MORNING UPDATE: PriceWatch Alerts for GE and More... for 2013-02-01 |
| ------------------------------------------------------------------ MORNING UPDATE: PriceWatch Alerts for GE, MON, TXN, and More... January 2, 9:00 AM ET - PriceWatch Alerts for GE, MON, QIHU, KLAC, TKR, TXN, WDC, BC, HMY, and SFD, Market Overview, News Leaders and Laggards, Today's Economic Calendar, and Index Support & Resistance Levels. PriceWatch Alerts for GE, MON, QIHU, KLAC, TKR, TXN, WDC, BC, HMY, and SFD General Electric (NYSE: GE) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $20.99 while simultaneously selling the June $21.00 call will result in a new position with a target return of 5.6%. Based on recent prices, this position will cost about $19.89, which is also the trade?s breakeven point. At that level, this covered call has 5.2% downside protection, while still providing a 5.6% return in 171 days as long as GE is above $21.00 on 6/22/2013. For comparison purposes only, this General Electric covered call aims for an annualized return rate of 11.9%. Monsanto (NYSE: MON) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $94.65 while selling the April $92.50 call will produce a new covered call with a break-even point around $88.65. At that price, this position has a target return of 4.3%. This trade will have roughly 6.3% downside protection, while still aiming for a 4.3% return in 108 days. It will lock in that return as long as Monsanto is above $92.50 on 4/20/2013. For comparison purposes only, this MON covered call aims for an annualized return rate of 14.7%. Qihoo 360 Technology (NYSE: QIHU) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the February $29.00 call while at the same time buying QIHU stock for $29.69 will produce a new covered call with a target return of 5.9%. Based on recent data, this trade will cost about $27.39, which is also the covered call?s breakeven point. At that price, this covered call has 7.7% downside protection, while seeking an assigned return of 5.9% return in 45 days. If QIHU is higher than $29.00 on 2/16/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 47.6%. KLA Tencor (NASDAQ: KLAC) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the March $47.00 call while simultaneously buying KLAC stock for $47.76 will result in a new position with a break-even point around $45.16. At that price, this position has a target return of 4.1%. This trade has 5.4% downside protection, while still providing a 4.1% return in 73 days as long as KLAC is above $47.00 on 3/16/2013. For comparison purposes only, this KLA Tencor covered call targets an annualized return rate of 20.4%. Timken (NYSE: TKR) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $47.83 while simultaneously selling the March $47.50 call will result in a new position with a target return of 6.0%. Based on recent prices, this position will cost about $44.83, which is also the trade?s breakeven point. At that level, this covered call has 6.3% downside protection, while still providing a 6.0% return in 73 days as long as TKR is above $47.50 on 3/16/2013. For comparison purposes only, this Timken covered call aims for an annualized return rate of 29.8%. *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 ? 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These are not recommendations to buy or sell any security. NEWS LEADERS AND LAGGARDS AMD (AMD), US Steel (X), and Micron Technology (MU) are pointed higher this morning, while not too many stocks are headed lower. FLIR Systems (FLIR), Werner Enterprises (WERN) and PetroLogistics (PDH) were upgraded this morning, while SandRisdge Energy (SD) was downgraded. MARKET OVERVIEW Asian markets made gains last night, with the Hong Kong Hang Sen up 2.9% and the Mumbai Sensex lagging, up only up 0.7%. Insurance equities led the market after a proposal that will allow them to issue new products. European markets picked up where Asia left off then added even more. Major European indices were all more than 2% higher at last check, with the French CAC 40 is up 2.3% so far today and the Euronext 100 up 2.0%. In commodities this morning, crude is up significantly, with WTI up $1.50 or 1.6% to $93.32. Heating oil and gasoline are also higher, but natural gas is down 0.6%. Gold, silver, platinum and copper are higher on optimism about a cliff deal. The US Dollar is higher versus the Yen, but lower against the Euro, British Pound and Canadian Dollar, which is causing some of the strength in commodities. PUT/CALL RATIO Monday, 777,569 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 485,969 put contracts. The single- session put/call was 0.62 yesterday, while the 20-day moving average was 0.643. SUPPORT & RESISTANCE LEVELS The S&P 500 Depository Receipts (SPY) ETF has new support at $139.50 and has resistance around $145.60. The Nasdaq 100 (QQQ) has support near $63.50 for and resistance near $66.75. TODAY'S ECONOMIC CALENDAR 10:00 A.M. Dec ISM Index 10:00 A.M. Nov Construction Spending 2:00 P.M. Dec Auto & Truck Sales EARNINGS EXPECTED TODAY No major earnings reports 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 |
