MORNING UPDATE: PriceWatch Alerts for CSCO and More... for 2013-05-14 |
| ------------------------------------------------------------------ MORNING UPDATE: PriceWatch Alerts for CSCO, AXP, PFE, and More... May 14, 9:00 AM ET - PriceWatch Alerts for CSCO, AET, DAL, FSLR, NPSP, AXP, MOS, BX, MCP, SCTY, PFE, CBS, IP, YOKU, ITMN, Market Overview, News Leaders and Laggards, Today's Economic Calendar, and Index Support & Resistance Levels. PriceWatch Alerts for CSCO, AET, DAL, FSLR, NPSP, AXP, MOS, BX, MCP, SCTY, PFE, CBS, IP, YOKU, ITMN Cisco Systems (NASDAQ: CSCO) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $21.27 while selling the October $21.00 call will produce a new covered call with a break- even point around $19.99. At that price, this position has a target return of 5.1%. This trade will have roughly 6.0% downside protection, while still aiming for a 5.1% return in 158 days. It will lock in that return as long as Cisco Systems is above $21.00 on 10/19/2013. For comparison purposes only, this CSCO covered call aims for an annualized return rate of 11.7%. Aetna (NYSE: AET) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $59.25 while simultaneously selling the October $60.00 call will result in a new position with a target return of 6.7%. Based on recent prices, this position will cost about $56.25, which is also the trade?s breakeven point. At that level, this covered call has 5.1% downside protection, while still providing a 6.7% return in 158 days as long as AET is above $60.00 on 10/19/2013. For comparison purposes only, this Aetna covered call aims for an annualized return rate of 15.4%. Delta Air Lines (NYSE: DAL) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $17.89 while simultaneously selling the September $17.00 call will result in a new position with a target return of 8.3%. Based on recent prices, this position will cost about $15.70, which is also the trade?s breakeven point. At that level, this covered call has 12.2% downside protection, while still providing a 8.3% return in 130 days as long as DAL is above $17.00 on 9/21/2013. For comparison purposes only, this Delta Air Lines covered call aims for an annualized return rate of 23.2%. First Solar (NASDAQ: FSLR) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the June $50.00 call while at the same time buying FSLR stock for $50.45 will produce a new covered call with a target return of 8.2%. Based on recent data, this trade will cost about $46.20, which is also the covered call?s breakeven point. At that price, this covered call has 8.4% downside protection, while seeking an assigned return of 8.2% return in 39 days. If FSLR is higher than $50.00 on 6/22/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 76.9%. NPS Pharmaceuticals (NASDAQ: NPSP) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the November $14.00 call while simultaneously buying NPSP stock for $14.50 will result in a new position with a break-even point around $12.65. At that price, this position has a target return of 10.7%. This trade has 12.8% downside protection, while still providing a 10.7% return in 186 days as long as NPSP is above $14.00 on 11/16/2013. For comparison purposes only, this NPS Pharmaceuticals covered call targets an annualized return rate of 20.9%. American Express (NYSE: AXP) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the October $70.00 call while simultaneously buying AXP stock for $69.79 will result in a new position with a break-even point around $66.69. At that price, this position has a target return of 5.0%. This trade has 4.4% downside protection, while still providing a 5.0% return in 158 days as long as AXP is above $70.00 on 10/19/2013. For comparison purposes only, this American Express covered call targets an annualized return rate of 11.5%. Mosaic (NYSE: MOS) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $61.30 while selling the September $65.00 call will produce a new covered call with a break-even point around $56.75. At that price, this position has a target return of 14.5%. This trade will have roughly 7.4% downside protection, while still aiming for a 14.5% return in 130 days. It will lock in that return as long as Mosaic is above $65.00 on 9/21/2013. For comparison purposes only, this MOS covered call aims for an annualized return rate of 40.8%. Blackstone Group (NYSE: BX) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $22.20 while simultaneously selling the September $22.00 call will result in a new position with a target return of 6.8%. Based on recent prices, this position will cost about $20.59, which is also the trade?s breakeven point. At that level, this covered call has 7.3% downside protection, while still providing a 6.8% return in 130 days as long as BX is above $22.00 on 9/21/2013. For comparison purposes only, this Blackstone Group covered call aims for an annualized return rate of 19.2%. Molycorp (NYSE: MCP) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the September $7.00 call while at the same time buying MCP stock for $7.08 will produce a new covered call with a target return of 35.4%. Based on recent data, this trade will cost about $5.17, which is also the covered call?s breakeven point. At that price, this covered call has 27.0% downside protection, while seeking an assigned return of 35.4% return in 130 days. If MCP is higher than $7.00 on 9/21/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 99.4%. SolarCity (NASDAQ: SCTY) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the July $35.00 call while simultaneously