MORNING UPDATE: PriceWatch Alerts for DIS and More... for 2013-07-11 |
| ------------------------------------------------------------------ MORNING UPDATE: PriceWatch Alerts for DIS, ORCL, SPWR and More... July 11, 9:00 AM ET - PriceWatch Alerts for DIS, TMUS, BBY, COH, SODA, ORCL, SPWR, FCX, CTRP and PCYC, Market Overview, News Leaders and Laggards, Today's Economic Calendar, and Index Support & Resistance Levels. PriceWatch Alerts for DIS, TMUS, BBY, COH, SODA, ORCL, SPWR, FCX, CTRP and PCYC. Walt Disney (NYSE: DIS) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $64.91 while selling the October $65.00 call will produce a new covered call with a break-even point around $61.97. At that price, this position has a target return of 4.9%. This trade will have roughly 4.5% downside protection, while still aiming for a 4.9% return in 100 days. It will lock in that return as long as Walt Disney is above $65.00 on 10/19/2013. For comparison purposes only, this DIS covered call aims for an annualized return rate of 17.8%. T-Mobile US (NYSE: TMUS) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $24.42 while simultaneously selling the August $24.00 call will result in a new position with a target return of 6.7%. Based on recent prices, this position will cost about $22.50, which is also the trade?s breakeven point. At that level, this covered call has 7.9% downside protection, while still providing a 6.7% return in 37 days as long as TMUS is above $24.00 on 8/17/2013. For comparison purposes only, this T- Mobile US covered call aims for an annualized return rate of 65.7%. Best Buy (NYSE: BBY) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the August $28.00 call while at the same time buying BBY stock for $28.47 will produce a new covered call with a target return of 4.4%. Based on recent data, this trade will cost about $26.82, which is also the covered call?s breakeven point. At that price, this covered call has 5.8% downside protection, while seeking an assigned return of 4.4% return in 37 days. If BBY is higher than $28.00 on 8/17/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 43.3%. Coach (NYSE: COH) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $58.60 while simultaneously selling the November $55.00 call will result in a new position with a target return of 4.6%. Based on recent prices, this position will cost about $52.60, which is also the trade?s breakeven point. At that level, this covered call has 10.2% downside protection, while still providing a 4.6% return in 128 days as long as COH is above $55.00 on 11/16/2013. For comparison purposes only, this Coach covered call aims for an annualized return rate of 13.0%. SodaStream (NASDAQ: SODA) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the August $60.00 call while simultaneously buying SODA stock for $62.79 will result in a new position with a break-even point around $56.69. At that price, this position has a target return of 5.8%. This trade has 9.7% downside protection, while still providing a 5.8% return in 37 days as long as SODA is above $60.00 on 8/17/2013. For comparison purposes only, this SodaStream covered call targets an annualized return rate of 57.5%. Oracle (NASDAQ: ORCL) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $31.23 while selling the December $30.00 call will produce a new covered call with a break-even point around $28.55. At that price, this position has a target return of 5.1%. This trade will have roughly 8.6% downside protection, while still aiming for a 5.1% return in 163 days. It will lock in that return as long as Oracle is above $30.00 on 12/21/2013. For comparison purposes only, this ORCL covered call aims for an annualized return rate of 11.4%. SunPower (NASDAQ: SPWR) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $23.84 while simultaneously selling the August $21.00 call will result in a new position with a target return of 5.1%. Based on recent prices, this position will cost about $19.99, which is also the trade?s breakeven point. At that level, this covered call has 16.1% downside protection, while still providing a 5.1% return in 37 days as long as SPWR is above $21.00 on 8/17/2013. For comparison purposes only, this SunPower covered call aims for an annualized return rate of 49.8%. Freeport McMoran (NYSE: FCX) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the September $27.00 call while at the same time buying FCX stock for $27.60 will produce a new covered call with a target return of 4.2%. Based on recent data, this trade will cost about $25.91, which is also the covered call?s breakeven point. At that price, this covered call has 6.1% downside protection, while seeking an assigned return of 4.2% return in 72 days. If FCX is higher than $27.00 on 9/21/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 21.3%. Ctrip.com (NASDAQ: CTRP) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $33.85 while simultaneously selling the August $32.00 call will result in a new position with a target return of 4.7%. Based on recent prices, this position will cost about $30.55, which is also the trade?s breakeven point. At that level, this covered call has 9.7% downside protection, while still providing a 4.7% return in 37 days as long as CTRP is above $32.00 on 8/17/2013. For comparison purposes only, this Ctrip.com covered call aims for an annualized return rate of 46.8%. Pharmacyclics (NASDAQ: PCYC) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the August $95.00 call while simultaneously buying PCYC stock for $100.26 will result in a new position with a break-even point around $91.06. At that price, this position has a target return of 4.3%. This trade has 9.2% downside protection, while still providing a 4.3% return in 37 days as long as PCYC is above $95.00 on 8/17/2013. For comparison purposes only, this Pharmacyclics covered call targets an annualized return rate of 42.6%. *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 Bridgepoint Education (BPI), Allied Nevada Gold (ANV) and Advanced Micro Devices (AMD) are trading higher this morning, while Ignite Restaurant Group (IRG), Stone Energy (SGY) and Amarin (AMRN) are headed lower. MFA Financial (MFA) and Finisar (FNSR) were upgraded by analysts this morning, while Hatteras Financial (HTS), Lender Processing Services (LPS) and American Capital Agency Corp (AGNC) were downgraded. MARKET OVERVIEW Asian indices made large gains overnight. China's Shanghai SEC gained 3.3%, the Hong Kong Hang Seng and Taiwan TSEC jumped more than 2%, but the Nikkei 225 added just 0.4%. Mining stocks were among the largest gainers since it seems like the U.S. Fed is still in stimulus mode. European markets followed suit and at last check this morning, with only Greek and Portuguese indices in the red. The German DAX is up 1.2%, while the French CAC 40, the FTSE 100 and Euronext 100 are all higher by 0.6%. West Texas Intermediate crude oil futures continued their ascent yesterday, trading as high as $107.45 before falling back this morning to $106.52. After having a wide spread for months, WTI is approaching a similar price as Brent crude recently. Gasoline and natural gas are both lower, but heating oil is advancing this morning. In metals, gold futures have moved higher on the Fed uncertainty, up to $1,280 today, off their highs, but still up more than 2.5%. The U.S. Dollar is weaker across the board and Bitcoins have gained 9% since yesterday's Fed minutes, currently trading at $85. PUT/CALL RATIO Yesterday, 909,653 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 520,132 put contracts. The single-session put/call was 0.57, while the 20-day moving average is now at 0.66. SUPPORT & RESISTANCE LEVELS The S&P 500 Depository Receipts (SPY) ETF has support at $163, resistance at $167. The Nasdaq 100 (QQQ) has support at $72.50 and resistance at $74.25. TODAY'S ECONOMIC CALENDAR 08:30 AM 7/06 Initial Claims 08:30 AM 6/29 Continuing Claims 08:30 AM Jun Export Prices ex-ag 08:30 AM Jun Import Prices ex-oil 10:30 AM 7/06 Natural Gas Inventories 02:00 PM Jun Treasury Budget EARNINGS EXPECTED TODAY INDB 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. 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