MORNING UPDATE: PriceWatch Alerts for GOOG and More... for 2013-01-15 |
| ------------------------------------------------------------------ MORNING UPDATE: PriceWatch Alerts for GOOG, UPS, HAL, and More... January 15, 9:00 AM ET - PriceWatch Alerts for GOOG, MT, VMW, LULU, HBI, UPS, STX, LXK, CCJ, BIG, HAL, DTV, AEO, INCY, and CVC, Market Overview, News Leaders and Laggards, Today's Economic Calendar, and Index Support & Resistance Levels. PriceWatch Alerts for GOOG, MT, VMW, LULU, HBI, UPS, STX, LXK, CCJ, BIG, HAL, DTV, AEO, INCY, and CVC Google (NASDAQ: GOOG) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $723.25 while selling the June $720.00 call will produce a new covered call with a break-even point around $680.45. At that price, this position has a target return of 5.8%. This trade will have roughly 5.9% downside protection, while still aiming for a 5.8% return in 158 days. It will lock in that return as long as Google is above $720.00 on 6/22/2013. For comparison purposes only, this GOOG covered call aims for an annualized return rate of 13.4%. Arcelor Mittal (NYSE: MT) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $16.98 while simultaneously selling the June $17.00 call will result in a new position with a target return of 10.0%. Based on recent prices, this position will cost about $15.45, which is also the trade?s breakeven point. At that level, this covered call has 9.0% downside protection, while still providing a 10.0% return in 158 days as long as MT is above $17.00 on 6/22/2013. For comparison purposes only, this Arcelor Mittal covered call aims for an annualized return rate of 23.2%. VMware (NYSE: VMW) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the April $95.00 call while at the same time buying VMW stock for $97.11 will produce a new covered call with a target return of 6.4%. Based on recent data, this trade will cost about $89.31, which is also the covered call?s breakeven point. At that price, this covered call has 8.0% downside protection, while seeking an assigned return of 6.4% return in 95 days. If VMW is higher than $95.00 on 4/20/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 24.5%. Lululemon Athletica (NASDAQ: LULU) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the March $70.00 call while simultaneously buying LULU stock for $72.30 will result in a new position with a break-even point around $66.30. At that price, this position has a target return of 5.6%. This trade has 8.3% downside protection, while still providing a 5.6% return in 60 days as long as LULU is above $70.00 on 3/16/2013. For comparison purposes only, this Lululemon Athletica covered call targets an annualized return rate of 33.9%. Hanesbrands (NYSE: HBI) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $37.00 while selling the July $35.00 call will produce a new covered call with a break-even point around $33.00. At that price, this position has a target return of 6.1%. This trade will have roughly 10.8% downside protection, while still aiming for a 6.1% return in 186 days. It will lock in that return as long as Hanesbrands is above $35.00 on 7/20/2013. For comparison purposes only, this HBI covered call aims for an annualized return rate of 11.9%. United Parcel Service (NYSE: UPS) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the July $80.00 call while simultaneously buying UPS stock for $79.24 will result in a new position with a break-even point around $76.50. At that price, this position has a target return of 4.6%. This trade has 3.5% downside protection, while still providing a 4.6% return in 186 days as long as UPS is above $80.00 on 7/20/2013. For comparison purposes only, this United Parcel Service covered call targets an annualized return rate of 9.0%. Seagate Technology (NASDAQ: STX) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the March $33.00 call while at the same time buying STX stock for $33.97 will produce a new covered call with a target return of 5.5%. Based on recent data, this trade will cost about $31.27, 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 5.5% return in 60 days. If STX is higher than $33.00 on 3/16/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 33.6%. Lexmark International (NYSE: LXK) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $26.85 while simultaneously selling the April $26.00 call will result in a new position with a target return of 6.1%. Based on recent prices, this position will cost about $24.50, which is also the trade?s breakeven point. At that level, this covered call has 8.8% downside protection, while still providing a 6.1% return in 95 days as long as LXK is above $26.00 on 4/20/2013. For comparison purposes only, this Lexmark International covered call aims for an annualized return rate of 23.5%. Cameco (NYSE: CCJ) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $21.22 while selling the June $21.00 call will produce a new covered call with a break-even point around $19.57. At that price, this position has a target return of 7.3%. This trade will have roughly 7.8% downside protection, while still aiming for a 7.3% return in 158 days. It will lock in that return as long as Cameco is above $21.00 on 6/22/2013. For comparison purposes only, this CCJ covered call aims for an annualized return rate of 16.9%. Big Lots (NYSE: BIG) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the