MORNING UPDATE: PriceWatch Alerts for QCOM and More... for 2013-07-03 |
| ------------------------------------------------------------------ MORNING UPDATE: PriceWatch Alerts for QCOM, SLB, MS, and More... March 7, 9:00 AM ET - PriceWatch Alerts for QCOM, CBS, DVA, ORLY, PCYC, SLB, MET, AMP, SWI, THRX, MS, CREE, TRIP, LIFE, and CHS, Market Overview, News Leaders and Laggards, Today's Economic Calendar, and Index Support & Resistance Levels. PriceWatch Alerts for QCOM, CBS, DVA, ORLY, PCYC, SLB, MET, AMP, SWI, THRX, MS, CREE, TRIP, LIFE, and CHS Qualcomm (NASDAQ: QCOM) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $66.67 while selling the July $65.00 call will produce a new covered call with a break-even point around $62.32. At that price, this position has a target return of 4.3%. This trade will have roughly 6.5% downside protection, while still aiming for a 4.3% return in 135 days. It will lock in that return as long as Qualcomm is above $65.00 on 7/20/2013. For comparison purposes only, this QCOM covered call aims for an annualized return rate of 11.6%. CBS (NYSE: CBS) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $44.81 while simultaneously selling the June $44.00 call will result in a new position with a target return of 4.7%. Based on recent prices, this position will cost about $42.01, which is also the trade?s breakeven point. At that level, this covered call has 6.2% downside protection, while still providing a 4.7% return in 107 days as long as CBS is above $44.00 on 6/22/2013. For comparison purposes only, this CBS covered call aims for an annualized return rate of 16.1%. DaVita (NYSE: DVA) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the July $120.00 call while at the same time buying DVA stock for $121.95 will produce a new covered call with a target return of 4.1%. Based on recent data, this trade will cost about $115.25, 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 4.1% return in 135 days. If DVA is higher than $120.00 on 7/20/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 11.1%. O'Reilly Automotive (NASDAQ: ORLY) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the August $100.00 call while simultaneously buying ORLY stock for $103.44 will result in a new position with a break-even point around $95.24. At that price, this position has a target return of 5.0%. This trade has 7.9% downside protection, while still providing a 5.0% return in 163 days as long as ORLY is above $100.00 on 8/17/2013. For comparison purposes only, this O'Reilly Automotive covered call targets an annualized return rate of 11.2%. Pharmacyclics (NASDAQ: PCYC) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $93.99 while selling the May $90.00 call will produce a new covered call with a break-even point around $83.99. At that price, this position has a target return of 7.2%. This trade will have roughly 10.6% downside protection, while still aiming for a 7.2% return in 72 days. It will lock in that return as long as Pharmacyclics is above $90.00 on 5/18/2013. For comparison purposes only, this PCYC covered call aims for an annualized return rate of 36.2%. Schlumberger (NYSE: SLB) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $77.16 while simultaneously selling the May $77.50 call will result in a new position with a target return of 4.6%. Based on recent prices, this position will cost about $74.11, which is also the trade?s breakeven point. At that level, this covered call has 4.0% downside protection, while still providing a 4.6% return in 72 days as long as SLB is above $77.50 on 5/18/2013. For comparison purposes only, this Schlumberger covered call aims for an annualized return rate of 23.2%. MetLife (NYSE: MET) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the June $36.00 call while at the same time buying MET stock for $36.54 will produce a new covered call with a target return of 4.7%. Based on recent data, this trade will cost about $34.39, which is also the covered call?s breakeven point. At that price, this covered call has 5.9% downside protection, while seeking an assigned return of 4.7% return in 107 days. If MET is higher than $36.00 on 6/22/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 16.0%. Ameriprise Financial (NYSE: AMP) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the September $70.00 call while simultaneously buying AMP stock for $70.51 will result in a new position with a break-even point around $66.41. At that price, this position has a target return of 5.4%. This trade has 5.8% downside protection, while still providing a 5.4% return in 198 days as long as AMP is above $70.00 on 9/21/2013. For comparison purposes only, this Ameriprise Financial covered call targets an annualized return rate of 10.0%. SolarWinds (NYSE: SWI) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $60.09 while selling the June $60.00 call will produce a new covered call with a break-even point around $55.69. At that price, this position has a target return of 7.7%. This trade will have roughly 7.3% downside protection, while still aiming for a 7.7% return in 107 days. It will lock in that return as long as SolarWinds is above $60.00 on 6/22/2013. For comparison purposes only, this SWI covered call aims for an annualized return rate of 26.4%. Theravance (NASDAQ: THRX) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $24.29 while simultaneously selling the April $24.00 