MORNING UPDATE: PriceWatch Alerts for AIG and More... for 2011-07-07 |
| ------------------------------------------------------------------ MORNING UPDATE: PriceWatch Alerts for AIG, PEP, M, and More... July 7, 8:30 AM EST - Before the open... PriceWatch Alerts for AIG, HES, M, FITB, SODA, PEP, GILD, URBN, USB, and SPRD, Market Overview, News Leaders and Laggards, Today's Economic Calendar, and Index Support & Resistance Levels. New PriceWatch Alerts for AIG, HES, M, FITB, SODA, PEP, GILD, URBN, USB, and SPRD PRICEWATCH ALERTS - HIGH RETURN COVERED CALL OPTIONS-------------- -- American International Group, Inc. (NYSE: AIG) Last Price 29.38 - AUG 29.00 CALL OPTION@ $1.50-> 4.0% Return (33.3% Annualized) assigned* -- Hess Corporation (NYSE: HES) Last Price 74.41 - NOV 72.50 CALL OPTION@ $6.70 -> 7.1% Return (19.1% Annualized) assigned* -- Macy's, Inc. (NYSE: M) Last Price 28.87 - NOV 28.00 CALL OPTION@ $2.80-> 7.4% Return (20.0% Annualized) assigned* -- Fifth Third Bancorp (Nasdaq: FITB) Last Price 12.65 - JAN 12.50 CALL OPTION@ $1.17 -> 8.9% Return (16.4% Annualized) assigned* -- SodaStream International Ltd. (Nasdaq: SODA) Last Price 76.58 - AUG 75.00 CALL OPTION@ $7.30 -> 8.3% Return (68.5% Annualized) assigned* -- Pepsico, Inc. (NYSE: PEP) Last Price 70.17 - JAN 72.50 CALL OPTION@ $1.63 -> 5.8% Return (10.7% Annualized) assigned* -- Gilead Sciences Inc. (Nasdaq: GILD) Last Price 42.25 - NOV 42.00 CALL OPTION@ $2.70-> 6.2% Return (16.7% Annualized) assigned* -- Urban Outfitters Inc. (Nasdaq: URBN) Last Price 30.75 - AUG 30.00 CALL OPTION@ $2.00 -> 4.3% Return (36.1% Annualized) assigned* -- U.S. Bancorp (NYSE: USB) Last Price 25.30 - DEC 25.00 CALL OPTION@ $1.75 -> 6.2% Return (13.8% Annualized) assigned* -- Spreadtrum Communications Inc. (Nasdaq: SPRD) Last Price 17.26 - AUG 17.00 CALL OPTION@ $2.25 -> 13.3% Return (110.0% Annualized) assigned* *Annualized returns are shown for comparison purposes only What exactly is a Covered Call? What are the risks, benefits, and requirements? If you are asking yourself these questions, the answers you seek lie in :Covered Calls: Aggressive Strategy for the Conservative Investor: (http://www.poweropt.com/107/). This educational kit, written by the founders of PowerOptions, will teach you the ins and outs of the Covered Call Strategy. PLUS, it comes with two free months of PowerOptions AND a 30 day risk free guarantee! 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! NEWS LEADERS AND LAGGARDS----------------------------------------- Target Corp. (TGT), Urban Outfitters Inc. (URBN) and Sprint Nextel Corp. (S) are all gaining in pre-market trading this morning. Pre- market decliners include Yum! Brands(Yum), Visa Inc. (V) and Wellpoint Inc. (WLP). Receiving upgrades this morning are Fidelity National Financial (FNF), Seagate Technology (STX) and Western Digital (WDC). downgrades include Energy Transfer Partners (ETP), SemiLEDS (LEDS) and Starbucks (SBUX). MARKET OVERVIEW--------------------------------------------------- Stocks in China slipped today, as traders had a chance to respond to the central bank's latest interest-rate increase. Property stocks led the laggards on the mainland, even as banking issues rallied in Hong Kong. Tokyo-listed equities were pressured by news that the government may order stress tests for nuclear plants, as well as expectations for weak auto profits following the March earthquake and tsunami. Central banks are also driving the action in Europe. The Bank of England opted to stand pat on rates today, but the European Central Bank announced a quarter-point increase to its main refinancing rate, marginal lending rate, and deposit facility rate. The move fell generally in line with expectations, and marks the ECB's second rate hike this year. Stocks are modestly higher at midday, with traders keeping their enthusiasm in check ahead of U.S. jobs data due out later in the session. At last look, the French CAC 40 is up 0.5%, while the German DAX and London's FTSE 100 have each added 0.4%. Crude oil has rebounded in pre-market trading, adding 0.6 point, or 0.7%. The dollar, meanwhile, has explored both sides of breakeven this morning, as anxiety over the highly anticipated rate decision from the ECB kept buyers on the sidelines. Ahead of the open, the U.S. dollar index was up 0.02 point, or 0.02%. Finally, gold has given up a portion of Wednesday's gains, dropping 3.4 points, or 0.2%, to trade at $1,525.80 an ounce. PUT/CALL RATIO --------------------------------------------------- Equity option activity on the Chicago Board Options Exchange (CBOE) saw 837,411 call contracts traded on Wednesday, compared to 594,613 put contracts. The resultant single-session put/call ratio docked at 0.71, while the 21-day moving average was perched at 0.74. SUPPORT & RESISTANCE LEVELS -------------------------------------- The S&P Depository Receipts (SPY) show support in the neighborhood of $126.20 and resistance above $134.10. For the Nasdaq 100 (QQQ), support is around $53.60 and resistance is near $59.30. TODAY'S ECONOMIC CALENDAR ---------------------------------------- 8:15 a.m. Jun ADP Employment 8:30 a.m. 7/2 Initial Claims 8:30 a.m. 6/25 Continuing Claims 11:00 a.m. 7/2 Crude Inventories EARNINGS EXPECTED TODAY (w/current estimates) -------------------- HELE 0.76 HITK 0.71 WDFC 0.52 ZEP 0.32 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 -> For Investors With a Sense of Humor. Only $1 for your first month plus seven free bonuses worth over $800, see: http://www.poweropt.com/io Seven Summits Investment Research is an independent investment research group focusing on the U.S. equities and options markets. Our unique set of analytical tools, screening techniques, rigorous research methods and committed staff provide solid information to help our clients make the best investment decisions possible. For more information go to www.SevenSummitsInvestmentResearch.com . CRD# 137114 Schaeffer's Investment Research - Market information that combines unique data with insightful commentary, enabling you to navigate in any market conditions and invest wisely http://www.poweropt.com/sirmmo 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 |
