MORNING UPDATE: PriceWatch Alerts for C and More... for 2013-05-28 |
| ------------------------------------------------------------------ MORNING UPDATE: PriceWatch Alerts for C, TWC, PM, and More... May 28, 9:00 AM ET - PriceWatch Alerts for C, TWC, RDC, SSYS, MDCO, PM, TJX, CAG, FLT and FDO, Market Overview, News Leaders and Laggards, Today's Economic Calendar, and Index Support & Resistance Levels. PriceWatch Alerts for C, TWC, RDC, SSYS, MDCO, PM, TJX, CAG, FLT and FDO Citigroup (NYSE: C) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $50.52 while selling the August $50.00 call will produce a new covered call with a break-even point around $47.69. At that price, this position has a target return of 4.8%. This trade will have roughly 5.6% downside protection, while still aiming for a 4.8% return in 81 days. It will lock in that return as long as Citigroup is above $50.00 on 8/17/2013. For comparison purposes only, this C covered call aims for an annualized return rate of 21.8%. Time Warner Cable Inc. (NYSE: TWC) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $95.03 while simultaneously selling the October $95.00 call will result in a new position with a target return of 4.6%. Based on recent prices, this position will cost about $90.83, which is also the trade?s breakeven point. At that level, this covered call has 4.4% downside protection, while still providing a 4.6% return in 144 days as long as TWC is above $95.00 on 10/19/2013. For comparison purposes only, this Time Warner Cable Inc. covered call aims for an annualized return rate of 11.6%. Rowan (NYSE: RDC) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $34.50 while simultaneously selling the October $34.00 call will result in a new position with a target return of 7.3%. Based on recent prices, this position will cost about $31.70, which is also the trade?s breakeven point. At that level, this covered call has 8.1% downside protection, while still providing a 7.3% return in 144 days as long as RDC is above $34.00 on 10/19/2013. For comparison purposes only, this Rowan covered call aims for an annualized return rate of 18.4%. Stratasys (NASDAQ: SSYS) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the June $85.00 call while at the same time buying SSYS stock for $85.10 will produce a new covered call with a target return of 5.5%. Based on recent data, this trade will cost about $80.60, 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 5.5% return in 25 days. If SSYS is higher than $85.00 on 6/22/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 79.6%. Medicines (NASDAQ: MDCO) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the July $32.00 call while simultaneously buying MDCO stock for $32.99 will result in a new position with a break-even point around $30.09. At that price, this position has a target return of 6.3%. This trade has 8.8% downside protection, while still providing a 6.3% return in 53 days as long as MDCO is above $32.00 on 7/20/2013. For comparison purposes only, this Medicines covered call targets an annualized return rate of 43.7%. Philip Morris International (NYSE: PM) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $94.12 while selling the September $95.00 call will produce a new covered call with a break-even point around $91.39. At that price, this position has a target return of 4.0%. This trade will have roughly 2.9% downside protection, while still aiming for a 4.0% return in 116 days. It will lock in that return as long as Philip Morris International is above $95.00 on 9/21/2013. For comparison purposes only, this PM covered call aims for an annualized return rate of 12.4%. TJX (NYSE: TJX) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $50.85 while simultaneously selling the October $50.00 call will result in a new position with a target return of 4.4%. Based on recent prices, this position will cost about $47.90, which is also the trade?s breakeven point. At that level, this covered call has 5.8% downside protection, while still providing a 4.4% return in 144 days as long as TJX is above $50.00 on 10/19/2013. For comparison purposes only, this TJX covered call aims for an annualized return rate of 11.1%. ConAgra Foods (NYSE: CAG) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the September $35.00 call while at the same time buying CAG stock for $34.77 will produce a new covered call with a target return of 4.0%. Based on recent data, this trade will cost about $33.67, which is also the covered call?s breakeven point. At that price, this covered call has 3.2% downside protection, while seeking an assigned return of 4.0% return in 116 days. If CAG is higher than $35.00 on 9/21/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 12.4%. FleetCor (NYSE: FLT) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $82.54 while simultaneously selling the November $80.00 call will result in a new position with a target return of 5.8%. Based on recent prices, this position will cost about $75.64, which is also the trade?s breakeven point. At that level, this covered call has 8.4% downside protection, while still providing a 5.8% return in 172 days as long as FLT is above $80.00 on 11/16/2013. For comparison purposes only, this FleetCor covered call aims for an annualized return rate of 12.2%. Family Dollar Stores (NYSE: FDO) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the October $62.50 call while simultaneously buying FDO stock for $63.65 will result in a new position with a break-even point around $59.15. At that price, this position has a target return of 5.7%. This trade has 7.1% downside protection, while still providing a 5.7% return in 144 days as long as FDO is above $62.50 on 10/19/2013. For comparison purposes only, this Family Dollar Stores covered call targets an annualized return rate of 14.3%. *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. 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MARKET OVERVIEW International markets were higher overnight. Ryuzo Miyao, a Bank of Japan board member stated that his country's central bank was prepared to apply downward pressure on rates. Other than Taiwan, which was down 0.2%, all Asian indices traded higher. The Japanese Nikkei 225 ended the day up 1.2%, the Shanghai SEC gained 1.2% on the session, and India was up 0.6%. Australia and Hong Kong also traded higher during the session. European markets are also showing strength today. The FTSE 100 is up 1.6%, the Swiss Market Index is up 0.6%, the French CAC 40 is up 1.4% and the Euronext 100 is up 1.2%. In commodities, West Texas Intermediate crude oil is up 1.0% to $95.08. Heating oil and gasoline are also trading higher, while natural gas is lower. In metals, gold is down 0.6% an ounce to $1,378.50, and copper is up 0.5% at $3.31. The US Dollar is higher against the Yen and lower against the Euro. Bitcoins are currently trading at $129.08. PUT/CALL RATIO Friday, 706,424 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 519,174 put contracts. The single- session put/call was 0.73, 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 $159, and resistance at 167. The Nasdaq 100 (QQQ) has support at $70.25 and resistance at $74.5. TODAY'S ECONOMIC CALENDAR 09:00 AM Mar Case-Shiller 20-city Index 10:00 AM May Consumer Confidence EARNINGS EXPECTED TODAY TIF 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 |
