MORNING UPDATE: PriceWatch Alerts for JPM and More... for 2013-02-13 |
| ------------------------------------------------------------------ MORNING UPDATE: PriceWatch Alerts for JPM, FCX, BRCM and More... February 13, 9:00 AM ET - PriceWatch Alerts for JPM, PCP, SPR, REGN, STLD, FCX, DOW, KBH, RHP, FIRE, BRCM, CNQ, TDC, SWK, and NLSN, Market Overview, News Leaders and Laggards, Today's Economic Calendar, and Index Support & Resistance Levels. PriceWatch Alerts for JPM, PCP, SPR, REGN, STLD, FCX, DOW, KBH, RHP, FIRE, BRCM, CNQ, TDC, SWK, and NLSN JPMorgan (NYSE: JPM) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $49.14 while simultaneously selling the June $49.00 call will result in a new position with a target return of 4.4%. Based on recent prices, this position will cost about $46.94, which is also the trade?s breakeven point. At that level, this covered call has 4.5% downside protection, while still providing a 4.4% return in 129 days as long as JPM is above $49.00 on 6/22/2013. For comparison purposes only, this JPMorgan covered call aims for an annualized return rate of 12.4%. Precision Castparts (NYSE: PCP) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the June $185.00 call while at the same time buying PCP stock for $186.84 will produce a new covered call with a target return of 4.7%. Based on recent data, this trade will cost about $176.64, which is also the covered call?s breakeven point. At that price, this covered call has 5.5% downside protection, while seeking an assigned return of 4.7% return in 129 days. If PCP is higher than $185.00 on 6/22/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 13.4%. Spirit Aerosystems (NYSE: SPR) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the July $17.50 call while simultaneously buying SPR stock for $16.95 will result in a new position with a break-even point around $15.85. At that price, this position has a target return of 10.4%. This trade has 6.5% downside protection, while still providing a 10.4% return in 157 days as long as SPR is above $17.50 on 7/20/2013. For comparison purposes only, this Spirit Aerosystems covered call targets an annualized return rate of 24.2%. Regeneron Pharmaceuticals (NASDAQ: REGN) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $168.18 while selling the May $165.00 call will produce a new covered call with a break-even point around $152.08. At that price, this position has a target return of 8.5%. This trade will have roughly 9.6% downside protection, while still aiming for a 8.5% return in 94 days. It will lock in that return as long as Regeneron Pharmaceuticals is above $165.00 on 5/18/2013. For comparison purposes only, this REGN covered call aims for an annualized return rate of 33.0%. Steel Dynamics (NASDAQ: STLD) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $15.81 while simultaneously selling the August $16.00 call will result in a new position with a target return of 9.9%. Based on recent prices, this position will cost about $14.56, which is also the trade?s breakeven point. At that level, this covered call has 7.9% downside protection, while still providing a 9.9% return in 185 days as long as STLD is above $16.00 on 8/17/2013. For comparison purposes only, this Steel Dynamics covered call aims for an annualized return rate of 19.5%. Freeport McMoran (NYSE: FCX) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the May $35.00 call while at the same time buying FCX stock for $35.67 will produce a new covered call with a target return of 5.2%. Based on recent data, this trade will cost about $33.28, which is also the covered call?s breakeven point. At that price, this covered call has 6.7% downside protection, while seeking an assigned return of 5.2% return in 94 days. If FCX is higher than $35.00 on 5/18/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 20.0%. Dow Chemical (NYSE: DOW) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the September $32.00 call while simultaneously buying DOW stock for $32.76 will result in a new position with a break-even point around $30.15. At that price, this position has a target return of 6.1%. This trade has 8.0% downside protection, while still providing a 6.1% return in 220 days as long as DOW is above $32.00 on 9/21/2013. For comparison purposes only, this Dow Chemical covered call targets an annualized return rate of 10.2%. KB Home (NYSE: KBH) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $19.64 while simultaneously selling the April $19.00 call will result in a new position with a target return of 5.9%. Based on recent prices, this position will cost about $17.94, which is also the trade?s breakeven point. At that level, this covered call has 8.7% downside protection, while still providing a 5.9% return in 66 days as long as KBH is above $19.00 on 4/20/2013. For comparison purposes only, this KB Home covered call aims for an annualized return rate of 32.6%. Ryman Hospitality Properties (NYSE: RHP) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $43.86 while selling the July $45.00 call will produce a new covered call with a break-even point around $42.01. At that price, this position has a target return of 7.1%. This trade will have roughly 4.2% downside protection, while still aiming for a 7.1% return in 157 days. It will lock in that return as long as Ryman Hospitality Properties is above $45.00 on 7/20/2013. For comparison purposes only, this RHP covered call aims for an annualized return rate of 16.5%. Sourcefire (NASDAQ: FIRE) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the