buying SCTY stock for $35.88 will result in a new position with a break-even point around $29.58. At that price, this position has a target return of 18.3%. This trade has 17.6% downside protection, while still providing a 18.3% return in 67 days as long as SCTY is above $35.00 on 7/20/2013. For comparison purposes only, this SolarCity covered call targets an annualized return rate of 99.8%. Pfizer (NYSE: PFE) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $29.37 while simultaneously selling the December $30.00 call will result in a new position with a target return of 6.2%. Based on recent prices, this position will cost about $28.25, which is also the trade?s breakeven point. At that level, this covered call has 3.8% downside protection, while still providing a 6.2% return in 221 days as long as PFE is above $30.00 on 12/21/2013. For comparison purposes only, this Pfizer covered call aims for an annualized return rate of 10.2%. CBS (NYSE: CBS) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the September $49.00 call while at the same time buying CBS stock for $48.98 will produce a new covered call with a target return of 8.0%. Based on recent data, this trade will cost about $45.38, which is also the covered call?s breakeven point. At that price, this covered call has 7.3% downside protection, while seeking an assigned return of 8.0% return in 130 days. If CBS is higher than $49.00 on 9/21/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 22.4%. International Paper (NYSE: IP) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the October $47.00 call while simultaneously buying IP stock for $47.53 will result in a new position with a break-even point around $44.13. At that price, this position has a target return of 6.5%. This trade has 7.2% downside protection, while still providing a 6.5% return in 158 days as long as IP is above $47.00 on 10/19/2013. For comparison purposes only, this International Paper covered call targets an annualized return rate of 15.0%. Youku.com (NYSE: YOKU) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $19.99 while selling the September $19.00 call will produce a new covered call with a break-even point around $17.19. At that price, this position has a target return of 10.5%. This trade will have roughly 14.0% downside protection, while still aiming for a 10.5% return in 130 days. It will lock in that return as long as Youku.com is above $19.00 on 9/21/2013. For comparison purposes only, this YOKU covered call aims for an annualized return rate of 29.5%. InterMune (NASDAQ: ITMN) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $9.99 while simultaneously selling the October $10.00 call will result in a new position with a target return of 18.3%. Based on recent prices, this position will cost about $8.45, which is also the trade?s breakeven point. At that level, this covered call has 15.4% downside protection, while still providing a 18.3% return in 158 days as long as ITMN is above $10.00 on 10/19/2013. For comparison purposes only, this InterMune covered call aims for an annualized return rate of 42.4%. *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'. 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NEWS LEADERS AND LAGGARDS Nanosphere (NSPH), Tesla (TSLA) and NVidia (NVDA) are headed higher this morning, while Solar City (SCTY), Cree (CREE) and Nokia (NOK) are in decline. There were no major analyst upgrades this morning, though Patterson Companies (PDCO) was downgraded by analysts. MARKET OVERVIEW International markets were mostly in red territory overnight. Asian stocks traded lower on worries that Beijing would not ease policy in order to stem its current economic slowdown. Yesterday data on the nation's April industrial output and retail sales were interpreted to show that the second quarter is off to a slow start for the Chinese economy. The Shanghai SEC fell 1.1% on the session while the Japanese Nikkei 225 lost 0.16%. Other bourses in the region were higher on the day, with Taiwan, India and Australia notching small advances and Hong Kong losing a small amount. European traders also saw declines for most of the major indices. The French CAC 40 is down 0.4% so far this morning, the German DAX is down 0.1%, the Euronext 100 is off 0.2% and the Swiss Market Index is off 0.2%. The FTSE 100 is much closer to breakeven, but still down from yesterday's close. In commodities, West Texas Intermediate crude oil is off $0.45 to $94.72. Heating oil and gasoline are also lower, while natural gas is trading higher. In metals, gold is down $7.10 an ounce to $1,427.20, and copper is down, off 2.0% to $3.29. The US Dollar is weaker against the Yen and even against the Euro, holding steady in a sideways trend against the Euro for the past month or so and gaining on the Yen. Bitcoins have been in a sideways pattern around $115 for the past couple of days, but is moving up a bit today to around $119, which is still a rather modest move for the currency alternative. PUT/CALL RATIO Yesterday, 799,499 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 478,945 put contracts. The single-session put/call was 0.6, while the 20-day moving average is now at 0.64. SUPPORT & RESISTANCE LEVELS The S&P 500 Depository Receipts (SPY) ETF has support at $157, and is above resistance. The Nasdaq 100 (QQQ) has support at $69 and is above resistance. TODAY'S ECONOMIC CALENDAR 8:30 AM Apr Export Prices ex-ag 8:30 AM Apr Import Prices ex-oil EARNINGS EXPECTED TODAY A 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 |
