MORNING UPDATE: PriceWatch Alerts for AAPL and More... for 2013-01-23 |
| ------------------------------------------------------------------ MORNING UPDATE: PriceWatch Alerts for AAPL, KO, CBS and More... January 23, 9:00 AM ET - PriceWatch Alerts for AAPL, CHK, BBY, ALL, MDR, KO, SLB, WLT, AET, AUY, CBS, HES, KSU, WFT, and BBBY, Market Overview, News Leaders and Laggards, Today's Economic Calendar, and Index Support & Resistance Levels. PriceWatch Alerts for AAPL, CHK, BBY, ALL, MDR, KO, SLB, WLT, AET, AUY, CBS, HES, KSU, WFT, and BBBY Apple (NASDAQ: AAPL) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $504.77 while simultaneously selling the March $500.00 call will result in a new position with a target return of 5.0%. Based on recent prices, this position will cost about $476.12, which is also the trade?s breakeven point. At that level, this covered call has 5.7% downside protection, while still providing a 5.0% return in 52 days as long as AAPL is above $500.00 on 3/16/2013. For comparison purposes only, this Apple covered call aims for an annualized return rate of 35.2%. Chesapeake Energy (NYSE: CHK) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the July $18.00 call while at the same time buying CHK stock for $18.73 will produce a new covered call with a target return of 8.7%. Based on recent data, this trade will cost about $16.56, which is also the covered call?s breakeven point. At that price, this covered call has 11.6% downside protection, while seeking an assigned return of 8.7% return in 178 days. If CHK is higher than $18.00 on 7/20/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 17.8%. Best Buy (NYSE: BBY) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the March $15.00 call while simultaneously buying BBY stock for $15.39 will result in a new position with a break-even point around $13.91. At that price, this position has a target return of 7.8%. This trade has 9.6% downside protection, while still providing a 7.8% return in 52 days as long as BBY is above $15.00 on 3/16/2013. For comparison purposes only, this Best Buy covered call targets an annualized return rate of 55.0%. Allstate (NYSE: ALL) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $44.20 while selling the July $45.00 call will produce a new covered call with a break-even point around $42.61. At that price, this position has a target return of 5.6%. This trade will have roughly 3.6% downside protection, while still aiming for a 5.6% return in 178 days. It will lock in that return as long as Allstate is above $45.00 on 7/20/2013. For comparison purposes only, this ALL covered call aims for an annualized return rate of 11.5%. McDermott International (NYSE: MDR) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $12.51 while simultaneously selling the August $12.00 call will result in a new position with a target return of 10.0%. Based on recent prices, this position will cost about $10.91, which is also the trade?s breakeven point. At that level, this covered call has 12.8% downside protection, while still providing a 10.0% return in 206 days as long as MDR is above $12.00 on 8/17/2013. For comparison purposes only, this McDermott International covered call aims for an annualized return rate of 17.7%. Coca Cola (NYSE: KO) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the August $37.50 call while simultaneously buying KO stock for $37.13 will result in a new position with a break-even point around $35.97. At that price, this position has a target return of 4.3%. This trade has 3.1% downside protection, while still providing a 4.3% return in 206 days as long as KO is above $37.50 on 8/17/2013. For comparison purposes only, this Coca Cola covered call targets an annualized return rate of 7.5%. Schlumberger (NYSE: SLB) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the May $77.50 call while at the same time buying SLB stock for $78.00 will produce a new covered call with a target return of 4.4%. Based on recent data, this trade will cost about $74.25, which is also the covered call?s breakeven point. At that price, this covered call has 4.8% downside protection, while seeking an assigned return of 4.4% return in 115 days. If SLB is higher than $77.50 on 5/18/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 13.9%. Walter Energy (NYSE: WLT) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $38.62 while simultaneously selling the March $37.50 call will result in a new position with a target return of 6.3%. Based on recent prices, this position will cost about $35.27, which is also the trade?s breakeven point. At that level, this covered call has 8.7% downside protection, while still providing a 6.3% return in 52 days as long as WLT is above $37.50 on 3/16/2013. For comparison purposes only, this Walter Energy covered call aims for an annualized return rate of 44.4%. Aetna (NYSE: AET) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $48.34 while selling the April $48.00 call will produce a new covered call with a break-even point around $46.10. At that price, this position has a target return of 4.1%. This trade will have roughly 4.6% downside protection, while still aiming for a 4.1% return in 87 days. It will lock in that return as long as Aetna is above $48.00 on 4/20/2013. For comparison purposes only, this AET covered call aims for an annualized return rate of 17.3%. Yamana Gold (NYSE: AUY) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the