MORNING UPDATE: PriceWatch Alerts for NFLX and More... for 2013-04-02 |
| ------------------------------------------------------------------ MORNING UPDATE: PriceWatch Alerts for NFLX, RIG, HUM and More... February 4, 9:00 AM ET - PriceWatch Alerts for NFLX, JCP, WMB, JDSU, BSMX, RIG, HUM, FITB, SCCO, and KLIC, Market Overview, News Leaders and Laggards, Today's Economic Calendar, and Index Support & Resistance Levels. PriceWatch Alerts for NFLX, JCP, WMB, JDSU, BSMX, RIG, HUM, FITB, SCCO, and KLIC Netflix (NASDAQ: NFLX) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $164.80 while simultaneously selling the April $160.00 call will result in a new position with a target return of 9.9%. Based on recent prices, this position will cost about $145.65, which is also the trade?s breakeven point. At that level, this covered call has 11.6% downside protection, while still providing a 9.9% return in 75 days as long as NFLX is above $160.00 on 4/20/2013. For comparison purposes only, this Netflix covered call aims for an annualized return rate of 47.9%. JC Penney (NYSE: JCP) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the March $19.00 call while at the same time buying JCP stock for $19.88 will produce a new covered call with a target return of 8.7%. Based on recent data, this trade will cost about $17.48, which is also the covered call?s breakeven point. At that price, this covered call has 12.1% downside protection, while seeking an assigned return of 8.7% return in 40 days. If JCP is higher than $19.00 on 3/16/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 79.3%. Williams Companies (NYSE: WMB) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the May $35.00 call while simultaneously buying WMB stock for $35.43 will result in a new position with a break-even point around $33.54. At that price, this position has a target return of 4.4%. This trade has 5.3% downside protection, while still providing a 4.4% return in 103 days as long as WMB is above $35.00 on 5/18/2013. For comparison purposes only, this Williams Companies covered call targets an annualized return rate of 15.4%. JDS Uniphase (NASDAQ: JDSU) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $14.78 while selling the June $14.00 call will produce a new covered call with a break-even point around $12.98. At that price, this position has a target return of 7.9%. This trade will have roughly 12.2% downside protection, while still aiming for a 7.9% return in 138 days. It will lock in that return as long as JDS Uniphase is above $14.00 on 6/22/2013. For comparison purposes only, this JDSU covered call aims for an annualized return rate of 20.8%. Grupo Financiero Santander (NYSE: BSMX) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $15.88 while simultaneously selling the July $15.00 call will result in a new position with a target return of 7.3%. Based on recent prices, this position will cost about $13.98, which is also the trade?s breakeven point. At that level, this covered call has 12.0% downside protection, while still providing a 7.3% return in 166 days as long as BSMX is above $15.00 on 7/20/2013. For comparison purposes only, this Grupo Financiero Santander covered call aims for an annualized return rate of 16.0%. Transocean (NYSE: RIG) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the May $57.50 call while simultaneously buying RIG stock for $57.98 will result in a new position with a break- even point around $54.38. At that price, this position has a target return of 5.7%. This trade has 6.2% downside protection, while still providing a 5.7% return in 103 days as long as RIG is above $57.50 on 5/18/2013. For comparison purposes only, this Transocean covered call targets an annualized return rate of 20.3%. Humana (NYSE: HUM) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the May $75.00 call while at the same time buying HUM stock for $75.35 will produce a new covered call with a target return of 4.8%. Based on recent data, this trade will cost about $71.55, which is also the covered call?s breakeven point. At that price, this covered call has 5.0% downside protection, while seeking an assigned return of 4.8% return in 103 days. If HUM is higher than $75.00 on 5/18/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 17.1%. Fifth Third Bancorp (NASDAQ: FITB) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $16.49 while simultaneously selling the August $17.00 call will result in a new position with a target return of 7.7%. Based on recent prices, this position will cost about $15.79, which is also the trade?s breakeven point. At that level, this covered call has 4.2% downside protection, while still providing a 7.7% return in 194 days as long as FITB is above $17.00 on 8/17/2013. For comparison purposes only, this Fifth Third Bancorp covered call aims for an annualized return rate of 14.4%. Southern Copper (NYSE: SCCO) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $39.84 while selling the June $40.00 call will produce a new covered call with a break-even point around $38.04. At that price, this position has a target return of 5.2%. This trade will have roughly 4.5% downside protection, while still aiming for a 5.2% return in 138 days. It will lock in that return as long as Southern Copper is above $40.00 on 6/22/2013. For comparison purposes only, this SCCO covered call aims for an annualized return rate of 13.6%. Kulicke and Soffa Industries (NASDAQ: KLIC) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the July $12.00 call while simultaneously buying KLIC stock for $11.65 will result in a new position with a break-even point around $10.75. At that price, this position has a target return of 11.6%. This trade has 7.7% downside protection, while still providing a 11.6% return in 166 days as long as KLIC is above $12.00 on 7/20/2013. For comparison purposes only, this Kulicke and Soffa Industries covered call targets an annualized return rate of 25.6%. *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! 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MARKET OVERVIEW Asian markets were mixed to kick off the week, with the Taiwan TSEC up 0.8% and the Nikkei higher by 0.6%, while the Australia All- Ordinaries fell 0.3% and the Hong Kong Hang Seng slipped 0.5%. Consumer electronics companies Sharp and Panasonic led Japanese shares higher after better than expected earnings reports. In Europe, the picture was considerably worse at last check. The major European indices are all lower this morning, with the London FTSE down 0.9% and the French and German indices each off 0.8%. Political strife in Italy and Spain could be weighing on the markets. A corruption scandal in Spain sent Spanish bond prices higher, while former prime minister of Italy Silvio Berlisconi promised to lower taxes if reelected, which is at odds with the current plan of austerity. In early trading this morning, energy commodities are headed lower. West Texas crude is off by more than 1%, down $1.04 to $96.73. Heating oil, gasoline, and natural gas are all down 0.3% - 0.6%. Gold futures are down about 0.4% and silver and copper are lower as well, but platinum is up 0.7%. The US Dollar is lower against the Euro and the Yen, but higher versus the British Pound and Canadian Dollar. PUT/CALL RATIO Friday, 1,020,229 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 586,459 put contracts. The single-session put/call was 0.57, while the 20-day moving average hasn't moved too much in weeks and is now at 0.648. SUPPORT & RESISTANCE LEVELS The S&P 500 Depository Receipts (SPY) ETF has some support at $149.60 and could now have resistance near $151.40. The Nasdaq 100 (QQQ) continues remain in a range between support near $66.30 and resistance at $67.80. TODAY'S ECONOMIC CALENDAR 10:00 am Dec Factory Orders EARNINGS EXPECTED TODAY APC EW GCI GILD HUM LEG LIFE SPG SYY CLX HIG TMK YUM 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 |
