Morning Stock Market Update

FIRST LOOK

Stocks are set to bounce this morning after Fridays selloff. Indices are in the green this Monday morning following the announcement of a $5 billion stock buyback from GM. WTI crude is below $50, and metals are also settling lower. The eyes of the world are on Apple (AAPL) today, as the company is expected to announce the final version of its Apple Watch. The S&P 500 is up 0.05% and the Dow is up 0.02%.

Todays Market Outlook: Slightly bullish

QUOTE OF THE DAY

Far and away the best prize that life has to offer is the chance to work hard at work worth doing.

- Theodore Roosevelt

PriceWatch Alerts for AAPL, BLDP and BABA.

Apple (NASDAQ: AAPL) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $127.05 while selling the April $128.57 call will produce a new covered call with a break-even point around $122.63. At that price, this position has a target return of 4.8%. This trade will have roughly 3.5% downside protection, while still aiming for a 4.8% return in 39 days. It will lock in that return as long as Apple is above $128.57 on 4/17/2015. For comparison purposes only, this AAPL covered call aims for an annualized return rate of 45.3%.

Ballard Power Systems (NASDAQ: BLDP) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $2.29 while selling the January $2.50 call will produce a new covered call with a break-even point around $1.79. At that price, this position has a target return of 39.7%. This trade will have roughly 21.8% downside protection, while still aiming for a 39.7% return in 312 days. It will lock in that return as long as Ballard Power Systems is above $2.50 on 1/15/2016. For comparison purposes only, this BLDP covered call aims for an annualized return rate of 46.4%. (To avoid having your profit margin narrowed by transaction costs, consider making this trade with multiple contracts.)

Alibaba (NYSE: BABA) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $84.48 while selling the April $85.00 call will produce a new covered call with a break-even point around $81.23. At that price, this position has a target return of 4.6%. This trade will have roughly 3.8% downside protection, while still aiming for a 4.6% return in 39 days. It will lock in that return as long as Alibaba is above $85.00 on 4/17/2015. For comparison purposes only, this BABA covered call aims for an annualized return rate of 43.4%.

*Annualized returns are shown for comparison purposes

NOTE: All stocks and options shown are examples only. These are not recommendations to buy or sell any security.

STOCKS ON THE MOVE

Encana (ECA), RTI International (RTI) and Pinnacle Entertainment (PNK) are higher in pre-market trading, while Norfolk Southern (NSC), Texas Pacific (TPL) and Blackberry (BBRY) are lower. Diamondrock Hospitality (DRH) was upgraded by analysts this morning and there were no major analyst downgrades.

INTERNATIONAL MARKETS

Asian markets finished mixed on Monday after Japan reported weaker revised fourth quarter GDP numbers. The Shanghai Composite rose 1.89% while the Nikkei fell 0.95%. In Europe, stocks are lower as markets there follow U.S. stocks Friday move down. The FTSE is down 0.66% and the DAX is down 0.11%.

FUTURES & CURRENCIES

West Texas Intermediate crude oil is up $0.13 to $49.74 while NYMEX natural gas is down $0.10 to $2.74. In metals, gold is up $5 to $1,174, silver is down one cent to $15.93 and platinum is down $3 to $1,162. The US Dollar is weaker vs. the Euro and stronger vs the Yen.

PUT/CALL RATIO