MorningUpdate - Options Trading Email
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New PriceWatch Alerts for MRK, CAT, YHOO, DTV, and More...
February 9, 8:30 AM EST - Before the open... PriceWatch Alerts for
MRK, CAT, YHOO, DTV, CIT, TM, GME, SLB, BBY, WU, ACI, LOW, WFR,
LEN, and KGC, Market Overview, News Leaders and Laggards, Today's
Economic Calendar, and Index Support & Resistance Levels.
New PriceWatch Alerts for MRK, CAT, YHOO, DTV, CIT, TM, GME, SLB,
BBY, WU, ACI, LOW, WFR, LEN, and KGC
PRICEWATCH ALERTS - HIGH RETURN COVERED CALL OPTIONS--------------
-- Merck & Co. Inc. (NYSE: MRK)
Last Price 36.59 - JUL 36.00 CALL OPTION@ $3.00 -> 7.2% Return
(16.6% Annualized) assigned*
-- Lowe's Companies Inc. (NYSE: LOW)
Last Price 21.76 - JUL 21.00 CALL OPTION@ $2.09 -> 6.8% Return
(15.6% Annualized) assigned*
-- MEMC Electronic Materials Inc. (NYSE: WFR)
Last Price 12.13 - APR 12.00 CALL OPTION@ $1.15 -> 9.3% Return
(50.6% Annualized) assigned*
-- Lennar Corp. (NYSE: LEN)
Last Price 15.39 - MAY 15.00 CALL OPTION@ $1.80 -> 10.4% Return
(37.1% Annualized) assigned*
-- Kinross Gold Corporation (NYSE: KGC)
Last Price 16.65 - MAY 16.00 CALL OPTION@ $1.95 -> 8.8% Return
(31.6% Annualized) assigned*
-- Caterpillar Inc. (NYSE: CAT)
Last Price 50.78 - MAR 50.00 CALL OPTION@ $3.00 -> 4.6% Return
(43.5% Annualized) assigned*
-- Schlumberger Limited (NYSE: SLB)
Last Price 62.12 - MAY 60.00 CALL OPTION@ $6.10 -> 7.1% Return
(25.4% Annualized) assigned*
-- Best Buy Co. Inc. (NYSE: BBY)
Last Price 35.47 - JUN 35.00 CALL OPTION@ $3.05 -> 8.0% Return
(22.3% Annualized) assigned*
-- Western Union Co. (NYSE: WU)
Last Price 16.16 - AUG 15.00 CALL OPTION@ $2.20 -> 7.4% Return
(14.1% Annualized) assigned*
-- Arch Coal Inc. (NYSE: ACI)
Last Price 20.13 - MAR 20.00 CALL OPTION@ $1.40 -> 6.8% Return
(63.5% Annualized) assigned*
-- Yahoo! Inc. (Nasdaq: YHOO)
Last Price 14.99 - JUL 15.00 CALL OPTION@ $1.25 -> 9.2% Return
(21.2% Annualized) assigned*
-- The DIRECTV Group, Inc. (Nasdaq: DTV)
Last Price 30.34 - JUN 30.00 CALL OPTION@ $2.50 -> 7.8% Return
(21.8% Annualized) assigned*
-- CIT Group, Inc. (NYSE: CIT)
Last Price 30.61 - MAR 30.00 CALL OPTION@ $2.30 -> 6.0% Return
(55.9% Annualized) assigned*
-- Toyota Motor Corp. (NYSE: TM)
Last Price 72.85 - APR 70.00 CALL OPTION@ $6.10 -> 4.9% Return
(26.5% Annualized) assigned*
-- GameStop Corp. (NYSE: GME)
Last Price 19.69 - APR 19.00 CALL OPTION@ $1.75 -> 5.9% Return
(32.2% Annualized) assigned*
*Annualized returns are shown for comparison purposes only
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NEWS LEADERS AND LAGGARDS-----------------------------------------
So far this morning, Coca-Cola (KO), NYSE Euronext (NYX), and
Molson Coors (TAP) lead the list of companies with positive news,
while Electronic Arts (ERTS), Terremark Worldwide (TMRK), and
Toyota (TM) lead the list of companies with negative news. CarMax
(KMX), Verizon (VZ), and SAP AG (SAP) were upgraded this morning,
while Gamestop (GME), Mindspeed (MSPD), and Air Products &
Chemicals (APD) received downgrades.
MARKET OVERVIEW---------------------------------------------------
Overseas trading looks strong, as eight of the 10 foreign indexes
that we track are in positive territory. The cumulative average
return on the collective stands at a gain of 0.51%. In Asia, the
markets closed mixed Tuesday due to heightened concerns about the
euro zone's sovereign debt troubles. Turning to Europe, regional
indexes slipped from earlier highs after the European Central Bank
(ECB) said that President Jean-Claude Trichet is changing his plans
to leave Australia and return to Europe purely because of
logistics. Earlier, officials at the Reserve Bank of Australia and
the ECB said Trichet was cutting short a working visit to Australia
so that he could attend a special European Union summit on the
economy in Brussels this Thursday.
The weakening greenback has commodities tentatively higher ahead of
the open. The March crude has gained 46 cents to trade at $72.35
per barrel, while the April gold futures contract has crept $1.90
higher to trade at $1,068.10 an ounce in pre-market trading.
PUT/CALL RATIO ---------------------------------------------------
Equity option activity on the Chicago Board Options Exchange (CBOE)
saw 964,717 call contracts traded on Monday, compared to 699,540
put contracts. The resultant single-session put/call ratio arrived
at 0.73, while the 21-day moving average rose to 0.64.
SUPPORT & RESISTANCE LEVELS --------------------------------------
The S&P Depository Receipts (SPY) show support in the neighborhood
of $103.45 and resistance around $110.50. For the Nasdaq 100
(QQQQ), support is near $42.60 and resistance is around $43.30.
TODAY'S ECONOMIC CALENDAR ----------------------------------------
10:00 a.m. Dec Wholesale Inventories
EARNINGS EXPECTED TODAY (w/current estimates) --------------------
BIIB 1.05
BJS 0.04
CAM 0.53
CFN 0.38
CTSH 0.46
CVH 0.56
EOG 0.98
IFF 0.62
TAP 1.10
NYX 0.48
PHM -0.19
KO 0.66
DIS 0.39
XL 0.70
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