MORNING UPDATE: PriceWatch Alerts for HPQ and More... for 2013-07-01 |
| ------------------------------------------------------------------ MORNING UPDATE: PriceWatch Alerts for HPQ, DLTR, BA and More... July 1, 9:00 AM ET - PriceWatch Alerts for HPQ, DLTR, ABC, CREE, AEGR, BA, BMY, KSS, APOL, ANN, Market Overview, News Leaders and Laggards, Today's Economic Calendar, and Index Support & Resistance Levels. PriceWatch Alerts for HPQ, DLTR, ABC, CREE, AEGR, BA, BMY, KSS, APOL and ANN. Hewlett Packard (NYSE: HPQ) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $24.80 while selling the September $24.00 call will produce a new covered call with a break-even point around $22.68. At that price, this position has a target return of 5.8%. This trade will have roughly 8.5% downside protection, while still aiming for a 5.8% return in 82 days. It will lock in that return as long as Hewlett Packard is above $24.00 on 9/21/2013. For comparison purposes only, this HPQ covered call aims for an annualized return rate of 25.9%. Dollar Tree (NASDAQ: DLTR) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $50.84 while simultaneously selling the November $50.00 call will result in a new position with a target return of 6.1%. Based on recent prices, this position will cost about $47.14, which is also the trade?s breakeven point. At that level, this covered call has 7.3% downside protection, while still providing a 6.1% return in 138 days as long as DLTR is above $50.00 on 11/16/2013. For comparison purposes only, this Dollar Tree covered call aims for an annualized return rate of 16.0%. AmerisourceBergen (NYSE: ABC) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the November $55.00 call while at the same time buying ABC stock for $55.83 will produce a new covered call with a target return of 4.9%. Based on recent data, this trade will cost about $52.43, 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 4.9% return in 138 days. If ABC is higher than $55.00 on 11/16/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 13.0%. Cree (NASDAQ: CREE) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $63.83 while simultaneously selling the August $62.50 call will result in a new position with a target return of 7.0%. Based on recent prices, this position will cost about $58.43, which is also the trade?s breakeven point. At that level, this covered call has 8.5% downside protection, while still providing a 7.0% return in 47 days as long as CREE is above $62.50 on 8/17/2013. For comparison purposes only, this Cree covered call aims for an annualized return rate of 54.1%. Aegerion Pharmaceuticals (NASDAQ: AEGR) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the July $62.50 call while simultaneously buying AEGR stock for $63.34 will result in a new position with a break-even point around $59.24. At that price, this position has a target return of 5.5%. This trade has 6.5% downside protection, while still providing a 5.5% return in 19 days as long as AEGR is above $62.50 on 7/20/2013. For comparison purposes only, this Aegerion Pharmaceuticals covered call targets an annualized return rate of 105.7%. Boeing (NYSE: BA) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $102.44 while selling the November $100.00 call will produce a new covered call with a break-even point around $95.44. At that price, this position has a target return of 4.8%. This trade will have roughly 6.8% downside protection, while still aiming for a 4.8% return in 138 days. It will lock in that return as long as Boeing is above $100.00 on 11/16/2013. For comparison purposes only, this BA covered call aims for an annualized return rate of 12.6%. Bristol Myers (NYSE: BMY) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $44.69 while simultaneously selling the December $44.00 call will result in a new position with a target return of 5.5%. Based on recent prices, this position will cost about $41.72, which is also the trade?s breakeven point. At that level, this covered call has 6.6% downside protection, while still providing a 5.5% return in 173 days as long as BMY is above $44.00 on 12/21/2013. For comparison purposes only, this Bristol Myers covered call aims for an annualized return rate of 11.5%. Kohls (NYSE: KSS) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the October $50.00 call while at the same time buying KSS stock for $50.51 will produce a new covered call with a target return of 5.0%. Based on recent data, this trade will cost about $47.61, which is also the covered call?s breakeven point. At that price, this covered call has 5.7% downside protection, while seeking an assigned return of 5.0% return in 110 days. If KSS is higher than $50.00 on 10/19/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 16.6%. Apollo Group (NASDAQ: APOL) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $17.72 while simultaneously selling the August $17.00 call will result in a new position with a target return of 6.4%. Based on recent prices, this position will cost about $15.97, which is also the trade?s breakeven point. At that level, this covered call has 9.9% downside protection, while still providing a 6.4% return in 47 days as long as APOL is above $17.00 on 8/17/2013. For comparison purposes only, this Apollo Group covered call aims for an annualized return rate of 50.0%. Ann Taylor Stores (NYSE: ANN) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the August $33.00 call while simultaneously buying ANN stock for $33.20 will result in a new position with a break-even point around $31.50. At that price, this position has a target return of 4.8%. This trade has 5.1% downside protection, while still providing a 4.8% return in 47 days as long as ANN is above $33.00 on 8/17/2013. For comparison purposes only, this Ann Taylor Stores covered call targets an annualized return rate of 37.0%. *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 Cerner Corp (CERN), Onyx Pharmaceuticals (ONXX) and Qihoo 360 Technology (QIHU) are headed higher this morning, while News Corp (NEWSA), Research in Motion (BBRY) and Hyperdynamics (HDY) are in decline. F5 Networks (FFIV), Expeditors International of Washington (EXPD) and BASF SE (BASFY) were upgraded by analysts this morning, while UIL Holdings (UIL), Atlas Air Worldwide Holdings (AAWW) and Research in Motion (BBRY) were downgraded. MARKET OVERVIEW Asian markets headed mostly higher overnight, with the Nikkei 225 gaining 1.3%, the Mumbai Sensex adding 0.9%, and the Shanghai SEC picking up 0.8%. Optimistic news came from Japan's tankan survey as well as Taiwan PMI, but Chinese and Korean PMI both slipped. The Australian ASX fell 1.8% to lead the losing indices as mining companies and Australian banks fell sharply. In Europe, the major indices are all higher so far today after the euro-zone PMI was revised upward a tick. The English FTSE picked up 0.9%, the French CAC 40 and Euronext 100 added 0.7%, while the German DAX lagged behind, up only 0.4% after that country's PMI reading was revised lower. Crude oil is higher this morning, with West Texas Intermediate up $0.89 to $97.45, up 0.9%. Gasoline and heating oil are each higher by almost 1% as well, while natural gas is down 0.8%. Gold futures have added more than 1% to $1,238, while copper is up 3.3% to $3.15. The US Dollar is stronger against the Yen but weaker against the Euro, while Bitcoins are trading near Friday's lows at $95. PUT/CALL RATIO Friday, 833,558 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 546,963 put contracts. The single- session put/call was 0.66, 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 $151.50, resistance at $162.50. The Nasdaq 100 (QQQ) has support at $68.50 and resistance at $72. TODAY'S ECONOMIC CALENDAR 10:00 AM Jun ISM Index 10:00 AM May Construction Spending EARNINGS EXPECTED TODAY There are no major earnings announcements scheduled for today. 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 |