March $42.50 call while at the same time buying FIRE stock for $43.06 will produce a new covered call with a target return of 7.2%. Based on recent data, this trade will cost about $39.66, which is also the covered call?s breakeven point. At that price, this covered call has 7.9% downside protection, while seeking an assigned return of 7.2% return in 31 days. If FIRE is higher than $42.50 on 3/16/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 84.3%. Broadcom (NASDAQ: BRCM) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the May $33.00 call while simultaneously buying BRCM stock for $33.82 will result in a new position with a break- even point around $31.58. At that price, this position has a target return of 4.5%. This trade has 6.6% downside protection, while still providing a 4.5% return in 94 days as long as BRCM is above $33.00 on 5/18/2013. For comparison purposes only, this Broadcom covered call targets an annualized return rate of 17.4%. Canadian Natural Resources (NYSE: CNQ) 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 CNQ stock for $31.47 will produce a new covered call with a target return of 5.7%. Based on recent data, this trade will cost about $29.32, which is also the covered call?s breakeven point. At that price, this covered call has 6.8% downside protection, while seeking an assigned return of 5.7% return in 129 days. If CNQ 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 16.2%. Teradata Corporation (NYSE: TDC) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $61.43 while simultaneously selling the July $60.00 call will result in a new position with a target return of 7.5%. Based on recent prices, this position will cost about $55.83, which is also the trade?s breakeven point. At that level, this covered call has 9.1% downside protection, while still providing a 7.5% return in 157 days as long as TDC is above $60.00 on 7/20/2013. For comparison purposes only, this Teradata Corporation covered call aims for an annualized return rate of 17.3%. Stanley Works (NYSE: SWK) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $77.49 while selling the July $77.50 call will produce a new covered call with a break-even point around $73.49. At that price, this position has a target return of 5.5%. This trade will have roughly 5.2% downside protection, while still aiming for a 5.5% return in 157 days. It will lock in that return as long as Stanley Works is above $77.50 on 7/20/2013. For comparison purposes only, this SWK covered call aims for an annualized return rate of 12.7%. Nielsen Holdings (NYSE: NLSN) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the August $35.00 call while simultaneously buying NLSN stock for $33.26 will result in a new position with a break-even point around $32.16. At that price, this position has a target return of 8.8%. This trade has 3.3% downside protection, while still providing a 8.8% return in 185 days as long as NLSN is above $35.00 on 8/17/2013. For comparison purposes only, this Nielsen Holdings covered call targets an annualized return rate of 17.4%. *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 Comcast Corporation (CMCSA), Groupon (GRPN) and Magic Software Enterprises (MGIC) are headed higher this morning, while AVEO Pharmaceuticals (AVEO), NICE-Systems (NICE) and Web.com (WWWW) are headed lower. Zimmer Holdings (ZMH), Buckeye Partners (BPL) and MDU Resources (MDU) were upgraded by analysts this morning, while Seattle Genetics (SGEN), Ruckus Wireless (RKUS) and Fossil (FOSL) were downgraded. MARKET OVERVIEW Asian markets were mixed overnight with Japan down 1% but India and Australia advancing. Chinese markets remain closed for the New Year. The Yen's movement continues to drive Japanese markets, with today's strength holding back stocks that export but sparking gains from South Korean interests. In Europe, the major indices are all higher again this morning, led by the Swiss Market Index up 0.7%and the German DAX up 0.6%. The CAC 40 and FTSE 100 lagged the group, up less than 0.1% each at the latest check. European industrial production data posted a gain of 0.7% in December, more than doubling the expected 0.3% expansion, which ignited some optimism in the region. In early trading, energy commodities are higher across the board by varying amounts. West Texas crude is up about 0.4% to $97.89. Heating oil and gasoline are up less than one cent each, while natural gas is up more than 1%. Gold futures are down slightly, while copper and silver futures are up just a cent or two. Platinum is making the biggest gains up 0.5%. The US Dollar is down against the Yen and the Euro, but advancing versus the British Pound and Canadian Dollar. PUT/CALL RATIO Yesterday, 925,067 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 561,136 put contracts. The single-session put/call was 0.61, while the 20-day moving average is now at 0.646. SUPPORT & RESISTANCE LEVELS The S&P 500 Depository Receipts (SPY) ETF has support at $149.54 and may meet resistance at $154.65, its un-dividend adjusted all- time high. The Nasdaq 100 (QQQ) has recent support at $66.48 and is trading just below its resistance level of $68.00. TODAY'S ECONOMIC CALENDAR 7:00 AM 2/9 MBA Mortgage Index 8:30 AM Jan Retail Sales 8:30 AM Jan Retail Sales ex-auto 8:30 AM Jan Retail Sales ex-ag 8:30 AM Jan Retail Sales ex-oil 10:00 AM Dec Business Inventories 10:30 AM Dec Crude Inventories EARNINGS EXPECTED TODAY AMAT CTL CSCO DF DE DPS DUK HSP LO MET MDLZ NTAP NVDA PXD TRIP WFM 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 |
