March 19, 8:30 AM EST - Before the open... PriceWatch Alerts for
QCOM, DD, BTU, STLD, SM, PBR, NEM, PPG, CY, and MWW, Market
Overview, News Leaders and Laggards, Today's Economic Calendar,
Support & Resistance Levels, and the Quote Of The Day.
QUOTE OF THE DAY -------------------------------------------------
"Forecasters as a group will almost certainly miss the onset of
the next financial crisis, as they have so often in the past and I
presume any newly designated systemic risk regulator will also."
-- Alan Greenspan, Chairman 1987-2006, US Federal Reserve
WHAT COULD MOVE THE MARKET & WHAT STRATEGIES MIGHT WORK-----------
The markets are slightly lower this morning as we head toward a
quadruple witching day today, where four different options and
futures contracts expire.
Today's Market Outlook: Slightly Bearish
Preferred Strategies: Conservative Covered Calls
Stocks on the Move: PALM, SPWRA, CERN
What to Look For On Investors Observer Today: This evening is
March options expiration. Almost all of our portfolios will have
positions expiring today and our analysts will be updating the
portfolio pages throughout the day.
New PriceWatch Alerts for QCOM, DD, BTU, STLD, SM, PBR, NEM, PPG,
CY, and MWW
PRICEWATCH ALERTS - HIGH RETURN COVERED CALL OPTIONS--------------
-- Qualcomm Inc. (Nasdaq: QCOM)
Last Price 40.43 - JUL 40.00 CALL OPTION@ $2.60 -> 5.7% Return
(17.4% Annualized) assigned*
-- EI DuPont de Nemours & Co. (NYSE: DD)
Last Price 37.07 - JUL 37.00 CALL OPTION@ $1.93 -> 5.3% Return
(16.1% Annualized) assigned*
-- Peabody Energy Corp. (NYSE: BTU)
Last Price 48.11 - APR 48.00 CALL OPTION@ $2.17 -> 4.5% Return
(56.4% Annualized) assigned*
-- Steel Dynamics Inc. (Nasdaq: STLD)
Last Price 17.64 - AUG 17.00 CALL OPTION@ $2.10 -> 9.4% Return
(22.1% Annualized) assigned*
-- St. Mary Land & Exploration Company (NYSE: SM)
Last Price 35.91 - MAY 35.00 CALL OPTION@ $2.60 -> 5.1% Return
(28.9% Annualized) assigned*
-- Petroleo Brasileiro (NYSE: PBR)
Last Price 46.23 - JUL 46.00 CALL OPTION@ $3.20 -> 6.9% Return
(21.0% Annualized) assigned*
-- Newmont Mining Corp. (NYSE: NEM)
Last Price 51.27 - JUN 50.00 CALL OPTION@ $4.15 -> 6.1% Return
(24.2% Annualized) assigned*
-- PPG Industries Inc. (NYSE: PPG)
Last Price 64.74 - AUG 65.00 CALL OPTION@ $3.30 -> 5.8% Return
(13.6% Annualized) assigned*
-- Cypress Semiconductor Corporation (Nasdaq: CY)
Last Price 12.07 - SEP 12.00 CALL OPTION@ $1.30 -> 11.4% Return
(22.8% Annualized) assigned*
-- Monster Worldwide, Inc. (NYSE: MWW)
Last Price 16.96 - SEP 15.00 CALL OPTION@ $3.00 -> 7.4% Return
(14.9% Annualized) assigned*
*Annualized returns are shown for comparison purposes only
*For more details on these covered calls and how you can use them
to enhance your portfolio performance, go to:
http://www.iotogo.com/smart_inves_stra_4.asp
NOTE: All stocks and options shown are examples only. These are
not recommendations to buy or sell any security.
SELECT 10 STRATEGIES FOR TODAY -----------------------------------
Every trading day our Special Daily Select 10 Hedged Strategies
service points out 10 covered call trades and 10 hedged trades
normally requiring much less capital. The goal is for each trade
to generate at least a 5% return over 60 to 180 days. Using our
sophisticated computer models we hunt down the trades with the
highest return and the lowest risk. This is a great way see the
types of trades that can rely on solid stocks to produce double-
digit annual returns while reducing overall risk of holding the
stock and conserving your investment funds.
Today our Select 10 picks include strategies, tactics and trade
ideas for Hewlett-Packard (HPQ), and Transocean (RIG) with up to
58% targeted annualized return and 14.3% downside protection. See
the Select 10 Hedged Strategies list for all the details.
NEWS LEADERS AND LAGGARDS-----------------------------------------
So far this morning, Cerner (CERN) and and OSI Pharmaceuticals
(OSIP) lead the list of companies with positive news, while Palm
(PALM), SunPower (SPWRA), and Cintas Corporation (CTAS) lead the
list of companies with negative news. Tetra Tech (TTEK) was
upgraded this morning, while Humana (HUM), DIRECTV (DTV), and
Weatherford (WFT) received downgrades.
MARKET OVERVIEW---------------------------------------------------
Overseas trading looks strong heading into the weekend, as nine of
the 10 foreign indexes that we track are in positive territory.
The cumulative average return on the collective stands at a gain
of 0.43%. In Asia, most stocks closed in the black, led by Japan
after a resilient performance from the Dow industrials overnight.
Turning to Europe, shares climbed to a 17-month high in early
trading, with banks led higher following gains in Lloyds Banking
Group after the U.K. lender said it would return to profitability
in 2010.
The U.S. dollar is continuing to gain strength this morning, with
traders positioning themselves ahead of a three-day weekend in
Japan. The greenback was also bolstered by speculation that Fed
is debating raising the discount rate. At last check, the U.S.
Dollar Index was up 0.36% at 80.52. Naturally, commodities are
not taking the rise in the U.S. currency well, as crude futures
are down 54 cents at $82 per barrel, while gold has fallen $5.40
to $1,122.10 an ounce.
PUT/CALL RATIO ---------------------------------------------------
Equity option activity on the Chicago Board Options Exchange
(CBOE) saw 1,509,457 call contracts traded on Thursday, compared
to 805,833 put contracts. The resultant single-session put/call
ratio arrived at 0.53, while the 21-day moving average slipped to
0.59.
SUPPORT & RESISTANCE LEVELS --------------------------------------
The S&P Depository Receipts (SPY) show support in the neighborhood
of $114.35 and resistance around $117.25. For the Nasdaq 100
(QQQQ), support is near $46.80 and resistance is around $47.90.
TODAY'S ECONOMIC CALENDAR ----------------------------------------
4:00 p.m. Mar Options Expiration
EARNINGS EXPECTED TODAY (w/current estimates) --------------------
EGO 0.10
PERY 0.59
This Morning Update was prepared with data, information and moral
support provided by:
PowerOptionsPlus.com - The Best Way To Find, Compare, Analyze,
and Make Money On Option Investments - Forbes Best of the Web
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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
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