MORNING UPDATE: PriceWatch Alerts for GS and More... for 2013-05-07 |
| ------------------------------------------------------------------ MORNING UPDATE: PriceWatch Alerts for GS, STX, BHP, and More... May 7, 9:00 AM ET - PriceWatch Alerts for GS, BHP, MNST, LNC, CLNE, STX, MDLZ, BLK, LL, and CTRP, Market Overview, News Leaders and Laggards, Today's Economic Calendar, and Index Support & Resistance Levels. PriceWatch Alerts for GS, BHP, MNST, LNC, CLNE, STX, MDLZ, BLK, LL, and CTRP Goldman Sachs (NYSE: GS) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $148.60 while simultaneously selling the October $145.00 call will result in a new position with a target return of 5.1%. Based on recent prices, this position will cost about $137.90, which is also the trade?s breakeven point. At that level, this covered call has 7.2% downside protection, while still providing a 5.1% return in 165 days as long as GS is above $145.00 on 10/19/2013. For comparison purposes only, this Goldman Sachs covered call aims for an annualized return rate of 11.4%. BHP Billiton (NYSE: BHP) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the August $67.50 call while at the same time buying BHP stock for $68.15 will produce a new covered call with a target return of 5.2%. Based on recent data, this trade will cost about $64.15, 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 5.2% return in 102 days. If BHP is higher than $67.50 on 8/17/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 18.7%. Monster Beverage (NASDAQ: MNST) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the June $55.00 call while simultaneously buying MNST stock for $56.31 will result in a new position with a break-even point around $52.31. At that price, this position has a target return of 5.1%. This trade has 7.1% downside protection, while still providing a 5.1% return in 46 days as long as MNST is above $55.00 on 6/22/2013. For comparison purposes only, this Monster Beverage covered call targets an annualized return rate of 40.8%. Lincoln National (NYSE: LNC) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $33.82 while selling the October $33.00 call will produce a new covered call with a break- even point around $30.97. At that price, this position has a target return of 6.6%. This trade will have roughly 8.4% downside protection, while still aiming for a 6.6% return in 165 days. It will lock in that return as long as Lincoln National is above $33.00 on 10/19/2013. For comparison purposes only, this LNC covered call aims for an annualized return rate of 14.5%. Clean Energy Fuels (NASDAQ: CLNE) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $13.71 while simultaneously selling the December $13.00 call will result in a new position with a target return of 10.1%. Based on recent prices, this position will cost about $11.81, which is also the trade?s breakeven point. At that level, this covered call has 13.9% downside protection, while still providing a 10.1% return in 228 days as long as CLNE is above $13.00 on 12/21/2013. For comparison purposes only, this Clean Energy Fuels covered call aims for an annualized return rate of 16.1%. Seagate Technology (NASDAQ: STX) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the July $42.00 call while at the same time buying STX stock for $42.09 will produce a new covered call with a target return of 5.2%. Based on recent data, this trade will cost about $39.94, which is also the covered call?s breakeven point. At that price, this covered call has 5.1% downside protection, while seeking an assigned return of 5.2% return in 74 days. If STX is higher than $42.00 on 7/20/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 25.4%. Mondelez (NASDAQ: MDLZ) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the September $31.00 call while simultaneously buying MDLZ stock for $31.19 will result in a new position with a break-even point around $29.55. At that price, this position has a target return of 4.9%. This trade has 5.3% downside protection, while still providing a 4.9% return in 137 days as long as MDLZ is above $31.00 on 9/21/2013. For comparison purposes only, this Mondelez covered call targets an annualized return rate of 13.1%. BlackRock (NYSE: BLK) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $274.35 while selling the October $270.00 call will produce a new covered call with a break-even point around $258.05. At that price, this position has a target return of 4.6%. This trade will have roughly 5.9% downside protection, while