MORNING UPDATE: PriceWatch Alerts for GS and More... for 2013-03-20 |
| ------------------------------------------------------------------ MORNING UPDATE: PriceWatch Alerts for GS, CVS, GM, and More... March 20, 9:00 AM ET - PriceWatch Alerts for GS, UAL, ABC, CTB, HSY, CVS, ABX, OSK, BKW, DLPH, GM, BHI, USG, MR, and CHTR, Market Overview, News Leaders and Laggards, Today's Economic Calendar, and Index Support & Resistance Levels. PriceWatch Alerts for GS, UAL, ABC, CTB, HSY, CVS, ABX, OSK, BKW, DLPH, GM, BHI, USG, MR, and CHTR Goldman Sachs (NYSE: GS) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $148.84 while simultaneously selling the July $145.00 call will result in a new position with a target return of 4.7%. Based on recent prices, this position will cost about $138.49, which is also the trade?s breakeven point. At that level, this covered call has 7.0% downside protection, while still providing a 4.7% return in 122 days as long as GS is above $145.00 on 7/20/2013. For comparison purposes only, this Goldman Sachs covered call aims for an annualized return rate of 14.1%. United Continental (NYSE: UAL) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the June $31.00 call while at the same time buying UAL stock for $31.80 will produce a new covered call with a target return of 6.7%. Based on recent data, this trade will cost about $29.06, 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 6.7% return in 94 days. If UAL is higher than $31.00 on 6/22/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 25.9%. AmerisourceBergen (NYSE: ABC) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the August $50.00 call while simultaneously buying ABC stock for $50.06 will result in a new position with a break-even point around $47.86. At that price, this position has a target return of 4.5%. This trade has 4.4% downside protection, while still providing a 4.5% return in 150 days as long as ABC is above $50.00 on 8/17/2013. For comparison purposes only, this AmerisourceBergen covered call targets an annualized return rate of 10.9%. Cooper (NYSE: CTB) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $27.35 while selling the August $25.00 call will produce a new covered call with a break-even point around $23.95. At that price, this position has a target return of 4.4%. This trade will have roughly 12.4% downside protection, while still aiming for a 4.4% return in 150 days. It will lock in that return as long as Cooper is above $25.00 on 8/17/2013. For comparison purposes only, this CTB covered call aims for an annualized return rate of 10.7%. Hershey (NYSE: HSY) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $85.45 while simultaneously selling the November $90.00 call will result in a new position with a target return of 7.7%. Based on recent prices, this position will cost about $83.57, which is also the trade?s breakeven point. At that level, this covered call has 2.2% downside protection, while still providing a 7.7% return in 241 days as long as HSY is above $90.00 on 11/16/2013. For comparison purposes only, this Hershey covered call aims for an annualized return rate of 11.6%. CVS Caremark (NYSE: CVS) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the August $55.00 call while at the same time buying CVS stock for $54.38 will produce a new covered call with a target return of 4.9%. Based on recent data, this trade will cost about $52.43, 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 4.9% return in 150 days. If CVS is higher than $55.00 on 8/17/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 11.9%. Barrick Gold (NYSE: ABX) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the June $28.00 call while simultaneously buying ABX stock for $28.84 will result in a new position with a break-even point around $26.85. At that price, this position has a target return of 4.3%. This trade has 6.9% downside protection, while still providing a 4.3% return in 94 days as long as ABX is above $28.00 on 6/22/2013. For comparison purposes only, this Barrick Gold covered call targets an annualized return rate of 16.6%. Oshkosh Truck (NYSE: OSK) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $41.63 while selling the July $41.00 call will produce a new covered call with a break-even point around $38.78. At that price, this position has a target return of 5.7%. This trade will have roughly 6.8% downside protection, while still aiming for a 5.7% return in 122 days. It will lock in that return as long as Oshkosh Truck is above $41.00 on 7/20/2013. For comparison purposes only, this OSK covered call aims for an annualized return rate of 17.1%. Burger King (NYSE: BKW) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $19.19 while simultaneously selling the July $19.00 call will result in a new position with a target return of 6.5%. Based on recent prices, this position will cost about $17.84, which is also the trade?s breakeven point. At that level, this covered call has 7.0% downside protection, while still providing a 6.5% return in 122 days as long as BKW is above $19.00 on 7/20/2013. For comparison purposes only, this Burger King covered call aims for an annualized return rate of 19.4%. Delphi Automotive (NYSE: