MORNING UPDATE: PriceWatch Alerts for BA, TSLA, AAPL, and More…
February, 11 9:00 AM ET – PriceWatch Alerts for BA, ATVI, MNST,
TGT, YPF, TSLA, DISH, BLK, MMM, RIG, AAPL, NPSP, GM, X, Market
Overview, News Leaders and Laggards, Today’s Economic Calendar,
and Index Support & Resistance Levels.
PriceWatch Alerts for BA, ATVI, MNST, TGT, YPF, TSLA, DISH, BLK,
MMM, RIG, AAPL, NPSP, GM, X, DLTR.
Boeing (NYSE: BA) has been identified by InvestorsObserver
analysts as being well-positioned for a new covered call today.
Buying the stock for $127.16 while selling the May $125.00 call
will produce a new covered call with a break-even point around
$120.01. At that price, this position has a target return of 4.2%.
This trade will have roughly 5.6% downside protection, while still
aiming for a 4.2% return in 95 days. It will lock in that return
as long as Boeing is above $125.00 on 5/17/2014. For comparison
purposes only, this BA covered call aims for an annualized return
rate of 15.9%.
Activision (NASDAQ: ATVI) has been selected by InvestorsObserver
analysts as a stock that is an ideal candidate for a new covered
call today. Buying the stock for $19.36 while simultaneously
selling the August $19.00 call will result in a new position with
a target return of 7.3%. Based on recent prices, this position
will cost about $17.70, which is also the trade’s breakeven point.
At that level, this covered call has 8.6% downside protection,
while still providing a 7.3% return in 186 days as long as ATVI is
above $19.00 on 8/16/2014. For comparison purposes only, this
Activision covered call aims for an annualized return rate of
14.4%.
Monster Beverage (NASDAQ: MNST) has been identified by
InvestorsObserver analysts as being well-positioned for a new
covered call today. Buying the stock for $70.69 while selling the
March $70.00 call will produce a new covered call with a break-
even point around $66.54. At that price, this position has a
target return of 5.2%. This trade will have roughly 5.9% downside
protection, while still aiming for a 5.2% return in 39 days. It
will lock in that return as long as Monster Beverage is above
$70.00 on 3/22/2014. For comparison purposes only, this MNST
covered call aims for an annualized return rate of 48.6%.
Target (NYSE: TGT) has been chosen by InvestorsObserver analysts
as a candidate for a new covered call today. Selling the April
$57.50 call while at the same time buying TGT stock for $56.51
will produce a new covered call with a target return of 4.4%.
Based on recent data, this trade will cost about $55.10, which is
also the covered call’s breakeven point. At that price, this
covered call has 2.5% downside protection, while seeking an
assigned return of 4.4% return in 67 days. If TGT is higher than
$57.50 on 4/19/2014, we are assured that simple return. For
comparison purposes only, that equates to an annualized return
rate of 23.7%.
YPF S.A. (NYSE: YPF) has been selected by InvestorsObserver
analysts as a stock that is a strong candidate for a new covered
call today. Selling the March $22.50 call while simultaneously
buying YPF stock for $23.63 will result in a new position with a
break-even point around $21.13. At that price, this position has a
target return of 6.5%. This trade has 10.6% downside protection,
while still providing a 6.5% return in 39 days as long as YPF is
above $22.50 on 3/22/2014. For comparison purposes only, this YPF
S.A. covered call targets an annualized return rate of 60.6%.
Tesla (NASDAQ: TSLA) has been identified by InvestorsObserver
analysts as being well-positioned for a new covered call today.
Buying the stock for $196.56 while selling the February $195.00
call will produce a new covered call with a break-even point
around $182.36. At that price, this position has a target return
of 6.9%. This trade will have roughly 7.2% downside protection,
while still aiming for a 6.9% return in 11 days. It will lock in
that return as long as Tesla is above $195.00 on 2/22/2014. For
comparison purposes only, this TSLA covered call aims for an
annualized return rate of 230.0%.
Dish Network (NASDAQ: DISH) has been selected by InvestorsObserver
analysts as a stock that is an ideal candidate for a new covered
call today. Buying the stock for $57.02 while simultaneously
selling the June $55.00 call will result in a new position with a
target return of 7.0%. Based on recent prices, this position will
cost about $51.42, which is also the trade’s breakeven point. At
that level, this covered call has 9.8% downside protection, while
still providing a 7.0% return in 130 days as long as DISH is above
$55.00 on 6/21/2014. For comparison purposes only, this Dish
Network covered call aims for an annualized return rate of 19.5%.
BlackRock (NYSE: BLK) has been selected by InvestorsObserver
analysts as a stock that is a strong candidate for a new covered
call today. Selling the July $300.00 call while simultaneously
buying BLK stock for $301.03 will result in a new position with a
break-even point around $282.83. At that price, this position has
a target return of 6.1%. This trade has 6.0% downside protection,
while still providing a 6.1% return in 158 days as long as BLK is
above $300.00 on 7/19/2014. For comparison purposes only, this
BlackRock covered call targets an annualized return rate of 14.0%.
3M (NYSE: MMM) has been chosen by InvestorsObserver analysts as a
candidate for a new covered call today. Selling the July $135.00
call while at the same time buying MMM stock for $129.70 will
produce a new covered call with a target return of 6.7%. Based on
recent data, this trade will cost about $126.55, which is also the
covered call’s breakeven point. At that price, this covered call
has 2.4% downside protection, while seeking an assigned return of
6.7% return in 158 days. If MMM is higher than $135.00 on
7/19/2014, we are assured that simple return. For comparison
purposes only, that equates to an annualized return rate of 15.4%.
