MORNING UPDATE: PriceWatch Alerts for COP and More... for 2013-01-31 |
| ------------------------------------------------------------------ MORNING UPDATE: PriceWatch Alerts for COP, MA, AFL and More... January 31, 9:00 AM ET - PriceWatch Alerts for COP, ADT, ENDP, FOSL, THC, MA, LMT, HOG, RHI, FSL, AFL, HLF, GMCR, HCA, and CAJ, Market Overview, News Leaders and Laggards, Today's Economic Calendar, and Index Support & Resistance Levels. PriceWatch Alerts for COP, ADT, ENDP, FOSL, THC, MA, LMT, HOG, RHI, FSL, AFL, HLF, GMCR, HCA, and CAJ ConocoPhillips (NYSE: COP) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $61.09 while selling the August $62.50 call will produce a new covered call with a break-even point around $59.58. At that price, this position has a target return of 4.9%. This trade will have roughly 2.5% downside protection, while still aiming for a 4.9% return in 198 days. It will lock in that return as long as ConocoPhillips is above $62.50 on 8/17/2013. For comparison purposes only, this COP covered call aims for an annualized return rate of 9.0%. ADT (NYSE: ADT) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $48.00 while simultaneously selling the April $48.00 call will result in a new position with a target return of 4.6%. Based on recent prices, this position will cost about $45.90, which is also the trade?s breakeven point. At that level, this covered call has 4.4% downside protection, while still providing a 4.6% return in 79 days as long as ADT is above $48.00 on 4/20/2013. For comparison purposes only, this ADT covered call aims for an annualized return rate of 21.1%. Endo Pharmaceuticals (NASDAQ: ENDP) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the April $30.00 call while at the same time buying ENDP stock for $31.66 will produce a new covered call with a target return of 5.0%. Based on recent data, this trade will cost about $28.56, which is also the covered call?s breakeven point. At that price, this covered call has 9.8% downside protection, while seeking an assigned return of 5.0% return in 79 days. If ENDP is higher than $30.00 on 4/20/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 23.3%. Fossil (NASDAQ: FOSL) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the March $100.00 call while at the same time buying FOSL stock for $104.11 will produce a new covered call with a target return of 5.1%. Based on recent data, this trade will cost about $95.11, 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 5.1% return in 44 days. If FOSL is higher than $100.00 on 3/16/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 42.6%. Tenet Healthcare (NYSE: THC) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $38.59 while selling the March $38.00 call will produce a new covered call with a break-even point around $36.34. At that price, this position has a target return of 4.6%. This trade will have roughly 5.8% downside protection, while still aiming for a 4.6% return in 44 days. It will lock in that return as long as Tenet Healthcare is above $38.00 on 3/16/2013. For comparison purposes only, this THC covered call aims for an annualized return rate of 37.8%. MasterCard (NYSE: MA) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $516.00 while simultaneously selling the July $515.00 call will result in a new position with a target return of 6.0%. Based on recent prices, this position will cost about $485.80, which is also the trade?s breakeven point. At that level, this covered call has 5.9% downside protection, while still providing a 6.0% return in 170 days as long as MA is above $515.00 on 7/20/2013. For comparison purposes only, this MasterCard covered call aims for an annualized return rate of 12.9%. Lockheed Martin (NYSE: LMT) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $88.21 while selling the June $90.00 call will produce a new covered call with a break-even point around $86.06. At that price, this position has a target return of 4.6%. This trade will have roughly 2.4% downside protection, while still aiming for a 4.6% return in 142 days. It will lock in that return as long as Lockheed Martin is above $90.00 on 6/22/2013. For comparison purposes only, this LMT covered call aims for an annualized return rate of 11.7%. Harley Davidson (NYSE: HOG) 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 HOG stock for $53.00 will produce a new covered call with a target return of 9.8%. Based on recent data, this trade will cost about $50.07, 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 9.8% return in 198 days. If HOG 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 18.1%. Robert Half International (NYSE: RHI) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the June $35.00 call while simultaneously buying RHI stock for $35.74 will result in a new position with a break-even point around $33.54. At that price, this position has a target return of 4.4%. This trade has 6.2% downside protection, while still providing a 4.4% return in 142 days as long as RHI is above $35.00 on 6/22/2013. For comparison purposes only, this Robert Half International covered call targets an annualized return rate of 11.2%. Freescale Semiconductor (NYSE: FSL) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $14.23 while simultaneously selling the June $14.00 call will result in a new position with a target return of 10.4%. Based on recent prices, this position will