MORNING UPDATE: PriceWatch Alerts for CELG and More... for 2013-06-24 |
| ------------------------------------------------------------------ MORNING UPDATE: PriceWatch Alerts for CELG, MS, OMX and More... June 24, 9:00 AM ET - PriceWatch Alerts for CELG, CAR, BID, MPEL, OMX, MS, WYNN, GG, MT and NKTR, Market Overview, News Leaders and Laggards, Today's Economic Calendar, and Index Support & Resistance Levels. PriceWatch Alerts for CELG, CAR, BID, MPEL, OMX, MS, WYNN, GG, MT and NKTR. Celgene (NASDAQ: CELG) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $113.89 while selling the October $110.00 call will produce a new covered call with a break-even point around $101.89. At that price, this position has a target return of 8.0%. This trade will have roughly 10.5% downside protection, while still aiming for a 8.0% return in 117 days. It will lock in that return as long as Celgene is above $110.00 on 10/19/2013. For comparison purposes only, this CELG covered call aims for an annualized return rate of 24.8%. Avis Budget (NYSE: CAR) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $28.09 while simultaneously selling the August $28.00 call will result in a new position with a target return of 7.5%. Based on recent prices, this position will cost about $26.04, which is also the trade?s breakeven point. At that level, this covered call has 7.3% downside protection, while still providing a 7.5% return in 54 days as long as CAR is above $28.00 on 8/17/2013. For comparison purposes only, this Avis Budget covered call aims for an annualized return rate of 50.8%. Sotheby's (NYSE: BID) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the October $37.00 call while at the same time buying BID stock for $37.41 will produce a new covered call with a target return of 8.2%. Based on recent data, this trade will cost about $34.21, which is also the covered call?s breakeven point. At that price, this covered call has 8.6% downside protection, while seeking an assigned return of 8.2% return in 117 days. If BID is higher than $37.00 on 10/19/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 25.4%. Melco PBL Entertainment Macau (NASDAQ: MPEL) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the October $22.00 call while simultaneously buying MPEL stock for $22.49 will result in a new position with a break-even point around $20.19. At that price, this position has a target return of 9.0%. This trade has 10.2% downside protection, while still providing a 9.0% return in 117 days as long as MPEL is above $22.00 on 10/19/2013. For comparison purposes only, this Melco PBL Entertainment Macau covered call targets an annualized return rate of 28.0%. OfficeMax (NYSE: OMX) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $10.40 while selling the November $10.00 call will produce a new covered call with a break-even point around $8.20. At that price, this position has a target return of 22.0%. This trade will have roughly 21.2% downside protection, while still aiming for a 22.0% return in 145 days. It will lock in that return as long as OfficeMax is above $10.00 on 11/16/2013. For comparison purposes only, this OMX covered call aims for an annualized return rate of 55.3%. Morgan Stanley (NYSE: MS) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $24.91 while simultaneously selling the August $24.00 call will result in a new position with a target return of 4.4%. Based on recent prices, this position will cost about $22.99, which is also the trade?s breakeven point. At that level, this covered call has 7.7% downside protection, while still providing a 4.4% return in 54 days as long as MS is above $24.00 on 8/17/2013. For comparison purposes only, this Morgan Stanley covered call aims for an annualized return rate of 29.7%. Wynn Resorts (NASDAQ: WYNN) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the September $125.00 call while at the same time buying WYNN stock for $129.69 will produce a new covered call with a target return of 4.0%. Based on recent data, this trade will cost about $120.14, which is also the covered call?s breakeven point. At that price, this covered call has 7.4% downside protection, while seeking an assigned return of 4.0% return in 89 days. If WYNN is higher than $125.00 on 9/21/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 16.6%. Goldcorp (NYSE: GG) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the October $24.00 call while simultaneously buying GG stock for $24.59 will result in a new position with a break-even point around $21.92. At that price, this position has a target return of 9.5%. This trade has 10.9% downside protection, while still providing a 9.5% return in 117 days as long as GG is above $24.00 on 10/19/2013. For comparison purposes only, this Goldcorp covered call targets an annualized return rate of 29.6%. Arcelor Mittal (NYSE: MT) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $11.53 while selling the January $11.00 call will produce a new covered call with a break-even point around $9.91. At that price, this position has a target return of 11.0%. This trade will have roughly 14.1% downside protection, while still aiming for a 11.0% return in 208 days. It will lock in that return as long as Arcelor Mittal is above $11.00 on 1/18/2014. For comparison purposes only, this MT covered call aims for an annualized return rate of 19.3%. Nektar Therapeutics (NASDAQ: NKTR) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $11.00 while simultaneously selling the November $11.00 call will result in a new position with a target return of 17.0%. Based on recent prices, this position will cost about $9.40, which is also the trade?s breakeven point. At that level, this covered call has 14.5% downside protection, while still providing a 17.0% return in 145 days as long as NKTR is above $11.00 on 11/16/2013. For comparison purposes only, this Nektar Therapeutics covered call aims for an annualized return rate of 42.8%. *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 Vanguard Health System (VHS), Stratasys (SSYS) and MDC Holdings (MDC) are headed higher this morning, while ISIS Pharmaceuticals (ISIS) GameStop (GME) and NTT DOCOMO (DCM) are headed lower. Westlake Chemical (WLK), PHH Corp (PHH) and Advanced Micro Devices (AMD) were upgraded by analysts this morning, while RealD (RLD) and Walgreens (WAG) were downgraded. MARKET OVERVIEW Asian had a rough start to the new week as the Shanghai SEC dropped more than 5% overnight. The Chinese government told its major banks to improve their balance sheets and made no moves to loosen their policy. A spike in short-term interest rates and slowing Chinese growth are also being blamed. Elsewhere in the region, the Hong Kong Hang Seng dropped 2.8% and the Japanese Nikkei 225 lost 1.3%. In Europe, stock markets have also fallen sharply at last check. The Euronext 100, the Swiss Market Index and the French CAC 40 are each off 1.9%, the German DAX is down 1.5% and the FTSE 100 has fallen 1.4%. Despite German business confidence readings increasing, concern about the US taper and Asian weakness is dragging on European issues. Crude oil is holding relatively steady this morning, with West Texas Intermediate down $0.32 to $93.37, down 0.3%. Gasoline is also lower, but heating oil and natural gas are each up slightly. Gold futures are down almost 1% at $1,280. The US Dollar is gaining against most major international currencies, including the Euro and the Yen, while Bitcoins are weak this morning, trading near $102.00. PUT/CALL RATIO Friday, 1,517,087 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 1,247,238 put contracts. The single-session put/call was 0.82, 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 $164, resistance at $167. The Nasdaq 100 (QQQ) has support at $72.50 and resistance at $74.25. TODAY'S ECONOMIC CALENDAR There are no major economic reports scheduled today. EARNINGS EXPECTED TODAY There are no major earnings announcements scheduled 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 |
