MORNING UPDATE: PriceWatch Alerts for C and More... for 2013-06-28 |
| ------------------------------------------------------------------ MORNING UPDATE: PriceWatch Alerts for C, TWC, PM and More... June 28, 9:00 AM ET - PriceWatch Alerts for C, CAG, ABX, FLS, TWC, PM, DPZ, LFC, TJX and SNTS, Market Overview, News Leaders and Laggards, Today's Economic Calendar, and Index Support & Resistance Levels. PriceWatch Alerts for C, CAG, ABX, FLS, TWC, PM, DPZ, LFC, TJX and SNTS. Citigroup (NYSE: C) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $48.28 while selling the September $48.00 call will produce a new covered call with a break-even point around $45.54. At that price, this position has a target return of 5.4%. This trade will have roughly 5.7% downside protection, while still aiming for a 5.4% return in 85 days. It will lock in that return as long as Citigroup is above $48.00 on 9/21/2013. For comparison purposes only, this C covered call aims for an annualized return rate of 23.2%. ConAgra Foods (NYSE: CAG) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $35.04 while simultaneously selling the September $36.00 call will result in a new position with a target return of 6.1%. Based on recent prices, this position will cost about $33.94, which is also the trade?s breakeven point. At that level, this covered call has 3.1% downside protection, while still providing a 6.1% return in 85 days as long as CAG is above $36.00 on 9/21/2013. For comparison purposes only, this ConAgra Foods covered call aims for an annualized return rate of 26.0%. Barrick Gold (NYSE: ABX) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the September $14.00 call while at the same time buying ABX stock for $14.87 will produce a new covered call with a target return of 8.9%. Based on recent data, this trade will cost about $12.85, which is also the covered call?s breakeven point. At that price, this covered call has 13.6% downside protection, while seeking an assigned return of 8.9% return in 85 days. If ABX is higher than $14.00 on 9/21/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 38.4%. Flowserve (NYSE: FLS) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $54.52 while simultaneously selling the October $53.33 call will result in a new position with a target return of 4.5%. Based on recent prices, this position will cost about $51.02, which is also the trade?s breakeven point. At that level, this covered call has 6.4% downside protection, while still providing a 4.5% return in 113 days as long as FLS is above $53.33 on 10/19/2013. For comparison purposes only, this Flowserve covered call aims for an annualized return rate of 14.6%. Time Warner Cable Inc. (NYSE: TWC) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the October $105.00 call while simultaneously buying TWC stock for $108.22 will result in a new position with a break-even point around $99.72. At that price, this position has a target return of 5.3%. This trade has 7.9% downside protection, while still providing a 5.3% return in 113 days as long as TWC is above $105.00 on 10/19/2013. For comparison purposes only, this Time Warner Cable Inc. covered call targets an annualized return rate of 17.1%. Philip Morris International (NYSE: PM) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $87.78 while selling the December $87.50 call will produce a new covered call with a break- even point around $83.48. At that price, this position has a target return of 4.8%. This trade will have roughly 4.9% downside protection, while still aiming for a 4.8% return in 176 days. It will lock in that return as long as Philip Morris International is above $87.50 on 12/21/2013. For comparison purposes only, this PM covered call aims for an annualized return rate of 10.0%. Dominos Pizza (NYSE: DPZ) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $58.80 while simultaneously selling the August $60.00 call will result in a new position with a target return of 5.8%. Based on recent prices, this position will cost about $56.70, which is also the trade?s breakeven point. At that level, this covered call has 3.6% downside protection, while still providing a 5.8% return in 50 days as long as DPZ is above $60.00 on 8/17/2013. For comparison purposes only, this Dominos Pizza covered call aims for an annualized return rate of 42.5%. China Life Insurance (NYSE: LFC) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the August $35.00 call while at the same time buying LFC stock for $35.15 will produce a new covered call with a target return of 4.3%. Based on recent data, this trade will cost about $33.55, which is also the covered call?s breakeven point. At that price, this covered call has 4.6% downside protection, while seeking an assigned return of 4.3% return in 50 days. If LFC is higher than $35.00 on 8/17/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 31.5%. TJX (NYSE: TJX) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $50.12 while simultaneously selling the October $50.00 call will result in a new position with a target return of 5.0%. Based on recent prices, this position will cost about $47.62, which is also the trade?s breakeven point. At that level, this covered call has 5.0% downside protection, while still providing a 5.0% return in 113 days as long as TJX is above $50.00 on 10/19/2013. For comparison purposes only, this TJX covered call aims for an annualized return rate of 16.1%. Santarus (NASDAQ: SNTS) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the August $20.00 call while simultaneously buying SNTS stock for $21.55 will result in a new position with a break-even point around $18.75. At that price, this position has a target return of 6.7%. This trade has 13.0% downside protection, while still providing a 6.7% return in 50 days as long as SNTS is above $20.00 on 8/17/2013. For comparison purposes only, this Santarus covered call targets an annualized return rate of 48.6%. *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. 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NEWS LEADERS AND LAGGARDS Charter Communications (CHTR), First Majestic Silver (AG) and Biogen Idec (BIIB) are headed higher this morning, while Blackberry (BBRY), Accenture (ACN) and SAP (SAP) are falling. Sohu.com (SOHU) was upgraded by analysts this morning and there were no major analyst downgrades. MARKET OVERVIEW International markets were higher. The Japanese Nikkei 225 ended the day with a 3.5% gain, while the Shanghai SEC gained 1.5% on the session. Hong Kong jumped 1.8% and India ending the day 2.7% higher. Taiwan also traded higher, while Australia traded down 0.2% on the day. European markets are all trading slightly lower to close out the week. After four straight gains, European markets are trading lower, despite multiple positive news reports. In the U.K., consumer sentiment rose to its highest level since October 2010, and in Germany retail sales were better than expected during the month of May. The FTSE 100 is trading up 0.2%, while French CAC 40 is down 0.4%, the Euronext 100 is down 0.3%, and the German DAX is down 0.1%. The Swiss Market Index is unchanged. In commodities, West Texas Intermediate crude oil is up 0.1% to $97.15. Heating oil and natural gas are all trading higher, while gasoline is lower. In metals, gold is down 0.9% an ounce to $1,200.90, and copper is up 0.2% at $3.06. The US Dollar is higher against the Yen and lower against the Euro. Bitcoins are currently trading at $97.30. PUT/CALL RATIO Yesterday, 896,389 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 640,428 put contracts. The single-session put/call was 0.71, 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, resistance at $162. The Nasdaq 100 (QQQ) has support at $68 and resistance at $72. TODAY'S ECONOMIC CALENDAR 09:45 AM Jun Chicago PMI 09:55 AM Jun Michigan Sentiment - Final EARNINGS EXPECTED TODAY BBRY 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 |
