MORNING UPDATE: PriceWatch Alerts for FB and More... for 2013-06-02 |
| ------------------------------------------------------------------ MORNING UPDATE: PriceWatch Alerts for FB, MS, BHP and More... February 6, 9:00 AM ET - PriceWatch Alerts for FB, CSC, CBI, SPF, JEF, MS, AOL, IACI, NWL, CPRT, BHP, MDT, HAIN, LEG, and CAB, Market Overview, News Leaders and Laggards, Today's Economic Calendar, and Index Support & Resistance Levels. PriceWatch Alerts for FB, CSC, CBI, SPF, JEF, MS, AOL, IACI, NWL, CPRT, BHP, MDT, HAIN, LEG, and CAB Facebook (NASDAQ: FB) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $28.64 while selling the April $28.00 call will produce a new covered call with a break-even point around $26.41. At that price, this position has a target return of 6.0%. This trade will have roughly 7.8% downside protection, while still aiming for a 6.0% return in 73 days. It will lock in that return as long as Facebook is above $28.00 on 4/20/2013. For comparison purposes only, this FB covered call aims for an annualized return rate of 30.1%. Computer Sciences (NYSE: CSC) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $45.75 while simultaneously selling the June $45.00 call will result in a new position with a target return of 5.8%. Based on recent prices, this position will cost about $42.55, which is also the trade?s breakeven point. At that level, this covered call has 7.0% downside protection, while still providing a 5.8% return in 136 days as long as CSC is above $45.00 on 6/22/2013. For comparison purposes only, this Computer Sciences covered call aims for an annualized return rate of 15.4%. Chicago Bridge & Iron (NYSE: CBI) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the July $50.00 call while at the same time buying CBI stock for $52.49 will produce a new covered call with a target return of 5.3%. Based on recent data, this trade will cost about $47.49, which is also the covered call?s breakeven point. At that price, this covered call has 9.5% downside protection, while seeking an assigned return of 5.3% return in 164 days. If CBI is higher than $50.00 on 7/20/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 11.8%. Standard Pacific (NYSE: SPF) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the September $8.00 call while simultaneously buying SPF stock for $8.14 will result in a new position with a break-even point around $6.99. At that price, this position has a target return of 14.4%. This trade has 14.1% downside protection, while still providing a 14.4% return in 227 days as long as SPF is above $8.00 on 9/21/2013. For comparison purposes only, this Standard Pacific covered call targets an annualized return rate of 23.2%. Jefferies Group (NYSE: JEF) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $20.23 while selling the July $20.00 call will produce a new covered call with a break-even point around $19.03. At that price, this position has a target return of 5.1%. This trade will have roughly 5.9% downside protection, while still aiming for a 5.1% return in 164 days. It will lock in that return as long as Jefferies Group is above $20.00 on 7/20/2013. For comparison purposes only, this JEF covered call aims for an annualized return rate of 11.3%. Morgan Stanley (NYSE: MS) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $23.40 while simultaneously selling the April $23.00 call will result in a new position with a target return of 5.0%. Based on recent prices, this position will cost about $21.91, which is also the trade?s breakeven point. At that level, this covered call has 6.4% downside protection, while still providing a 5.0% return in 73 days as long as MS is above $23.00 on 4/20/2013. For comparison purposes only, this Morgan Stanley covered call aims for an annualized return rate of 24.9%. AOL (NYSE: AOL) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the April $30.00 call while at the same time buying AOL stock for $30.50 will produce a new covered call with a target return of 5.8%. Based on recent data, this trade will cost about $28.35, which is also the covered call?s breakeven point. At that price, this covered call has 7.0% downside protection, while seeking an assigned return of 5.8% return in 73 days. If AOL is higher than $30.00 on 4/20/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 29.1%. IAC InterActiveCorp (NASDAQ: IACI) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the April $40.00 call while simultaneously buying IACI stock for $42.39 will result in a new position with a break-even point around $38.39. At that price, this position has a target return of 4.2%. This trade has 9.4% downside protection, while still providing a 4.2% return in 73 days as long as IACI is above $40.00 on 4/20/2013. For comparison purposes only, this IAC InterActiveCorp covered call targets an annualized return rate of 21.0%. Newell Rubbermaid (NYSE: NWL) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $24.12 while selling the June $24.00 call will produce a new covered call with a break-even point around $22.92. At that price, this position has a target return of 4.7%. This trade will have roughly 5.0% downside protection, while still aiming for a 4.7% return in 136 days. It will lock in that return as long as Newell Rubbermaid is above $24.00 on 6/22/2013. For comparison purposes only, this NWL covered call aims for an annualized return rate of 12.6%. Copart (NASDAQ: CPRT) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $36.48 while simultaneously selling the August $35.00 call will result in a