MORNING UPDATE: PriceWatch Alerts for SCTY and More... for 2013-07-26 |
| ------------------------------------------------------------------ MORNING UPDATE: PriceWatch Alerts for SCTY, NWSA, BBRY and More... July 26, 9:00 AM ET - PriceWatch Alerts for SCTY, NWSA, MET, CAKE, ARO, BBRY, AGNC, WLT, LXK and QIHU, Market Overview, News Leaders and Laggards, Today's Economic Calendar, and Index Support & Resistance Levels. PriceWatch Alerts for SCTY, NWSA, MET, CAKE, ARO, BBRY, AGNC, WLT, LXK and QIHU. SolarCity (NASDAQ: SCTY) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $40.09 while selling the August $38.00 call will produce a new covered call with a break-even point around $36.29. At that price, this position has a target return of 4.7%. This trade will have roughly 9.5% downside protection, while still aiming for a 4.7% return in 22 days. It will lock in that return as long as SolarCity is above $38.00 on 8/17/2013. For comparison purposes only, this SCTY covered call aims for an annualized return rate of 78.1%. News Corp. (NASDAQ: NWSA) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $15.57 while simultaneously selling the January $16.00 call will result in a new position with a target return of 10.2%. Based on recent prices, this position will cost about $14.52, which is also the trade?s breakeven point. At that level, this covered call has 6.7% downside protection, while still providing a 10.2% return in 176 days as long as NWSA is above $16.00 on 1/18/2014. For comparison purposes only, this News Corp. covered call aims for an annualized return rate of 21.1%. MetLife (NYSE: MET) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the December $47.00 call while at the same time buying MET stock for $48.87 will produce a new covered call with a target return of 4.4%. Based on recent data, this trade will cost about $45.02, which is also the covered call?s breakeven point. At that price, this covered call has 7.9% downside protection, while seeking an assigned return of 4.4% return in 148 days. If MET is higher than $47.00 on 12/21/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 10.8%. Cheesecake Factory (NASDAQ: CAKE) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $40.85 while simultaneously selling the January $41.00 call will result in a new position with a target return of 5.5%. Based on recent prices, this position will cost about $38.85, which is also the trade?s breakeven point. At that level, this covered call has 4.9% downside protection, while still providing a 5.5% return in 176 days as long as CAKE is above $41.00 on 1/18/2014. For comparison purposes only, this Cheesecake Factory covered call aims for an annualized return rate of 11.5%. Aeropostale (NYSE: ARO) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the January $14.00 call while simultaneously buying ARO stock for $14.76 will result in a new position with a break-even point around $12.71. At that price, this position has a target return of 10.1%. This trade has 13.9% downside protection, while still providing a 10.1% return in 176 days as long as ARO is above $14.00 on 1/18/2014. For comparison purposes only, this Aeropostale covered call targets an annualized return rate of 21.0%. Research In Motion (NASDAQ: BBRY) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $8.98 while selling the November $9.00 call will produce a new covered call with a break- even point around $7.89. At that price, this position has a target return of 14.1%. This trade will have roughly 12.1% downside protection, while still aiming for a 14.1% return in 113 days. It will lock in that return as long as Research In Motion is above $9.00 on 11/16/2013. For comparison purposes only, this BBRY covered call aims for an annualized return rate of 45.4%. American Capital Agency (NASDAQ: AGNC) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $21.51 while simultaneously selling the December $21.00 call will result in a new position with a target return of 5.3%. Based on recent prices, this position will cost about $19.95, which is also the trade?s breakeven point. At that level, this covered call has 7.3% downside protection, while still providing a 5.3% return in 148 days as long as AGNC is above $21.00 on 12/21/2013. For comparison purposes only, this American Capital Agency covered call aims for an annualized return rate of 13.0%. Walter Energy (NYSE: WLT) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the September $10.00 call while at the same time buying WLT stock for $10.94 will produce a new covered call with a target return of 11.9%. Based on recent data, this trade will cost about $8.94, which is also the covered call?s breakeven point. At that price, this covered call has 18.3% downside protection, while seeking an assigned return of 11.9% return in 57 days. If WLT is higher than $10.00 on 9/21/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 75.9%. Lexmark International (NYSE: LXK) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $37.04 while simultaneously selling the September $37.00 call will result in a new position with a target return of 4.5%. Based on recent prices, this position will cost about $35.39, which is also the trade?s breakeven point. At that level, this covered call has 4.5% downside protection, while still providing a 4.5% return in 57 days as long as LXK is above $37.00 on 9/21/2013. For comparison purposes only, this Lexmark International covered call aims for an annualized return rate of 29.1%. Qihoo 360 Technology (NYSE: QIHU) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the September $55.00 call while simultaneously buying QIHU stock for $62.10 will result in a new position with a break-even point around $52.40. At that price, this position has a target return of 5.0%. This trade has 15.6% downside protection, while still providing a 5.0% return in 57 days as long as QIHU is above $55.00 on 9/21/2013. For comparison purposes only, this Qihoo 360 Technology covered call targets an annualized return rate of 31.8%. *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 Activision Blizzard (ATVI), Pearson (PSO) and Starbucks (SBUX) are headed higher this morning, while Expedia (EXPE), Zynga (ZNGA) and Advantest (ATE) are heading south. DuPont Fabros Technology (DFT) and Flagstar Bancorp (FBC) were upgraded by analysts this morning, while Cerner (CERN), Zynga (ZNGA) and Freescale Semiconductor (FSL) were downgraded. MARKET OVERVIEW In Asia, Japanese stocks tumbled to close out the week as the Yen strengthened against the U.S. Dollar. The Nikkei 225 finished the overnight session with a loss of 3.0%, while most other indices in the region posted much less noteworthy results. The Shanghai SEC dropped 0.5% and the Taiwan TSEC lost 0.2%, while the Hong Kong Hang Seng added 0.3%. European markets are similarly mixed so far this morning, with the Euronext 100 up 0.2% and the French CAC 40 rising 0.5%, but the Swiss Market Index is down 0.8% and the German DAX is off 0.5%. One major mover on the continent was LVMH Moet Hennessey Louis Vuitton, which gained 4% after reporting second-quarter results. In the futures pits, West Texas Intermediate crude oil is down this morning, trading at $104.36, down 1.1%. Gasoline, heating oil and natural gas are also down smaller amounts. In metals, gold futures are off 0.3% at $1,324 while platinum is down $19.90 or 1.4% from yesterday's closing price. The U.S. Dollar is again weaker against all major global currencies and Bitcoins are holding at $96. PUT/CALL RATIO Yesterday, 1,155,473 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 683,664 put contracts. The single-session put/call was 0.59, while the 20-day moving average is now at 0.62. 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 9:55 AM Jul Michigan Sentiment - Final EARNINGS EXPECTED TODAY ABBV AON DTE HP LYB NWL SWK TYC WY 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 |
