MORNING UPDATE: PriceWatch Alerts for IBM and More... for 2013-01-24 |
| ------------------------------------------------------------------ MORNING UPDATE: PriceWatch Alerts for IBM, MRK, HD and More... January 24, 9:00 AM ET - PriceWatch Alerts for IBM, WLP, CSX, TXT, CTRP, MRK, LLY, SYMC, DHI, TSLA, HD, NSC, WHR, CREE, and ACN, Market Overview, News Leaders and Laggards, Today's Economic Calendar, and Index Support & Resistance Levels. PriceWatch Alerts for IBM, WLP, CSX, TXT, CTRP, MRK, LLY, SYMC, DHI, TSLA, HD, NSC, WHR, CREE, and ACN International Business Machines (NYSE: IBM) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the July $205.00 call while simultaneously buying IBM stock for $204.72 will result in a new position with a break-even point around $194.57. At that price, this position has a target return of 5.4%. This trade has 5.0% downside protection, while still providing a 5.4% return in 177 days as long as IBM is above $205.00 on 7/20/2013. For comparison purposes only, this International Business Machines covered call targets an annualized return rate of 11.1%. WellPoint Health Networks (NYSE: WLP) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the June $65.00 call while at the same time buying WLP stock for $64.83 will produce a new covered call with a target return of 5.6%. Based on recent data, this trade will cost about $61.58, which is also the covered call?s breakeven point. At that price, this covered call has 5.0% downside protection, while seeking an assigned return of 5.6% return in 149 days. If WLP is higher than $65.00 on 6/22/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 13.6%. CSX (NYSE: CSX) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $21.68 while simultaneously selling the August $22.50 call will result in a new position with a target return of 7.7%. Based on recent prices, this position will cost about $20.90, which is also the trade?s breakeven point. At that level, this covered call has 3.6% downside protection, while still providing a 7.7% return in 205 days as long as CSX is above $22.50 on 8/17/2013. For comparison purposes only, this CSX covered call aims for an annualized return rate of 13.6%. Textron (NYSE: TXT) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $27.84 while selling the June $27.00 call will produce a new covered call with a break-even point around $25.56. At that price, this position has a target return of 5.6%. This trade will have roughly 8.2% downside protection, while still aiming for a 5.6% return in 149 days. It will lock in that return as long as Textron is above $27.00 on 6/22/2013. For comparison purposes only, this TXT covered call aims for an annualized return rate of 13.8%. Ctrip.com (NASDAQ: CTRP) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the March $23.00 call while simultaneously buying CTRP stock for $23.59 will result in a new position with a break-even point around $21.79. At that price, this position has a target return of 5.6%. This trade has 7.6% downside protection, while still providing a 5.6% return in 51 days as long as CTRP is above $23.00 on 3/16/2013. For comparison purposes only, this Ctrip.com covered call targets an annualized return rate of 39.7%. Merck (NYSE: MRK) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $42.82 while simultaneously selling the July $44.00 call will result in a new position with a target return of 5.3%. Based on recent prices, this position will cost about $41.77, which is also the trade?s breakeven point. At that level, this covered call has 2.5% downside protection, while still providing a 5.3% return in 177 days as long as MRK is above $44.00 on 7/20/2013. For comparison purposes only, this Merck covered call aims for an annualized return rate of 11.0%. Eli Lilly (NYSE: LLY) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $52.40 while selling the July $52.50 call will produce a new covered call with a break-even point around $50.41. At that price, this position has a target return of 4.1%. This trade will have roughly 3.8% downside protection, while still aiming for a 4.1% return in 177 days. It will lock in that return as long as Eli Lilly is above $52.50 on 7/20/2013. For comparison purposes only, this LLY covered call aims for an annualized return rate of 8.5%. Symantec (NASDAQ: SYMC) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the July $21.00 call while at the same time buying SYMC stock for $21.46 will produce a new covered call with a target return of 7.4%. Based on recent data, this trade will cost about $19.55, which is also the covered call?s breakeven point. At that price, this covered call has 8.9% downside protection, while seeking an assigned return of 7.4% return in 177 days. If SYMC is higher than $21.00 on 7/20/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 15.3%. D R Horton (NYSE: DHI) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the May $21.00 call while simultaneously buying DHI stock for $21.82 will result in a new position with a break- even point around $19.86. At that price, this position has a target return of 5.7%. This trade has 9.0% downside protection, while still providing a 5.7% return in 114 days as long as DHI is above $21.00 on 5/18/2013. For comparison purposes only, this D R Horton covered call targets an annualized return rate of 18.4%. Tesla (NASDAQ: