MORNING UPDATE: PriceWatch Alerts for VZ and More... for 2013-04-19 |
| ------------------------------------------------------------------ MORNING UPDATE: PriceWatch Alerts for VZ, COST, RIG, and More... April 19, 9:00 AM ET - PriceWatch Alerts for VZ, COST, PPG, CXO, SSYS, RIG, LULU, CF, CLDX, and ALK, Market Overview, News Leaders and Laggards, Today's Economic Calendar, and Index Support & Resistance Levels. PriceWatch Alerts for VZ, COST, PPG, CXO, SSYS, RIG, LULU, CF, CLDX, and ALK Verizon Communications (NYSE: VZ) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $50.91 while selling the October $52.50 call will produce a new covered call with a break- even point around $49.51. At that price, this position has a target return of 6.0%. This trade will have roughly 2.7% downside protection, while still aiming for a 6.0% return in 183 days. It will lock in that return as long as Verizon Communications is above $52.50 on 10/19/2013. For comparison purposes only, this VZ covered call aims for an annualized return rate of 12.0%. Costco Wholesale (NASDAQ: COST) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $103.61 while simultaneously selling the October $105.00 call will result in a new position with a target return of 5.6%. Based on recent prices, this position will cost about $99.41, which is also the trade?s breakeven point. At that level, this covered call has 4.1% downside protection, while still providing a 5.6% return in 183 days as long as COST is above $105.00 on 10/19/2013. For comparison purposes only, this Costco Wholesale covered call aims for an annualized return rate of 11.2%. PPG Industries (NYSE: PPG) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the August $140.00 call while at the same time buying PPG stock for $140.65 will produce a new covered call with a target return of 5.3%. Based on recent data, this trade will cost about $132.95, 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 5.3% return in 120 days. If PPG is higher than $140.00 on 8/17/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 16.1%. Concho Resources (NYSE: CXO) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the June $80.00 call while simultaneously buying CXO stock for $82.39 will result in a new position with a break-even point around $75.79. At that price, this position has a target return of 5.6%. This trade has 8.0% downside protection, while still providing a 5.6% return in 64 days as long as CXO is above $80.00 on 6/22/2013. For comparison purposes only, this Concho Resources covered call targets an annualized return rate of 31.7%. Stratasys (NASDAQ: SSYS) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $70.52 while selling the June $70.00 call will produce a new covered call with a break-even point around $64.42. At that price, this position has a target return of 8.7%. This trade will have roughly 8.7% downside protection, while still aiming for a 8.7% return in 64 days. It will lock in that return as long as Stratasys is above $70.00 on 6/22/2013. For comparison purposes only, this SSYS covered call aims for an annualized return rate of 49.4%. Transocean (NYSE: RIG) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $48.38 while simultaneously selling the August $48.00 call will result in a new position with a target return of 6.7%. Based on recent prices, this position will cost about $44.98, which is also the trade?s breakeven point. At that level, this covered call has 7.0% downside protection, while still providing a 6.7% return in 120 days as long as RIG is above $48.00 on 8/17/2013. For comparison purposes only, this Transocean covered call aims for an annualized return rate of 20.4%. Lululemon Athletica (NASDAQ: LULU) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the June $67.50 call while at the same time buying LULU stock for $68.85 will produce a new covered call with a target return of 6.0%. Based on recent data, this trade will cost about $63.70, which is also the covered call?s breakeven point. At that price, this covered call has 7.5% downside protection, while seeking an assigned return of 6.0% return in 64 days. If LULU is higher than $67.50 on 6/22/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 34.0%. CF Industries (NYSE: CF) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the August $175.00 call while simultaneously buying CF stock for $178.06 will result in a new position with a break-even point around $164.46. At that price, this position has a target return of 6.4%. This trade has 7.6% downside protection, while still providing a 6.4% return in 120 days as long as CF is above $175.00 on 8/17/2013. For comparison purposes only, this CF Industries covered call targets an annualized return rate of 19.5%. Celldex Therapeutics (NASDAQ: CLDX) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $12.53 while selling the August $12.00 call will produce a new covered call with a break- even point around $10.68. At that price, this position has a target return of 12.4%. This trade will have roughly 14.8% downside protection, while still aiming for a 12.4% return in 120 days. It will lock in that return as long as Celldex Therapeutics is above $12.00 on 8/17/2013. For comparison purposes only, this CLDX covered call aims for an annualized return rate of 37.6%. Alaska Air Group (NYSE: ALK) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $58.71 while simultaneously selling the July $55.00 call will result in a new position with a target return of 4.0%. Based on recent prices, this position will cost about $52.91, which is also the trade?s breakeven point. At that level, this covered call has 9.9% downside protection, while still providing a 4.0% return in 92 days as long as ALK is above $55.00 on 7/20/2013. For comparison purposes only, this Alaska Air Group covered call aims for an annualized return rate of 15.7%. *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 Vertex Pharmaceuticals (VRTX), Under Armour (UA) and Kinross Gold Corp (KGC) are headed higher this morning, while Air Methods (AIRM), Align Technology (ALGN) and Cobalt International Energy (CIE) are headed lower. There were no major analyst upgrades this morning, though Veriphone (PAY) and Coach (COH) were downgraded. MARKET OVERVIEW Internationally, markets are predominantly higher overnight. In Asia, the Shanghai SEC and the Hong Kong Hang SENG both gained upwards of 2%, while Taiwan and Mumbai rose more than 1%. European gains have been less pronounced up to this point, but all the major markets are in positive territory. The French CAC 40 is up 1.5% and the Euronext 100 has gained 1.2% in early trading. This overseas rally comes on the back of earnings and not much else in the way of material news, so it could be a sign that traders are feeling better after a few days pull-back for global stock prices In commodities, West Texas Intermediate crude oil is higher again, up $0.50 to $88.50 at last check. Heating oil, natural gas, and gasoline are all looking likely to make smaller moves than the past few days. In metals, gold is up more than 1.1% today to $1408. Meanwhile, copper is slipping more than 1%. The US Dollar is higher versus the Yen but lower against the Euro. Bitcoins are starting to heat up again remarkably, trading near $118and touching levels as high as $136 overnight. PUT/CALL RATIO Yesterday, 934,624 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 701,609 put contracts. The single-session put/call was 0.75, while the 20-day moving average is now at 0.68. SUPPORT & RESISTANCE LEVELS The S&P 500 Depository Receipts (SPY) ETF has support at $154, and resistance at $160. The Nasdaq 100 (QQQ) has support at $67.25 and resistance at $68.25. TODAY'S ECONOMIC CALENDAR No major reports were released today. EARNINGS EXPECTED TODAY BHI FHN GE GPC HON IPG KMB LH MCD COL STT STI 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 |
