MORNING UPDATE: PriceWatch Alerts for HPQ and More... for 2013-05-31 |
| ------------------------------------------------------------------ MORNING UPDATE: PriceWatch Alerts for HPQ, CHK, KKD and More... May 31, 9:00 AM ET - PriceWatch Alerts for HPQ, CME, KKD, NCR, PII, CHK, CREE, ARUN, TTM and SPRD, Market Overview, News Leaders and Laggards, Today's Economic Calendar, and Index Support & Resistance Levels. PriceWatch Alerts for HPQ, CME, KKD, NCR, PII, CHK, CREE, ARUN, TTM and SPRD Hewlett Packard (NYSE: HPQ) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $25.26 while simultaneously selling the August $25.00 call will result in a new position with a target return of 5.4%. Based on recent prices, this position will cost about $23.71, which is also the trade?s breakeven point. At that level, this covered call has 6.1% downside protection, while still providing a 5.4% return in 78 days as long as HPQ is above $25.00 on 8/17/2013. For comparison purposes only, this Hewlett Packard covered call aims for an annualized return rate of 25.5%. CME Group (NASDAQ: CME) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $69.78 while selling the September $70.00 call will produce a new covered call with a break-even point around $66.83. 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 113 days. It will lock in that return as long as CME Group is above $70.00 on 9/21/2013. For comparison purposes only, this CME covered call aims for an annualized return rate of 15.3%. Krispy Kreme Doughnuts (NYSE: KKD) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $14.26 while simultaneously selling the August $14.00 call will result in a new position with a target return of 8.4%. Based on recent prices, this position will cost about $12.91, which is also the trade?s breakeven point. At that level, this covered call has 9.5% downside protection, while still providing a 8.4% return in 78 days as long as KKD is above $14.00 on 8/17/2013. For comparison purposes only, this Krispy Kreme Doughnuts covered call aims for an annualized return rate of 39.5%. NCR (NYSE: NCR) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the October $32.00 call while at the same time buying NCR stock for $33.51 will produce a new covered call with a target return of 4.7%. Based on recent data, this trade will cost about $30.56, which is also the covered call?s breakeven point. At that price, this covered call has 8.8% downside protection, while seeking an assigned return of 4.7% return in 141 days. If NCR is higher than $32.00 on 10/19/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 12.2%. Polaris Industries (NYSE: PII) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the September $92.50 call while simultaneously buying PII stock for $95.07 will result in a new position with a break-even point around $88.07. At that price, this position has a target return of 5.0%. This trade has 7.4% downside protection, while still providing a 5.0% return in 113 days as long as PII is above $92.50 on 9/21/2013. For comparison purposes only, this Polaris Industries covered call targets an annualized return rate of 16.2%. Chesapeake Energy (NYSE: CHK) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the August $22.00 call while at the same time buying CHK stock for $22.53 will produce a new covered call with a target return of 5.9%. Based on recent data, this trade will cost about $20.77, which is also the covered call?s breakeven point. At that price, this covered call has 7.8% downside protection, while seeking an assigned return of 5.9% return in 78 days. If CHK is higher than $22.00 on 8/17/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 27.7%. Cree (NASDAQ: CREE) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $63.63 while simultaneously selling the July $62.50 call will result in a new position with a target return of 5.1%. Based on recent prices, this position will cost about $59.48, which is also the trade?s breakeven point. At that level, this covered call has 6.5% downside protection, while still providing a 5.1% return in 50 days as long as CREE is above $62.50 on 7/20/2013. For comparison purposes only, this Cree covered call aims for an annualized return rate of 37.0%. Aruba Networks (NASDAQ: ARUN) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the October $15.00 call while simultaneously buying ARUN stock for $15.33 will result in a new position with a break-even point around $13.23. At that price, this position has a target return of 13.4%. This trade has 13.7% downside protection, while still providing a 13.4% return in 141 days as long as ARUN is above $15.00 on 10/19/2013. For comparison purposes only, this Aruba Networks covered call targets an annualized return rate of 34.6%. Tata Motors (NYSE: TTM) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $28.67 while simultaneously selling the October $28.00 call will result in a new position with a target return of 7.8%. Based on recent prices, this position will cost about $25.97, which is also the trade?s breakeven point. At that level, this covered call has 9.4% downside protection, while still providing a 7.8% return in 141 days as long as TTM is above $28.00 on 10/19/2013. For comparison purposes only, this Tata Motors covered call aims for an annualized return rate of 20.2%. Spreadtrum (NASDAQ: SPRD) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $19.88 while selling the August $19.00 call will produce a new covered call with a break-even point around $17.83. At that price, this position has a target return of 6.6%. This trade will have roughly 10.3% downside protection, while still aiming for a 6.6% return in 78 days. It will lock in that return as long as Spreadtrum is above $19.00 on 8/17/2013. For comparison purposes only, this SPRD covered call aims for an annualized return rate of 30.7%. *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 Omnivision Technologies (OVTI), Lion's Gate Entertainment (LGF) and Guess (GES) are headed higher this morning, while Palo Alto Networks (PANW), Mellanox Technologies (MLNX) and Canon (CAJ) are headed south. Northwestern (NEW) and Statoil ASA (STO) were upgraded by analysts this morning; there were no major analyst downgrades. MARKET OVERVIEW Overnight in Asia, the markets headed predominantly lower, but the Nikkei 225 rebounded from its sharp loss yesterday. Tokyo gained back 1.4% of the 5% loss from Thursday, while the shanghai SEC dropped 0.7% and the Hong Kong Hang Seng fell 0.4%. Europe is lower so far in morning trading, with the French CAC 40, German DAX and Euronext 100 all off between 0.6% and 0.9%. Eurozone unemployment rose to 12.2% for April and is at its highest point since 1995. In commodities, West Texas Intermediate crude oil is off 0.9% at last check to $92.76, down $0.85. Gasoline and heating oil are down a smaller amount and natural gas is higher by a penny. Metals are lower across the board, with silver and platinum off more than 1%. The US Dollar is weaker against the Yen and stronger versus the Euro this morning, which is the opposite of yesterday's early reading. Bitcoins are at $129 and are holding steady over the past week. PUT/CALL RATIO Friday, 1,021,707 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 627,249 put contracts. The single-session put/call was 0.61, while the 20-day moving average is now at 0.65. SUPPORT & RESISTANCE LEVELS The S&P 500 Depository Receipts (SPY) ETF has support at $156, and is above resistance. The Nasdaq 100 (QQQ) has support at $68.66 and is above resistance. TODAY'S ECONOMIC CALENDAR No major economic reports are scheduled for today. EARNINGS EXPECTED TODAY APC FSLR FTR SYY TSN 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 |
