MORNING UPDATE: PriceWatch Alerts for AIG and More... for 2013-03-27 |
| ------------------------------------------------------------------ MORNING UPDATE: PriceWatch Alerts for AIG, IBM, V, and More... March 27, 9:00 AM ET - PriceWatch Alerts for AIG, WDC, RMD, ALKS, FLT, IBM, LGF, SRPT, LNG, ERJ, V, GME, GPOR, CIEN, and HLX, Market Overview, News Leaders and Laggards, Today's Economic Calendar, and Index Support & Resistance Levels. PriceWatch Alerts for AIG, WDC, RMD, ALKS, FLT, IBM, LGF, SRPT, LNG, ERJ, V, GME, GPOR, CIEN, and HLX American International Group (NYSE: AIG) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $38.44 while selling the June $38.00 call will produce a new covered call with a break-even point around $36.40. At that price, this position has a target return of 4.4%. This trade will have roughly 5.3% downside protection, while still aiming for a 4.4% return in 87 days. It will lock in that return as long as American International Group is above $38.00 on 6/22/2013. For comparison purposes only, this AIG covered call aims for an annualized return rate of 18.4%. Western Digital (NYSE: WDC) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $48.68 while simultaneously selling the May $48.00 call will result in a new position with a target return of 5.5%. Based on recent prices, this position will cost about $45.48, which is also the trade?s breakeven point. At that level, this covered call has 6.6% downside protection, while still providing a 5.5% return in 52 days as long as WDC is above $48.00 on 5/18/2013. For comparison purposes only, this Western Digital covered call aims for an annualized return rate of 38.9%. ResMed (NYSE: RMD) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the July $45.00 call while at the same time buying RMD stock for $45.29 will produce a new covered call with a target return of 5.0%. Based on recent data, this trade will cost about $42.84, which is also the covered call?s breakeven point. At that price, this covered call has 5.4% downside protection, while seeking an assigned return of 5.0% return in 115 days. If RMD is higher than $45.00 on 7/20/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 16.0%. Alkermes (NASDAQ: ALKS) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the August $23.00 call while simultaneously buying ALKS stock for $23.46 will result in a new position with a break-even point around $21.36. At that price, this position has a target return of 7.7%. This trade has 9.0% downside protection, while still providing a 7.7% return in 143 days as long as ALKS is above $23.00 on 8/17/2013. For comparison purposes only, this Alkermes covered call targets an annualized return rate of 19.6%. FleetCor (NYSE: FLT) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $76.69 while selling the August $75.00 call will produce a new covered call with a break-even point around $71.19. At that price, this position has a target return of 5.4%. This trade will have roughly 7.2% downside protection, while still aiming for a 5.4% return in 143 days. It will lock in that return as long as FleetCor is above $75.00 on 8/17/2013. For comparison purposes only, this FLT covered call aims for an annualized return rate of 13.7%. International Business Machines (NYSE: IBM) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $212.36 while simultaneously selling the July $215.00 call will result in a new position with a target return of 4.2%. Based on recent prices, this position will cost about $206.41, which is also the trade?s breakeven point. At that level, this covered call has 2.8% downside protection, while still providing a 4.2% return in 115 days as long as IBM is above $215.00 on 7/20/2013. For comparison purposes only, this International Business Machines covered call aims for an annualized return rate of 13.2%. Lions Gate Entertainment (NYSE: LGF) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the September $23.00 call while at the same time buying LGF stock for $23.81 will produce a new covered call with a target return of 7.4%. Based on recent data, this trade will cost about $21.41, which is also the covered call?s breakeven point. At that price, this covered call has 10.1% downside protection, while seeking an assigned return of 7.4% return in 178 days. If LGF is higher than $23.00 on 9/21/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 15.2%. Sarepta Therapeutics (NASDAQ: SRPT) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the May $29.00 call while simultaneously buying SRPT stock for $36.12 will result in a new position with a break-even point around $25.92. At that price, this position has a target return of 11.9%. This trade has 28.2% downside protection, while still providing a 11.9% return in 52 days as long as SRPT is above $29.00 on 5/18/2013. For comparison purposes only, this Sarepta Therapeutics covered call targets an annualized return rate of 83.4%. Cheniere Energy (AMEX: LNG) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $26.37 while selling the June $26.00 call will produce a new covered call with a break-even point around $24.33. At that price, this position has a target return of 6.9%. This trade will have roughly 7.7% downside protection, while still aiming for a 6.9% return in 87 days. It will lock in that return as long as Cheniere Energy is above $26.00 on 6/22/2013. For comparison purposes only, this LNG covered call aims for an annualized return rate of 28.8%. Embraer Empresa Brasileira