MORNING UPDATE: PriceWatch Alerts for CVX and More... for 2013-02-14 |
| ------------------------------------------------------------------ MORNING UPDATE: PriceWatch Alerts for CVX, VZ, CCL and More... February 14, 9:00 AM ET - PriceWatch Alerts for CVX, CCL, AMT, ALB, PLCM, VZ, UAL, GRMN, ONXX, and DRI, Market Overview, News Leaders and Laggards, Today's Economic Calendar, and Index Support & Resistance Levels. PriceWatch Alerts for CVX, CCL, AMT, ALB, PLCM, VZ, UAL, GRMN, ONXX, and DRI Chevron (NYSE: CVX) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $115.53 while selling the September $120.00 call will produce a new covered call with a break-even point around $112.43. At that price, this position has a target return of 6.7%. This trade will have roughly 2.7% downside protection, while still aiming for a 6.7% return in 219 days. It will lock in that return as long as Chevron is above $120.00 on 9/21/2013. For comparison purposes only, this CVX covered call aims for an annualized return rate of 11.2%. Carnival (NYSE: CCL) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $37.46 while simultaneously selling the July $37.50 call will result in a new position with a target return of 5.8%. Based on recent prices, this position will cost about $35.46, which is also the trade?s breakeven point. At that level, this covered call has 5.3% downside protection, while still providing a 5.8% return in 156 days as long as CCL is above $37.50 on 7/20/2013. For comparison purposes only, this Carnival covered call aims for an annualized return rate of 13.5%. American Tower (NYSE: AMT) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the July $75.00 call while at the same time buying AMT stock for $74.00 will produce a new covered call with a target return of 5.6%. Based on recent data, this trade will cost about $71.00, which is also the covered call?s breakeven point. At that price, this covered call has 4.1% downside protection, while seeking an assigned return of 5.6% return in 156 days. If AMT is higher than $75.00 on 7/20/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 13.2%. Albemarle (NYSE: ALB) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the June $65.00 call while simultaneously buying ALB stock for $66.15 will result in a new position with a break-even point around $62.35. At that price, this position has a target return of 4.3%. This trade has 5.7% downside protection, while still providing a 4.3% return in 128 days as long as ALB is above $65.00 on 6/22/2013. For comparison purposes only, this Albemarle covered call targets an annualized return rate of 12.1%. Polycom (NASDAQ: PLCM) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $10.12 while selling the July $10.00 call will produce a new covered call with a break-even point around $8.87. At that price, this position has a target return of 12.7%. This trade will have roughly 12.4% downside protection, while still aiming for a 12.7% return in 156 days. It will lock in that return as long as Polycom is above $10.00 on 7/20/2013. For comparison purposes only, this PLCM covered call aims for an annualized return rate of 29.8%. Verizon Communications (NYSE: VZ) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the October $46.00 call while at the same time buying VZ stock for $44.52 will produce a new covered call with a target return of 5.8%. Based on recent data, this trade will cost about $43.46, which is also the covered call?s breakeven point. At that price, this covered call has 2.4% downside protection, while seeking an assigned return of 5.8% return in 247 days. If VZ is higher than $46.00 on 10/19/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 8.6%. United Continental (NYSE: UAL) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the June $26.00 call while simultaneously buying UAL stock for $26.19 will result in a new position with a break-even point around $23.80. At that price, this position has a target return of 9.2%. This trade has 9.1% downside protection, while still providing a 9.2% return in 128 days as long as UAL is above $26.00 on 6/22/2013. For comparison purposes only, this United Continental covered call targets an annualized return rate of 26.3%. Garmin (NASDAQ: GRMN) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $38.56 while selling the July $38.00 call will produce a new covered call with a break-even point around $36.09. At that price, this position has a target return of 5.3%. This trade will have roughly 6.4% downside protection, while still aiming for a 5.3% return in 156 days. It will lock in that return as long as Garmin is above $38.00 on 7/20/2013. For comparison purposes only, this GRMN covered call aims for an annualized return rate of 12.4%. Onyx Pharmaceuticals (NASDAQ: ONXX) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $74.74 while simultaneously selling the May $72.50 call will result in a new position with a target return of 6.9%. Based on recent prices, this position will cost about $67.84, which is also the trade?s breakeven point. At that level, this covered call has 9.2% downside protection, while still providing a 6.9% return in 93 days as long as ONXX is above $72.50 on 5/18/2013. For comparison purposes only, this Onyx Pharmaceuticals covered call aims for an annualized return rate of 26.9%. Darden Restaurants (NYSE: DRI) 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 DRI stock for $45.86 will produce a new covered call with a target return of 4.3%. Based on recent data, this trade will cost about $43.16, which is also the covered call?s breakeven point. At that price, this covered call has 5.9% downside protection, while seeking an assigned return of 4.3% return in 156 days. If DRI is higher than $45.00 on 7/20/2013, we are assured that simple return. 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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 Angie's List (ANGI), Zillow (Z) and Equinix (EQIX) are headed higher this morning, while Stamps (STMP), TripAdvisor (TRIP) and Whole Foods Market (WFM) are in decline. EZchip (EZCH) and Ingram Micro (IM) were upgraded by analysts this morning, while Dendreon (DNDN), Hyatt Hotels (H) and NVIDIA (NVDA) were downgraded. MARKET OVERVIEW Asian markets rose for the most part today, with the Nikkei gaining 0.5% and the Hang Seng rising 0.9% ending its holiday break. India's Sensex fell 0.6% on the other side of the ledger and Chinese markets remain closed for the New Year. The Japanese GDP shrank for the third straight quarter, but investors shrugged off that news, perhaps thinking it will cause that country's stimulus policy to continue. In Europe, the markets were generally lower this morning, with the German DAX at the forefront down 0.9%. The CAC 40 and FTSE 100 each dipped 0.6%, while the Euronext 100 is only down a small fraction. Both Germany and France reported economic contraction for the fourth quarter, which drove the region lower In futures trading, energy commodities are mostly higher by a small amount. West Texas crude is up about 0.1% to $97.14. Heating oil and gasoline are up slightly, while natural gas is down 0.3%. Gold futures are up 0.2%, while copper, silver, and platinum are virtually unchanged. The US Dollar is strengthening against the Euro, but losing ground to the Yen this morning. PUT/CALL RATIO Yesterday, 1,009,034 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 657,978 put contracts. The single-session put/call was 0.65, while the 20-day moving average is now at 0.645. SUPPORT & RESISTANCE LEVELS The S&P 500 Depository Receipts (SPY) ETF has support at $146.50 and is above recent resistance levels. The Nasdaq 100 (QQQ) has support near $66.40 and is also trading above recent resistance levels. TODAY'S ECONOMIC CALENDAR 8:30 AM 2/9 Initial Unemployment Claims 8:30 AM 2/2 Continuing Unemployment Claims 10:30 AM 2/9 Natural Gas Inventories EARNINGS EXPECTED TODAY A AXLN APA BWA CBS DVA DTV DISCA EOG TAP PEP PPL VMC WM 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 |
