MorningUpdate - Options Trading Email
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New PriceWatch Alerts for BRK.B, PM, JPM, MT, and More...
January 22, 8:30 AM EST - Before the open... PriceWatch Alerts for
BRK.B, PM, JPM, MT, ATVI, XLNX, PCU, AFL, LLY, and DHI, Market
Overview, News Leaders and Laggards, Today's Economic Calendar, and
Index Support & Resistance Levels.
New PriceWatch Alerts for BRK.B, PM, JPM, MT, ATVI, XLNX, PCU, AFL,
LLY, and DHI
PRICEWATCH ALERTS - HIGH RETURN COVERED CALL OPTIONS--------------
-- Berkshire-Hathaway Class B (NYSE: BRK.B)
Last Price 72.72 - JUN 72.00 CALL OPTION@ $4.90 -> 6.2% Return
(15.2% Annualized) assigned*
-- Philip Morris International, Inc. (NYSE: PM)
Last Price 47.73 - JUN 47.00 CALL OPTION@ $2.85 -> 4.7% Return
(11.6% Annualized) assigned*
-- AFLAC Inc. (NYSE: AFL)
Last Price 50.47 - MAY 50.00 CALL OPTION@ $3.30 -> 6.0% Return
(18.2% Annualized) assigned*
-- Eli Lilly & Co. (NYSE: LLY)
Last Price 36.11 - JUL 36.00 CALL OPTION@ $1.85 -> 5.1% Return
(10.5% Annualized) assigned*
-- DR Horton Inc. (NYSE: DHI)
Last Price 11.55 - AUG 11.00 CALL OPTION@ $1.80 -> 12.8% Return
(22.2% Annualized) assigned*
-- JPMorgan Chase & Co. (NYSE: JPM)
Last Price 40.54 - MAR 40.00 CALL OPTION@ $2.38 -> 4.8% Return
(30.9% Annualized) assigned*
-- Arcelor Mittal (NYSE: MT)
Last Price 42.37 - FEB 42.00 CALL OPTION@ $2.10 -> 4.3% Return
(54.1% Annualized) assigned*
-- Activision Blizzard, Inc. (Nasdaq: ATVI)
Last Price 10.59 - AUG 11.00 CALL OPTION@ $0.80 -> 12.4% Return
(21.4% Annualized) assigned*
-- Xilinx Inc. (Nasdaq: XLNX)
Last Price 25.25 - JUN 25.00 CALL OPTION@ $1.75 -> 6.4% Return
(15.7% Annualized) assigned*
-- Southern Copper Corp. (NYSE: PCU)
Last Price 30.57 - MAR 30.00 CALL OPTION@ $2.15 -> 5.6% Return
(35.6% Annualized) assigned*
*Annualized returns are shown for comparison purposes only
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NEWS LEADERS AND LAGGARDS-----------------------------------------
So far this morning, General Electric (GE), McDonald's (MCD), and
Johnson Controls (JCI) lead the list of companies with positive
news, while Google (GOOG), Schlumberger (SLB), and Advanced Micro
Devices (AMD) lead the list of companies with negative news. Rio
Tinto (RTP), Tyson Foods (TSN), and JP Morgan Chase (JPM) were
upgraded this morning, while SLM Corp. (SLM), KeyCorp (KEY), and
Becton Dickinson (BDX) received downgrades.
MARKET OVERVIEW---------------------------------------------------
Overseas trading looks abysmal heading into the weekend, as none of
10 foreign indexes that we track are in positive territory. The
cumulative average return on the collective stands at a loss of
1.27%. In Asia, markets fell sharply into the red on concerns over
proposed U.S. banking curbs and the prospect of China rolling out
more measures to cool its economy. In Europe, shares extended steep
losses made in the previous session. European banks with investment
bank operations were weaker again, with Deutsche Bank shares down
4.3%, Barclays shares down 4% and Societe Generale shares down 3%.
Credit Suisse fell 5.3% and UBS declined 4.1%.
Crude futures were also pressured lower on Wednesday, keeping pace
with softness in the equities market. Commodity traders fretted
that China's steps to tighten monetary policy could hamper global
economic growth, further constraining already-anemic energy demand.
Black gold was also battered by a stronger U.S. dollar, as well as
surprisingly mild winter weather across much of the country. By the
close, crude oil for March delivery shed $1.40, or 1.8%, to settle
at $77.62 per barrel.
PUT/CALL RATIO ---------------------------------------------------
Equity option activity on the Chicago Board Options Exchange (CBOE)
saw 1,860,754 call contracts traded on Thursday, compared to
1,331,748 put contracts. The resultant single-session put/call
ratio arrived at 0.72, while the 21-day moving average held at
0.57.
SUPPORT & RESISTANCE LEVELS --------------------------------------
The S&P Depository Receipts (SPY) show support in the neighborhood
of $111.40 and resistance around $115.15. For the Nasdaq 100
(QQQQ), support is near $45.00 and resistance is around $46.65.
TODAY'S ECONOMIC CALENDAR ----------------------------------------
No major announcements expected today.
EARNINGS EXPECTED TODAY (w/current estimates) --------------------
APD 1.14
BBT 0.21
EXC 0.85
GE 0.26
HBAN -0.27
JCI 0.29
KMB 1.25
MCD 1.02
SLB 0.64
STI -0.75
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