MORNING UPDATE: PriceWatch Alerts for FCX and More... for 2011-05-26 |
| ------------------------------------------------------------------ MORNING UPDATE: PriceWatch Alerts for FCX, POT, COST, and More... May 26, 8:30 AM EST - Before the open... PriceWatch Alerts for FCX, CF, COST, FLR, ARUN, POT, MDT, ESRX, FRO, and GT, Market Overview, News Leaders and Laggards, Today's Economic Calendar, and Index Support & Resistance Levels. New PriceWatch Alerts for FCX, CF, COST, FLR, ARUN, POT, MDT, ESRX, FRO, and GT PRICEWATCH ALERTS - HIGH RETURN COVERED CALL OPTIONS-------------- -- Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX) Last Price 49.98 - JUL 49.00 CALL OPTION@ $3.25-> 4.9% Return (34.8% Annualized) assigned* -- CF Industries Holdings, Inc. (NYSE: CF) Last Price 150.99 - JUL 150.00 CALL OPTION@ $9.05 -> 5.7% Return (40.6% Annualized) assigned* -- Costco Wholesale Corporation (Nasdaq: COST) Last Price 80.32 - OCT 80.00 CALL OPTION@ $4.24 -> 5.2% Return (12.6% Annualized) assigned* -- Fluor Corporation (NYSE: FLR) Last Price 67.19 - OCT 65.00 CALL OPTION@ $6.70 -> 7.5% Return (18.3% Annualized) assigned* -- Aruba Networks, Inc. (Nasdaq: ARUN) Last Price 27.04 - JUN 27.00 CALL OPTION@ $1.50 -> 5.7% Return (90.7% Annualized) assigned* -- Potash Corp. of Saskatchewan, Inc. (NYSE: POT) Last Price 54.39 - SEP 52.50 CALL OPTION@ $5.10-> 6.5% Return (20.9% Annualized) assigned* -- Medtronic, Inc. (NYSE: MDT) Last Price 40.23 - NOV 40.00 CALL OPTION@ $2.52 -> 6.1% Return (12.5% Annualized) assigned* -- Express Scripts Inc. (Nasdaq: ESRX) Last Price 60.01 - AUG 60.00 CALL OPTION@ $2.84-> 5.0% Return (21.0% Annualized) assigned* -- Frontline Ltd. (NYSE: FRO) Last Price 17.57 - AUG 17.50 CALL OPTION@ $1.15 -> 6.6% Return (27.9% Annualized) assigned* -- Goodyear Tire & Rubber Co. (NYSE: GT) Last Price 17.11 - OCT 17.00 CALL OPTION@ $1.90 -> 11.8% Return (28.8% 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----------------------------------------- So far this morning, NetApp (NATP), Tiffany & Co. (TIF) and Guess? (GES) lead the list of companies with positive news, while AIG (AIG), Big Lots (BIG) and First Majestic Silver (AG) lead the list of companies with negative news. Comerica Incorporated (CMA), Aeropostale, Inc. (ARO) and American Eagle Outfitters, Inc. (AEO) were upgraded this morning, while Lululemon Athletica Inc. (LULU) was downgraded. MARKET OVERVIEW--------------------------------------------------- Stocks in Asia ended mostly higher today, with energy stocks catching a lift from crude oil's rebound. In Japan, Canon enjoyed a robust rally after announcing plans for a stock buyback plan worth up to 50 billion yen, while Sony shares edged higher ahead of the company's post-close earnings report. Automakers continued to rev higher in Korea, with Hyundai and Kia extending their recent bout of strength. However, stocks in Beijing slipped to a four-month nadir, with small caps leading a late-session sell-off. By the close, South Korea's Kospi rose 2.8%, Japan's Nikkei added 1.5%, Hong Kong's Hang Seng tacked on 0.7%, and China's Shanghai Composite gave up 0.2%. European markets are mixed at midday. A poorly received earnings report from Burberry sparked weakness in fellow luxury retailers, as traders panned the company's lackluster margin forecast. Tire titan Michelin rose in Paris, buoyed by an upgrade at J.P. Morgan Cazenove, even as automakers across the region struggled. In Frankfurt, Bayer lost ground after a Citigroup downgrade to "sell," but Commerzbank AG moved higher after Fitch Ratings offered a vote of confidence for German banks. At last check, London's FTSE 100 is up 0.4%, the French CAC 40 is about 0.2% higher, and the German DAX has dipped 0.2%. The greenback has continued its retreat, with the U.S. dollar index down about 0.5%. Elsewhere, after cruising to a new two-week high on Wednesday, black gold has lost some ground ahead of the bell. At last check, the front-month crude contract is down $0.74, or 0.7%, at $100.58 per barrel. Meanwhile, gold futures have also pulled back in pre-market trading, with the front-month contract surrendering $6.80, or 0.5%, to trade at $1,519.90 an ounce. In the same vein, silver futures have backpedaled $0.82, or 2.2%, to flirt with $36.82 an ounce. PUT/CALL RATIO --------------------------------------------------- Equity option activity on the Chicago Board Options Exchange (CBOE) saw 1,153,285 call contracts traded on Wednesday, compared to 577,444 put contracts. The resultant single-session put/call ratio docked at 0.50 -- the lowest since Feb. 25 -- while the 21-day moving average remained at 0.65. SUPPORT & RESISTANCE LEVELS -------------------------------------- The S&P Depository Receipts (SPY) show support in the neighborhood of $131.35 and resistance above $135.00. For the Nasdaq 100 (QQQ), support is around $56.45 and resistance is near $57.15. TODAY'S ECONOMIC CALENDAR ---------------------------------------- 8:30 a.m. Q1 GDP 8:30 a.m. 5/21 Initial Claims 8:30 a.m. 5/14 Continuing Claims EARNINGS EXPECTED TODAY (w/current estimates) -------------------- BIG 0.69 BCSI 0.31 DLIA -0.15 GU -0.26 HNZ 0.72 MRVL 0.30 PDCO 0.51 TIF 0.57 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. 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