MORNING UPDATE: PriceWatch Alerts for T and More... for 2013-02-04 |
| ------------------------------------------------------------------ MORNING UPDATE: PriceWatch Alerts for T, MU, VLO, and More... April 2, 9:00 AM ET - PriceWatch Alerts for T, GD, GMCR, CMC, LLTC, MU, HUM, NBR, SU, ICON, VLO, AET, JOY, KSU and CBI, Market Overview, News Leaders and Laggards, Today's Economic Calendar, and Index Support & Resistance Levels. PriceWatch Alerts for T, GD, GMCR, CMC, LLTC, MU, HUM, NBR, SU, ICON, VLO, AET, JOY, KSU and CBI AT&T (NYSE: T) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $37.25 while selling the October $38.00 call will produce a new covered call with a break-even point around $36.43. At that price, this position has a target return of 4.3%. This trade will have roughly 2.2% downside protection, while still aiming for a 4.3% return in 200 days. It will lock in that return as long as AT&T is above $38.00 on 10/19/2013. For comparison purposes only, this T covered call aims for an annualized return rate of 7.8%. General Dynamics (NYSE: GD) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $68.16 while simultaneously selling the August $67.50 call will result in a new position with a target return of 4.2%. Based on recent prices, this position will cost about $64.76, which is also the trade?s breakeven point. At that level, this covered call has 5.0% downside protection, while still providing a 4.2% return in 137 days as long as GD is above $67.50 on 8/17/2013. For comparison purposes only, this General Dynamics covered call aims for an annualized return rate of 11.3%. Green Mountain Coffee Roasters (NASDAQ: GMCR) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the May $57.50 call while at the same time buying GMCR stock for $57.47 will produce a new covered call with a target return of 10.1%. Based on recent data, this trade will cost about $52.22, which is also the covered call?s breakeven point. At that price, this covered call has 9.1% downside protection, while seeking an assigned return of 10.1% return in 46 days. If GMCR is higher than $57.50 on 5/18/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 80.2%. Commercial Metals (NYSE: CMC) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the September $16.00 call while simultaneously buying CMC stock for $15.32 will result in a new position with a break-even point around $14.57. At that price, this position has a target return of 9.8%. This trade has 4.9% downside protection, while still providing a 9.8% return in 172 days as long as CMC is above $16.00 on 9/21/2013. For comparison purposes only, this Commercial Metals covered call targets an annualized return rate of 20.8%. Linear Technology (NASDAQ: LLTC) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $37.01 while selling the August $37.00 call will produce a new covered call with a break- even point around $35.31. At that price, this position has a target return of 4.8%. This trade will have roughly 4.6% downside protection, while still aiming for a 4.8% return in 137 days. It will lock in that return as long as Linear Technology is above $37.00 on 8/17/2013. For comparison purposes only, this LLTC covered call aims for an annualized return rate of 12.7%. Micron Technology (NASDAQ: MU) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $9.38 while simultaneously selling the October $9.00 call will result in a new position with a target return of 12.8%. Based on recent prices, this position will cost about $7.98, which is also the trade?s breakeven point. At that level, this covered call has 14.9% downside protection, while still providing a 12.8% return in 200 days as long as MU is above $9.00 on 10/19/2013. For comparison purposes only, this Micron Technology covered call aims for an annualized return rate of 23.3%. 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 $75.02 will produce a new covered call with a target return of 4.4%. Based on recent data, this trade will cost about $71.82, which is also the covered call?s breakeven point. At that price, this covered call has 4.3% downside protection, while seeking an assigned return of 4.4% return in 46 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 35.1%. Nabors Industries (NYSE: NBR) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the September $15.00 call while simultaneously buying NBR stock for $15.62 will result in a new position with a break-even point around $13.72. At that price, this position has a target return of 9.3%. This trade has 12.2% downside protection, while still providing a 9.3% return in 172 days as long as NBR is above $15.00 on 9/21/2013. For comparison purposes only, this Nabors Industries covered call targets an annualized return rate of 19.8%. Suncor Energy (NYSE: SU) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $30.32 while selling the September $30.00 call will produce a new covered call with a break-even point around $28.36. At that price, this position has a target return of 5.8%. This trade will have roughly 6.5% downside protection, while still aiming for a 5.8% return in 172 days. It will lock in that return as long as Suncor Energy is above $30.00 on 9/21/2013. For comparison purposes only, this SU covered call aims for an annualized return rate of 12.3%. Iconix Brand Group (NASDAQ: ICON) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $25.13 while simultaneously selling the May $25.00 call will result in a new position with a target return of 4.9%. Based on recent prices, this position will cost about $23.83, which is also the trade?s breakeven point. At that level, this covered call has 5.2% downside protection, while still providing a 4.9% return in 46 days as long as ICON is above $25.00 on 5/18/2013. For comparison purposes only, this Iconix Brand Group covered call aims for an annualized return rate of 38.9%. Valero Energy (NYSE: VLO) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the May $44.00 call while at the same time buying VLO stock for $44.97 will produce a new covered call with a target return of 4.1%. Based on recent data, this trade will cost about $42.26, 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 4.1% return in 46 days. If VLO is higher than $44.00 on 5/18/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 32.6%. Aetna (NYSE: AET) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the October $50.00 call while simultaneously buying AET stock for $52.38 will result in a new position with a break-even point around $47.38. At that price, this position has a target return of 5.5%. This trade has 9.5% downside protection, while still providing a 5.5% return in 200 days as long as AET is above $50.00 on 10/19/2013. For comparison purposes only, this Aetna covered call targets an annualized return rate of 10.1%. Joy Global (NYSE: JOY) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $57.75 while selling the July $57.50 call will produce a new covered call with a break-even point around $53.50. At that price, this position has a target return of 7.5%. This trade will have roughly 7.4% downside protection, while still aiming for a 7.5% return in 109 days. It will lock in that return as long as Joy Global is above $57.50 on 7/20/2013. For comparison purposes only, this JOY covered call aims for an annualized return rate of 25.0%. Kansas City Southern (NYSE: KSU) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $108.57 while simultaneously selling the September $105.00 call will result in a new position with a target return of 6.3%. Based on recent prices, this position will cost about $98.77, which is also the trade?s breakeven point. At that level, this covered call has 9.0% downside protection, while still providing a 6.3% return in 172 days as long as KSU is above $105.00 on 9/21/2013. For comparison purposes only, this Kansas City Southern covered call aims for an annualized return rate of 13.4%. Chicago Bridge & Iron (NYSE: CBI) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the July $60.00 call while at the same time buying CBI stock for $60.74 will produce a new covered call with a target return of 5.7%. Based on recent data, this trade will cost about $56.74, which is also the covered call?s breakeven point. At that price, this covered call has 6.6% downside protection, while seeking an assigned return of 5.7% return in 109 days. If CBI is higher than $60.00 on 7/20/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 19.2%. *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. 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 Bgc Partners (BGCP), Humana (HUM) and Nuance Communications (NUAN) are headed higher this morning, while Nordic American Tanker Shipping Limited (NAT), Fastenal (FAST), and Investors Real Estate Trust (IREIT) are in decline. E.ON SE (EONGY) and F5 Networks were upgraded by analysts this morning, while Exxon Mobil (XOM), EZCorp (EZPW) and Texas Instruments (TXN) were downgraded. MARKET OVERVIEW Asian markets were mixed overnight, with the Nikkei sliding sharply for the second straight session, down 1.1%. On the flip side, the Indian Sensex rose 0.9% and most of the other major indices were much closer to flat. The Yen strengthened significantly yesterday, which sent shares of Japanese exporters tumbling. In Europe, the picture was brighter as the continent returned from the Easter holiday. The Cyprus General Index opened for trading for the first time in two weeks and fell 2.4%, with Greek stocks tagging along, but the rest of the European markets headed higher, up an average of more than 1%. It seems that traders were worried about larger shocks in Cyprus but today's decline didn't cause too much concern. In the commodities pits, energy futures are worth little changed so far today with West Texas crude up just 0.1% to $97.13. Gasoline and natural gas are both also essentially flat, but heating oil is up more than 1.1%. In metals, gold and platinum are down a small amount, while silver and copper are virtually unchanged. In currencies, the US Dollar heading higher versus the Euro but falling against the Yen in early action. PUT/CALL RATIO Yesterday, 614,203 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 427,001 put contracts. The single-session put/call was 0.7, 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 $152.50, and is above resistance. The Nasdaq 100 (QQQ) has support around $67.75 and resistance at $69.25. TODAY'S ECONOMIC CALENDAR 10:00 AM Feb Factory Orders 2:00 PM Mar Auto Sales 2:00 PM Mar Truck Sales EARNINGS EXPECTED TODAY MKC GPN 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 |
