MORNING UPDATE: PriceWatch Alerts for XOM and More... for 2013-07-31 |
| ------------------------------------------------------------------ MORNING UPDATE: PriceWatch Alerts for XOM, BA, SYSS and More... July 31, 9:00 AM ET - PriceWatch Alerts for XOM, AMGN, EA, LVS, ROSE, BA, SSYS, SCCO, JCP and YELP, Market Overview, News Leaders and Laggards, Today's Economic Calendar, and Index Support & Resistance Levels. PriceWatch Alerts for XOM, AMGN, EA, LVS, ROSE, BA, SSYS, SCCO, JCP and YELP. Exxon Mobil (NYSE: XOM) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $93.81 while selling the January $97.50 call will produce a new covered call with a break-even point around $92.36. At that price, this position has a target return of 5.6%. This trade will have roughly 1.5% downside protection, while still aiming for a 5.6% return in 171 days. It will lock in that return as long as Exxon Mobil is above $97.50 on 1/18/2014. For comparison purposes only, this XOM covered call aims for an annualized return rate of 11.9%. Amgen (NASDAQ: AMGN) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $111.20 while simultaneously selling the October $110.00 call will result in a new position with a target return of 4.0%. Based on recent prices, this position will cost about $105.75, which is also the trade?s breakeven point. At that level, this covered call has 4.9% downside protection, while still providing a 4.0% return in 80 days as long as AMGN is above $110.00 on 10/19/2013. For comparison purposes only, this Amgen covered call aims for an annualized return rate of 18.3%. Electronic Arts (NASDAQ: EA) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the September $26.00 call while at the same time buying EA stock for $26.07 will produce a new covered call with a target return of 4.7%. Based on recent data, this trade will cost about $24.83, which is also the covered call?s breakeven point. At that price, this covered call has 4.8% downside protection, while seeking an assigned return of 4.7% return in 52 days. If EA is higher than $26.00 on 9/21/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 33.1%. Las Vegas Sands (NYSE: LVS) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $56.27 while simultaneously selling the December $52.50 call will result in a new position with a target return of 4.3%. Based on recent prices, this position will cost about $50.32, which is also the trade?s breakeven point. At that level, this covered call has 10.6% downside protection, while still providing a 4.3% return in 143 days as long as LVS is above $52.50 on 12/21/2013. For comparison purposes only, this Las Vegas Sands covered call aims for an annualized return rate of 11.1%. Rosetta Resources (NASDAQ: ROSE) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the September $45.00 call while simultaneously buying ROSE stock for $45.52 will result in a new position with a break-even point around $43.07. At that price, this position has a target return of 4.5%. This trade has 5.4% downside protection, while still providing a 4.5% return in 52 days as long as ROSE is above $45.00 on 9/21/2013. For comparison purposes only, this Rosetta Resources covered call targets an annualized return rate of 31.4%. Boeing (NYSE: BA) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $105.73 while selling the November $105.00 call will produce a new covered call with a break-even point around $100.13. At that price, this position has a target return of 4.9%. This trade will have roughly 5.3% downside protection, while still aiming for a 4.9% return in 108 days. It will lock in that return as long as Boeing is above $105.00 on 11/16/2013. For comparison purposes only, this BA covered call aims for an annualized return rate of 16.4%. Stratasys (NASDAQ: SSYS) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $87.45 while simultaneously selling the September $80.00 call will result in a new position with a target return of 4.6%. Based on recent prices, this position will cost about $76.45, which is also the trade?s breakeven point. At that level, this covered call has 12.6% downside protection, while still providing a 4.6% return in 52 days as long as SSYS is above $80.00 on 9/21/2013. For comparison purposes only, this Stratasys covered call aims for an annualized return rate of 32.6%. Southern Copper (NYSE: SCCO) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the January $25.00 call while at the same time buying SCCO stock for $26.89 will produce a new covered call with a target return of 5.1%. Based on recent data, this trade will cost about $23.79, which is also the covered call?s breakeven point. At that price, this covered call has 11.5% downside protection, while seeking an assigned return of 5.1% return in 171 days. If SCCO is higher than $25.00 on 1/18/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 10.8%. JC Penney (NYSE: JCP) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $16.26 while simultaneously selling the September $16.00 call will result in a new position with a target return of 7.4%. Based on recent prices, this position will cost about $14.90, which is also the trade?s breakeven point. At that level, this covered call has 8.4% downside protection, while still providing a 7.4% return in 52 days as long as JCP is above $16.00 on 9/21/2013. For comparison purposes only, this JC Penney covered call aims for an annualized return rate of 51.8%. Yelp (NYSE: YELP) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the August $38.00 call while simultaneously buying YELP stock for $41.79 will result in a new position with a break- even point around $36.39. At that price, this position has a target return of 4.4%. This trade has 12.9% downside protection, while still providing a 4.4% return in 17 days as long as YELP is above $38.00 on 8/17/2013. For comparison purposes only, this Yelp covered call targets an annualized return rate of 94.9%. *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 Questcor Pharmaceuticals (QCOR), Trius Therapeutics (TSRX) and SodaStream (SODA) are headed higher this morning, while Riverbed Technology (RVBD), Optimer Pharmaceuticals (OPTR) and Scorpio Tankers (STNG) are falling. Symantec (SYMC), Owens and Minor (OMI) and ONEOK Partners (OKS) were upgraded by analysts this morning, while Trius Therapeutics (TSRX), Jive Software (JIVE) and Sprint (S) were downgraded. MARKET OVERVIEW Asian markets fell overnight for the most part, led lower by the Nikkei 225, which lost 1.5%. The Chinese SEC added 0.2% after comments by the government regarding the stability of the Chinese property market, as well as acting to encourage steady overall economic growth. In Europe, the FTSE 100 rose 0.6% while the German DAX and French CAC 40 each lost 0.4%. Key developments included German retail sales unexpectedly falling in June as well as euro-zone unemployment rate dipping by a small margin, its first decline in more than two years. In the futures pits, West Texas Intermediate crude oil declined yesterday but is firming up so far this morning, with the front- month contract valued at $103.36 per barrel up $0.28 or 0.3%. Natural gas is up a penny, while gasoline has fallen below $3. In metals, gold futures holding steady at $1,322 while silver and copper are advancing. The U.S. Dollar is strengthening against most international currencies in the front-month, but weakening against the Yen and the Euro in back months. Bitcoins have gone from $101 yesterday to nearly $110 currently. PUT/CALL RATIO Yesterday, 1,140,176 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 637,829 put contracts. The single-session put/call was 0.56, 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 $164 and is above resistance. The Nasdaq 100 (QQQ) has support at $72.50 and is above resistance. TODAY'S ECONOMIC CALENDAR 07:00 AM 7/27 MBA Mortgage Index 08:15 AM Jul ADP Employment Change 08:30 AM Q2 GDP-Adv 08:30 AM Q2 Chain Deflator-Adv 08:30 AM Q2 Employment Cost Index 09:45 AM Jul Chicago PMI 10:30 AM 7/27 Crude Inventories 02:00 PM Jul FOMC Rate Decision EARNINGS EXPECTED TODAY ADT GAS AGN ALL AMT CBS CMCSA DLPH EXC GRMN HES HSP HCBK HUM IVZ LRCX LNC MAR MA MET MCHP MUR NI PCG PSX PXD QEP SO WFM WMB WEC 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. 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