call will result in a new position with a target return of 10.9%. Based on recent prices, this position will cost about $21.64, which is also the trade?s breakeven point. At that level, this covered call has 10.9% downside protection, while still providing a 10.9% return in 44 days as long as THRX is above $24.00 on 4/20/2013. For comparison purposes only, this Theravance covered call aims for an annualized return rate of 90.4%. Morgan Stanley (NYSE: MS) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the July $22.00 call while simultaneously buying MS stock for $22.91 will result in a new position with a break-even point around $20.67. At that price, this position has a target return of 6.4%. This trade has 9.8% downside protection, while still providing a 6.4% return in 135 days as long as MS is above $22.00 on 7/20/2013. For comparison purposes only, this Morgan Stanley covered call targets an annualized return rate of 17.4%. Cree (NASDAQ: CREE) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the April $52.50 call while at the same time buying CREE stock for $52.69 will produce a new covered call with a target return of 5.3%. Based on recent data, this trade will cost about $49.84, which is also the covered call?s breakeven point. At that price, this covered call has 5.4% downside protection, while seeking an assigned return of 5.3% return in 44 days. If CREE is higher than $52.50 on 4/20/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 44.2%. Tripadvisor (NASDAQ: TRIP) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $48.63 while simultaneously selling the April $48.00 call will result in a new position with a target return of 4.2%. Based on recent prices, this position will cost about $46.08, which is also the trade?s breakeven point. At that level, this covered call has 5.2% downside protection, while still providing a 4.2% return in 44 days as long as TRIP is above $48.00 on 4/20/2013. For comparison purposes only, this Tripadvisor covered call aims for an annualized return rate of 34.5%. Life Technologies (NASDAQ: LIFE) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $59.96 while selling the April $60.00 call will produce a new covered call with a break-even point around $57.41. At that price, this position has a target return of 4.5%. This trade will have roughly 4.3% downside protection, while still aiming for a 4.5% return in 44 days. It will lock in that return as long as Life Technologies is above $60.00 on 4/20/2013. For comparison purposes only, this LIFE covered call aims for an annualized return rate of 37.4%. Chicos FAS (NYSE: CHS) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the August $17.00 call while simultaneously buying CHS stock for $17.42 will result in a new position with a break-even point around $15.77. At that price, this position has a target return of 7.8%. This trade has 9.5% downside protection, while still providing a 7.8% return in 163 days as long as CHS is above $17.00 on 8/17/2013. For comparison purposes only, this Chicos FAS covered call targets an annualized return rate of 17.4%. *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 Himax Technology (HIMX), Horizon Pharma (HZNP) and CIENA(CIEN) are headed higher this morning, while James River Coal (JRCC), SolarCity (SCTY) and PetSmart (PETM) are headed lower. Palo Alto Networks (PANW), SAP AG (SAP) and Clean Harbors (CLH) were upgraded this morning, while Quicksilver (KWK), SolarCity (SCTY) and DigitalGlobe (DGI) were downgraded. MARKET OVERVIEW The Asian indices were mixed overnight, led higher by India's Sensex up 0.8% and the Japanese Nikkei, which gained 0.3%. On the flip side, the Shanghai SEC fell 1.0% and the Australian All- Ordinaries slipped 0.2%. Japanese central bankers announced no policy changes at today's meeting. In Europe, the major markets are in the green so far this morning. The French CAC 40 and Euronext 100 are leading the way higher, up 0.6% at last check, with many other indices up just 0.1% to 0.2%. In the spotlight are interest rate decisions from the European Central Bank and Bank of England, where no changes were announced. In the commodities pits, energy futures are also mixed this morning. West Texas crude is up 0.4% to $90.83 while heating oil, gasoline, and natural gas are all lower by small amounts. Precious metals are all higher, with gold futures up 0.4%, plus platinum and palladium each gaining about 1%. Action in currencies is mixed, with the US Dollar losing ground against the Euro but nearly flat elsewhere. Currency futures traders seem to be betting on a weaker dollar outside of the short term, with front contracts for the Yen and Pound decreasing in value but longer-dated contracts increasing. PUT/CALL RATIO Yesterday, 1,052,419 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 564,012 put contracts. The single-session put/call was 0.54, 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 $148.60 and is above recent resistance. The Nasdaq 100 (QQQ) has support around $67 and could meet resistance near $70.40. TODAY'S ECONOMIC CALENDAR 7:30 AM Feb Challenger Job Cuts 8:30 AM 3/2 initial claims 8:30 AM 2/23 Continuing Claims 8:30 AM Jan Trade Balance 8:30 AM Q4 Productivity-Rev 8:30 AM Q4 Unit Labor Costs-Rev 10:30 AM 3/2 Natural Gas Inventories 3:00 PM Jan Consumer Credit EARNINGS EXPECTED TODAY HRB KR 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 |
