MORNING UPDATE: PriceWatch Alerts for BUD and More... for 2013-06-14 |
| ------------------------------------------------------------------ MORNING UPDATE: PriceWatch Alerts for BUD, VZ, FSLR, and More... June 14, 9:00 AM ET - PriceWatch Alerts for BUD, GSK, COF, SWY, ONXX, VZ, BA, BEAM, FSLR and NPSP, Market Overview, News Leaders and Laggards, Today's Economic Calendar, and Index Support & Resistance Levels. PriceWatch Alerts for BUD, GSK, COF, SWY, ONXX, VZ, BA, BEAM, FSLR and NPSP. Anheuser-Busch InBev (NYSE: BUD) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $93.27 while selling the September $92.50 call will produce a new covered call with a break-even point around $88.67. At that price, this position has a target return of 4.3%. This trade will have roughly 4.9% downside protection, while still aiming for a 4.3% return in 99 days. It will lock in that return as long as Anheuser-Busch InBev is above $92.50 on 9/21/2013. For comparison purposes only, this BUD covered call aims for an annualized return rate of 15.9%. GlaxoSmithKline PLC (NYSE: GSK) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $52.86 while simultaneously selling the November $55.00 call will result in a new position with a target return of 6.4%. Based on recent prices, this position will cost about $51.71, which is also the trade?s breakeven point. At that level, this covered call has 2.2% downside protection, while still providing a 6.4% return in 155 days as long as GSK is above $55.00 on 11/16/2013. For comparison purposes only, this GlaxoSmithKline PLC covered call aims for an annualized return rate of 15.0%. Capital One (NYSE: COF) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the December $60.00 call while at the same time buying COF stock for $62.35 will produce a new covered call with a target return of 6.1%. Based on recent data, this trade will cost about $56.55, which is also the covered call?s breakeven point. At that price, this covered call has 9.3% downside protection, while seeking an assigned return of 6.1% return in 190 days. If COF is higher than $60.00 on 12/21/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 11.7%. Safeway (NYSE: SWY) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $24.82 while simultaneously selling the September $24.00 call will result in a new position with a target return of 5.9%. Based on recent prices, this position will cost about $22.67, which is also the trade?s breakeven point. At that level, this covered call has 8.7% downside protection, while still providing a 5.9% return in 99 days as long as SWY is above $24.00 on 9/21/2013. For comparison purposes only, this Safeway covered call aims for an annualized return rate of 21.6%. Onyx Pharmaceuticals (NASDAQ: ONXX) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the July $87.50 call while simultaneously buying ONXX stock for $89.34 will result in a new position with a break-even point around $84.14. At that price, this position has a target return of 4.0%. This trade has 5.8% downside protection, while still providing a 4.0% return in 36 days as long as ONXX is above $87.50 on 7/20/2013. For comparison purposes only, this Onyx Pharmaceuticals covered call targets an annualized return rate of 40.5%. Verizon Communications (NYSE: VZ) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $50.64 while selling the October $52.50 call will produce a new covered call with a break- even point around $49.45. At that price, this position has a target return of 6.2%. This trade will have roughly 2.3% downside protection, while still aiming for a 6.2% return in 127 days. It will lock in that return as long as Verizon Communications is above $52.50 on 10/19/2013. For comparison purposes only, this VZ covered call aims for an annualized return rate of 17.7%. Boeing (NYSE: BA) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $102.16 while simultaneously selling the November $100.00 call will result in a new position with a target return of 5.4%. Based on recent prices, this position will cost about $94.91, which is also the trade?s breakeven point. At that level, this covered call has 7.1% downside protection, while still providing a 5.4% return in 155 days as long as BA is above $100.00 on 11/16/2013. For comparison purposes only, this Boeing covered call aims for an annualized return rate of 12.6%. Beam (NYSE: BEAM) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the September $65.00 call while at the same time buying BEAM stock for $65.22 will produce a new covered call with a target return of 4.8%. Based on recent data, this trade will cost about $62.02, which is also the covered call?s breakeven point. At that price, this covered call has 4.9% downside protection, while seeking an assigned return of 4.8% return in 99 days. If BEAM is higher than $65.00 on 9/21/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 17.7%. First Solar (NASDAQ: FSLR) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $45.85 while simultaneously selling the July $46.00 call will result in a new position with a target return of 9.5%. Based on recent prices, this position will cost about $42.00, which is also the trade?s breakeven point. At that level, this covered call has 8.4% downside protection, while still providing a 9.5% return in 36 days as long as FSLR is above $46.00 on 7/20/2013. For comparison purposes only, this First Solar covered call aims for an annualized return rate of 96.5%. NPS Pharmaceuticals (NASDAQ: NPSP) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the November $15.00 call while simultaneously buying NPSP stock for $15.30 will result in a new position with a break-even point around $13.55. At that price, this position has a target return of 10.7%. This trade has 11.4% downside protection, while still providing a 10.7% return in 155 days as long as NPSP is above $15.00 on 11/16/2013. For comparison purposes only, this NPS Pharmaceuticals covered call targets an annualized return rate of 25.2%. *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 Restoration Hardware (RH), SolarCity (SCTY) and Groupon (GRPN) are headed higher this morning, while Aluminum Corporation of China (ACH), Mitsubishi Financial Group (MTU) and Goodyear Tire and Rubber (GT) are headed lower. M&T Bank Corporation (MTB) and Gamestop (GME) were upgraded by analysts this morning. Williams Partners (WPZ), Wells Fargo (WFC) and Fidelity National Information Services (FIS) were downgraded. MARKET OVERVIEW The international markets followed the example set by the U.S. yesterday and rebounded overnight. Asian indices were mostly higher, led by the Japanese Nikkei, Mumbai Sensex, and Australian All-Ordinaries, each of which picked up 1.9%. The Taiwan TSEC was the lone holdout in negative territory, down 0.2%. In Europe, stocks have also made gains so far today with the German DAX up 0.5% and the rest of the major continental exchanges up a smaller amount. European first-quarter employment rate data put a damper on gains as it was down 0.5% for the entire Euro- zone. West Texas Intermediate crude oil is up 0.5% to $97.16 so far this morning and heating oil and gasoline are likewise up a small percentage. Metals are relatively unchanged, with gold futures holding at $1,380. In currencies, the US Dollar continues to strengthen against the Yen and the Euro. Bitcoins are trading near $103 after falling sharply yesterday afternoon. PUT/CALL RATIO Yesterday, 777,567 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 486,640 put contracts. The single-session put/call was 0.63, while the 20-day moving average is now at 0.63. SUPPORT & RESISTANCE LEVELS The S&P 500 Depository Receipts (SPY) ETF has support at $162, resistance at $167. The Nasdaq 100 (QQQ) has support at $73 and resistance at $74.25. TODAY'S ECONOMIC CALENDAR 08:30 AM May PPI 08:30 AM May Core PPI 08:30 AM Q1 Current Account Balance 09:15 AM May Industrial Production 09:15 AM May Capacity Utilization 09:55 AM Jun Mich Sentiment EARNINGS EXPECTED TODAY NGL 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. 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