MORNING UPDATE: PriceWatch Alerts for ORCL and More... for 2013-05-08 |
| ------------------------------------------------------------------ MORNING UPDATE: PriceWatch Alerts for ORCL, ANF, DTV, and More... May 8, 9:00 AM ET - PriceWatch Alerts for ORCL, DTV, URBN, AXL, ROSE, ANF, UPS, HOG, CAR, and CHMT, Market Overview, News Leaders and Laggards, Today's Economic Calendar, and Index Support & Resistance Levels. PriceWatch Alerts for ORCL, DTV, URBN, AXL, ROSE, ANF, UPS, HOG, CAR, and CHMT Oracle (NASDAQ: ORCL) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $33.26 while simultaneously selling the September $33.00 call will result in a new position with a target return of 5.1%. Based on recent prices, this position will cost about $31.40, which is also the trade?s breakeven point. At that level, this covered call has 5.6% downside protection, while still providing a 5.1% return in 136 days as long as ORCL is above $33.00 on 9/21/2013. For comparison purposes only, this Oracle covered call aims for an annualized return rate of 13.7%. DirecTV (NASDAQ: DTV) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the September $60.00 call while at the same time buying DTV stock for $61.95 will produce a new covered call with a target return of 4.1%. Based on recent data, this trade will cost about $57.65, which is also the covered call?s breakeven point. At that price, this covered call has 6.9% downside protection, while seeking an assigned return of 4.1% return in 136 days. If DTV is higher than $60.00 on 9/21/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 10.9%. Urban Outfitters (NASDAQ: URBN) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the September $43.00 call while simultaneously buying URBN stock for $43.66 will result in a new position with a break-even point around $40.06. At that price, this position has a target return of 7.3%. This trade has 8.2% downside protection, while still providing a 7.3% return in 136 days as long as URBN is above $43.00 on 9/21/2013. For comparison purposes only, this Urban Outfitters covered call targets an annualized return rate of 19.7%. American Axle and Manufacturing (NYSE: AXL) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $15.94 while selling the October $15.00 call will produce a new covered call with a break- even point around $13.99. At that price, this position has a target return of 7.2%. This trade will have roughly 12.2% downside protection, while still aiming for a 7.2% return in 164 days. It will lock in that return as long as American Axle and Manufacturing is above $15.00 on 10/19/2013. For comparison purposes only, this AXL covered call aims for an annualized return rate of 16.0%. Rosetta Resources (NASDAQ: ROSE) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $46.16 while simultaneously selling the October $45.00 call will result in a new position with a target return of 8.3%. Based on recent prices, this position will cost about $41.56, which is also the trade?s breakeven point. At that level, this covered call has 10.0% downside protection, while still providing a 8.3% return in 164 days as long as ROSE is above $45.00 on 10/19/2013. For comparison purposes only, this Rosetta Resources covered call aims for an annualized return rate of 18.4%. Abercrombie and Fitch (NYSE: ANF) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the June $50.00 call while at the same time buying ANF stock for $52.07 will produce a new covered call with a target return of 4.7%. Based on recent data, this trade will cost about $47.77, which is also the covered call?s breakeven point. At that price, this covered call has 8.3% downside protection, while seeking an assigned return of 4.7% return in 45 days. If ANF is higher than $50.00 on 6/22/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 37.8%. United Parcel Service (NYSE: UPS) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the October $92.50 call while simultaneously buying UPS stock for $88.66 will result in a new position with a break-even point around $87.36. At that price, this position has a target return of 5.9%. This trade has 1.5% downside protection, while still providing a 5.9% return in 164 days as long as UPS is above $92.50 on 10/19/2013. For comparison purposes only, this United Parcel Service covered call targets an annualized return rate of 13.1%. Harley Davidson (NYSE: HOG) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $57.54 while selling the November $55.00 call will produce a new covered call with a break- even point around $52.14. At that price, this position has a target return of 5.5%. This trade will have roughly 9.4% downside protection, while still aiming for a 5.5% return in 192 days. It will lock in that return as long as Harley Davidson is above $55.00 on 11/16/2013. For comparison purposes only, this HOG covered call aims for an annualized return rate of 10.4%. Avis Budget (NYSE: CAR) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $30.91 while simultaneously selling the August $30.00 call will result in a new position with a target return of 6.7%. Based on recent prices, this position will cost about $28.11, which is also the trade?s breakeven point. At that level, this covered call has 9.1% downside protection, while still providing a 6.7% return in 101 days as long as CAR is above $30.00 on 8/17/2013. For comparison purposes only, this Avis Budget covered call aims for an annualized return rate of 24.3%. Chemtura (NYSE: CHMT) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the September $20.00 call while at the same time buying CHMT stock for $21.33 will produce a new covered call with a target return of 6.2%. Based on recent data, this trade will cost about $18.83, which is also the covered call?s breakeven point. At that price, this covered call has 11.7% downside protection, while seeking an assigned return of 6.2% return in 136 days. If CHMT is higher than $20.00 on 9/21/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 16.7%. *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. 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NEWS LEADERS AND LAGGARDS Sotheby's Holdings (BID), Whole Foods (WFM) and Amerisafe (AMSF) are headed higher this morning, while ValueClick (VCLK), Cobalt Energy (CIE) and Sodastream (SODA) are in decline. Louisiana- Pacific (LPX) and Myriad Genetics (MYGN) were upgraded by analysts this morning, while TW Telecom (TWT), ValueClick (VCLK) and Insulet (PODD) were downgraded. MARKET OVERVIEW Internationally there was a great deal of strength overnight, with Asian and European indices broadly higher this morning. The Taiwain TSEC gained 1.3%, the Australian All-Ordinaries was up 1.1%, the Hong Kong Hang Seng rose 0.9% and the Japanese Nikkei 225 added 0.7%. Official data from the Chinese government reported an April trade surplus of $18.16B. Both exports and imports rose and beat estimates. In Europe, gains are also being made on all major exchanges and nearly across the board. The Swiss Market Index and the French CAC 40 are both higher by 0.8% at last check, while the Euronext 100 is up 0.7% and the German DAX has tacked on 0.6%. German industrial production unexpectedly grew by 1.2% for March despite the expectation of little change. In commodities, crude oil, is slightly higher this morning, with WTI crude up 0.2% to $95.78. Gasoline and heating oil are down small amounts, while natural gas is bouncing back, up 0.8% at $3.95. In metals, gold is up just more than 1.0% to $1,463, while silver and platinum are both higher as well. Copper is up sharply, gaining 2.4% to $3.38. The US Dollar is weaker against the Yen and the Euro this morning. Bitcoins are roughly flat since yesterday, just above $110. PUT/CALL RATIO Yesterday, 904,327 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 566,733 put contracts. The single-session put/call was 0.63, while the 20-day moving average is now at 0.65. SUPPORT & RESISTANCE LEVELS The S&P 500 Depository Receipts (SPY) ETF has support at $156, and is above resistance. The Nasdaq 100 (QQQ) has support at $69 and is above resistance. TODAY'S ECONOMIC CALENDAR 7:00 AM 5/04 MBA Mortgage Index 10:30 AM 5/04 Crude Inventories EARNINGS EXPECTED TODAY CTL CF CTSH MNST NWSA RIG TMUS RST 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 |