DLPH) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the August $42.50 call while at the same time buying DLPH stock for $43.11 will produce a new covered call with a target return of 5.4%. Based on recent data, this trade will cost about $40.31, which is also the covered call?s breakeven point. At that price, this covered call has 6.5% downside protection, while seeking an assigned return of 5.4% return in 150 days. If DLPH is higher than $42.50 on 8/17/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 13.2%. GM (NYSE: GM) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the May $28.00 call while simultaneously buying GM stock for $28.10 will result in a new position with a break-even point around $26.90. At that price, this position has a target return of 4.1%. This trade has 4.3% downside protection, while still providing a 4.1% return in 59 days as long as GM is above $28.00 on 5/18/2013. For comparison purposes only, this GM covered call targets an annualized return rate of 25.2%. Baker Hughes (NYSE: BHI) 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 BHI stock for $45.11 will produce a new covered call with a target return of 4.4%. Based on recent data, this trade will cost about $43.10, which is also the covered call?s breakeven point. At that price, this covered call has 4.5% downside protection, while seeking an assigned return of 4.4% return in 59 days. If BHI 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 27.2%. USG (NYSE: USG) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $28.73 while simultaneously selling the May $28.00 call will result in a new position with a target return of 5.1%. Based on recent prices, this position will cost about $26.63, which is also the trade?s breakeven point. At that level, this covered call has 7.3% downside protection, while still providing a 5.1% return in 59 days as long as USG is above $28.00 on 5/18/2013. For comparison purposes only, this USG covered call aims for an annualized return rate of 31.8%. Mindray Medical International (NYSE: MR) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $38.79 while selling the July $40.00 call will produce a new covered call with a break-even point around $36.79. At that price, this position has a target return of 8.7%. This trade will have roughly 5.2% downside protection, while still aiming for a 8.7% return in 122 days. It will lock in that return as long as Mindray Medical International is above $40.00 on 7/20/2013. For comparison purposes only, this MR covered call aims for an annualized return rate of 26.1%. Charter Communications (NASDAQ: CHTR) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the June $100.00 call while simultaneously buying CHTR stock for $100.38 will result in a new position with a break-even point around $95.78. At that price, this position has a target return of 4.4%. This trade has 4.6% downside protection, while still providing a 4.4% return in 94 days as long as CHTR is above $100.00 on 6/22/2013. For comparison purposes only, this Charter Communications covered call targets an annualized return rate of 17.1%. *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'. 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NEWS LEADERS AND LAGGARDS Gevo (GEVO), Blackberry (BBRY) and Adobe (ADBE) are headed higher this morning, while Memorial Production Partners (MEMP), Zynga (ZNGA) and Symantec (SYMC) are in decline. There were no analyst upgrades to report this morning, but Adobe (ADBE), AmerisourceBergen (ABC) and Symantec (SYMC) were downgraded. MARKET OVERVIEW In Asia, the major indices turned in varied performances overnight, with the Shanghai SEC rising 2.7%, while the Taiwan, Indian, and Australian markets all fell about 0.5%. Japan's Nikkei was closed for a market holiday. The largest gainers in China were some of the stocks that were hardest-hit in recent months, including banks and property developers. In Europe, most markets are headed higher this morning, even though Cyprus parliament rejected the proposed bailout that would tax depositors. After the European Central Bank pledged its support of Cyprus anyway, bank shares throughout the region rose. Rejection of this bailout could mean that Cyprus ends up leaving the common currency. The major indices, including the French CAC 40 and the German DAX were all up around 0.5% at last check. In the commodities, energy futures are for the most part headed higher in early trading. West Texas crude is up about 0.7% to $93.16, rebounding from yesterday's drop. Heating oil and gasoline both in the green, while natural gas is down 0.6%. Metals are mixed at last check, with gold down about 0.3% but copper up 0.9%. In currencies, the US Dollar is higher versus the Yen, while but lower against the Euro. PUT/CALL RATIO Yesterday, 867,219 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 627,137 put contracts. The single-session put/call was 0.72, 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 7:00 AM 3/16 MBA Mortgage Index 10:30 AM 3/16 Crude Inventories 2:00 PM Mar FOMC Rate Decision EARNINGS EXPECTED TODAY FDX GIS JBL LEN ORCL 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. 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