Transocean (NYSE: RIG) has been selected by InvestorsObserver
analysts as a stock that is a strong candidate for a new covered
call today. Selling the May $42.00 call while simultaneously
buying RIG stock for $42.26 will result in a new position with a
break-even point around $40.18. At that price, this position has a
target return of 4.5%. This trade has 4.9% downside protection,
while still providing a 4.5% return in 95 days as long as RIG is
above $42.00 on 5/17/2014. For comparison purposes only, this
Transocean covered call targets an annualized return rate of
17.4%.
Apple (NASDAQ: AAPL) has been identified by InvestorsObserver
analysts as being well-positioned for a new covered call today.
Buying the stock for $528.99 while selling the May $525.00 call
will produce a new covered call with a break-even point around
$501.19. At that price, this position has a target return of 4.8%.
This trade will have roughly 5.3% downside protection, while still
aiming for a 4.8% return in 95 days. It will lock in that return
as long as Apple is above $525.00 on 5/17/2014. For comparison
purposes only, this AAPL covered call aims for an annualized
return rate of 18.3%.
NPS Pharmaceuticals (NASDAQ: NPSP) has been selected by
InvestorsObserver analysts as a stock that is an ideal candidate
for a new covered call today. Buying the stock for $35.75 while
simultaneously selling the March $35.00 call will result in a new
position with a target return of 6.9%. Based on recent prices,
this position will cost about $32.75, which is also the trade’s
breakeven point. At that level, this covered call has 8.4%
downside protection, while still providing a 6.9% return in 39
days as long as NPSP is above $35.00 on 3/22/2014. For comparison
purposes only, this NPS Pharmaceuticals covered call aims for an
annualized return rate of 64.3%.
GM (NYSE: GM) has been identified by InvestorsObserver analysts as
being well-positioned for a new covered call today. Buying the
stock for $34.90 while selling the June $34.00 call will produce a
new covered call with a break-even point around $32.31. At that
price, this position has a target return of 5.2%. This trade will
have roughly 7.4% downside protection, while still aiming for a
5.2% return in 130 days. It will lock in that return as long as GM
is above $34.00 on 6/21/2014. For comparison purposes only, this
GM covered call aims for an annualized return rate of 14.7%.
US Steel (NYSE: X) has been chosen by InvestorsObserver analysts
as a candidate for a new covered call today. Selling the April
$25.00 call while at the same time buying X stock for $25.59 will
produce a new covered call with a target return of 6.2%. Based on
recent data, this trade will cost about $23.54, 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
6.2% return in 67 days. If X is higher than $25.00 on 4/19/2014,
we are assured that simple return. For comparison purposes only,
that equates to an annualized return rate of 33.8%.
Dollar Tree (NASDAQ: DLTR) has been selected by InvestorsObserver
analysts as a stock that is a strong candidate for a new covered
call today. Selling the August $50.00 call while simultaneously
buying DLTR stock for $51.33 will result in a new position with a
break-even point around $47.33. At that price, this position has a
target return of 5.6%. This trade has 7.8% downside protection,
while still providing a 5.6% return in 186 days as long as DLTR is
above $50.00 on 8/16/2014. For comparison purposes only, this
Dollar Tree covered call targets an annualized return rate of
11.1%.
*Annualized returns are shown for comparison purposes only
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NEWS LEADERS AND LAGGARDS
Cadence Pharmaceuticals (CADX), comScore (SCOR) and Mallinckrodt
(MNK) are headed higher this morning, while Infoblox (BLOX),
Rackspace (RAX) and Annie’s (BNNY) are in decline. Allscripts-
Misys Healthcare (MDRX) and ArcelorMittal (MT) were upgraded by
analysts this morning, while Infoblox (BLOX) was downgraded.
MARKET OVERVIEW
International trading overnight was almost entirely bullish. In
Asia, Hong Kong led the region higher, gaining 1.8% while the
Shanghai SEC rose 0.8%, the Tawian TSEC picked up 0.5% and the
Indian Sensex rose just 0.1%. The Nikkei was closed for a holiday.
European markets are having a very strong session, with the German
DAX rising 1.4% while most of the other continental indices are up
less than 1%. The FTSE 100 is advancing 0.8% while the Euronext
100 and French CAC 40 are up 0.6%.
In the commodities pits, crude oil and other energy futures are
almost all higher this morning. West Texas Intermediate crude has
topped $100 and heating oil is above $3.00, but natural gas is
back below $5.00. Gold is advancing $12.00 to $1,286 and most
other metals are slightly higher. Copper is alone in the red, down
less than a penny. The U.S. Dollar is weaker against the Euro and
most other foreign currencies, but stronger versus the Yen. The
Bitcoin global average has rebounded in the past 24 hours and is
back above $700.
PUT/CALL RATIO
Yesterday, 1,016,821 call contracts traded on the Chicago Board
Options Exchange (CBOE) compared to 717,369 put contracts. The
single-session put/call was 0.71, while the 20-day moving average
is now at 0.59.
SUPPORT & RESISTANCE LEVELS
The S&P 500 Depository Receipts (SPY) ETF has support at $172 and
resistance at $182. The Nasdaq 100 (QQQ) has support at $86.50 and
is above resistance.
TODAY’S ECONOMIC CALENDAR
10:00 AM Dec JOLTS – Job Openings
10:00 AM Dec Wholesale Inventories
EARNINGS EXPECTED TODAY
CVS
JIVE
REGN
S
SGEN
TRIP