MORNING UPDATE: PriceWatch Alerts for BIDU and More... for 2013-03-21 |
| ------------------------------------------------------------------ MORNING UPDATE: PriceWatch Alerts for BIDU, LVS, AMGN, and More... March 21, 9:00 AM ET - PriceWatch Alerts for BIDU, TGT, CCL, HIG, SLCA, LVS, AMGN, EW, VRX, and CHL, Market Overview, News Leaders and Laggards, Today's Economic Calendar, and Index Support & Resistance Levels. PriceWatch Alerts for BIDU, TGT, CCL, HIG, SLCA, LVS, AMGN, EW, VRX, and CHL Baidu.com (NASDAQ: BIDU) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $86.10 while simultaneously selling the May $85.00 call will result in a new position with a target return of 5.5%. Based on recent prices, this position will cost about $80.60, which is also the trade?s breakeven point. At that level, this covered call has 6.4% downside protection, while still providing a 5.5% return in 58 days as long as BIDU is above $85.00 on 5/18/2013. For comparison purposes only, this Baidu.com covered call aims for an annualized return rate of 34.3%. Target (NYSE: TGT) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the July $70.00 call while at the same time buying TGT stock for $68.52 will produce a new covered call with a target return of 5.0%. Based on recent data, this trade will cost about $66.69, which is also the covered call?s breakeven point. At that price, this covered call has 2.7% downside protection, while seeking an assigned return of 5.0% return in 121 days. If TGT is higher than $70.00 on 7/20/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 15.0%. Carnival (NYSE: CCL) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the July $33.50 call while simultaneously buying CCL stock for $33.64 will result in a new position with a break-even point around $31.84. At that price, this position has a target return of 5.2%. This trade has 5.4% downside protection, while still providing a 5.2% return in 121 days as long as CCL is above $33.50 on 7/20/2013. For comparison purposes only, this Carnival covered call targets an annualized return rate of 15.7%. Hartford Financial (NYSE: HIG) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $26.15 while selling the May $26.00 call will produce a new covered call with a break-even point around $24.88. At that price, this position has a target return of 4.5%. This trade will have roughly 4.9% downside protection, while still aiming for a 4.5% return in 58 days. It will lock in that return as long as Hartford Financial is above $26.00 on 5/18/2013. For comparison purposes only, this HIG covered call aims for an annualized return rate of 28.3%. US Silica (NYSE: SLCA) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $23.87 while simultaneously selling the May $22.50 call will result in a new position with a target return of 5.8%. Based on recent prices, this position will cost about $21.27, which is also the trade?s breakeven point. At that level, this covered call has 10.9% downside protection, while still providing a 5.8% return in 58 days as long as SLCA is above $22.50 on 5/18/2013. For comparison purposes only, this US Silica covered call aims for an annualized return rate of 36.4%. Las Vegas Sands (NYSE: LVS) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the June $52.25 call while at the same time buying LVS stock for $54.32 will produce a new covered call with a target return of 4.7%. Based on recent data, this trade will cost about $49.92, which is also the covered call?s breakeven point. At that price, this covered call has 8.1% downside protection, while seeking an assigned return of 4.7% return in 93 days. If LVS is higher than $52.25 on 6/22/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 18.3%. Amgen (NASDAQ: AMGN) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the July $95.00 call while at the same time buying AMGN stock for $94.05 will produce a new covered call with a target return of 4.8%. Based on recent data, this trade will cost about $90.65, which is also the covered call?s breakeven point. At that price, this covered call has 3.6% downside protection, while seeking an assigned return of 4.8% return in 121 days. If AMGN is higher than $95.00 on 7/20/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 14.4%. Edwards Lifesciences (NYSE: EW) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $80.93 while selling the August $80.00 call will produce a new covered call with a break- even point around $74.73. At that price, this position has a target return of 7.1%. This trade will have roughly 7.7% downside protection, while still aiming for a 7.1% return in 149 days. It will lock in that return as long as Edwards Lifesciences is above $80.00 on 8/17/2013. For comparison purposes only, this EW covered call aims for an annualized return rate of 17.3%. Valeant Pharmac. (NYSE: VRX) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $73.33 while simultaneously selling the May $72.50 call will result in a new position with a target return of 4.6%. Based on recent prices, this position will cost about $69.33, which is also the trade?s breakeven point. At that level, this covered call has 5.5% downside protection, while still providing a 4.6% return in 58 days as long as VRX is above $72.50 on 5/18/2013. For comparison purposes only, this Valeant Pharmac. covered call aims for an annualized return rate of 28.8%. China Mobile (NYSE: CHL) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the September $55.00 call while at the same time buying CHL stock for $53.03 will produce a new covered call with a target return of 6.1%. Based on recent data, this trade will cost about $51.83, which is also the covered call?s breakeven point. At that price, this covered call has 2.3% downside protection, while seeking an assigned return of 6.1% return in 184 days. If CHL is higher than $55.00 on 9/21/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 12.1%. *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 Intermune (ITMN), Acadia Pharmaceuticals (ACAD) and Sanchez Energy (SN) are headed higher this morning, while Oracle (ORCL), Scholastic (SCHL) and Petroleo Brasileiro (PBR) are headed lower. Yahoo! (YHOO) was upgraded this morning, while Actuant (ATU), Cisco Systems (CSCO) and Juniper Networks (JNPR) were downgraded. MARKET OVERVIEW Asian shares had varied results overnight, with the Nikkei up 1.2% after returning from a holiday, while the Indian Sensex dropped 0.5%. Japan's new chief central banker, Haruhiko Kuroda is expected to hold his first press conference, where he will announce his plans to hit the country's inflation target. China's preliminary PMI for March came in higher than February, easing fears of a weakening economy. In Europe, most markets are headed lower so far this morning as German preliminary PMI unexpectedly fell below 50, which is the tipping point for contraction versus expansion. Most of the major European indices are currently down between 0.6% and 1.0%. The mess in Cyprus drags on, with both banks and the stock exchange closed in an effort to prevent mass panic. In commodities, energy futures are slightly lower for the most part in early trading. West Texas crude is down about 0.3% to $93.22. Heating oil and gasoline are also both lower, while natural gas slightly higher. Metals futures are little changed so far. Currency markets have the US Dollar is higher against the Euro, but lower versus the Yen. PUT/CALL RATIO Yesterday, 789,463 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 462,852 put contracts. The single-session put/call was 0.59, while the 20-day moving average is now at 0.65. 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 8:30 AM 3/16 Initial Claims 8:30 AM 3/9 Continuing Claims 9:00 AM Jan FHFA Housing Price Index 10:00 AM Feb Existing Home Sales 10:00 AM Mar Philadelphia Fed 10:00 AM Feb Leading Indicators 10:30 AM 3/16 Natural Gas Inventories EARNINGS EXPECTED TODAY NKE ROST PERY 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 |