still aiming for a 4.6% return in 165 days. It will lock in that return as long as BlackRock is above $270.00 on 10/19/2013. For comparison purposes only, this BLK covered call aims for an annualized return rate of 10.2%. Lumber Liquidators (NYSE: LL) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $83.58 while simultaneously selling the August $80.00 call will result in a new position with a target return of 7.3%. Based on recent prices, this position will cost about $74.58, which is also the trade?s breakeven point. At that level, this covered call has 10.8% downside protection, while still providing a 7.3% return in 102 days as long as LL is above $80.00 on 8/17/2013. For comparison purposes only, this Lumber Liquidators covered call aims for an annualized return rate of 26.0%. Ctrip.com (NASDAQ: CTRP) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the June $23.00 call while at the same time buying CTRP stock for $23.25 will produce a new covered call with a target return of 5.3%. Based on recent data, this trade will cost about $21.85, which is also the covered call?s breakeven point. At that price, this covered call has 6.0% downside protection, while seeking an assigned return of 5.3% return in 46 days. If CTRP is higher than $23.00 on 6/22/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 41.7%. *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 Santarus (SNTS), Mercadolibre (MELI) and Himax Technologies (HIMX) are headed higher this morning, while Aruba Networks (ARUN), Aeropostale (ARO) and Generac Holdings (GNRC) are in decline. Invesco Mortgage Capital (IVR) and Apollo Global Management (APO) were upgraded by analysts this morning, while Hologic (HOLX) was downgraded. MARKET OVERVIEW Asian shares are mostly higher this morning, with big gains posted by Japan, which is catch-up mode after an extended weekend. The Nikkei 225 rose 3.6%, while the Mumbai Sensex advanced 1.1% and the Hong Kong Hang Seng gained 0.6%. The Australia All-Ordinaries and the Taiwan TSEC fell small amounts, 0.2% and 0.1% respectively. Japanese exporters rose sharply since the Yen has been falling against the Dollar over the past few days. In Europe, gains are being made pretty much universally. The German DAX is up 0.9%, the Swiss Market Index is up 0.7%, and the French CAC 40 is up 0.6% at last check. Shares of several major Continental banks are higher this morning after reporting earnings, including HSBC (HBC), Societe Generale, and Commerzbank. In commodities, crude oil, which has been advancing over the past week, is slightly lower this morning, with WTI crude down 0.4% to $95.74. Gasoline is also down 0.4%, while natural gas is off 1.1% at $3.96. In metals, gold is down 0.5% to $1,460, while silver and platinum are both off more than 1%. The US Dollar is weaker against the Yen and the Euro, but stronger against the British Pound and the Swiss Franc this morning. Bitcoins are down more than 10% in the past day and are trading near $104. PUT/CALL RATIO Asian markets reversed their recent course and were for the most part higher to kick off the week. Japan was the only major loser in the region, off 0.9%, while Shanghai's SEC rose 2.4%. Several large Japanese companies dropped on earnings announcements while Hong Kong's Hang Seng touched a new 52-week high. In Europe, most markets were also higher at last check, but the magnitude of the moves was not very significant. The Swiss Market Index leads the way up 0.3% while the German DAX slipped 0.1%. The Pound Sterling is the latest currency to fall, taking a cue from comments made by central bankers at the Davos summit. In early trading, West Texas crude oil futures are sticking in their recent range, up 0.3% to $96.20. Heating oil is slightly higher, while natural gas and gasoline are down a small amount. Gold and silver futures are just about flat, while platinum is off by 0.25% and copper is up 0.5%. The US Dollar is higher versus most foreign currencies including the Euro, British Pound, Canadian Dollar and Swiss Franc, while the Yen is the only one that is headed in the opposite direction. PUT/CALL RATIO Yesterday, 924,082 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 493,298 put contracts. The single-session put/call was 0.53, 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 $68.66 and is above resistance. TODAY'S ECONOMIC CALENDAR 3:00 PM Mar Consumer Credit EARNINGS EXPECTED TODAY CHRW CA DVA DTV EA EMR FE FOSL IFF MCK TAP MDLZ 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 |
