MORNING UPDATE: PriceWatch Alerts for COST and More... for 2013-06-26 |
| ------------------------------------------------------------------ MORNING UPDATE: PriceWatch Alerts for F, PEP, COST, and More... June 26, 9:00 AM ET - PriceWatch Alerts for F, PEP, HBC, SNE, MGA COST, PRU, SNY, LO and EBIX, Market Overview, News Leaders and Laggards, Today's Economic Calendar, and Index Support & Resistance Levels. PriceWatch Alerts for F, PEP, HBC, SNE, MGA COST, PRU, SNY, LO and EBIX. Ford Motor (NYSE: F) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $14.97 while selling the December $15.00 call will produce a new covered call with a break-even point around $13.89. At that price, this position has a target return of 8.0%. This trade will have roughly 7.2% downside protection, while still aiming for a 8.0% return in 178 days. It will lock in that return as long as Ford Motor is above $15.00 on 12/21/2013. For comparison purposes only, this F covered call aims for an annualized return rate of 16.4%. PepsiCo (NYSE: PEP) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $80.04 while simultaneously selling the October $82.50 call will result in a new position with a target return of 5.3%. Based on recent prices, this position will cost about $78.34, which is also the trade?s breakeven point. At that level, this covered call has 2.1% downside protection, while still providing a 5.3% return in 115 days as long as PEP is above $82.50 on 10/19/2013. For comparison purposes only, this PepsiCo covered call aims for an annualized return rate of 16.9%. HSBC PLC (NYSE: HBC) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the September $52.50 call while at the same time buying HBC stock for $52.04 will produce a new covered call with a target return of 4.6%. Based on recent data, this trade will cost about $50.17, which is also the covered call?s breakeven point. At that price, this covered call has 3.6% downside protection, while seeking an assigned return of 4.6% return in 87 days. If HBC is higher than $52.50 on 9/21/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 19.5%. Sony (NYSE: SNE) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the August $20.00 call while at the same time buying SNE stock for $20.40 will produce a new covered call with a target return of 6.7%. Based on recent data, this trade will cost about $18.75, which is also the covered call?s breakeven point. At that price, this covered call has 8.1% downside protection, while seeking an assigned return of 6.7% return in 52 days. If SNE is higher than $20.00 on 8/17/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 46.7%. Magna (NYSE: MGA) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the December $65.00 call while simultaneously buying MGA stock for $68.15 will result in a new position with a break-even point around $61.75. At that price, this position has a target return of 5.3%. This trade has 9.4% downside protection, while still providing a 5.3% return in 178 days as long as MGA is above $65.00 on 12/21/2013. For comparison purposes only, this Magna covered call targets an annualized return rate of 10.8%. Costco Wholesale (NASDAQ: COST) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $110.25 while selling the October $110.00 call will produce a new covered call with a break- even point around $105.50. At that price, this position has a target return of 4.3%. This trade will have roughly 4.3% downside protection, while still aiming for a 4.3% return in 115 days. It will lock in that return as long as Costco Wholesale is above $110.00 on 10/19/2013. For comparison purposes only, this COST covered call aims for an annualized return rate of 13.5%. Prudential Financial (NYSE: PRU) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $71.09 while simultaneously selling the August $70.00 call will result in a new position with a target return of 4.0%. Based on recent prices, this position will cost about $67.34, which is also the trade?s breakeven point. At that level, this covered call has 5.3% downside protection, while still providing a 4.0% return in 52 days as long as PRU is above $70.00 on 8/17/2013. For comparison purposes only, this Prudential Financial covered call aims for an annualized return rate of 27.7%. Sanofi (NYSE: SNY) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the September $50.00 call while at the same time buying SNY stock for $49.77 will produce a new covered call with a target return of 5.6%. Based on recent data, this trade will cost about $47.37, 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 5.6% return in 87 days. If SNY is higher than $50.00 on 9/21/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 23.3%. Lorillard (NYSE: LO) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $43.53 while simultaneously selling the September $42.50 call will result in a new position with a target return of 4.6%. Based on recent prices, this position will cost about $40.63, which is also the trade?s breakeven point. At that level, this covered call has 6.7% downside protection, while still providing a 4.6% return in 87 days as long as LO is above $42.50 on 9/21/2013. For comparison purposes only, this Lorillard covered call aims for an annualized return rate of 19.3%. Ebix (NASDAQ: EBIX) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the July $10.00 call while simultaneously buying EBIX stock for $10.00 will result in a new position with a break-even point around $9.00. At that price, this position has a target return of 11.1%. This trade has 10.0% downside protection, while still providing a 11.1% return in 24 days as long as EBIX is above $10.00 on 7/20/2013. For comparison purposes only, this Ebix covered call targets an annualized return rate of 169.0%. *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. 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 Synaptics (SYNA), Mannkind (MNKD) and Huntington Bancshares (HBAN) are headed higher this morning while Apollo Group (APOL), First Majestic Silver (AG) and Randgold Resources (GOLD) are going down. Mellanox Technologies (MLNX), Arm Holdings (ARMH) and Home Bancshares (HOMB) were upgraded by analysts this morning, and there were no major analyst downgrades. MARKET OVERVIEW Asian markets had a mixed overnight session, with the Nikkei 225 losing 1.0% and the Shanghai SEC and Mumbai Sensex dropping 0.4% each. Meanwhile the Hong Kong Hang Seng picked up 2.4% and the Taiwan TSEC and Australian All-Ordinaries each added 1.6%. Japanese losses were tied to the Yen strengthening, while concerns remain in China about their credit situation. In Europe, traders are upbeat again today, with the major exchanges all gaining more than 1%. The French CAC 40 and Euronext 100 are up 1.9% and the German DAX added 1.7%. German consumer confidence data improved, but for the most part European bullish action is tied to the global market ending its fall. Crude oil is relatively flat this morning, with West Texas Intermediate losing just 0.2% to trade at $95.11. Natural gas is higher by 1.2% at $3.71. Gold futures have tumbled as much as 4% and at last check are down 3.4% to $1,232. Silver is off 4.7% to $18.50, copper is down 1.0% to $3.04 and platinum has lost 1.7% this morning. The US Dollar is relatively steady against the Yen but getting stronger versus the Euro, at its highest level in June. Bitcoins remain right around $104. PUT/CALL RATIO Yesterday, 856,425 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 503,173 put contracts. The single-session put/call was 0.59, while the 20-day moving average is now at 0.67. SUPPORT & RESISTANCE LEVELS The S&P 500 Depository Receipts (SPY) ETF has support at $151, and resistance at $162. The Nasdaq 100 (QQQ) has support at $68.25 and resistance at $72. TODAY'S ECONOMIC CALENDAR 07:00 AM 6/22 MBA Mortgage Index 08:30 AM Q1 GDP - Third Estimate 08:30 AM Q1 GDP Deflator ? Third Estimate 10:30 AM 6/22 Crude Inventories EARNINGS EXPECTED TODAY BBBY GIS MON PAYX 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 |
