MORNING UPDATE: PriceWatch Alerts for NWSA and More... for 2013-05-24 |
| ------------------------------------------------------------------ MORNING UPDATE: PriceWatch Alerts for NWSA, SNE, AMGN, and More... May 24, 9:00 AM ET - PriceWatch Alerts for AMGN, LMT, GPC, TTWO, JOBS, NWSA, SNE, MMP, DRI and R, Market Overview, News Leaders and Laggards, Today's Economic Calendar, and Index Support & Resistance Levels. PriceWatch Alerts for AMGN, LMT, GPC, TTWO, JOBS, NWSA, SNE, MMP, DRI, R Amgen (NASDAQ: AMGN) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $105.62 while simultaneously selling the October $105.00 call will result in a new position with a target return of 6.4%. Based on recent prices, this position will cost about $98.72, which is also the trade?s breakeven point. At that level, this covered call has 6.5% downside protection, while still providing a 6.4% return in 148 days as long as AMGN is above $105.00 on 10/19/2013. For comparison purposes only, this Amgen covered call aims for an annualized return rate of 15.7%. Lockheed Martin (NYSE: LMT) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $106.30 while selling the January $105.00 call will produce a new covered call with a break- even point around $101.00. At that price, this position has a target return of 4.0%. This trade will have roughly 5.0% downside protection, while still aiming for a 4.0% return in 239 days. It will lock in that return as long as Lockheed Martin is above $105.00 on 1/18/2014. For comparison purposes only, this LMT covered call aims for an annualized return rate of 6.0%. Genuine Parts (NYSE: GPC) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $81.97 while simultaneously selling the November $85.00 call will result in a new position with a target return of 6.8%. Based on recent prices, this position will cost about $79.57, which is also the trade?s breakeven point. At that level, this covered call has 2.9% downside protection, while still providing a 6.8% return in 176 days as long as GPC is above $85.00 on 11/16/2013. For comparison purposes only, this Genuine Parts covered call aims for an annualized return rate of 14.1%. TakeTwo Interactive (NASDAQ: TTWO) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the September $15.00 call while at the same time buying TTWO stock for $15.95 will produce a new covered call with a target return of 7.1%. Based on recent data, this trade will cost about $14.00, which is also the covered call?s breakeven point. At that price, this covered call has 12.2% downside protection, while seeking an assigned return of 7.1% return in 120 days. If TTWO is higher than $15.00 on 9/21/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 21.7%. 51Job (NASDAQ: JOBS) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the October $60.00 call while simultaneously buying JOBS stock for $60.68 will result in a new position with a break-even point around $55.68. At that price, this position has a target return of 7.8%. This trade has 8.2% downside protection, while still providing a 7.8% return in 148 days as long as JOBS is above $60.00 on 10/19/2013. For comparison purposes only, this 51Job covered call targets an annualized return rate of 19.1%. News Corp. (NASDAQ: NWSA) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $32.87 while simultaneously selling the October $32.00 call will result in a new position with a target return of 5.5%. Based on recent prices, this position will cost about $30.32, which is also the trade?s breakeven point. At that level, this covered call has 7.8% downside protection, while still providing a 5.5% return in 148 days as long as NWSA is above $32.00 on 10/19/2013. For comparison purposes only, this News Corp. covered call aims for an annualized return rate of 13.7%. Sony (NYSE: SNE) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $21.63 while selling the June $21.00 call will produce a new covered call with a break-even point around $20.13. At that price, this position has a target return of 4.3%. This trade will have roughly 6.9% downside protection, while still aiming for a 4.3% return in 29 days. It will lock in that return as long as Sony is above $21.00 on 6/22/2013. For comparison purposes only, this SNE covered call aims for an annualized return rate of 54.4%. Magellan Midstream Partners (NYSE: MMP) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $53.94 while simultaneously selling the October $55.00 call will result in a new position with a target return of 5.6%. Based on recent prices, this position will cost about $52.09, which is also the trade?s breakeven point. At that level, this covered call has 3.4% downside protection, while still providing a 5.6% return in 148 days as long as MMP is above $55.00 on 10/19/2013. For comparison purposes only, this Magellan Midstream Partners covered call aims for an annualized return rate of 13.8%. Darden Restaurants (NYSE: DRI) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the October $52.50 call while at the same time buying DRI stock for $53.22 will produce a new covered call with a target return of 4.4%. Based on recent data, this trade will cost about $50.27, which is also the covered call?s breakeven point. At that price, this covered call has 5.5% downside protection, while seeking an assigned return of 4.4% return in 148 days. If DRI is higher than $52.50 on 10/19/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 10.9%. Ryder System (NYSE: R) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the August $62.50 call while simultaneously buying R stock for $63.09 will result in a new position with a break-even point around $59.29. At that price, this position has a target return of 5.4%. This trade has 6.0% downside protection, while still providing a 5.4% return in 85 days as long as R is above $62.50 on 8/17/2013. For comparison purposes only, this Ryder System covered call targets an annualized return rate of 23.2%. *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. 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NEWS LEADERS AND LAGGARDS Infoblox (BLOX), Pandora (P) and Interoil (IOC) are headed higher this morning, while Sears (SHLD), Abercrombie & Fitch (ANF) and Salesforce.com (CRM) are dropping. Sherwin-Williams (SHW) was upgraded by analysts this morning, while Nordson (NDSN) and rue21 (RUE) were downgraded. MARKET OVERVIEW International markets were mixed overnight. After a 7.3% sell off during the previous session, the Japanese index had a roller coaster ride that fluctuated as much as 3% on both sides of the previous day's close. The Japanese Nikkei 225 ended the day up 0.9%, while the Shanghai SEC gained 0.6% on the session. India was also higher, while Taiwan, Australia, and Hong Kong all traded lower during the session. European markets are also mixed so far today. German stocks are lower, but the overall mood of European traders got a boost from an improved business confidence index in Germany. The FTSE 100 is down 0.6%, the Swiss Market Index is up 0.4%, and the French CAC 40 is up 0.1%. The Euronext 100 is flat, while the German DAX is down 0.8% at this point and the FTSE 100 is 0.6% lower. In commodities, West Texas Intermediate crude oil is down 0.7% to $93.60. Heating oil, gasoline and natural gas are also all trading lower. In metals, gold is down 0.4% an ounce to $1,385.90, and copper is flat at $3.30. The US Dollar is lower against the Euro and the Yen. Bitcoins are currently trading at $127.20. PUT/CALL RATIO Yesterday, 833,646 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 562,693 put contracts. The single-session put/call was 0.67, 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 $71 and resistance at $74.25. TODAY'S ECONOMIC CALENDAR 08:30 AM Apr Durable Orders 08:30 AM Apr Durable Goods ?ex transportation EARNINGS EXPECTED TODAY ANF 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 |
