MORNING UPDATE: PriceWatch Alerts for WFC and More... for 2013-04-03 |
| ------------------------------------------------------------------ MORNING UPDATE: PriceWatch Alerts for WFC, GILD, NEM, and More... March 4, 9:00 AM ET - PriceWatch Alerts for WFC, CRM, LUK, ENDP, CLDX, GILD, NEM, ILMN, YELP, and SCCO, Market Overview, News Leaders and Laggards, Today's Economic Calendar, and Index Support & Resistance Levels. PriceWatch Alerts for WFC, CRM, LUK, ENDP, CLDX, GILD, NEM, ILMN, YELP, and SCCO Wells Fargo (NYSE: WFC) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the July $35.00 call while at the same time buying WFC stock for $35.39 will produce a new covered call with a target return of 4.2%. Based on recent data, this trade will cost about $33.59, 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 4.2% return in 138 days. If WFC is higher than $35.00 on 7/20/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 11.1%. Salesforce.com (NYSE: CRM) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $182.00 while simultaneously selling the May $180.00 call will result in a new position with a target return of 5.4%. Based on recent prices, this position will cost about $170.70, which is also the trade?s breakeven point. At that level, this covered call has 6.2% downside protection, while still providing a 5.4% return in 75 days as long as CRM is above $180.00 on 5/18/2013. For comparison purposes only, this Salesforce.com covered call aims for an annualized return rate of 26.5%. Leucadia National (NYSE: LUK) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $26.40 while selling the June $25.00 call will produce a new covered call with a break-even point around $23.80. At that price, this position has a target return of 5.0%. This trade will have roughly 9.8% downside protection, while still aiming for a 5.0% return in 110 days. It will lock in that return as long as Leucadia National is above $25.00 on 6/22/2013. For comparison purposes only, this LUK covered call aims for an annualized return rate of 16.7%. Endo Pharmaceuticals (NASDAQ: ENDP) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the April $30.00 call while simultaneously buying ENDP stock for $30.02 will result in a new position with a break-even point around $28.42. At that price, this position has a target return of 5.6%. This trade has 5.3% downside protection, while still providing a 5.6% return in 47 days as long as ENDP is above $30.00 on 4/20/2013. For comparison purposes only, this Endo Pharmaceuticals covered call targets an annualized return rate of 43.1%. Celldex Therapeutics (NASDAQ: CLDX) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the August $10.00 call while at the same time buying CLDX stock for $10.26 will produce a new covered call with a target return of 12.9%. Based on recent data, this trade will cost about $8.86, which is also the covered call?s breakeven point. At that price, this covered call has 13.6% downside protection, while seeking an assigned return of 12.9% return in 166 days. If CLDX is higher than $10.00 on 8/17/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 28.3%. Gilead Sciences (NASDAQ: GILD) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the August $42.50 call while simultaneously buying GILD stock for $43.45 will result in a new position with a break-even point around $39.75. At that price, this position has a target return of 6.9%. This trade has 8.5% downside protection, while still providing a 6.9% return in 166 days as long as GILD is above $42.50 on 8/17/2013. For comparison purposes only, this Gilead Sciences covered call targets an annualized return rate of 15.2%. Newmont Mining (NYSE: NEM) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the June $39.00 call while at the same time buying NEM stock for $39.62 will produce a new covered call with a target return of 4.6%. Based on recent data, this trade will cost about $37.29, 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 4.6% return in 110 days. If NEM is higher than $39.00 on 6/22/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 15.2%. Illumina (NASDAQ: ILMN) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $52.22 while simultaneously selling the June $50.00 call will result in a new position with a target return of 5.2%. Based on recent prices, this position will cost about $47.52, which is also the trade?s breakeven point. At that level, this covered call has 9.0% downside protection, while still providing a 5.2% return in 110 days as long as ILMN is above $50.00 on 6/22/2013. For comparison purposes only, this Illumina covered call aims for an annualized return rate of 17.3%. Yelp (NYSE: YELP) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $23.01 while selling the April $23.00 call will produce a new covered call with a break-even point around $21.46. At that price, this position has a target return of 7.2%. This trade will have roughly 6.7% downside protection, while still aiming for a 7.2% return in 47 days. It will lock in that return as long as Yelp is above $23.00 on 4/20/2013. For comparison purposes only, this YELP covered call aims for an annualized return rate of 55.7%. Southern Copper (NYSE: SCCO) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the June $37.00 call while simultaneously buying SCCO stock for $37.35 will result in a new position with a break-even point around $35.35. At that price, this position has a target return of 4.7%. This trade has 5.4% downside protection, while still providing a 4.7% return in 110 days as long as SCCO is above $37.00 on 6/22/2013. For comparison purposes only, this Southern Copper covered call targets an annualized return rate of 15.5%. *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 Stratasys (SSYS), Yahoo (YHOO) and Intel (INTC) are headed higher this morning, while Arena Pharmaceuticals (ARNA), Groupon (GRPN) and News Corp (NWS) are in decline. Spreadtrum Communications (SPRD) was upgraded by analysts this morning, while ExlService (EXLS), First PacTrust Bankcorp (BANC) and Foster Wheeler (FWLT) were downgraded. MARKET OVERVIEW In Asia, markets headed dramatically lower this morning, with the Shanghai SEC leading the way down 3.7%. China announced a plan that would call for larger down payments, plus a stricter enforcement of capital gains taxes. Traders are worried that it will mean lower demand for building materials for new homes. The Hong Kong Hang Seng fell 2.1% and the Taiwan TSEC dropped 1.2% last night, while the Japanese Nikkei was one of the few Asian markets to finish in positive territory, up 0.4%. European markets are in general slightly lower so far this morning based on the Chinese news as investors moved away from mining stocks in response. The German DAX and the Swiss Market Index are off about 0.2% so far this morning, while the other major regional indices are mostly just about flat. In commodities, most energy futures are little changed so far this morning. West Texas crude is up just a dime to $90.77, while heating oil and gasoline are also both edging higher. On the other hand, natural gas is down 0.8%. Precious metals are headed slightly higher, with gold futures up 0.3%, copper up 0.4%, and platinum and palladium rising 0.6%. In currencies, the US Dollar is stronger against the Euro, but losing ground against the Yen. PUT/CALL RATIO Yesterday, 804,663 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 597,953 put contracts. The single-session put/call was 0.74, 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 $148.30 and is above recent resistance. The Nasdaq 100 (QQQ) has support around $66.70 and could meet resistance near $68.20. TODAY'S ECONOMIC CALENDAR There are no major events on today's economic calendar. EARNINGS EXPECTED TODAY No major earnings are expected today. 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 |
