MorningUpdate - Options Trading Email
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MORNING UPDATE: PriceWatch Alerts for RIMM, HPQ, PBR, JNPR, and CAH
March 20 - 8:30 AM EST - Before the open... PriceWatch Alerts for
RIMM, HPQ, PBR, JNPR, and CAH, Market Overview, News Leaders and
Laggards, and Today's Economic Calendar.
New PriceWatch Alerts for RIMM, HPQ, PBR, JNPR, and CAH
PRICEWATCH ALERTS - HIGH RETURN COVERED CALL OPTIONS--------------
-- Research In Motion Ltd. (Nasdaq: RIMM)
Last Price 101.12 - APR 100.00 CALL OPTION@ $8.50 -> 8.0% Return
(93.8% Annualized) assigned*
-- Hewlett-Packard Co. (NYSE: HPQ)
Last Price 46.59 - MAY 45.00 CALL OPTION@ $3.60 -> 4.7% Return
(28.9% Annualized) assigned*
-- Petroleo Brasileiro (NYSE: PBR)
Last Price 97.45 - APR 95.00 CALL OPTION@ $7.30 -> 5.4% Return
(63.3% Annualized) assigned*
-- Juniper Networks, Inc. (Nasdaq: JNPR)
Last Price 24.45 - APR 25.00 CALL OPTION@ $1.10 -> 7.1% Return
(83.2% Annualized) assigned*
-- Cardinal Health Inc. (NYSE: CAH)
Last Price 52.47 - JUN 50.00 CALL OPTION@ $4.70 -> 4.7% Return
(18.1% Annualized) assigned*
*Annualized returns are shown for comparison purposes only
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NEWS LEADERS AND LAGGARDS-----------------------------------------
So far today, The Walt Disney Co., Continental Airlines, and Harris
Corp. lead the list of companies with the most news stories while
Children's Place Retail Stores, and Alexion Pharmaceuticals are
showing a spike in news. FedEx Corp., Unilever PLC, and The Talbots
have the highest srtIndex scores to top the list of companies with
positive news while Stein Mart, Inc. and Credit Suisse lead the
list of companies with negative news reports. Pepsi Bottling Group
has popped up with a high positive news sraIndex score.
MARKET OVERVIEW---------------------------------------------------
Overseas trading is pretty rough this morning, as only 2 of the 11
foreign indices that we track are in positive territory. The
cumulative average return on the collective stands at a loss of
0.76%. In Asia, trading was mixed, as indices in Sydney and Hong
Kong fell sharply on steep losses in resource-related stocks such
as BHP Billiton and Zijin Mining Group. Meanwhile, Shanghai-listed
shares rebounded from hefty losses on strength in the airline
sector. Markets in Japan, India, Indonesia, Malaysia, Pakistan and
Philippines were closed for a holiday.
Across the pond in Europe, stocks are sharply lower in midday
trading, with mining stocks and metals producers leading the
decline. Following a $59 drop in gold prices yesterday, the
malleable metal plunged another $20 in London trading, creating
pressure for resource-related issues. On the other hand, airlines
such as Lufthansa and easyJet were bolstered by falling crude
prices.
Gold futures suffered their largest 1-day dollar decline in 28
years yesterday, with the April contract shedding $59 to close at
$945.30 an ounce. The substantial drop came in the wake of
Tuesday's smaller-than-expected rate cut from the Federal Open
Market Committee. The dollar strengthened following the Fed's
decision, triggering a healthy liquidation in the precious metal
sector. In addition to the rate cut and stronger dollar, some
investors speculated that profit-taking was the major catalyst for
Wednesday's selling.
Crude for May delivery fell sharply yesterday, dropping nearly $6
to close at $102.54 per barrel following the weekly U.S. petroleum
supply report. According to the Energy Information Administration,
crude oil stockpiles rose by 200,000 barrels, compared to
expectations for a gain of 2.3 million barrels. However, while the
report should have increase demand for crude on the market,
strength from the U.S. dollar and concerns about an economic
recession counteracted the drop in supplies.
PUT/CALL RATIO ---------------------------------------------------
Equity option activity on the CBOE saw 1,549,230 call contracts
traded on Wednesday, compared to 1,390,584 put contracts. The
resultant single-session put/call ratio rose to 0.90, while the 21-
day moving average rose to 0.88.
TODAY'S ECONOMIC CALENDAR ----------------------------------------
8:30 a.m. 3/15 Initial Claims
10:00 a.m. Feb Leading Indicators
10:00 a.m. Mar Philadelphia Fed
EARNINGS EXPECTED TODAY (w/current estimates) --------------------
CCL 0.29
FDX 1.22
PALM -0.14
PLCE 0.91
WGO 0.23
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