MORNING UPDATE: PriceWatch Alerts for SBUX and More... for 2013-06-06 |
| ------------------------------------------------------------------ MORNING UPDATE: PriceWatch Alerts for SBUX, NKE, GILD, and More... June 6, 9:00 AM ET - PriceWatch Alerts for SBUX, KUB, HAL, ACT, NBIX, NKE, GILD, HFC, BF.B and IMAX, Market Overview, News Leaders and Laggards, Today's Economic Calendar, and Index Support & Resistance Levels. PriceWatch Alerts for SBUX, KUB, HAL, ACT, NBIX, NKE, GILD, HFC, BF.B and IMAX. Starbucks (NASDAQ: SBUX) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $62.34 while selling the August $62.50 call will produce a new covered call with a break-even point around $59.70. At that price, this position has a target return of 4.7%. This trade will have roughly 4.2% downside protection, while still aiming for a 4.7% return in 72 days. It will lock in that return as long as Starbucks is above $62.50 on 8/17/2013. For comparison purposes only, this SBUX covered call aims for an annualized return rate of 23.8%. Kubota (NYSE: KUB) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $73.52 while simultaneously selling the October $70.00 call will result in a new position with a target return of 5.9%. Based on recent prices, this position will cost about $66.12, which is also the trade?s breakeven point. At that level, this covered call has 10.1% downside protection, while still providing a 5.9% return in 135 days as long as KUB is above $70.00 on 10/19/2013. For comparison purposes only, this Kubota covered call aims for an annualized return rate of 15.8%. Halliburton (NYSE: HAL) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the August $41.00 call while at the same time buying HAL stock for $41.76 will produce a new covered call with a target return of 5.0%. Based on recent data, this trade will cost about $39.05, which is also the covered call?s breakeven point. At that price, this covered call has 6.5% downside protection, while seeking an assigned return of 5.0% return in 72 days. If HAL is higher than $41.00 on 8/17/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 25.3%. Actavis (NYSE: ACT) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $120.34 while simultaneously selling the August $120.00 call will result in a new position with a target return of 5.5%. Based on recent prices, this position will cost about $113.74, which is also the trade?s breakeven point. At that level, this covered call has 5.5% downside protection, while still providing a 5.5% return in 72 days as long as ACT is above $120.00 on 8/17/2013. For comparison purposes only, this Actavis covered call aims for an annualized return rate of 27.9%. Neurocrine Biosciences (NASDAQ: NBIX) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the July $12.00 call while simultaneously buying NBIX stock for $12.80 will result in a new position with a break-even point around $11.25. At that price, this position has a target return of 6.7%. This trade has 12.1% downside protection, while still providing a 6.7% return in 44 days as long as NBIX is above $12.00 on 7/20/2013. For comparison purposes only, this Neurocrine Biosciences covered call targets an annualized return rate of 55.2%. Nike (NYSE: NKE) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $61.75 while selling the October $60.00 call will produce a new covered call with a break-even point around $57.05. At that price, this position has a target return of 5.2%. This trade will have roughly 7.6% downside protection, while still aiming for a 5.2% return in 135 days. It will lock in that return as long as Nike is above $60.00 on 10/19/2013. For comparison purposes only, this NKE covered call aims for an annualized return rate of 14.0%. Gilead Sciences (NASDAQ: GILD) 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 July $50.00 call will result in a new position with a target return of 5.5%. Based on recent prices, this position will cost about $47.38, which is also the trade?s breakeven point. At that level, this covered call has 5.5% downside protection, while still providing a 5.5% return in 44 days as long as GILD is above $50.00 on 7/20/2013. For comparison purposes only, this Gilead Sciences covered call aims for an annualized return rate of 45.8%. Hollyfrontier (NYSE: HFC) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the July $46.50 call while at the same time buying HFC stock for $46.98 will produce a new covered call with a target return of 4.5%. Based on recent data, this trade will cost about $44.48, which is also the covered call?s breakeven point. At that price, this covered call has 5.3% downside protection, while seeking an assigned return of 4.5% return in 44 days. If HFC is higher than $46.50 on 7/20/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 37.7%. Brown-Forman (NYSE: BF.B) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $68.20 while simultaneously selling the September $70.00 call will result in a new position with a target return of 5.4%. Based on recent prices, this position will cost about $66.40, which is also the trade?s breakeven point. At that level, this covered call has 2.6% downside protection, while still providing a 5.4% return in 107 days as long as BF.B is above $70.00 on 9/21/2013. For comparison purposes only, this Brown-Forman covered call aims for an annualized return rate of 18.5%. IMAX (NASDAQ: IMAX) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the September $26.00 call while simultaneously buying IMAX stock for $26.55 will result in a new position with a break-even point around $24.40. At that price, this position has a target return of 6.6%. This trade has 8.1% downside protection, while still providing a 6.6% return in 107 days as long as IMAX is above $26.00 on 9/21/2013. For comparison purposes only, this IMAX covered call targets an annualized return rate of 22.3%. *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 Infinera (INFN), Ciena (CIEN) and Sodastream (SODA) are climbing higher this morning, while Ascena Retail Group (ASNA), Verifone Systems (PAY) and Vera Bradly (VRA) are sinking. Cyberonics (CYBX) was upgraded by analysts this morning, while Vera Bradly (VRA) and Endo Health Solutions (ENDP) were downgraded. MARKET OVERVIEW Asian stocks fell overnight, with many of the major regional indices off around 1.0%. The Shanghai SEC lost 1.3% and the Taiwan TSEC dipped 1.1%. For the first time in many days, the Japanese Nikkei 225 was roughly in line with its counterparts, down 0.9%. European indices on the other hand are headed higher so far this morning. The Euronext 100 and the French CAC 40 are up 0.5%, while the Swiss Market Index is just barely in negative territory. The European Central Bank and the Bank of England made no changes to their interest rate policies. Before the open of US trading, ECB president Marco Draghi will speak publicly about today's decision, giving traders a more nuanced look into the central bank's workings. In commodities, crude oil is higher again, with West Texas Intermediate up 0.6% this morning to $94.32. Gasoline and heating oil are barely higher, while natural is down $0.02 or 0.5%. In metals, gold, silver, and platinum are each higher by less than 0.5%, while copper is down 1.4% this morning. The US Dollar is weaker versus the Yen and the Euro, while Bitcoins remain near $121 and have been at that level for much of this week. PUT/CALL RATIO Yesterday, 835,660 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 609,976 put contracts. The single-session put/call was 0.73, while the 20-day moving average is now at 0.60. SUPPORT & RESISTANCE LEVELS The S&P 500 Depository Receipts (SPY) ETF has support at $160, resistance at $167. The Nasdaq 100 (QQQ) has support at $71 and resistance at $74.25. TODAY'S ECONOMIC CALENDAR 07:30 AM May Challenger Job Cuts 08:30 AM 6/01 Initial Claims 08:30 AM 5/25 Continuing Claims 10:30 AM 6/01 Natural Gas Inventories EARNINGS EXPECTED TODAY SJM TITN ISLE CIEN 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 |
