MorningUpdate - Options Trading Email
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MORNING UPDATE: PriceWatch Alerts for IBM, WMT, COP, ORCL, and
More...
March 11 - 8:30 AM EST - Before the open... PriceWatch Alerts for
IBM, WMT, COP, ORCL, DELL, VZ, TGT, ICE, UTX, and CMG, Market
Overview, News Leaders and Laggards, and Today's Economic Calendar.
New PriceWatch Alerts for IBM, WMT, COP, ORCL, DELL, VZ, TGT, ICE,
UTX, and CMG
PRICEWATCH ALERTS - HIGH RETURN COVERED CALL OPTIONS--------------
-- International Business Machines Corp. (NYSE: IBM)
Last Price 114.01 - JUL 110.00 CALL OPTION@ $10.60 -> 6.4% Return
(17.8% Annualized) assigned*
-- Wal-Mart Stores Inc. (NYSE: WMT)
Last Price 48.85 - JUN 47.50 CALL OPTION@ $3.30 -> 4.3% Return
(15.2% Annualized) assigned*
-- Verizon Communications Inc. (NYSE: VZ)
Last Price 34.37 - JUL 35.00 CALL OPTION@ $2.30 -> 9.1% Return
(25.5% Annualized) assigned*
-- Target Corp. (NYSE: TGT)
Last Price 51.23 - APR 50.00 CALL OPTION@ $3.70 -> 5.2% Return
(47.2% Annualized) assigned*
-- Chipotle Mexican Grill, Inc. (NYSE: CMG)
Last Price 90.57 - APR 90.00 CALL OPTION@ $6.00 -> 6.4% Return
(58.6% Annualized) assigned*
-- ConocoPhillips (NYSE: COP)
Last Price 77.35 - MAY 75.00 CALL OPTION@ $6.30 -> 5.6% Return
(29.8% Annualized) assigned*
-- Oracle Corp. (Nasdaq: ORCL)
Last Price 19.28 - JUN 19.00 CALL OPTION@ $1.75 -> 8.4% Return
(29.7% Annualized) assigned*
-- Dell Inc. (Nasdaq: DELL)
Last Price 19.12 - MAY 19.00 CALL OPTION@ $1.30 -> 6.6% Return
(35.5% Annualized) assigned*
-- InterContinental Exchange, Inc. (NYSE: ICE)
Last Price 122.93 - APR 120.00 CALL OPTION@ $11.80 -> 8.0% Return
(72.8% Annualized) assigned*
-- Chipotle Mexican Grill, Inc. (NYSE: CMG)
Last Price 66.23 - MAY 65.00 CALL OPTION@ $4.10 -> 4.6% Return
(24.8% Annualized) assigned*
*Annualized returns are shown for comparison purposes only
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NEWS LEADERS AND LAGGARDS-----------------------------------------
So far today, Tessera Technologies, American Eagle Outfitters, and
Cheesecake Factory lead the list of companies with the most news
stories while Suncor Energy and Joy Global Inc. are showing a spike
in news. American Oriental Bioengineering, Wal-Mart, and Northrop
Grumman Corp. have the highest srtIndex scores to top the list of
companies with positive news while Dillards and Stein Mart lead the
list of companies with negative news reports. Childrens Place
Retail Stores has popped up with a high positive news sraIndex
score.
MARKET OVERVIEW---------------------------------------------------
Overseas trading is back in the black this morning, with 10 of the
11 foreign indices that we track in positive territory. The
cumulative average return on the collective stands at a gain of
0.72%. In Asia, Chinese stocks turned positive after a government
report revealed consumer and food prices soared higher in February.
Marking the fastest consumer-price spike higher in 11 years, some
investors now seem convinced the Chinese government will lift
interest rates. However, responding negatively to the chances of a
jump in interest rates were Chinese home builders; China Vanke lost
more than 3% on the news.
Across the pond in Europe, the banking sector rallied, with the
Royal Bank of Scotland and Barclays (BCS) up more than 2%,
respectively. Vodafone (VOD) made headlines, tacking on more than
2.5% after Goldman Sachs added the firm to its conviction buy list,
while Citigroup reiterated a "buy" rating. Others in the technology
arena weren't as lucky, as Texas Instruments (TXN) revealed weaker-
than-expected earnings. As a result, Nokia (NOK) – TXN's top
customer – fell more than 5.5%.
The futures contract on the 30-year bond (US/H8 –97'06) gained 1
11/32 yesterday, as Treasury prices rallied in the wake of record-
high crude and another triple-digit loss for the Dow. With the
Federal Open Market Committee slated to hold another monetary
policy meeting next week, the bond market continues to price in at
least a half-percentage-point rate cut.
It was a record day in the oil patch yesterday, as crude futures
added more than $3 per barrel to top $108 for the first time ever.
April-dated crude finished the trading session $2.75 higher,
docking at $107.90 per barrel after rocketing to a new intraday
high of $108.21. According to government data, speculators and
managers of large investment funds - who don't need physical oil -
dominated bets on rising oil prices by nearly 100,000 contracts
last week. Net long positions on black gold have more than tripled
in the past month. Some analysts actually believe there is more
room for oil to rise, possibly to the 200 level.
PUT/CALL RATIO ---------------------------------------------------
Equity option activity on the CBOE saw 1,046,926 put contracts
traded on Monday, compared to 1,055,109 call contracts. The
resultant single-session put/call ratio docked at 0.99, while the
21-day moving average remained at 0.80.
TODAY'S ECONOMIC CALENDAR ----------------------------------------
8:30 a.m. January Trade Balance
EARNINGS EXPECTED TODAY (w/current estimates) --------------------
SAM 0.35
PSS -0.27
DKS 0.60
JCG 0.39
PBY -0.07
KR 0.47
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