July $18.00 call while simultaneously buying AUY stock for $18.11 will result in a new position with a break-even point around $16.61. At that price, this position has a target return of 8.4%. This trade has 8.3% downside protection, while still providing a 8.4% return in 178 days as long as AUY is above $18.00 on 7/20/2013. For comparison purposes only, this Yamana Gold covered call targets an annualized return rate of 17.1%. CBS (NYSE: CBS) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the June $41.00 call while at the same time buying CBS stock for $41.86 will produce a new covered call with a target return of 5.8%. Based on recent data, this trade will cost about $38.76, which is also the covered call?s breakeven point. At that price, this covered call has 7.4% downside protection, while seeking an assigned return of 5.8% return in 150 days. If CBS is higher than $41.00 on 6/22/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 14.0%. Hess (NYSE: HES) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the May $57.50 call while simultaneously buying HES stock for $58.87 will result in a new position with a break-even point around $54.92. At that price, this position has a target return of 4.7%. This trade has 6.7% downside protection, while still providing a 4.7% return in 115 days as long as HES is above $57.50 on 5/18/2013. For comparison purposes only, this Hess covered call targets an annualized return rate of 14.9%. Kansas City Southern (NYSE: KSU) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $91.67 while simultaneously selling the June $90.00 call will result in a new position with a target return of 5.7%. Based on recent prices, this position will cost about $85.17, which is also the trade?s breakeven point. At that level, this covered call has 7.1% downside protection, while still providing a 5.7% return in 150 days as long as KSU is above $90.00 on 6/22/2013. For comparison purposes only, this Kansas City Southern covered call aims for an annualized return rate of 13.8%. Weatherford International (NYSE: WFT) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $12.82 while selling the August $13.00 call will produce a new covered call with a break- even point around $11.53. At that price, this position has a target return of 12.7%. This trade will have roughly 10.1% downside protection, while still aiming for a 12.7% return in 206 days. It will lock in that return as long as Weatherford International is above $13.00 on 8/17/2013. For comparison purposes only, this WFT covered call aims for an annualized return rate of 22.6%. Bed Bath and Beyond (NASDAQ: BBBY) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the May $55.00 call while at the same time buying BBBY stock for $56.49 will produce a new covered call with a target return of 4.3%. Based on recent data, this trade will cost about $52.74, which is also the covered call?s breakeven point. At that price, this covered call has 6.6% downside protection, while seeking an assigned return of 4.3% return in 115 days. If BBBY is higher than $55.00 on 5/18/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 13.6%. *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 IBM (IBM), Google (GOOG), Symantec (SYMC) are pointed higher this morning, while Coach (COH), Quest Diagnostics (DGX) and Tiffany & Co (TIF) are headed lower. Alpha Natural Resources (ANR), Walter Energy (WLT) and Melco Crown Entertainment (MPEL) were upgraded this by analysts morning, while Hartford Financial (HIG) and Northeast Utilities (NU) were downgraded. MARKET OVERVIEW In Asia, Japanese stocks headed significantly lower after traders digested the Bank of Japan's policy changes. The Nikkei fell 2.1% overnight, while the rest of the region's markets were little changed. The Mumbai Sensex and Shanghai SEC each rose 0.2%, while the Taiwan TSEC dropped 0.2% and Hong Kong's Hang Seng fell 0.1%. European markets do not have much to report on at last check. The Swiss Market Index is the only major benchmark to make a significant move, up 1.2% led by an earnings report from Novartis (NVS). In the rest of the region, the French CAC 40 was lower by 0.3% and the Euronext was off 0.25%, while the German DAX and English FTSE were higher by 0.2%. In commodities, West Texas crude is up a small amount so far today, up 0.2%. Heating oil and gasoline are also higher, while natural gas is down less than a cent. Gold, silver and copper are all just about flat. The US Dollar is slightly lower against most world currencies including the Yen, the Euro, and the Pound. PUT/CALL RATIO Yesterday, 929,497 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 635,146 put contracts. The single-session put/call was 0.68, while the 20-day moving average held steady and ended up at 0.644. SUPPORT & RESISTANCE LEVELS The S&P 500 Depository Receipts (SPY) ETF has support at $146.20 and finished the day yesterday at the highest point in the past year and above recent resistance levels. The Nasdaq 100 (QQQ) continues to have support near $66.15 and should open this morning above its resistance barriers. TODAY'S ECONOMIC CALENDAR 7:00 A.M. 1/19 MBA Mortgage Index 9:00 A.M. Nov FHFA Housing Price Index EARNINGS EXPECTED TODAY ABT APD ATI ALTR AMGN AAPL BHI COH CHKP CCI FFIV GD HXL JEC LRCX LSI MCD MOLX MSI NFLX NE PX DGX SNDK ZZ STJ SYK SYMC TEL TER TXT UTX VAR LCC WLP WDC 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 |