TSLA) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $36.00 while simultaneously selling the March $36.00 call will result in a new position with a target return of 5.4%. Based on recent prices, this position will cost about $34.15, which is also the trade?s breakeven point. At that level, this covered call has 5.1% downside protection, while still providing a 5.4% return in 51 days as long as TSLA is above $36.00 on 3/16/2013. For comparison purposes only, this Tesla covered call aims for an annualized return rate of 38.7%. Home Depot (NYSE: HD) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the May $67.50 call while at the same time buying HD stock for $66.46 will produce a new covered call with a target return of 4.6%. Based on recent data, this trade will cost about $64.54, which is also the covered call?s breakeven point. At that price, this covered call has 2.9% downside protection, while seeking an assigned return of 4.6% return in 114 days. If HD is higher than $67.50 on 5/18/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 14.7%. Norfolk Southern (NYSE: NSC) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $68.41 while selling the June $70.00 call will produce a new covered call with a break-even point around $66.51. At that price, this position has a target return of 5.2%. This trade will have roughly 2.8% downside protection, while still aiming for a 5.2% return in 149 days. It will lock in that return as long as Norfolk Southern is above $70.00 on 6/22/2013. For comparison purposes only, this NSC covered call aims for an annualized return rate of 12.8%. Whirlpool (NYSE: WHR) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $107.70 while simultaneously selling the June $105.00 call will result in a new position with a target return of 6.8%. Based on recent prices, this position will cost about $98.30, which is also the trade?s breakeven point. At that level, this covered call has 8.7% downside protection, while still providing a 6.8% return in 149 days as long as WHR is above $105.00 on 6/22/2013. For comparison purposes only, this Whirlpool covered call aims for an annualized return rate of 16.7%. Cree (NASDAQ: CREE) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the June $40.00 call while simultaneously buying CREE stock for $40.85 will result in a new position with a break-even point around $36.95. At that price, this position has a target return of 8.3%. This trade has 9.5% downside protection, while still providing a 8.3% return in 149 days as long as CREE is above $40.00 on 6/22/2013. For comparison purposes only, this Cree covered call targets an annualized return rate of 20.2%. Accenture (NYSE: ACN) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the May $72.50 call while at the same time buying ACN stock for $71.25 will produce a new covered call with a target return of 4.6%. Based on recent data, this trade will cost about $69.30, 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 4.6% return in 114 days. If ACN is higher than $72.50 on 5/18/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 14.8%. *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 F5 Networks (FFIV), Xerox (XRX) and Amarin (AMRN) are pointed higher this morning, while Mellanox Technologies (MLNX), Teradyne (TER) and Logitech (LOGI) are headed lower. Bed Bath and Beyond (BBBY), SanDisk (SNDK) and Cubist Pharmaceuticals (CBST) were upgraded this by analysts morning, while Symantec (SYMC) IAMGOLD (IAG) and Tiffany & Co (TIF) were downgraded. MARKET OVERVIEW Asian indices were mixed overnight, with the Nikkei up 1.3% and the Australian All-Ordinaries higher by 0.45%. On the flip side, Shanghai and Taiwan retreated by 0.8% and 0.6% respectively. Chinese PMI hit a two-year high and the Yen turned lower again. In Europe, the eurozone PMI reading came in higher than estimates, which is a good sign, but for the most part European stocks were held back by concern about Apple. At last check, the Swiss Market Index is higher by 0.4% and the London FTSE is up 0.3%, while the other major indices are hovering near break-even. In commodities, West Texas crude is higher by a small amount this morning, up about 0.3%. Heating oil and gasoline are in the red, but natural gas is slightly higher. Gold futures are down by 0.5%, and platinum, silver, and copper are all also lower by smaller amount. The US Dollar is higher versus most other currencies, including the Yen, Swiss Franc, Canadian Dollar, and British Pound, but higher against the Euro. PUT/CALL RATIO Yesterday, 816,558 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 556,364 put contracts. The single-session put/call was 0.69, while the 20-day moving average held relatively steady near 0.643. SUPPORT & RESISTANCE LEVELS The S&P 500 Depository Receipts (SPY) ETF has support at $144.95 and hit a new 52-week high yesterday. The Nasdaq 100 (QQQ) has support near $66.15 and could form resistance near $67.80. TODAY'S ECONOMIC CALENDAR 8:30 A.M. 1/19 Initial Claims 8:30 A.M. 1/12 Continuing Claims 10:00 A.M. Dec Leading Indicators 10:30 A.M. 1/19 Natural Gas Inventories 11:00 A.M. 1/19 Crude Inventories EARNINGS EXPECTED TODAY MMM ARG ABC T BAX BMY DOV ETFC EQT JNPR LMT MKC MSFT PCP RTN LUV SWK SBUX UNP VRSN GWW XRX 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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