MORNING UPDATE: PriceWatch Alerts for GILD and More... for 2013-04-04 |
| ------------------------------------------------------------------ MORNING UPDATE: PriceWatch Alerts for GILD, PEP, NEM, and More... April 4, 9:00 AM ET - PriceWatch Alerts for GILD, TOT, GRMN, CIT, FTNT, PEP, NEM, UA, NDAQ, and CPWR, Market Overview, News Leaders and Laggards, Today's Economic Calendar, and Index Support & Resistance Levels. PriceWatch Alerts for GILD, TOT, GRMN, CIT, FTNT, PEP, NEM, UA, NDAQ, and CPWR Gilead Sciences (NASDAQ: GILD) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $47.63 while simultaneously selling the May $47.50 call will result in a new position with a target return of 4.1%. Based on recent prices, this position will cost about $45.65, which is also the trade?s breakeven point. At that level, this covered call has 4.2% downside protection, while still providing a 4.1% return in 44 days as long as GILD is above $47.50 on 5/18/2013. For comparison purposes only, this Gilead Sciences covered call aims for an annualized return rate of 33.6%. Total (NYSE: TOT) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the November $50.00 call while at the same time buying TOT stock for $48.28 will produce a new covered call with a target return of 7.2%. Based on recent data, this trade will cost about $46.63, which is also the covered call?s breakeven point. At that price, this covered call has 3.4% downside protection, while seeking an assigned return of 7.2% return in 226 days. If TOT is higher than $50.00 on 11/16/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 11.7%. Garmin (NASDAQ: GRMN) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the July $33.00 call while simultaneously buying GRMN stock for $33.43 will result in a new position with a break-even point around $31.64. At that price, this position has a target return of 4.3%. This trade has 5.4% downside protection, while still providing a 4.3% return in 107 days as long as GRMN is above $33.00 on 7/20/2013. For comparison purposes only, this Garmin covered call targets an annualized return rate of 14.6%. CIT Group (NYSE: CIT) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $42.26 while selling the July $42.00 call will produce a new covered call with a break-even point around $40.19. At that price, this position has a target return of 4.5%. This trade will have roughly 4.9% downside protection, while still aiming for a 4.5% return in 107 days. It will lock in that return as long as CIT Group is above $42.00 on 7/20/2013. For comparison purposes only, this CIT covered call aims for an annualized return rate of 15.4%. Fortinet (NASDAQ: FTNT) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $22.21 while simultaneously selling the June $22.00 call will result in a new position with a target return of 8.6%. Based on recent prices, this position will cost about $20.26, which is also the trade?s breakeven point. At that level, this covered call has 8.8% downside protection, while still providing a 8.6% return in 79 days as long as FTNT is above $22.00 on 6/22/2013. For comparison purposes only, this Fortinet covered call aims for an annualized return rate of 39.6%. PepsiCo (NYSE: PEP) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the October $82.50 call while at the same time buying PEP stock for $78.96 will produce a new covered call with a target return of 6.0%. Based on recent data, this trade will cost about $77.80, which is also the covered call?s breakeven point. At that price, this covered call has 1.5% downside protection, while seeking an assigned return of 6.0% return in 198 days. If PEP is higher than $82.50 on 10/19/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 11.1%. Newmont Mining (NYSE: NEM) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the June $38.00 call while simultaneously buying NEM stock for $38.47 will result in a new position with a break-even point around $36.33. At that price, this position has a target return of 4.6%. This trade has 5.6% downside protection, while still providing a 4.6% return in 79 days as long as NEM is above $38.00 on 6/22/2013. For comparison purposes only, this Newmont Mining covered call targets an annualized return rate of 21.2%. Under Armour (NYSE: UA) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $53.25 while selling the May $52.50 call will produce a new covered call with a break-even point around $50.40. At that price, this position has a target return of 4.2%. This trade will have roughly 5.4% downside protection, while still aiming for a 4.2% return in 44 days. It will lock in that return as long as Under Armour is above $52.50 on 5/18/2013. For comparison purposes only, this UA covered call aims for an annualized return rate of 34.5%. Nasdaq Stock Market (NASDAQ: NDAQ) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $28.27 while simultaneously selling the June $28.00 call will result in a new position with a target return of 4.8%. Based on recent prices, this position will cost about $26.72, which is also the trade?s breakeven point. At that level, this covered call has 5.5% downside protection, while still providing a 4.8% return in 79 days as long as NDAQ is above $28.00 on 6/22/2013. For comparison purposes only, this Nasdaq Stock Market covered call aims for an annualized return rate of 22.1%. Compuware (NASDAQ: CPWR) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the November $12.50 call while at the same time buying CPWR stock for $12.03 will produce a new covered call with a target return of 11.3%. Based on recent data, this trade will cost about $11.23, which is also the covered call?s breakeven point. At that price, this covered call has 6.7% downside protection, while seeking an assigned return of 11.3% return in 226 days. If CPWR is higher than $12.50 on 11/16/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 18.3%. *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. The RadioActive Home Study Kit comes with a money back guarantee and a free month of access to the patented PowerOptions Suite of Tools! Can you back test these strategies? Yes, you can! PowerOptions offers a full back testing screener, SmartHistoryXL, to its subscribers. Back test over 20 different options strategies using your personal search criteria. Check out PowerOptions SmartHistoryXL (http://www.poweropt.com/optionsbacktesting- instructions.asp) and start back testing today! NOTE: All stocks and options shown are examples only. These are not recommendations to buy or sell any security. NEWS LEADERS AND LAGGARDS Niska Gas Storage Partners (NKA), Portugal Telecom (PT) and Sumitomo Mitsui Financial Group (SMFG) are headed higher this morning, while Reed Elsevier (ENL), Carnival (CCL) and Compuware (CPWR) are headed downward. Alcatel-Lucent (ALU), Lattice Semi (LSCC) and Universal Display (PANL) were upgraded by analysts this morning, while Thermo Fisher Scientific (TMO) was downgraded. MARKET OVERVIEW Asian market performance was widely varied again overnight. China and Taiwan indices were closed for a holiday, Japan's Nikkei rose more than 2%, and India's Sensex dropped 1.6%. In Japan, investors sold the Yen and bought financial stocks after the long-awaited Bank of Japan meeting. In Europe, central bankers also concluded their meetings, but no major action was taken by the Bank of England or the European Central Bank. So far this morning, the French CAC 40 rose 0.9%, the German DAX gained 0.5%, but the FTSE 100 and the Swiss Market Index lost ground. In commodities, energy futures are slightly higher across the board this morning with West Texas crude up 0.2% to $94.23. In metals, gold is down 0.6% while silver and copper are down smaller amounts. Platinum is off more than 1.1%. In currencies, the Yen is plunging to its lowest level in two weeks against the dollar. The US Dollar is higher against the Euro as well. Everyone's favorite new alternative currency, the bitcoin, is at $137, up from yesterday evening but still below yesterday's high-water mark. PUT/CALL RATIO Yesterday, 829,672 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 627,496 put contracts. The single-session put/call was 0.76, while the 20-day moving average is now at 0.64. SUPPORT & RESISTANCE LEVELS The S&P 500 Depository Receipts (SPY) ETF has support at $152.75, and could encounter resistance at $156.67. The Nasdaq 100 (QQQ) has support around $67.80 and resistance at $69.35. TODAY'S ECONOMIC CALENDAR 7:30 AM Mar Challenger Job Cuts 8:30 AM 3/30 Initial Claims 8:30 AM 3/23 Continuing Claims 10:30 AM 3/30 Natural Gas Inventories EARNINGS EXPECTED TODAY GBX 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 |
