MORNING UPDATE: PriceWatch Alerts for FB and More... for 2013-06-04 |
| ------------------------------------------------------------------ MORNING UPDATE: PriceWatch Alerts for MSFT, HD, FB and More... June 4, 9:00 AM ET - PriceWatch Alerts for MSFT, SU, HD, SWN, HRB, FB, BMY, BIIB, ALL, and AGCO, Market Overview, News Leaders and Laggards, Today's Economic Calendar, and Index Support & Resistance Levels. PriceWatch Alerts for MSFT, SU, HD, SWN, HRB, FB, BMY, BIIB, ALL, and AGCO Microsoft (NASDAQ: MSFT) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $35.59 while selling the October $35.00 call will produce a new covered call with a break-even point around $33.57. At that price, this position has a target return of 4.3%. This trade will have roughly 5.7% downside protection, while still aiming for a 4.3% return in 137 days. It will lock in that return as long as Microsoft is above $35.00 on 10/19/2013. For comparison purposes only, this MSFT covered call aims for an annualized return rate of 11.3%. Suncor Energy (NYSE: SU) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $30.51 while simultaneously selling the September $30.00 call will result in a new position with a target return of 5.0%. Based on recent prices, this position will cost about $28.58, which is also the trade?s breakeven point. At that level, this covered call has 6.3% downside protection, while still providing a 5.0% return in 109 days as long as SU is above $30.00 on 9/21/2013. For comparison purposes only, this Suncor Energy covered call aims for an annualized return rate of 16.6%. Home Depot (NYSE: HD) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the August $80.00 call while at the same time buying HD stock for $79.08 will produce a new covered call with a target return of 4.0%. Based on recent data, this trade will cost about $76.94, which is also the covered call?s breakeven point. At that price, this covered call has 2.7% downside protection, while seeking an assigned return of 4.0% return in 74 days. If HD is higher than $80.00 on 8/17/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 19.6%. Southwestern Energy (NYSE: SWN) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $38.07 while simultaneously selling the July $38.00 call will result in a new position with a target return of 4.2%. Based on recent prices, this position will cost about $36.46, which is also the trade?s breakeven point. At that level, this covered call has 4.2% downside protection, while still providing a 4.2% return in 46 days as long as SWN is above $38.00 on 7/20/2013. For comparison purposes only, this Southwestern Energy covered call aims for an annualized return rate of 33.5%. H&R Block (NYSE: HRB) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the October $28.00 call while simultaneously buying HRB stock for $28.91 will result in a new position with a break-even point around $26.21. At that price, this position has a target return of 6.8%. This trade has 9.3% downside protection, while still providing a 6.8% return in 137 days as long as HRB is above $28.00 on 10/19/2013. For comparison purposes only, this H&R Block covered call targets an annualized return rate of 18.2%. Facebook (NASDAQ: FB) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $23.85 while simultaneously selling the August $23.00 call will result in a new position with a target return of 6.4%. Based on recent prices, this position will cost about $21.61, which is also the trade?s breakeven point. At that level, this covered call has 9.4% downside protection, while still providing a 6.4% return in 74 days as long as FB is above $23.00 on 8/17/2013. For comparison purposes only, this Facebook covered call aims for an annualized return rate of 31.7%. Bristol Myers (NYSE: BMY) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $47.59 while simultaneously selling the September $47.00 call will result in a new position with a target return of 4.4%. Based on recent prices, this position will cost about $45.01, which is also the trade?s breakeven point. At that level, this covered call has 5.4% downside protection, while still providing a 4.4% return in 109 days as long as BMY is above $47.00 on 9/21/2013. For comparison purposes only, this Bristol Myers covered call aims for an annualized return rate of 14.8%. Biogen Idec (NASDAQ: BIIB) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the July $225.00 call while at the same time buying BIIB stock for $227.39 will produce a new covered call with a target return of 4.9%. Based on recent data, this trade will cost about $214.49, which is also the covered call?s breakeven point. At that price, this covered call has 5.7% downside protection, while seeking an assigned return of 4.9% return in 46 days. If BIIB is higher than $225.00 on 7/20/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 38.8%. Allstate (NYSE: ALL) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $47.47 while simultaneously selling the October $47.00 call will result in a new position with a target return of 4.5%. Based on recent prices, this position will cost about $44.98, which is also the trade?s breakeven point. At that level, this covered call has 5.2% downside protection, while still providing a 4.5% return in 137 days as long as ALL is above $47.00 on 10/19/2013. For comparison purposes only, this Allstate covered call aims for an annualized return rate of 12.0%. AGCO (NYSE: AGCO) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the November $55.00 call while simultaneously buying AGCO stock for $56.10 will result in a new position with a break-even point around $51.70. At that price, this position has a target return of 6.4%. This trade has 7.8% downside protection, while still providing a 6.4% return in 165 days as long as AGCO is above $55.00 on 11/16/2013. For comparison purposes only, this AGCO covered call targets an annualized return rate of 14.1%. *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. 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MARKET OVERVIEW Asian markets were thoroughly mixed in overnight trading, with the Nikkei 225 staging a rebound of 2.0%, but the Shanghai SEC dropping 1.2%. Most of the other major regional indices finished the session with small gains or losses, including the Australian All-Ordinaries up 0.3% and the Mumbai Sensex off 0.3%. Europe presents a stronger and clearer picture this morning, with all the major exchanges trading in positive territory at last check. The London FTSE 100 is up 0.6% and the Swiss Market Index is up 1.1%, while France and Germany are making smaller gains. Spanish unemployment fell according to the most recent data, which combined with the strong finish by US markets yesterday has pushed European stocks predominantly higher today. In commodities, WTI crude is off 0.3% so far today at $93.15. Gasoline and heating oil are each up a small amount, while natural gas is higher by 0.8%. In metals, gold is down 1.1% to $1,396, while silver is off 1.5% and platinum has dropped 0.7%, but copper is up a small amount. The US Dollar is higher against the Yen this morning, but lower against the Euro. Bitcoins rallied throughout much of the day yesterday, topping out near $124, but have slipped back to $120 in morning trading. PUT/CALL RATIO Yesterday, 931,143 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 582,323 put contracts. The single-session put/call was 0.63, while the 20-day moving average is now at 0.59. SUPPORT & RESISTANCE LEVELS The S&P 500 Depository Receipts (SPY) ETF has support at $160, and resistance at $167.25. The Nasdaq 100 (QQQ) has support at $72.50. and resistance at $74.50. TODAY'S ECONOMIC CALENDAR 08:30 AM Apr Trade Balance EARNINGS EXPECTED TODAY DG SHFL 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 |
