MORNING UPDATE: PriceWatch Alerts for IBM and More... for 2013-07-12 |
| ------------------------------------------------------------------ MORNING UPDATE: PriceWatch Alerts for IBM, DTV, MNST and More... July 12, 9:00 AM ET - PriceWatch Alerts for IBM, NKE, MNST, URBN, EI, DTV, ADBE, PETM, LLY and AU, Market Overview, News Leaders and Laggards, Today's Economic Calendar, and Index Support & Resistance Levels. PriceWatch Alerts for IBM, NKE, MNST, URBN, EI, DTV, ADBE, PETM, LLY and AU. International Business Machines (NYSE: IBM) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $192.80 while selling the October $195.00 call will produce a new covered call with a break- even point around $186.20. At that price, this position has a target return of 4.7%. This trade will have roughly 3.4% downside protection, while still aiming for a 4.7% return in 99 days. It will lock in that return as long as International Business Machines is above $195.00 on 10/19/2013. For comparison purposes only, this IBM covered call aims for an annualized return rate of 17.4%. Nike (NYSE: NKE) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $63.72 while simultaneously selling the January $62.50 call will result in a new position with a target return of 5.7%. Based on recent prices, this position will cost about $59.12, which is also the trade?s breakeven point. At that level, this covered call has 7.2% downside protection, while still providing a 5.7% return in 190 days as long as NKE is above $62.50 on 1/18/2014. For comparison purposes only, this Nike covered call aims for an annualized return rate of 11.0%. Monster Beverage (NASDAQ: MNST) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the August $60.00 call while at the same time buying MNST stock for $60.45 will produce a new covered call with a target return of 4.6%. Based on recent data, this trade will cost about $57.35, which is also the covered call?s breakeven point. At that price, this covered call has 5.1% downside protection, while seeking an assigned return of 4.6% return in 36 days. If MNST is higher than $60.00 on 8/17/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 46.8%. Urban Outfitters (NASDAQ: URBN) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $43.17 while simultaneously selling the September $43.00 call will result in a new position with a target return of 5.3%. Based on recent prices, this position will cost about $40.82, which is also the trade?s breakeven point. At that level, this covered call has 5.4% downside protection, while still providing a 5.3% return in 71 days as long as URBN is above $43.00 on 9/21/2013. For comparison purposes only, this Urban Outfitters covered call aims for an annualized return rate of 27.5%. Estee Lauder (NYSE: El) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the October $67.50 call while simultaneously buying El stock for $68.06 will result in a new position with a break-even point around $64.36. At that price, this position has a target return of 4.9%. This trade has 5.4% downside protection, while still providing a 4.9% return in 99 days as long as El is above $67.50 on 10/19/2013. For comparison purposes only, this Estee Lauder covered call targets an annualized return rate of 18.0%. DirecTV (NASDAQ: DTV) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $64.40 while selling the December $62.50 call will produce a new covered call with a break-even point around $58.65. At that price, this position has a target return of 6.6%. This trade will have roughly 8.9% downside protection, while still aiming for a 6.6% return in 162 days. It will lock in that return as long as DirecTV is above $62.50 on 12/21/2013. For comparison purposes only, this DTV covered call aims for an annualized return rate of 14.8%. Adobe Systems (NASDAQ: ADBE) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $47.99 while simultaneously selling the October $47.00 call will result in a new position with a target return of 4.5%. Based on recent prices, this position will cost about $44.99, which is also the trade?s breakeven point. At that level, this covered call has 6.3% downside protection, while still providing a 4.5% return in 99 days as long as ADBE is above $47.00 on 10/19/2013. For comparison purposes only, this Adobe Systems covered call aims for an annualized return rate of 16.4%. PetSmart (NASDAQ: PETM) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the January $70.00 call while at the same time buying PETM stock for $71.74 will produce a new covered call with a target return of 5.2%. Based on recent data, this trade will cost about $66.54, 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 5.2% return in 190 days. If PETM is higher than $70.00 on 1/18/2014, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 10.0%. Eli Lilly (NYSE: LLY) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $51.54 while simultaneously selling the August $52.50 call will result in a new position with a target return of 4.2%. Based on recent prices, this position will cost about $50.38, which is also the trade?s breakeven point. At that level, this covered call has 2.3% downside protection, while still providing a 4.2% return in 36 days as long as LLY is above $52.50 on 8/17/2013. For comparison purposes only, this Eli Lilly covered call aims for an annualized return rate of 42.6%. AngloGold Ashanti (NYSE: AU) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the October $13.00 call while simultaneously buying AU stock for $13.31 will result in a new position with a break-even point around $11.91. At that price, this position has a target return of 9.2%. This trade has 10.5% downside protection, while still providing a 9.2% return in 99 days as long as AU is above $13.00 on 10/19/2013. For comparison purposes only, this AngloGold Ashanti covered call targets an annualized return rate of 33.7%. *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 WebMD Health (WBMD), Spreadtrum Communications (SPRD) and Xilinx (XLNX) are headed higher this morning, while Canadian Solar (CSIQ), Gold Resource Corp (GORO) and Synovus Financial (SNV) are in decline. Rose Rock Midstream (RRMS) and Quality Systems (QSII) were upgraded by analysts this morning, while Discovery Communications (DISCA) and SodaStream (SODA) were downgraded. MARKET OVERVIEW Asian markets recorded a mixed performance overnight. China's Shanghai SEC lost 1.6% and the Hong Kong Hang Seng fell 0.8%. However, India's Sensex rose 1.4%, the Taiwan TSEC added 0.5%, and the Nikkei 225 finished with smaller gains. China's finance minister gave official growth projections for that country that came in lower than previous estimates, but ruled out a "hard- landing". In Europe, the mood is positive for the major indices. At last check, the German DAX is up 0.9%, the Swiss Market Index is higher by 0.6%, and the French CAC 40 and British FTSE have risen 0.3%. West Texas Intermediate crude oil futures pulled back some yesterday, but are back on the route higher this morning at $105.38, up $0.47. Gasoline heating oil, and natural gas are all higher as well. In metals, gold futures have given up some of yesterday's gains, down to $1,271 at last check this morning. The U.S. Dollar is higher against the Euro and the Yen, and Bitcoins have moved sharply higher again, trading at $100. PUT/CALL RATIO Yesterday, 1,088,343 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 625,051 put contracts. The single-session put/call was 0.57, 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 $163 and is above resistance. The Nasdaq 100 (QQQ) has support at $72.50 and is above resistance. TODAY'S ECONOMIC CALENDAR 08:30 AM Jun PPI 08:30 AM Jun Core PPI 09:55 AM Jul Mich Sentiment EARNINGS EXPECTED TODAY JPM WFC 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 |
