MORNING UPDATE: PriceWatch Alerts for YHOO and More... for 2013-06-13 |
| ------------------------------------------------------------------ MORNING UPDATE: PriceWatch Alerts for WMT, YHOO, EBAY and More... June 13, 9:00 AM ET - PriceWatch Alerts for WMT, YHOO, KLAC, ULTA, LYV, EBAY, CMCSA, SE, MDRX and SLXP, Market Overview, News Leaders and Laggards, Today's Economic Calendar, and Index Support & Resistance Levels. PriceWatch Alerts for WMT, YHOO, KLAC, ULTA, LYV, EBAY, CMCSA, SE, MDRX and SLXP. Walmart Stores (NYSE: WMT) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $74.84 while selling the September $77.50 call will produce a new covered call with a break-even point around $73.59. At that price, this position has a target return of 5.3%. This trade will have roughly 1.7% downside protection, while still aiming for a 5.3% return in 100 days. It will lock in that return as long as Walmart Stores is above $77.50 on 9/21/2013. For comparison purposes only, this WMT covered call aims for an annualized return rate of 19.4%. Yahoo (NASDAQ: YHOO) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $25.89 while simultaneously selling the July $25.00 call will result in a new position with a target return of 4.2%. Based on recent prices, this position will cost about $23.99, which is also the trade?s breakeven point. At that level, this covered call has 7.3% downside protection, while still providing a 4.2% return in 37 days as long as YHOO is above $25.00 on 7/20/2013. For comparison purposes only, this Yahoo covered call aims for an annualized return rate of 41.5%. KLA Tencor (NASDAQ: KLAC) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the September $55.00 call while at the same time buying KLAC stock for $55.18 will produce a new covered call with a target return of 5.6%. Based on recent data, this trade will cost about $52.08, which is also the covered call?s breakeven point. At that price, this covered call has 5.6% downside protection, while seeking an assigned return of 5.6% return in 100 days. If KLAC is higher than $55.00 on 9/21/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 20.4%. Ulta Salon Cosmetics (NASDAQ: ULTA) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $96.64 while simultaneously selling the September $95.00 call will result in a new position with a target return of 6.5%. Based on recent prices, this position will cost about $89.24, which is also the trade?s breakeven point. At that level, this covered call has 7.7% downside protection, while still providing a 6.5% return in 100 days as long as ULTA is above $95.00 on 9/21/2013. For comparison purposes only, this Ulta Salon Cosmetics covered call aims for an annualized return rate of 23.5%. Live Nation (NYSE: LYV) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the October $16.00 call while simultaneously buying LYV stock for $16.17 will result in a new position with a break-even point around $14.72. At that price, this position has a target return of 8.7%. This trade has 9.0% downside protection, while still providing a 8.7% return in 128 days as long as LYV is above $16.00 on 10/19/2013. For comparison purposes only, this Live Nation covered call targets an annualized return rate of 24.8%. eBay (NASDAQ: EBAY) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $50.75 while selling the August $50.00 call will produce a new covered call with a break-even point around $47.65. At that price, this position has a target return of 4.9%. This trade will have roughly 6.1% downside protection, while still aiming for a 4.9% return in 65 days. It will lock in that return as long as eBay is above $50.00 on 8/17/2013. For comparison purposes only, this EBAY covered call aims for an annualized return rate of 27.7%. Comcast (NASDAQ: CMCSA) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $39.52 while simultaneously selling the October $39.00 call will result in a new position with a target return of 5.0%. Based on recent prices, this position will cost about $37.15, which is also the trade?s breakeven point. At that level, this covered call has 6.0% downside protection, while still providing a 5.0% return in 128 days as long as CMCSA is above $39.00 on 10/19/2013. For comparison purposes only, this Comcast covered call aims for an annualized return rate of 14.2%. Spectra Energy (NYSE: SE) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the September $34.00 call while at the same time buying SE stock for $33.68 will produce a new covered call with a target return of 5.0%. Based on recent data, this trade will cost about $32.38, which is also the covered call?s breakeven point. At that price, this covered call has 3.9% downside protection, while seeking an assigned return of 5.0% return in 100 days. If SE is higher than $34.00 on 9/21/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 18.3%. Allscripts Healthcare Solutions (NASDAQ: MDRX) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $13.22 while simultaneously selling the December $13.00 call will result in a new position with a target return of 10.5%. Based on recent prices, this position will cost about $11.77, which is also the trade?s breakeven point. At that level, this covered call has 11.0% downside protection, while still providing a 10.5% return in 191 days as long as MDRX is above $13.00 on 12/21/2013. For comparison purposes only, this Allscripts Healthcare Solutions covered call aims for an annualized return rate of 20.0%. Salix Pharmaceuticals (NASDAQ: SLXP) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the October $65.00 call while simultaneously buying SLXP stock for $65.04 will result in a new position with a break-even point around $61.34. At that price, this position has a target return of 6.0%. This trade has 5.7% downside protection, while still providing a 6.0% return in 128 days as long as SLXP is above $65.00 on 10/19/2013. For comparison purposes only, this Salix Pharmaceuticals covered call targets an annualized return rate of 17.0%. *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 Belo (BLC), Safeway (SWY) and Spreadtrum (SPRD) are headed higher this morning, while Elan Corporation (ELN), Williams (WMB) and Halcon Resources (HK) are in decline. Gilead Sciences (GILD) and Celgene (CELG) were upgraded by analysts this morning. There were no major analyst downgrades. MARKET OVERVIEW In Asia, things were dreary overnight as all the major indices dropped, many by a significant amount. The Japanese Nikkei lost 6.4% for the session, while the Shanghai SEC fell 2.8%. The Hong Kong Hang Seng and the Taiwan TSEC each dropped more than 2% also. The U.S. dollar strengthened significantly against the Yen, causing weakness in Japanese exporters. The Nikkei is now down more than 20% from its peak just three weeks ago. European stocks have also slipped so far today, following the lead set by the U.S. yesterday and Asia overnight. The German DAX is down 1.4% at last check, while the Euronext 100 and FTSE 100 are each off by 0.8%. Royal Bank of Scotland (RBS) was a big loser, off almost 4% after its CEO announced his intentions to leave that post. Energy futures are lower across the board this morning, with WTI crude oil down 0.6% to $95.33. Heating oil and gasoline are down small amounts, while natural gas is down 1.3%. In metals, gold is down 0.6%, and platinum has fallen 1.7%. In currencies, the US Dollar has made sharp gains of 6% since the beginning of June and about 2% so far this morning against the Yen. Bitcoins have cooled off again and are back to $109. PUT/CALL RATIO Yesterday, 725,716 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 540,785 put contracts. The single-session put/call was 0.75, 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 $161.75, resistance at $167. The Nasdaq 100 (QQQ) has support at $71 and resistance at $74.25. TODAY'S ECONOMIC CALENDAR 08:30 AM 6/08 Initial Claims 08:30 AM 6/01 Continuing Claims 08:30 AM May Retail Sales 08:30 AM May Retail ex-auto 08:30 AM May Export Prices ex-ag 08:30 AM May Import Prices ex-oil 10:00 AM Apr Business Inventories 10:30 AM 6/08 Natural Gas Inventories EARNINGS EXPECTED TODAY CPST 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 |
