MORNING UPDATE: PriceWatch Alerts for PCLN and More... for 2013-07-08 |
| ------------------------------------------------------------------ MORNING UPDATE: PriceWatch Alerts for GS, PCLN, V and More... July 8, 9:00 AM ET - PriceWatch Alerts for GS, FFIV, INTU, GILD, ACN, PCLN, V, SAP, AET and CHTR, Market Overview, News Leaders and Laggards, Today's Economic Calendar, and Index Support & Resistance Levels. PriceWatch Alerts for GS, FFIV, INTU, GILD, ACN, PCLN, V, SAP, AET, CHTR. Goldman Sachs (NYSE: GS) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $153.24 while selling the October $150.00 call will produce a new covered call with a break-even point around $142.89. At that price, this position has a target return of 5.0%. This trade will have roughly 6.8% downside protection, while still aiming for a 5.0% return in 103 days. It will lock in that return as long as Goldman Sachs is above $150.00 on 10/19/2013. For comparison purposes only, this GS covered call aims for an annualized return rate of 17.6%. F5 Networks (NASDAQ: FFIV) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $69.19 while simultaneously selling the August $67.50 call will result in a new position with a target return of 5.6%. Based on recent prices, this position will cost about $63.94, which is also the trade?s breakeven point. At that level, this covered call has 7.6% downside protection, while still providing a 5.6% return in 40 days as long as FFIV is above $67.50 on 8/17/2013. For comparison purposes only, this F5 Networks covered call aims for an annualized return rate of 50.7%. Intuit (NASDAQ: INTU) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the October $62.50 call while at the same time buying INTU stock for $62.55 will produce a new covered call with a target return of 5.0%. Based on recent data, this trade will cost about $59.55, which is also the covered call?s breakeven point. At that price, this covered call has 4.8% downside protection, while seeking an assigned return of 5.0% return in 103 days. If INTU is higher than $62.50 on 10/19/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 17.5%. Gilead Sciences (NASDAQ: GILD) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $53.32 while simultaneously selling the September $52.50 call will result in a new position with a target return of 5.5%. Based on recent prices, this position will cost about $49.77, which is also the trade?s breakeven point. At that level, this covered call has 6.7% downside protection, while still providing a 5.5% return in 75 days as long as GILD is above $52.50 on 9/21/2013. For comparison purposes only, this Gilead Sciences covered call aims for an annualized return rate of 26.7%. Accenture (NYSE: ACN) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the November $72.50 call while simultaneously buying ACN stock for $73.64 will result in a new position with a break-even point around $69.34. At that price, this position has a target return of 4.6%. This trade has 5.8% downside protection, while still providing a 4.6% return in 131 days as long as ACN is above $72.50 on 11/16/2013. For comparison purposes only, this Accenture covered call targets an annualized return rate of 12.7%. Priceline.com (NASDAQ: PCLN) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $855.16 while selling the September $855.00 call will produce a new covered call with a break-even point around $812.66. At that price, this position has a target return of 5.2%. This trade will have roughly 5.0% downside protection, while still aiming for a 5.2% return in 75 days. It will lock in that return as long as Priceline.com is above $855.00 on 9/21/2013. For comparison purposes only, this PCLN covered call aims for an annualized return rate of 25.4%. Visa (NYSE: V) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $190.79 while simultaneously selling the December $190.00 call will result in a new position with a target return of 6.5%. Based on recent prices, this position will cost about $178.39, which is also the trade?s breakeven point. At that level, this covered call has 6.5% downside protection, while still providing a 6.5% return in 166 days as long as V is above $190.00 on 12/21/2013. For comparison purposes only, this Visa covered call aims for an annualized return rate of 14.3%. SAP AG (NYSE: SAP) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the September $70.00 call while at the same time buying SAP stock for $70.77 will produce a new covered call with a target return of 4.4%. Based on recent data, this trade will cost about $67.07, which is also the covered call?s breakeven point. At that price, this covered call has 5.2% downside protection, while seeking an assigned return of 4.4% return in 75 days. If SAP is higher than $70.00 on 9/21/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 21.2%. Aetna (NYSE: AET) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $62.58 while simultaneously selling the January $60.00 call will result in a new position with a target return of 6.0%. Based on recent prices, this position will cost about $56.58, which is also the trade?s breakeven point. At that level, this covered call has 9.6% downside protection, while still providing a 6.0% return in 194 days as long as AET is above $60.00 on 1/18/2014. For comparison purposes only, this Aetna covered call aims for an annualized return rate of 11.4%. Charter Communications (NASDAQ: CHTR) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the September $125.00 call while simultaneously buying CHTR stock for $127.38 will result in a new position with a break-even point around $119.28. At that price, this position has a target return of 4.8%. This trade has 6.4% downside protection, while still providing a 4.8% return in 75 days as long as CHTR is above $125.00 on 9/21/2013. For comparison purposes only, this Charter Communications covered call targets an annualized return rate of 23.3%. *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 Turquoise Hill Resources (TRQ), Xerox (XRX) and Linn Energy (LINE) are headed higher this morning, while Brocade Communications (BRCD), Portfolio Recovery Associates (PRAA) and Northern Tier Energy (NTI) are in decline. China Unicom Limited (CHU) was upgraded by analysts this morning, while American Capital Mortgage Investment (MTGE), Cypress Sharpridge Investments (CYS) and Invesco Mortgage Capital (IVR) were downgraded. MARKET OVERVIEW In Asia, stock markets started the week in negative territory. Chinese stocks dropped precipitously after that country's cabinet released a statement that it may not stimulate growth as much as traders would like. The Shanghai SEC fell 2.4%, the Taiwan TSEC and the Nikkei 225 lost 1.4%. Other indices in the region slipped smaller amounts. On the other hand, European markets are advancing so far today, with the German DAX gaining 2.3% to lead the way higher. The French CAC 40 picked up 1.7%, the Euronext 100 added 1.5%, and the Swiss Market Index gained 1.0%. Greek markets also advanced more than 2% after an agreement was reached on bailout reforms and the possibility of growth was raised for 2014. West Texas Intermediate crude futures moved above $104 per barrel earlier today, but have now slipped 0.5% to $102.70 this morning. Gasoline and heating oil are off by a penny or so, while natural gas is higher by 1.3%. In metals, gold futures are up 1.6% to $1,232. Silver is up 2% and platinum 1.6%. The US Dollar is slightly lower against the Euro but just about flat versus the Yen. Bitcoins bounced back from their lows over the weekend near $67, but are still only valued at $76, down 25% from a month ago. PUT/CALL RATIO Friday, 701,172 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 424,061 put contracts. The single- session put/call was 0.60, while the 20-day moving average is now at 0.68. SUPPORT & RESISTANCE LEVELS The S&P 500 Depository Receipts (SPY) ETF has support at $152, resistance at $163. The Nasdaq 100 (QQQ) has support at $72.50 and resistance at $74.25. TODAY'S ECONOMIC CALENDAR 03:00 PM May Consumer Credit EARNINGS EXPECTED TODAY AA 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 |
