MORNING UPDATE: PriceWatch Alerts for PCLN and More... for 2013-07-18 |
| ------------------------------------------------------------------ MORNING UPDATE: PriceWatch Alerts for LNKD, REGN, AXP and More... July 18, 9:00 AM ET - PriceWatch Alerts for LNKD, REGN, HAL, URI, NPSP, AXP, SNDK, LINE, AMT and VRX, Market Overview, News Leaders and Laggards, Today's Economic Calendar, and Index Support & Resistance Levels. PriceWatch Alerts for LNKD, REGN, HAL, URI, NPSP, AXP, SNDK, LINE, AMT and VRX. LinkedIn (NYSE: LNKD) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $197.94 while selling the August $190.00 call will produce a new covered call with a break-even point around $181.54. At that price, this position has a target return of 4.7%. This trade will have roughly 8.3% downside protection, while still aiming for a 4.7% return in 30 days. It will lock in that return as long as LinkedIn is above $190.00 on 8/17/2013. For comparison purposes only, this LNKD covered call aims for an annualized return rate of 56.7%. Regeneron Pharmaceuticals (NASDAQ: REGN) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $269.52 while simultaneously selling the August $260.00 call will result in a new position with a target return of 4.3%. Based on recent prices, this position will cost about $249.22, which is also the trade?s breakeven point. At that level, this covered call has 7.5% downside protection, while still providing a 4.3% return in 30 days as long as REGN is above $260.00 on 8/17/2013. For comparison purposes only, this Regeneron Pharmaceuticals covered call aims for an annualized return rate of 52.6%. Halliburton (NYSE: HAL) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the September $44.00 call while at the same time buying HAL stock for $44.14 will produce a new covered call with a target return of 4.2%. Based on recent data, this trade will cost about $42.24, which is also the covered call?s breakeven point. At that price, this covered call has 4.3% downside protection, while seeking an assigned return of 4.2% return in 65 days. If HAL is higher than $44.00 on 9/21/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 23.4%. United Rentals (NYSE: URI) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $56.37 while simultaneously selling the September $55.00 call will result in a new position with a target return of 5.0%. Based on recent prices, this position will cost about $52.37, which is also the trade?s breakeven point. At that level, this covered call has 7.1% downside protection, while still providing a 5.0% return in 65 days as long as URI is above $55.00 on 9/21/2013. For comparison purposes only, this United Rentals covered call aims for an annualized return rate of 28.2%. NPS Pharmaceuticals (NASDAQ: NPSP) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the November $17.00 call while simultaneously buying NPSP stock for $18.05 will result in a new position with a break-even point around $15.70. At that price, this position has a target return of 8.3%. This trade has 13.0% downside protection, while still providing a 8.3% return in 121 days as long as NPSP is above $17.00 on 11/16/2013. For comparison purposes only, this NPS Pharmaceuticals covered call targets an annualized return rate of 25.0%. American Express (NYSE: AXP) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $76.80 while selling the January $75.00 call will produce a new covered call with a break- even point around $71.20. At that price, this position has a target return of 5.3%. This trade will have roughly 7.3% downside protection, while still aiming for a 5.3% return in 184 days. It will lock in that return as long as American Express is above $75.00 on 1/18/2014. For comparison purposes only, this AXP covered call aims for an annualized return rate of 10.6%. SanDisk (NASDAQ: SNDK) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $59.44 while simultaneously selling the October $55.00 call will result in a new position with a target return of 4.5%. Based on recent prices, this position will cost about $52.64, which is also the trade?s breakeven point. At that level, this covered call has 11.4% downside protection, while still providing a 4.5% return in 93 days as long as SNDK is above $55.00 on 10/19/2013. For comparison purposes only, this SanDisk covered call aims for an annualized return rate of 17.6%. Linn Energy (NASDAQ: LINE) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the August $27.00 call while at the same time buying LINE stock for $27.49 will produce a new covered call with a target return of 5.5%. Based on recent data, this trade will cost about $25.59, which is also the covered call?s breakeven point. At that price, this covered call has 6.9% downside protection, while seeking an assigned return of 5.5% return in 30 days. If LINE is higher than $27.00 on 8/17/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 66.9%. American Tower (NYSE: AMT) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $73.87 while simultaneously selling the October $72.50 call will result in a new position with a target return of 4.7%. Based on recent prices, this position will cost about $69.27, which is also the trade?s breakeven point. At that level, this covered call has 6.2% downside protection, while still providing a 4.7% return in 93 days as long as AMT is above $72.50 on 10/19/2013. For comparison purposes only, this American Tower covered call aims for an annualized return rate of 18.3%. Valeant Pharmaceuticals. (NYSE: VRX) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the October $85.00 call while simultaneously buying VRX stock for $91.45 will result in a new position with a break-even point around $81.25. At that price, this position has a target return of 4.6%. This trade has 11.2% downside protection, while still providing a 4.6% return in 93 days as long as VRX is above $85.00 on 10/19/2013. For comparison purposes only, this Valeant Pharmaceuticals. covered call targets an annualized return rate of 18.1%. *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 Morgan Stanley (MS), Xilinx (XLNX) and SanDisk (SNDK) are headed higher this morning, while Spirit Realty Capital (SRC), Select Comfort (SCSS) and Ebay (EBAY) are sinking. Edwards Lifesciences (EW) was upgraded by analysts this morning, while Ebay (EBAY) and Insulet (PODD) were downgraded. MARKET OVERVIEW In Asia, the markets had mixed results overnight. The Shanghai SEC dropped 1.0% and the Taiwan TSEC fell 0.8%, while the Nikkei 225 gained 1.3% and the Mumbai Sensex added 0.9%. Japanese stocks were spurred higher as the Dollar strengthened against the Yen. Chinese stocks fell after that country's finance minister released a statement that the government is unlikely to enact large stimulus policies this year. European indices are also not all headed in the same direction, but the spread is much narrower than in Asia. The FTSE 100 is up 0.4% and the French CAC 40 and the Swiss Market Index have each gained 0.2%, while the German DAX and the Belgium Bel 20 are down a small amount. SAP (SAP) and Ericsson LM (ERIC) were both big losers in Europe after weak earnings reports. In futures, yesterday West Texas Intermediate crude oil rose by the end of the day, but this morning is down slightly to $106.15. Gasoline is also off some, while heating oil and natural gas are higher. In metals, gold futures have been pretty stable for the past week and are at $1,281 this morning. The U.S. Dollar is stronger against both the Euro and the Yen, while Bitcoins fell precipitously to $89 in the early hours this morning. PUT/CALL RATIO Yesterday, 1,180,834 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 729,781 put contracts. The single-session put/call was 0.62, while the 20-day moving average is now at 0.65. 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 08:30 AM 7/13 Initial Claims 08:30 AM 7/06 Continuing Claims 10:00 AM Jul Philadelphia Fed 10:00 AM Jun Leading Indictors 10:30 AM 07/13 Natural Gas Inventories EARNINGS EXPECTED TODAY AMD APH AN BAX BBT BLK COF CMG DHR DOV FITB GPC GOOG HBAN ISRG JCI KEY MSFT MS NUE OMC PBCT PM PPG DGX SWY SHW SNA SYK UNP UNH VZ 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 |
