MORNING UPDATE: PriceWatch Alerts for BA and More... for 2013-10-01 |
| ------------------------------------------------------------------ MORNING UPDATE: PriceWatch Alerts for BA, DOW, HPQ, and More... January 10, 9:00 AM ET - PriceWatch Alerts for BA, DOW, APOL, DISH, TTM, HPQ, CF, HSP, HOLX, and PANW, Market Overview, News Leaders and Laggards, Today's Economic Calendar, and Index Support & Resistance Levels. PriceWatch Alerts for BA, DOW, APOL, DISH, TTM, HPQ, CF, HSP, HOLX, and PANW Boeing (NYSE: BA) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $76.76 while simultaneously selling the May $77.50 call will result in a new position with a target return of 5.4%. Based on recent prices, this position will cost about $73.56, which is also the trade?s breakeven point. At that level, this covered call has 4.2% downside protection, while still providing a 5.4% return in 128 days as long as BA is above $77.50 on 5/18/2013. For comparison purposes only, this Boeing covered call aims for an annualized return rate of 15.3%. Dow Chemical (NYSE: DOW) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $33.50 while selling the June $33.00 call will produce a new covered call with a break-even point around $31.22. At that price, this position has a target return of 5.7%. This trade will have roughly 6.8% downside protection, while still aiming for a 5.7% return in 163 days. It will lock in that return as long as Dow Chemical is above $33.00 on 6/22/2013. For comparison purposes only, this DOW covered call aims for an annualized return rate of 12.8%. Apollo Group (NASDAQ: APOL) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the May $19.00 call while at the same time buying APOL stock for $19.32 will produce a new covered call with a target return of 11.8%. Based on recent data, this trade will cost about $16.99, which is also the covered call?s breakeven point. At that price, this covered call has 12.1% downside protection, while seeking an assigned return of 11.8% return in 128 days. If APOL is higher than $19.00 on 5/18/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 33.7%. Dish Network (NASDAQ: DISH) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the March $36.00 call while simultaneously buying DISH stock for $36.85 will result in a new position with a break-even point around $33.95. At that price, this position has a target return of 6.0%. This trade has 7.9% downside protection, while still providing a 6.0% return in 65 days as long as DISH is above $36.00 on 3/16/2013. For comparison purposes only, this Dish Network covered call targets an annualized return rate of 33.9%. Tata Motors (NYSE: TTM) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $30.46 while simultaneously selling the April $30.00 call will result in a new position with a target return of 6.0%. Based on recent prices, this position will cost about $28.31, which is also the trade?s breakeven point. At that level, this covered call has 7.1% downside protection, while still providing a 6.0% return in 100 days as long as TTM is above $30.00 on 4/20/2013. For comparison purposes only, this Tata Motors covered call aims for an annualized return rate of 21.8%. Hewlett Packard (NYSE: HPQ) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the August $15.00 call while simultaneously buying HPQ stock for $15.85 will result in a new position with a break-even point around $13.69. At that price, this position has a target return of 9.6%. This trade has 13.6% downside protection, while still providing a 9.6% return in 219 days as long as HPQ is above $15.00 on 8/17/2013. For comparison purposes only, this Hewlett Packard covered call targets an annualized return rate of 15.9%. CF Industries (NYSE: CF) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the May $210.00 call while at the same time buying CF stock for $214.25 will produce a new covered call with a target return of 6.4%. Based on recent data, this trade will cost about $197.30, which is also the covered call?s breakeven point. At that price, this covered call has 7.9% downside protection, while seeking an assigned return of 6.4% return in 128 days. If CF is higher than $210.00 on 5/18/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 18.3%. Hospira (NYSE: HSP) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $34.07 while simultaneously selling the May $35.00 call will result in a new position with a target return of 7.6%. Based on recent prices, this position will cost about $32.52, which is also the trade?s breakeven point. At that level, this covered call has 4.5% downside protection, while still providing a 7.6% return in 128 days as long as HSP is above $35.00 on 5/18/2013. For comparison purposes only, this Hospira covered call aims for an annualized return rate of 21.7%. Hologic (NASDAQ: HOLX) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $22.36 while selling the June $22.00 call will produce a new covered call with a break-even point around $20.61. At that price, this position has a target return of 6.7%. This trade will have roughly 7.8% downside protection, while still aiming for a 6.7% return in 163 days. It will lock in that return as long as Hologic is above $22.00 on 6/22/2013. For comparison purposes only, this HOLX covered call aims for an annualized return rate of 15.1%. Palo Alto Networks (NYSE: PANW) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the February $50.00 call while simultaneously buying PANW stock for $49.98 will result in a new position with a break-even point around $47.28. At that price, this position has a target return of 5.8%. This trade has 5.4% downside protection, while still providing a 5.8% return in 37 days as long as PANW is above $50.00 on 2/16/2013. For comparison purposes only, this Palo Alto Networks covered call targets an annualized return rate of 56.7%. *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. The RadioActive Home Study Kit comes with a money back guarantee and a free month of access to the patented PowerOptions Suite of Tools! 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! NOTE: All stocks and options shown are examples only. These are not recommendations to buy or sell any security. NEWS LEADERS AND LAGGARDS CBS (CBS), Cirrus Logic (CRUS) and Ford (F) are pointed higher this morning, while Tiffany & Co (TIF), Dollar General (DG) and Coach (COH) are headed lower. Altria (MO), Bemis (BMS) and HCP (HCP) were upgraded this morning, while Coca-Cola (KO) and Post Properties (PPO) were downgraded. MARKET OVERVIEW Major Asian markets were higher overnight, with the Taiwan TSEC 50 up 0.9% and the Nikkei adding 0.7%. A significant rise in Chinese imports and exports spurred the region's equities higher, while Japanese markets advanced after new Prime Minister Shinzo Abe restated his desire for 2% inflation in Japan, which should result in a weaker Yen. In Europe, the markets are mixed, with German DAX up 0.3% but the French CAC down 0.2%. The European Central Bank and the Bank of England made no adjustments to monetary policy, which was just as expected. In commodities this morning, West Texas crude rose more than 1.1% and heating oil, gasoline, and natural gas are all similarly higher. Gold is up 0.3%, silver and platinum also higher, and copper is up more than 1%. The US Dollar is higher versus the Yen, but slightly lower against the Euro. PUT/CALL RATIO Yesterday, 847,872 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 520,752 put contracts. The single-session put/call was 0.61 yesterday, while the 20-day moving average held at 0.637. SUPPORT & RESISTANCE LEVELS The S&P 500 Depository Receipts (SPY) ETF has support at $144.95 and resistance around $146.60. The Nasdaq 100 (QQQ) has support near $66.15 and resistance at $67.35. TODAY'S ECONOMIC CALENDAR 8:30 A.M. 1/5 Initial Claims 8:30 A.M. 12/29 Continuing Claims 10:00 A.M. Nov Wholesale Inventories 10:30 A.M. 1/5 Natural Gas Inventories EARNINGS EXPECTED TODAY MSM SVU SNX 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 |
