MORNING UPDATE: PriceWatch Alerts for AIG and More... for 2013-04-29 |
| ------------------------------------------------------------------ MORNING UPDATE: PriceWatch Alerts for AIG, HPQ, KLAC, and More... April 29, 9:00 AM ET - PriceWatch Alerts for AIG, BG, CLF, AMRN, IMGN, HPQ, KLAC, CERN, HRB, and LXK, Market Overview, News Leaders and Laggards, Today's Economic Calendar, and Index Support & Resistance Levels. PriceWatch Alerts for AIG, BG, CLF, AMRN, IMGN, HPQ, KLAC, CERN, HRB, and LXK American International Group (NYSE: AIG) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $40.87 while simultaneously selling the July $40.00 call will result in a new position with a target return of 4.2%. Based on recent prices, this position will cost about $38.37, which is also the trade?s breakeven point. At that level, this covered call has 6.1% downside protection, while still providing a 4.2% return in 82 days as long as AIG is above $40.00 on 7/20/2013. For comparison purposes only, this American International Group covered call aims for an annualized return rate of 18.9%. Bunge (NYSE: BG) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the October $72.50 call while at the same time buying BG stock for $71.52 will produce a new covered call with a target return of 6.1%. Based on recent data, this trade will cost about $68.32, which is also the covered call?s breakeven point. At that price, this covered call has 4.5% downside protection, while seeking an assigned return of 6.1% return in 173 days. If BG is higher than $72.50 on 10/19/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 12.9%. Cliffs Natural Resources (NYSE: CLF) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the June $20.00 call while simultaneously buying CLF stock for $20.17 will result in a new position with a break-even point around $18.45. At that price, this position has a target return of 8.4%. This trade has 8.5% downside protection, while still providing a 8.4% return in 54 days as long as CLF is above $20.00 on 6/22/2013. For comparison purposes only, this Cliffs Natural Resources covered call targets an annualized return rate of 56.8%. Amarin (NASDAQ: AMRN) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $6.84 while selling the December $6.00 call will produce a new covered call with a break-even point around $4.82. At that price, this position has a target return of 24.5%. This trade will have roughly 29.5% downside protection, while still aiming for a 24.5% return in 236 days. It will lock in that return as long as Amarin is above $6.00 on 12/21/2013. For comparison purposes only, this AMRN covered call aims for an annualized return rate of 37.9%. ImmunoGen (NASDAQ: IMGN) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $16.31 while simultaneously selling the July $16.00 call will result in a new position with a target return of 7.7%. Based on recent prices, this position will cost about $14.86, which is also the trade?s breakeven point. At that level, this covered call has 8.9% downside protection, while still providing a 7.7% return in 82 days as long as IMGN is above $16.00 on 7/20/2013. For comparison purposes only, this ImmunoGen covered call aims for an annualized return rate of 34.1%. Hewlett Packard (NYSE: HPQ) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the August $19.00 call while at the same time buying HPQ stock for $19.97 will produce a new covered call with a target return of 5.8%. Based on recent data, this trade will cost about $17.96, which is also the covered call?s breakeven point. At that price, this covered call has 10.1% downside protection, while seeking an assigned return of 5.8% return in 110 days. If HPQ is higher than $19.00 on 8/17/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 19.2%. KLA Tencor (NASDAQ: KLAC) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the September $50.00 call while simultaneously buying KLAC stock for $52.11 will result in a new position with a break-even point around $47.81. At that price, this position has a target return of 4.6%. This trade has 8.3% downside protection, while still providing a 4.6% return in 145 days as long as KLAC is above $50.00 on 9/21/2013. For comparison purposes only, this KLA Tencor covered call targets an annualized return rate of 11.5%. Cerner (NASDAQ: CERN) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $95.88 while selling the September $95.00 call will produce a new covered call with a break-even point around $88.68. At that price, this position has a target return of 7.1%. This trade will have roughly 7.5% downside protection, while still aiming for a 7.1% return in 145 days. It will lock in that return as long as Cerner is above $95.00 on 9/21/2013. For comparison purposes only, this CERN covered call aims for an annualized return rate of 17.9%. H&R Block (NYSE: HRB) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $28.66 while simultaneously selling the July $28.00 call will result in a new position with a target return of 5.0%. Based on recent prices, this position will cost about $26.66, which is also the trade?s breakeven point. At that level, this covered call has 7.0% downside protection, while still providing a 5.0% return in 82 days as long as HRB is above $28.00 on 7/20/2013. For comparison purposes only, this H&R Block covered call aims for an annualized return rate of 22.3%. Lexmark International (NYSE: LXK) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the July $29.00 call while at the same time buying LXK stock for $29.02 will produce a new covered call with a target return of 6.3%. Based on recent data, this trade will cost about $27.27, 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 6.3% return in 82 days. If LXK is higher than $29.00 on 7/20/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 28.2%. *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'. 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. 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MARKET OVERVIEW Asian stock markets headed higher overnight, with the Mumbai Sensex and the Australia All-Ordinaries up 0.5% each. Taiwan and Hong Kong were both slightly in the green, while Tokyo and Shanghai were closed for a market holiday. In Europe, things are similarly cheerful so far today. The Euronext 100 and the French CAC 40 are both higher by 0.7% at last check, while the German DAX and Swiss Market Index are up 0.3%. Europe-watchers eagerly await the outcome of this week's European Central Bank meeting, which is expected to be a cut of interest rates. In the commodities pits, crude oil is up slightly so far this morning, with WTI crude at $93.40, up 0.4%. Heating oil and gasoline are down a bit, while natural gas is up 1.2% to $4.27. In metals, gold is up sharply this morning at $1,478, up 1.6%. Silver and copper have both also gained more than 1% and platinum is up more than 2.5%. The US Dollar is weaker across the board, against the Yen, the Euro, the British Pound, and even the Canadian Dollar. Bitcoins fell much of the day on Friday and languished for much of the weekend just above $125, but have stormed back above $140 this morning. PUT/CALL RATIO Yesterday, 749,463 equity call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 486,427 put contracts. The single-session put/call was 0.65, while the 20-day moving average remained at 0.68. SUPPORT & RESISTANCE LEVELS The S&P 500 Depository Receipts (SPY) ETF has support at $153.55, and resistance at $160.00. The Nasdaq 100 (QQQ) has support at $66.85 and resistance at $70.15. TODAY'S ECONOMIC CALENDAR 8:30 A.M. Mar Personal Income & Spending 8:30 A.M. Mar PCI Prices 10:00 A.M. Mar Pending Home Sales EARNINGS EXPECTED TODAY ETN ESRX HTZ IRF JEC L NEM PCL ROP RVBD HIG 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 |
