MorningUpdate - Options Trading Email
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MORNING UPDATE: PriceWatch Alerts for LEH, MO, BA, VMW, and CRM
March 28 - 8:30 AM EST - Before the open... PriceWatch Alerts for
LEH, MO, BA, VMW, and CRM, Market Overview, News Leaders and
Laggards, and Today's Economic Calendar.
New PriceWatch Alerts for LEH, MO, BA, VMW, and CRM
PRICEWATCH ALERTS - HIGH RETURN COVERED CALL OPTIONS--------------
-- Lehman Brothers Holdings Inc. (NYSE: LEH)
Last Price 38.71 - APR 25.00 CALL OPTION@ $15.30 -> 6.8% Return
(107.8% Annualized) assigned*
-- Altria Group Inc. (NYSE: MO)
Last Price 73.22 - SEP 75.00 CALL OPTION@ $3.30 -> 7.3% Return
(15.0% Annualized) assigned*
-- Boeing Co. (NYSE: BA)
Last Price 74.22 - AUG 75.00 CALL OPTION@ $5.10 -> 8.5% Return
(21.9% Annualized) assigned*
-- VMware, Inc. (NYSE: VMW)
Last Price 46.38 - APR 45.00 CALL OPTION@ $3.50 -> 4.9% Return
(78.5% Annualized) assigned*
-- Salesforce.com (NYSE: CRM)
Last Price 56.63 - APR 55.00 CALL OPTION@ $3.90 -> 4.3% Return
(68.3% Annualized) assigned*
*Annualized returns are shown for comparison purposes only
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NEWS LEADERS AND LAGGARDS-----------------------------------------
So far today, Clear Channel, Maguire Properties, and Citigroup lead
the list of companies with the most news stories while Lloyds TSB
Group plc and Take-Two Interactive Software are showing a spike in
news. Olympic Steel, Advanced Micro Devices, and Intel have the
highest srtIndex scores to top the list of companies with positive
news while KB Home and Apollo Group lead the list of companies with
negative news reports. eBay has popped up with a high positive news
sraIndex score.
MARKET OVERVIEW---------------------------------------------------
Overseas trading looks fairly optimistic this morning, with 8 of
the 11 foreign indices that we track in positive territory. The
cumulative average return on the collective stands at a gain of
1.16%. In Asian trading, the Shanghai Composite recovered some of
yesterday's losses, closing with a gain of nearly 5% but ending the
week lower. Hong Kong's Heng Seng Index, however, ended the week
with a gain of more than 10%. Resource-related stocks were leading
today's trek into the black, with shares of Inpex Holdings and
PetroChina lifted on crude-oil prices.
Across the pond in Europe, commodity prices were also lifting
shares. More specifically, miner BHP Billiton (BHP) tacked on more
than 2%, while Anglo American added more than 3% in London trading.
Elsewhere, German insurance guru Allianz SE (AZ) tacked on nearly
2% after reports that the firm may work with Commerzbank and
Deutsche Postbank to tie up Dresdner Bank.
The futures contract on the 30-year bond (US/1 –118'05) slipped
20/32 on Thursday, as Treasurys fell sharply, sending yields
higher. With fourth-quarter GDP arriving in line with
expectations, and jobless claims falling, concerns regarding the
U.S. economy eased, lessening the safe-haven demand for bonds.
Treasurys received additional pressure after the Federal Reserve's
special auction showed no particular interest from dealers.
Nothing like a little Iraqi tension to get crude off and running
after weaker-than-expected inventory growth. A second oil pipeline
was bombed in Iraq yesterday morning, elevating supply concerns
despite Iraq's oil minister noting that oil exports and drilling
operations will not be affected. Crude finished the day with a
$1.68 jump to $107.58 per barrel. The intraday high for black gold
touched $108.22.
PUT/CALL RATIO ---------------------------------------------------
Equity option activity on the CBOE saw 1,068,988 call contracts
traded on Thursday, compared to 934,742 put contracts. The
resultant single-session put/call ratio rose to 0.84, while the 21-
day moving average held at 0.88.
TODAY'S ECONOMIC CALENDAR ----------------------------------------
8:30 a.m. Feb Personal Income and Spending
8:30 a.m. Feb Core PCE Inflation
10:00 a.m. Mar Michigan Sentiment
EARNINGS EXPECTED TODAY (w/current estimates) --------------------
IAG 0.10
KBH -1.17
PLL 0.47
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