MORNING UPDATE: PriceWatch Alerts for F and More... for 2013-07-24 |
| ------------------------------------------------------------------ MORNING UPDATE: PriceWatch Alerts for F, TGT, CVX and More... July 24, 9:00 AM ET - PriceWatch Alerts for F, TGT, AMP, RAX, GGG, CVX, QCOM, EMC, TROW and BTU, Market Overview, News Leaders and Laggards, Today's Economic Calendar, and Index Support & Resistance Levels. PriceWatch Alerts for F, TGT, AMP, RAX, GGG, CVX, QCOM, EMC, TROW and BTU. Ford Motor (NYSE: F) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $16.94 while selling the December $17.00 call will produce a new covered call with a break-even point around $15.93. At that price, this position has a target return of 6.7%. This trade will have roughly 6.0% downside protection, while still aiming for a 6.7% return in 150 days. It will lock in that return as long as Ford Motor is above $17.00 on 12/21/2013. For comparison purposes only, this F covered call aims for an annualized return rate of 16.3%. Target (NYSE: TGT) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $73.25 while simultaneously selling the October $75.00 call will result in a new position with a target return of 4.3%. Based on recent prices, this position will cost about $71.93, which is also the trade?s breakeven point. At that level, this covered call has 1.8% downside protection, while still providing a 4.3% return in 87 days as long as TGT is above $75.00 on 10/19/2013. For comparison purposes only, this Target covered call aims for an annualized return rate of 17.9%. Ameriprise Financial (NYSE: AMP) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the December $85.00 call while at the same time buying AMP stock for $86.67 will produce a new covered call with a target return of 5.6%. Based on recent data, this trade will cost about $80.47, which is also the covered call?s breakeven point. At that price, this covered call has 7.2% downside protection, while seeking an assigned return of 5.6% return in 150 days. If AMP is higher than $85.00 on 12/21/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 13.7%. Rackspace Hosting (NYSE: RAX) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $44.23 while simultaneously selling the August $42.50 call will result in a new position with a target return of 4.6%. Based on recent prices, this position will cost about $40.63, which is also the trade?s breakeven point. At that level, this covered call has 8.1% downside protection, while still providing a 4.6% return in 24 days as long as RAX is above $42.50 on 8/17/2013. For comparison purposes only, this Rackspace Hosting covered call aims for an annualized return rate of 70.0%. Graco (NYSE: GGG) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the September $70.00 call while simultaneously buying GGG stock for $68.78 will result in a new position with a break-even point around $67.03. At that price, this position has a target return of 4.4%. This trade has 2.5% downside protection, while still providing a 4.4% return in 59 days as long as GGG is above $70.00 on 9/21/2013. For comparison purposes only, this Graco covered call targets an annualized return rate of 27.4%. Chevron (NYSE: CVX) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $127.26 while selling the December $130.00 call will produce a new covered call with a break-even point around $124.45. At that price, this position has a target return of 4.5%. This trade will have roughly 2.2% downside protection, while still aiming for a 4.5% return in 150 days. It will lock in that return as long as Chevron is above $130.00 on 12/21/2013. For comparison purposes only, this CVX covered call aims for an annualized return rate of 10.8%. Qualcomm (NASDAQ: QCOM) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $62.30 while simultaneously selling the October $62.50 call will result in a new position with a target return of 4.3%. Based on recent prices, this position will cost about $59.94, which is also the trade?s breakeven point. At that level, this covered call has 3.8% downside protection, while still providing a 4.3% return in 87 days as long as QCOM is above $62.50 on 10/19/2013. For comparison purposes only, this Qualcomm covered call aims for an annualized return rate of 17.9%. EMC (NYSE: EMC) 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 EMC stock for $25.33 will produce a new covered call with a target return of 5.5%. Based on recent data, this trade will cost about $23.70, which is also the covered call?s breakeven point. At that price, this covered call has 6.4% downside protection, while seeking an assigned return of 5.5% return in 178 days. If EMC 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 11.2%. T Rowe Price (NASDAQ: TROW) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $79.59 while simultaneously selling the January $80.00 call will result in a new position with a target return of 5.6%. Based on recent prices, this position will cost about $75.79, which is also the trade?s breakeven point. At that level, this covered call has 4.8% downside protection, while still providing a 5.6% return in 178 days as long as TROW is above $80.00 on 1/18/2014. For comparison purposes only, this T Rowe Price covered call aims for an annualized return rate of 11.4%. Peabody Energy (NYSE: BTU) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the December $16.00 call while simultaneously buying BTU stock for $17.14 will result in a new position with a break-even point around $14.78. At that price, this position has a target return of 8.3%. This trade has 13.8% downside protection, while still providing a 8.3% return in 150 days as long as BTU is above $16.00 on 12/21/2013. For comparison purposes only, this Peabody Energy covered call targets an annualized return rate of 20.1%. *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 VMware (VMW), Lumber Liquidators (LL) and Ilumina (ILMN) are headed higher this morning, while Broadcom (BRCM) Panera Bred (PNRA) and Canon (CAJ) are falling. EZchip Semiconductor (EZCH), Ironwood Pharmaceuticals (IRWD) and TCF Financial (TCB) were upgraded by analysts this morning, while Broadcom (BRCM), DexCom (DXCM) and Dish Network (DISH) were downgraded. MARKET OVERVIEW In overseas trading, Asian markets have put in a mixed session overnight, with Chinese stocks falling on a lower PMI report. The Indian Sensex lost 1.0% after the Reserve Bank of India took steps to strengthen their currency. Australia's All-Ordinaries and Hong Kong's Hang Seng posted small gains. In Europe, the major markets have all moved higher so far this morning. The Euronext 100, German DAX and French CAC 40 are all higher by more than 1% after PMI reports came in stronger than expected in Germany and France. In futures, West Texas Intermediate crude oil is holding steady near $107, while natural gas and heating oil are weaker. Gold futures are up $6.80 or 0.5% this morning to $1,341. Silver, copper, and platinum are all higher as well. The U.S. Dollar is weaker against the Euro but advancing against the Yen. Bitcoins have been on a bit of an upward swing topping out near $97 overnight, but dipping below $95 this morning. PUT/CALL RATIO Yesterday, 1,058,992 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 693,978 put contracts. The single-session put/call was 0.67, 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 07:00 AM 7/20 MBA Mortgage Index 10:00 AM Jun New Home Sales 10:30 AM 7/20 Crude Inventories EARNINGS EXPECTED TODAY AKAM ATI AMP ABC AIZ AVB BA COG CAT CTXS CCI DPS ETFC LLY EMC EFX FFIV FLS F GD LSI MCO MSI NDAQ NFX NOC ORLY PEP PX QCOM RRC STX SRCL TROW TE TER TMO TMK TRIP VAR V WLP WDC WYN 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 |
