MorningUpdate - Options Trading Email
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New PriceWatch Alerts for WFC, DOW, FCX, PNC, and More...
February 26, 8:30 AM EST - Before the open... PriceWatch Alerts for
WFC, DOW, FCX, PNC, NKE, CRM, TEL, CLF, KR, and OCR, Market
Overview, News Leaders and Laggards, Today's Economic Calendar, and
Index Support & Resistance Levels.
New PriceWatch Alerts for WFC, DOW, FCX, PNC, NKE, CRM, TEL, CLF,
KR, and OCR
PRICEWATCH ALERTS - HIGH RETURN COVERED CALL OPTIONS--------------
-- Wells Fargo & Company (NYSE: WFC)
Last Price 27.44 - APR 27.00 CALL OPTION@ $1.54 -> 4.2% Return
(31.0% Annualized) assigned*
-- Dow Chemical Company (NYSE: DOW)
Last Price 28.32 - APR 28.00 CALL OPTION@ $1.67 -> 5.1% Return
(37.0% Annualized) assigned*
-- Cliffs Natural Resources Inc. (NYSE: CLF)
Last Price 55.53 - MAR 55.00 CALL OPTION@ $3.00 -> 4.7% Return
(78.0% Annualized) assigned*
-- Kroger Co. (NYSE: KR)
Last Price 22.31 - OCT 22.00 CALL OPTION@ $1.80 -> 7.3% Return
(11.4% Annualized) assigned*
-- Omnicare Inc. (NYSE: OCR)
Last Price 26.31 - SEP 25.00 CALL OPTION@ $2.90 -> 6.8% Return
(12.2% Annualized) assigned*
-- Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX)
Last Price 74.07 - APR 70.00 CALL OPTION@ $6.75 -> 4.0% Return
(29.1% Annualized) assigned*
-- PNC Financial Services Group Inc. (NYSE: PNC)
Last Price 53.64 - MAY 52.50 CALL OPTION@ $4.00 -> 5.8% Return
(24.7% Annualized) assigned*
-- Nike Inc. (NYSE: NKE)
Last Price 53.64 - MAY 65.00 CALL OPTION@ $3.90 -> 4.4% Return
(11.4% Annualized) assigned*
-- Salesforce.com (NYSE: CRM)
Last Price 68.01 - MAY 65.00 CALL OPTION@ $6.00 -> 4.8% Return
(20.7% Annualized) assigned*
-- Tyco Electronics, Ltd. (NYSE: TEL)
Last Price 25.74 - JUL 25.00 CALL OPTION@ $2.10 -> 5.8% Return
(14.9% Annualized) assigned*
*Annualized returns are shown for comparison purposes only
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NEWS LEADERS AND LAGGARDS-----------------------------------------
So far this morning, Deckers Outdoor (DECK), CKE Restaurants (CKR),
and Tata Motors (TTM) lead the list of companies with positive
news, while American International Group (AIG), James River Coal
Company (JRCC), and athenahealth (ATHN) lead the list of companies
with negative news. China Telecom (CHA), El Paso Pipline Partners
(EPB), Repsol SA (REP) were upgraded this morning, while Motorola
(MOT), Ciena (CIEN), and Palm (PALM) received downgrades.
MARKET OVERVIEW---------------------------------------------------
Overseas trading is poised to finish the week on a strong note,
with nine of the 10 foreign indexes that we track in positive
territory. The cumulative average return on the collective stands
at a gain of 0.68%. In Asia, stock markets inched higher, with
Toyota Motor climbing 1.8% one day after testimony to U.S.
lawmakers. Nissan Motor fell 0.4% after it said it will recall
76,415 cars across 10 models in Japan and 2,281 cars overseas due
to a possible defect that may cause engine failure. Turning to
Europe, regional indexes rallied, though Germany's largest
drugmaker, Bayer, fell 3% after it forecast 2010 core profit
slightly below expectations.
Following yesterday's drubbing due to weaker-than-expected
employment data and a rising U.S. dollar, commodities are edging
tentatively higher in early activity this morning. Crude futures,
with plunged more than 2% on Thursday, have risen 10 cents to
$78.27 per barrel in electronic trading. Meanwhile, gold futures,
which dropped 1% yesterday, have added $1.40 to trade at $1,109.90
in London. The U.S. Dollar Index, meanwhile, is once again
consolidating above the 80 mark, slipping 0.24% to 80.59 ahead of
the open.
PUT/CALL RATIO ---------------------------------------------------
Equity option activity on the Chicago Board Options Exchange (CBOE)
saw 1,067,786 call contracts traded on Thursday, compared to
867,437 put contracts. The resultant single-session put/call ratio
arrived at 0.81, while the 21-day moving average held at 0.68.
SUPPORT & RESISTANCE LEVELS --------------------------------------
The S&P Depository Receipts (SPY) show support in the neighborhood
of $109.50 and resistance around $111.60. For the Nasdaq 100
(QQQQ), support is near $43.80 and resistance is around $44.55.
TODAY'S ECONOMIC CALENDAR ----------------------------------------
8:30 a.m. Q4 GDP
9:45 a.m. Feb Chicago PMI
9:55 a.m. Feb Michigan Consumer Sentiment
10:00 a.m. Jan Existing Home Sales
EARNINGS EXPECTED TODAY (w/current estimates) --------------------
AES 0.19
AIG -3.94
CNP 0.30
FRO 0.11
POM 0.18
IPG 0.24
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