MORNING UPDATE: PriceWatch Alerts for WMT and More... for 2013-08-01 |
| ------------------------------------------------------------------ MORNING UPDATE: PriceWatch Alerts for WMT, HPQ, PG, and More... August 1, 9:00 AM ET - PriceWatch Alerts for WMT, HPQ, ABC, MON, ONXX, PG, UNP, DAL, POT and XLNX, Market Overview, News Leaders and Laggards, Today's Economic Calendar, and Index Support & Resistance Levels. PriceWatch Alerts for WMT, HPQ, ABC, MON, ONXX, PG, UNP, DAL, POT and XLNX. Walmart Stores (NYSE: WMT) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $77.94 while selling the December $80.00 call will produce a new covered call with a break- even point around $76.30. At that price, this position has a target return of 4.8%. This trade will have roughly 2.1% downside protection, while still aiming for a 4.8% return in 142 days. It will lock in that return as long as Walmart Stores is above $80.00 on 12/21/2013. For comparison purposes only, this WMT covered call aims for an annualized return rate of 12.4%. Hewlett Packard (NYSE: HPQ) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $25.68 while simultaneously selling the September $25.00 call will result in a new position with a target return of 6.1%. Based on recent prices, this position will cost about $23.57, which is also the trade?s breakeven point. At that level, this covered call has 8.2% downside protection, while still providing a 6.1% return in 51 days as long as HPQ is above $25.00 on 9/21/2013. For comparison purposes only, this Hewlett Packard covered call aims for an annualized return rate of 43.4%. AmerisourceBergen (NYSE: ABC) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the November $60.00 call while at the same time buying ABC stock for $58.27 will produce a new covered call with a target return of 5.9%. Based on recent data, this trade will cost about $56.67, which is also the covered call?s breakeven point. At that price, this covered call has 2.7% downside protection, while seeking an assigned return of 5.9% return in 107 days. If ABC is higher than $60.00 on 11/16/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 20.0%. Monsanto (NYSE: MON) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $98.78 while simultaneously selling the January $97.50 call will result in a new position with a target return of 5.8%. Based on recent prices, this position will cost about $92.13, which is also the trade?s breakeven point. At that level, this covered call has 6.7% downside protection, while still providing a 5.8% return in 170 days as long as MON is above $97.50 on 1/18/2014. For comparison purposes only, this Monsanto covered call aims for an annualized return rate of 12.5%. Onyx Pharmaceuticals (NASDAQ: ONXX) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the September $130.00 call while simultaneously buying ONXX stock for $131.38 will result in a new position with a break-even point around $124.28. At that price, this position has a target return of 4.6%. This trade has 5.4% downside protection, while still providing a 4.6% return in 51 days as long as ONXX is above $130.00 on 9/21/2013. For comparison purposes only, this Onyx Pharmaceuticals covered call targets an annualized return rate of 32.9%. Procter and Gamble (NYSE: PG) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $80.30 while selling the September $82.50 call will produce a new covered call with a break-even point around $79.18. At that price, this position has a target return of 4.2%. This trade will have roughly 1.4% downside protection, while still aiming for a 4.2% return in 51 days. It will lock in that return as long as Procter and Gamble is above $82.50 on 9/21/2013. For comparison purposes only, this PG covered call aims for an annualized return rate of 30.0%. Union Pacific (NYSE: UNP) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $158.59 while simultaneously selling the November $160.00 call will result in a new position with a target return of 4.8%. Based on recent prices, this position will cost about $152.64, which is also the trade?s breakeven point. At that level, this covered call has 3.8% downside protection, while still providing a 4.8% return in 107 days as long as UNP is above $160.00 on 11/16/2013. For comparison purposes only, this Union Pacific covered call aims for an annualized return rate of 16.4%. Delta Air Lines (NYSE: DAL) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the September $21.00 call while at the same time buying DAL stock for $21.23 will produce a new covered call with a target return of 5.2%. Based on recent data, this trade will cost about $19.97, 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 5.2% return in 51 days. If DAL is higher than $21.00 on 9/21/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 36.9%. Potash (NYSE: POT) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $29.00 while simultaneously selling the September $28.00 call will result in a new position with a target return of 4.4%. Based on recent prices, this position will cost about $26.83, which is also the trade?s breakeven point. At that level, this covered call has 7.5% downside protection, while still providing a 4.4% return in 51 days as long as POT is above $28.00 on 9/21/2013. For comparison purposes only, this Potash covered call aims for an annualized return rate of 31.2%. Xilinx (NASDAQ: XLNX) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the December $46.00 call while simultaneously buying XLNX stock for $46.69 will result in a new position with a break-even point around $43.93. At that price, this position has a target return of 4.7%. This trade has 5.9% downside protection, while still providing a 4.7% return in 142 days as long as XLNX is above $46.00 on 12/21/2013. For comparison purposes only, this Xilinx covered call targets an annualized return rate of 12.1%. *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. 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NEWS LEADERS AND LAGGARDS Ctrip.com (CTRP), Yelp (YELP) and Trulia (TRLA) are headed higher this morning, while Halozyme Therapeutics (HALO), On Semiconductor (ONNN) and Nii Holdings (NIHD) are sinking. Global Payments (GPN), Comcast (CMCSA) and Yelp (YELP) were upgraded by analysts this morning, while Enbridge Energy Partners (EEP), Life Technologies (LIFE) and MedAssets (MDAS) were downgraded. MARKET OVERVIEW International stocks moved predominantly higher overnight, with Asian indices following the lead set by China and Japan. The Nikkei 225 advanced 2.5% and the Shanghai SEC rose 1.8%. China's PMI reading rose in July, while major Japanese stocks including Mitsubishi, Panasonic, and Mazda all rose after reporting earnings. Optimism reigns in Europe at last check as well. The German DAX is higher by 1.3%, while the French CAC 40 and Euronext 100 are both up 0.5%. European Central Bank president Mario Draghi will assume the spotlight this morning and try to follow-up on the positive market reaction the U.S. Fed announcement received. In the futures pits, West Texas Intermediate crude oil spiked in yesterday's session and is headed even higher this morning. The front-month contract is at $107 per barrel, up 3.8% from yesterday morning's open. Heating oil and gasoline are also higher, while natural gas is off 0.5%. In metals, gold futures took it on the chin yesterday but are higher by about 0.8% this morning at $1,323. Silver and platinum are also advancing less than 1% and copper is up 1.6%. The U.S. Dollar is stronger against most world currencies and Bitcoins are down more than 3% from yesterday morning at $106. PUT/CALL RATIO Yesterday, 1,088,383 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 649,966 put contracts. The single-session put/call was 0.6, while the 20-day moving average is now at 0.61. 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 $72.50 and is above resistance. TODAY'S ECONOMIC CALENDAR 07:30 AM Jul Challenger Job Cuts 08:30 AM 7/27 Initial Claims 08:30 AM 7/20 Continuing Claims 10:00 AM Jul ISM Index 10:00 AM Jun Construction Spending 10:30 AM 7/27 Natural Gas Inventories 02:00 PM Jul Auto Sales 02:00 PM Jul Truck Sales EARNINGS EXPECTED TODAY AEE AIG APA ADP AVP BDX CAH CNP CHK CI CME COP ED COV XRAY DTV EIX XOM FLR IRM K KRFT MPC MYL PKI PPL PG PWR SCANA SWN TE TDC TSO CLX TWC VMC WPX XEL 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 |
