MORNING UPDATE: PriceWatch Alerts for C and More... for 2013-03-22 |
| ------------------------------------------------------------------ MORNING UPDATE: PriceWatch Alerts for C, CVX, LEN, and More... March 22, 9:00 AM ET - PriceWatch Alerts for C, ESV, JDSU, AUY, MAKO, CVX, LEN, NUAN, BMC, and NOW, Market Overview, News Leaders and Laggards, Today's Economic Calendar, and Index Support & Resistance Levels. PriceWatch Alerts for C, ESV, JDSU, AUY, MAKO, CVX, LEN, NUAN, BMC, and NOW Citigroup (NYSE: C) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $45.23 while simultaneously selling the June $45.00 call will result in a new position with a target return of 5.6%. Based on recent prices, this position will cost about $42.60, which is also the trade?s breakeven point. At that level, this covered call has 5.8% downside protection, while still providing a 5.6% return in 92 days as long as C is above $45.00 on 6/22/2013. For comparison purposes only, this Citigroup covered call aims for an annualized return rate of 22.3%. ENSCO International (NYSE: ESV) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the June $57.50 call while at the same time buying ESV stock for $58.16 will produce a new covered call with a target return of 4.4%. Based on recent data, this trade will cost about $55.06, which is also the covered call?s breakeven point. At that price, this covered call has 5.3% downside protection, while seeking an assigned return of 4.4% return in 92 days. If ESV is higher than $57.50 on 6/22/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 17.6%. JDS Uniphase (NASDAQ: JDSU) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the June $13.00 call while simultaneously buying JDSU stock for $13.71 will result in a new position with a break-even point around $11.74. At that price, this position has a target return of 10.7%. This trade has 14.4% downside protection, while still providing a 10.7% return in 92 days as long as JDSU is above $13.00 on 6/22/2013. For comparison purposes only, this JDS Uniphase covered call targets an annualized return rate of 42.6%. Yamana Gold (NYSE: AUY) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $15.51 while selling the October $15.00 call will produce a new covered call with a break-even point around $13.74. At that price, this position has a target return of 9.2%. This trade will have roughly 11.4% downside protection, while still aiming for a 9.2% return in 211 days. It will lock in that return as long as Yamana Gold is above $15.00 on 10/19/2013. For comparison purposes only, this AUY covered call aims for an annualized return rate of 15.9%. Mako Surgical (NASDAQ: MAKO) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $11.16 while simultaneously selling the August $10.00 call will result in a new position with a target return of 12.2%. Based on recent prices, this position will cost about $8.91, which is also the trade?s breakeven point. At that level, this covered call has 20.2% downside protection, while still providing a 12.2% return in 148 days as long as MAKO is above $10.00 on 8/17/2013. For comparison purposes only, this Mako Surgical covered call aims for an annualized return rate of 30.2%. Chevron (NYSE: CVX) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the September $125.00 call while at the same time buying CVX stock for $120.34 will produce a new covered call with a target return of 6.0%. Based on recent data, this trade will cost about $117.89, which is also the covered call?s breakeven point. At that price, this covered call has 2.0% downside protection, while seeking an assigned return of 6.0% return in 183 days. If CVX is higher than $125.00 on 9/21/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 12.0%. Lennar (NYSE: LEN) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the May $42.00 call while simultaneously buying LEN stock for $42.39 will result in a new position with a break-even point around $40.24. At that price, this position has a target return of 4.4%. This trade has 5.1% downside protection, while still providing a 4.4% return in 57 days as long as LEN is above $42.00 on 5/18/2013. For comparison purposes only, this Lennar covered call targets an annualized return rate of 28.0%. Nuance Communications (NASDAQ: NUAN) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $19.86 while selling the May $19.00 call will produce a new covered call with a break-even point around $17.96. At that price, this position has a target return of 5.8%. This trade will have roughly 9.6% downside protection, while still aiming for a 5.8% return in 57 days. It will lock in that return as long as Nuance Communications is above $19.00 on 5/18/2013. For comparison purposes only, this NUAN covered call aims for an annualized return rate of 37.1%. BMC Software (NASDAQ: BMC) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the May $45.00 call while at the same time buying BMC stock for $45.48 will produce a new covered call with a target return of 4.6%. Based on recent data, this trade will cost about $43.03, 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 4.6% return in 57 days. If BMC is higher than $45.00 on 5/18/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 29.3%. Servicenow (NYSE: NOW) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the May $36.00 call while at the same time buying NOW stock for $36.00 will produce a new covered call with a target return of 9.4%. Based on recent data, this trade will cost about $32.90, which is also the covered call?s breakeven point. At that price, this covered call has 8.6% downside protection, while seeking an assigned return of 9.4% return in 57 days. If NOW is higher than $36.00 on 5/18/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 60.3%. *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. 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NEWS LEADERS AND LAGGARDS Nike (NKE), Micron Technology (MU) and Tiffany (TIF) are headed higher this morning, while Tibco Software (TIBX), Monster (MNST) and Vanguard Health Systems (VHS) are in decline. GDF Suez (GDFZY), Mattress Firm (MFRM) and National Grid (NGG) were upgraded by analysts this morning, while H&M (HNNMY) and Vail Resorts (MTN) were downgraded. MARKET OVERVIEW In Asia, the Japanese Nikkei fell more than 2% as the markets wanted more detail from the Bank of Japan about upcoming policy shifts. The Yen fell sharply against the dollar and Japanese exporters slid likewise. Elsewhere in the region, there was not a great deal of action, with Hong Kong and Mumbai indices down less than 0.5% and Shanghai and Australia up just a small amount. European indices are headed mostly sideways so far this morning as the euro-zone financial leaders set a deadline of Monday for Cyprus to reach an agreement with the EU and the International Monetary Fund. The English FTSE is up 0.3% while the Swiss Market Index is down a similar amount at last check and the other major country- specific indices are within that range. In commodities, energy futures are mixed so far today with West Texas crude up more than 0.5% to $92.98. Gasoline is sliding slightly lower, while natural gas is higher by .7%. In metals, gold is down 0.3%, silver is off 0.6% but copper is up 0.9%. Currency markets have the US Dollar heading sideways relative to the Yen and Euro in early action after falling against both issues yesterday. PUT/CALL RATIO Yesterday, 796,984 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 506,105 put contracts. The single-session put/call was 0.64, 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 $151.25 and has established resistance at $156.73. The Nasdaq 100 (QQQ) has support around $67.50 and unclear upside resistance. TODAY'S ECONOMIC CALENDAR No reports are scheduled for today. EARNINGS EXPECTED TODAY DRI TIF 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 |