de Aeronautics (NYSE: ERJ) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $35.28 while simultaneously selling the July $35.00 call will result in a new position with a target return of 5.5%. Based on recent prices, this position will cost about $33.18, which is also the trade?s breakeven point. At that level, this covered call has 6.0% downside protection, while still providing a 5.5% return in 115 days as long as ERJ is above $35.00 on 7/20/2013. For comparison purposes only, this Embraer Empresa Brasileira de Aeronautics covered call aims for an annualized return rate of 17.4%. Visa (NYSE: V) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the September $165.00 call while at the same time buying V stock for $167.46 will produce a new covered call with a target return of 5.0%. Based on recent data, this trade will cost about $157.21, which is also the covered call?s breakeven point. At that price, this covered call has 6.1% downside protection, while seeking an assigned return of 5.0% return in 178 days. If V is higher than $165.00 on 9/21/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 10.2%. GameStop (NYSE: GME) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the July $26.00 call while simultaneously buying GME stock for $26.36 will result in a new position with a break-even point around $23.89. At that price, this position has a target return of 8.8%. This trade has 9.4% downside protection, while still providing a 8.8% return in 115 days as long as GME is above $26.00 on 7/20/2013. For comparison purposes only, this GameStop covered call targets an annualized return rate of 28.0%. Gulfport Energy (NASDAQ: GPOR) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $46.44 while selling the July $45.00 call will produce a new covered call with a break-even point around $41.44. At that price, this position has a target return of 8.6%. This trade will have roughly 10.8% downside protection, while still aiming for a 8.6% return in 115 days. It will lock in that return as long as Gulfport Energy is above $45.00 on 7/20/2013. For comparison purposes only, this GPOR covered call aims for an annualized return rate of 27.3%. Ciena (NASDAQ: CIEN) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $15.89 while simultaneously selling the July $15.00 call will result in a new position with a target return of 7.4%. Based on recent prices, this position will cost about $13.96, which is also the trade?s breakeven point. At that level, this covered call has 12.1% downside protection, while still providing a 7.4% return in 115 days as long as CIEN is above $15.00 on 7/20/2013. For comparison purposes only, this Ciena covered call aims for an annualized return rate of 23.6%. Helix Energy Solutions (NYSE: HLX) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the June $23.00 call while at the same time buying HLX stock for $23.51 will produce a new covered call with a target return of 5.2%. Based on recent data, this trade will cost about $21.86, which is also the covered call?s breakeven point. At that price, this covered call has 7.0% downside protection, while seeking an assigned return of 5.2% return in 87 days. If HLX is higher than $23.00 on 6/22/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 21.9%. *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 Mattress Firm Holding (MFRM), Diana Shipping (DSX) and Mannkind (MNKD) are headed higher this morning, while Cliffs Natural Resources (CLF), Telecom Italia (TI) and Francesca's Holdings (FRAN) are losing ground. VMware (VMW) was upgraded by analysts this morning, while Syngenta AG (SYT) was downgraded. MARKET OVERVIEW Asian markets were moderately higher across the entire region overnight. The biggest indices in China and Japan rose a small amount, while Australia and Hong Kong were up by 0.8% and 0.7%. It looks like Asian stocks were probably following the lead of US markets, which made significant gains in yesterday's session. In Europe, the picture was much darker, with indices almost universally in the red so far this morning. Now that the Cyprus problem has been shifted to the back burner, Italy has decided to roil the markets grab some headlines. Politician Pier Bersani, whose Democratic Party nominally won the elections in February, publicly gave up on attempting to form a coalition government, which sent the region's stocks lower. The Italian MIB is down 1.5% so far today, and the Euronext 100, the French CAC 40, and the German DAX are all also off more than 1%. In commodities, energy futures are mixed so far today. After crude oil advanced sharply yesterday, West Texas Intermediate crude is off about 0.5% to $95.88 so far this morning. Gasoline is also sliding slightly lower, but natural gas is up 0.5%. In metals, gold and copper are virtually unchanged, but silver is down 1.2%. In currencies the US Dollar is headed sideways against the Yen and gaining versus the Euro so far today. PUT/CALL RATIO Yesterday, 634,974 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 396,585 put contracts. The single-session put/call was 0.62, 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 $152.25, and has established resistance at $156.73. The Nasdaq 100 (QQQ) has support around $67.70 and unclear upside resistance. TODAY'S ECONOMIC CALENDAR 7:00 AM 3/23 MBA Mortgage Index 10:00 AM Feb Pending Home Sales 10:30 AM 3/23 Crude Inventories EARNINGS EXPECTED TODAY PAYX PVH RHT FUL 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 |