new position with a target return of 5.5%. Based on recent prices, this position will cost about $33.18, which is also the trade?s breakeven point. At that level, this covered call has 9.0% downside protection, while still providing a 5.5% return in 192 days as long as CPRT is above $35.00 on 8/17/2013. For comparison purposes only, this Copart covered call aims for an annualized return rate of 10.4%. BHP Billiton (NYSE: BHP) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the August $77.50 call while at the same time buying BHP stock for $77.93 will produce a new covered call with a target return of 5.4%. Based on recent data, this trade will cost about $73.53, which is also the covered call?s breakeven point. At that price, this covered call has 5.6% downside protection, while seeking an assigned return of 5.4% return in 192 days. If BHP is higher than $77.50 on 8/17/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 10.2%. Medtronic (NYSE: MDT) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $46.77 while simultaneously selling the August $47.00 call will result in a new position with a target return of 5.9%. Based on recent prices, this position will cost about $44.39, which is also the trade?s breakeven point. At that level, this covered call has 5.1% downside protection, while still providing a 5.9% return in 192 days as long as MDT is above $47.00 on 8/17/2013. For comparison purposes only, this Medtronic covered call aims for an annualized return rate of 11.2%. Hain Celestial Group (NASDAQ: HAIN) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $59.40 while selling the May $55.00 call will produce a new covered call with a break-even point around $51.90. At that price, this position has a target return of 6.0%. This trade will have roughly 12.6% downside protection, while still aiming for a 6.0% return in 101 days. It will lock in that return as long as Hain Celestial Group is above $55.00 on 5/18/2013. For comparison purposes only, this HAIN covered call aims for an annualized return rate of 21.6%. Leggett and Platt (NYSE: LEG) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the June $30.00 call while simultaneously buying LEG stock for $29.60 will result in a new position with a break-even point around $28.55. At that price, this position has a target return of 5.1%. This trade has 3.5% downside protection, while still providing a 5.1% return in 136 days as long as LEG is above $30.00 on 6/22/2013. For comparison purposes only, this Leggett and Platt covered call targets an annualized return rate of 13.6%. Cabelas (NYSE: CAB) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the June $45.00 call while at the same time buying CAB stock for $49.93 will produce a new covered call with a target return of 6.1%. Based on recent data, this trade will cost about $42.43, which is also the covered call?s breakeven point. At that price, this covered call has 15.0% downside protection, while seeking an assigned return of 6.1% return in 136 days. If CAB is higher than $45.00 on 6/22/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 16.2%. *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 Shutterfly (SFLY), Biogen (BIIB), and Zynga (ZYNG), are headed higher this morning, while C.H. Robinson (CHRW), Wynn Resorts (WYNN), and Research in Motion (BBRY) are headed lower. Itron (ITRI) was upgraded by analysts, while Ashford Hospitality Trust (AHT), Dell (DELL), and Marcus (MCS) were downgraded. MARKET OVERVIEW Asian markets were predominantly higher overnight, led by the Nikkei, which gained 3.8% as the Yen weakened dramatically. Outgoing Bank of Japan governor Masaaki Shirakawa, who was not fully on board with the aggressive monetary policy advocated by new prime minister Shinzo Abe, said he would leave his position on March 19, which is three weeks earlier than his term should have lasted. While that news seems relatively minor, it is an indication that the new governor, who will take over a little sooner, will be fully on board with weakening the Yen. In Europe, the major indices are mixed so far, with the Swiss Market Index and the FTSE each higher by 0.3% but the French CAC 40 and German DAX lower by 0.6%. corporate earnings are the main focus for European traders this morning, with Arcelor Mittal (MT) higher, but Deutsche Bank (DB) lower overnight. In early trading, energy commodities are mostly lower, led by West Texas crude down more than 1% to $95.67. Heating oil and gasoline are both down about one cent, while natural gas is higher by more than 1.2%. Gold futures are nearly flat, up 0.2% while silver and copper are down slightly, but platinum has surged ahead 1.6%. The US Dollar is significantly higher against most other currencies this morning, making the largest gains against the Euro. PUT/CALL RATIO Yesterday, 943,144 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 558,877 put contracts. The single-session put/call was 0.59, while the 20-day moving average is now at 0.656. SUPPORT & RESISTANCE LEVELS The S&P 500 Depository Receipts (SPY) ETF should find support around $149.00 and could now have resistance near $151.50. The Nasdaq 100 (QQQ) continues remain in range-bound between support near $66.30 and resistance at $67.80. TODAY'S ECONOMIC CALENDAR 7:00 AM 2/2 MBA Mortgage Index 10:30 AM 2/2 Crude Inventories EARNINGS EXPECTED TODAY AFL GAS ALL AIZ CBG CINF CVH CMI CVS EFX FMC ICE MRO NWSA ORLY PRU RL SRCL TSO TWX V WYN 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. 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