cost about $12.68, which is also the trade?s breakeven point. At that level, this covered call has 10.9% downside protection, while still providing a 10.4% return in 142 days as long as FSL is above $14.00 on 6/22/2013. For comparison purposes only, this Freescale Semiconductor covered call aims for an annualized return rate of 26.8%. AFLAC (NYSE: AFL) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the May $52.50 call while at the same time buying AFL stock for $52.46 will produce a new covered call with a target return of 4.4%. Based on recent data, this trade will cost about $50.31, 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 4.4% return in 107 days. If AFL is higher than $52.50 on 5/18/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 14.8%. Herbalife (NYSE: HLF) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $37.09 while simultaneously selling the May $35.00 call will result in a new position with a target return of 11.9%. Based on recent prices, this position will cost about $31.29, which is also the trade?s breakeven point. At that level, this covered call has 15.6% downside protection, while still providing a 11.9% return in 107 days as long as HLF is above $35.00 on 5/18/2013. For comparison purposes only, this Herbalife covered call aims for an annualized return rate of 40.4%. Green Mountain Coffee Roasters (NASDAQ: GMCR) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the March $44.00 call while simultaneously buying GMCR stock for $44.56 will result in a new position with a break-even point around $40.01. At that price, this position has a target return of 10.0%. This trade has 10.2% downside protection, while still providing a 10.0% return in 44 days as long as GMCR is above $44.00 on 3/16/2013. For comparison purposes only, this Green Mountain Coffee Roasters covered call targets an annualized return rate of 82.7%. HCA (NYSE: HCA) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $38.07 while selling the June $37.50 call will produce a new covered call with a break-even point around $34.87. At that price, this position has a target return of 7.5%. This trade will have roughly 8.4% downside protection, while still aiming for a 7.5% return in 142 days. It will lock in that return as long as HCA is above $37.50 on 6/22/2013. For comparison purposes only, this HCA covered call aims for an annualized return rate of 19.4%. Canon (NYSE: CAJ) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the June $35.00 call while at the same time buying CAJ stock for $37.93 will produce a new covered call with a target return of 4.1%. Based on recent data, this trade will cost about $33.63, which is also the covered call?s breakeven point. At that price, this covered call has 11.3% downside protection, while seeking an assigned return of 4.1% return in 142 days. If CAJ is higher than $35.00 on 6/22/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 10.5%. *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 Scientific Games Corp (SGMS) are headed higher this morning, while Research in Motion Limited, (RIMM) Facebook Inc. (FB), and Golar LNG Partners LP (GMLP) are headed lower. Audiocodes (AUDC), Core Labs (CLB), and JDS Uniphase (JDSU) were upgraded by analysts this morning, while BioClinica (BIOC), Endo Health (ENDP), and Regions Fincl (RF) were downgraded. MARKET OVERVIEW In Asian markets, results overnight were mixed, with the Japanese Nikkei and Taiwan's TSEC 50 were both up 0.2%, but the Mumbai Sensex was down 0.6% and the Hong Kong Hang Seng fell 0.4%. Earnings were the major driver of stock movement in the region and a Chinese report that indicated the Beijing government may institute a real estate tax soon hurt Chinese property companies. In Europe, the major indices were all in the red at last check, led lower by the French CAC 40 and the Euronext 100, both down 0.8%. This was the first session following the US Fed comments, which put a damper on proceedings despite a downtick in German unemployment. Turning to commodities, West Texas crude is down a small amount this morning along with heating oil and gasoline. Natural gas on the other hand is higher by 0.6%. Gold futures are lower by about 0.5% today while platinum is down nearly 1%. Silver and copper are also lower, but by a much smaller percentage. The US Dollar is higher versus the Euro this morning, but lower against the Yen. PUT/CALL RATIO Yesterday, 825,206 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 555,135 put contracts. The single-session put/call was 0.67, while the 20-day moving average hasn't moved too much in weeks and is now at 0.647. SUPPORT & RESISTANCE LEVELS The S&P 500 Depository Receipts (SPY) ETF has some slight support at $149.00 and could now start to find resistance near $151.00. The Nasdaq 100 (QQQ) continues to have support near $66.30 and resistance at $67.60. TODAY'S ECONOMIC CALENDAR 7:30 a.m. Jan Challenger Job Cuts 8:30 a.m. 1/26 Initial Claims 8:30 a.m. 1/19 Continuing Claims 8:30 a.m. Dec Personal Income 8:30 a.m. Dec Personal Spending 8:30 a.m. Dec PCE Prices-Core 8:30 a.m. Q4 Employment Cost Indices 9:45 a.m. Jan Chicago PMI 10:30a.m. 1/26 Natural Gas Inventories EARNINGS EXPECTED TODAY AET MO AN BLL BMS BCR CAM CB CL CNX D DOW EMN HAR HP IVZ MA MCK MJN NDAQ OXY PCAR PKI PBI PFG PHM R SHW HSY TMO TWC UPS VIAB WHR WYNN XEL ZMH 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 |
