prices, this position will cost about $79.35, which is also the trade?s breakeven point. At that level, this covered call has 6.6% downside protection, while still providing a 4.0% return in 71 days as long as VMW is above $82.50 on 10/19/2013. For comparison purposes only, this VMware covered call aims for an annualized return rate of 20.4%. Level 3 Communications (NASDAQ: LVLT) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the December $21.00 call while simultaneously buying LVLT stock for $22.55 will result in a new position with a break-even point around $19.75. At that price, this position has a target return of 6.3%. This trade has 12.4% downside protection, while still providing a 6.3% return in 134 days as long as LVLT is above $21.00 on 12/21/2013. For comparison purposes only, this Level 3 Communications covered call targets an annualized return rate of 17.2%. *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. 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MARKET OVERVIEW Asian indices put in a mixed session overnight. The Japanese Nikkei 225 ended its losing streak, but only by a little, gaining 0.1%. The Shanghai SEC rose 0.4% after Chinese economic data showed a gain in industrial production and consumer prices and a dip in producer prices. The Hong Kong Hang Seng and Mumbai Sensex each picked up 0.7%. In Europe, the markets are inching into positive territory so far this morning. The FTSE 100 advanced 0.5%, while the German DAX, Euronext 100, and Swiss Market Index are all just barely in the green. British gains were led by mining companies, which depend on the Chinese economy. In the futures pits, West Texas Intermediate crude oil futures are advancing this morning after touching their lowest levels in more than a month yesterday. The front-month contract is now going for $103.90, up 0.5%. Heating oil, gasoline, and natural gas are all slightly higher. In metals, there is not too much action to report, with gold down $2.00 to $1,308. The U.S. Dollar is stronger against the Euro but pretty much flat against the Yen so far today and Bitcoins are down 4% in the past day to $102.50. PUT/CALL RATIO Yesterday, 1,114,452 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 641,593 put contracts. The single-session put/call was 0.58, 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 $165 and is above resistance. The Nasdaq 100 (QQQ) has support at $73 and is above resistance. TODAY'S ECONOMIC CALENDAR 10:00 AM Jun Wholesale Inventories EARNINGS EXPECTED TODAY MNKD NRG 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 |