April $27.50 call while simultaneously buying BIG stock for $28.75 will result in a new position with a break-even point around $25.95. At that price, this position has a target return of 6.0%. This trade has 9.7% downside protection, while still providing a 6.0% return in 95 days as long as BIG is above $27.50 on 4/20/2013. For comparison purposes only, this Big Lots covered call targets an annualized return rate of 22.9%. Halliburton (NYSE: HAL) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $35.91 while simultaneously selling the April $35.00 call will result in a new position with a target return of 4.4%. Based on recent prices, this position will cost about $33.53, which is also the trade?s breakeven point. At that level, this covered call has 6.6% downside protection, while still providing a 4.4% return in 95 days as long as HAL is above $35.00 on 4/20/2013. For comparison purposes only, this Halliburton covered call aims for an annualized return rate of 16.8%. DirecTV (NASDAQ: DTV) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $53.35 while selling the June $52.50 call will produce a new covered call with a break-even point around $49.75. At that price, this position has a target return of 5.5%. This trade will have roughly 6.7% downside protection, while still aiming for a 5.5% return in 158 days. It will lock in that return as long as DirecTV is above $52.50 on 6/22/2013. For comparison purposes only, this DTV covered call aims for an annualized return rate of 12.8%. American Eagle Outfitters (NYSE: AEO) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the May $19.00 call while at the same time buying AEO stock for $19.64 will produce a new covered call with a target return of 7.1%. Based on recent data, this trade will cost about $17.74, which is also the covered call?s breakeven point. At that price, this covered call has 9.7% downside protection, while seeking an assigned return of 7.1% return in 123 days. If AEO is higher than $19.00 on 5/18/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 21.1%. Incyte (NASDAQ: INCY) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the June $20.00 call while simultaneously buying INCY stock for $19.22 will result in a new position with a break-even point around $17.77. At that price, this position has a target return of 12.5%. This trade has 7.5% downside protection, while still providing a 12.5% return in 158 days as long as INCY is above $20.00 on 6/22/2013. For comparison purposes only, this Incyte covered call targets an annualized return rate of 29.0%. Cablevision Systems (NYSE: CVC) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $15.65 while simultaneously selling the June $16.00 call will result in a new position with a target return of 9.2%. Based on recent prices, this position will cost about $14.65, which is also the trade?s breakeven point. At that level, this covered call has 6.4% downside protection, while still providing a 9.2% return in 158 days as long as CVC is above $16.00 on 6/22/2013. For comparison purposes only, this Cablevision Systems covered call aims for an annualized return rate of 21.3%. *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 ? 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These are not recommendations to buy or sell any security. NEWS LEADERS AND LAGGARDS QLogic (QLGC), Dell (DELL) and Mellanox (MLNX) are pointed higher this morning, while lululemon (LULU), Forest Laboratories (FRX) and ARM Holdings (ARMH) are headed lower. Green Mountain Coffee (GMCR) and Maxim (MXIM) were upgraded this by analysts morning, while Cliffs Natural Resources (CLF), Dell (DELL) and BHP Billiton (BHP) were downgraded. MARKET OVERVIEW Asian markets were mixed overnight, with the Taiwan TSEC 50 down 0.7% but the Nikkei gaining 0.7% catching up from yesterday's holiday. There is not too much news in the region, just continued optimism in Japanese exporters due to the weaker Yen. In Europe, most indices are headed lower after preliminary data shows that Germany's economy shrank by 0.5% in the quarter. One bright spot is the Swiss Market Index, up 0.6% while the other major indices were lower, including the German DAX off 0.5%. In commodities, West Texas crude is down slightly this morning, off 0.3% in a quiet morning for energy futures. Heating oil, gasoline, and natural gas are all not far removed from yesterday's closing price. Gold is up 0.5% while silver and copper are just about flat. Platinum is up 2% after Anglo American Platinum (AMS) said it would cut production. The US Dollar is lower versus the Yen, but slightly higher against most other world currencies. PUT/CALL RATIO Yesterday, 939,954 call contracts traded on the Chicago Board Options Exchange (CBOE) compared to 486,423 put contracts. The single-session put/call was 0.52, while the 20-day moving average slipped to 0.636. SUPPORT & RESISTANCE LEVELS The S&P 500 Depository Receipts (SPY) ETF has support at $144.95 and possible resistance near $147.15. The Nasdaq 100 (QQQ) has support near $66.15 and could have resistance at $67.30. TODAY'S ECONOMIC CALENDAR 8:30 a.m. Dec Retail Sales 8:30 a.m. Dec PPI 8:30 a.m. Jan Empire Manufacturing 10:00 a.m. Nov Business Inventories EARNINGS EXPECTED TODAY FRX LEN 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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