MorningUpdate - Options Trading Email
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New PriceWatch Alerts for GE, SLB, GM, FDX, and CHL
April 21 - 8:30 AM EST - Before the open... PriceWatch Alerts for
GE, SLB, GM, FDX, and CHL, Market Overview, News Leaders and
Laggards, and Today's Economic Calendar.
New PriceWatch Alerts for GE, SLB, GM, FDX, and CHL
PRICEWATCH ALERTS - HIGH RETURN COVERED CALL OPTIONS--------------
-- General Electric Co. (NYSE: GE)
Last Price 32.69 - SEP 32.50 CALL OPTION@ $2.20 -> 6.6% Return
(15.5% Annualized) assigned*
-- Schlumberger Limited (NYSE: SLB)
Last Price 101.85 - AUG 100.00 CALL OPTION@ $8.90 -> 7.6% Return
(23.1% Annualized) assigned*
-- General Motors Corporation (NYSE: GM)
Last Price 20.13 - MAY 20.00 CALL OPTION@ $1.51 -> 7.4% Return
(93.3% Annualized) assigned*
-- FedEx Corporation (NYSE: FDX)
Last Price 96.71 - JUL 95.00 CALL OPTION@ $6.80 -> 5.7% Return
(22.5% Annualized) assigned*
-- China Mobile Limited (NYSE: CHL)
Last Price 86.74 - JUN 85.00 CALL OPTION@ $6.20 -> 5.5% Return
(31.6% Annualized) assigned*
*Annualized returns are shown for comparison purposes only
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NEWS LEADERS AND LAGGARDS-----------------------------------------
So far today, Mattel, Bank of America, and Eli Lilly & Co. lead the
list of companies with the most news stories while Colonial
BancGroup, Inc. and Weatherford International are showing a spike
in news. Hasbro, Inc., Halliburton Co., and Merck & Co. have the
highest srtIndex scores to top the list of companies with positive
news while Amylin Pharmaceuticals and Micron Technology Inc. lead
the list of companies with negative news reports. Satyam Computer
Services has popped up with a high positive news sraIndex score.
MARKET OVERVIEW---------------------------------------------------
Overseas trading is in positive territory this morning, as 6 of the
11 foreign indices that we track are trading above the fold. The
cumulative average return on the collective stands at a gain of
0.32%. In Asian trading, exporters took the lead in Tokyo after
the dollar rose against the yen. Meanwhile, financials such as
Commonwealth Bank headed up the advance in Sydney on hopes that the
global credit crunch may be showing signs of ebbing. In China, the
Shanghai Composite rose after securities regulators announced rules
that would limit the sale of non-tradable shares coming on the
market.
Across the pond in Europe, Monday is a bit of a drag for traders.
Poor earnings from Nestle and Schneider Electric pressured stocks
across Europe, while a strong performance from Novartis (NVS)
helped limit the losses. Elsewhere, the Bank of England unveiled a
plan to allow banks to swap billions of pounds of mortgage-backed
securities for British government bonds. The move is similar to
one offered up by the U.S. Federal Reserve, and is an attempt to
loosen up the credit markets.
Strength in the U.S. dollar pressured June-dated gold to a $27.70
loss on Friday, or nearly 3%. Gold lost some of its safe-haven
luster as the dollar crawled higher, and the June-dated contract
wrapped up the week on a loss of $27.70 at $915.20 an ounce.
Meanwhile, platinum futures continued to gain, with the June-dated
metal rising $9.80 to hover above the $2,070-an-ounce marker.
Crude prices initially turned lower Friday, following suit with
Thursday's mild decline, as the U.S. dollar flexed some muscle
against the yen and the euro. However, black gold reversed course
after investors learned of pipeline sabotage in Nigeria. According
to reports, a group of militants in Nigeria took credit for
sabotaging a crude pipeline operated by a unit of Royal Dutch
Shell. Supply concerns gripped the market as the militant group
promised to continue tampering with the country's petroleum
industry. By the close, May-dated crude rocketed to a new record
close of $116.69 per barrel, a gain of $1.83. Meanwhile, crude
futures raced as high as $117 in after-hours trading.
PUT/CALL RATIO ---------------------------------------------------
Equity option activity on the CBOE saw 2,072,973 call contracts
traded on Friday, compared to 1,221,548 put contracts. The
resultant single-session put/call ratio plunged to 0.59, while the
21-day moving average pulled back to 0.80.
TODAY'S ECONOMIC CALENDAR ----------------------------------------
The economic calendar is void of data today, but tomorrow brings
the existing home sales report for March. On Wednesday, the usual
weekly report on U.S. petroleum supplies is due for release.
Thursday offers up the new home sales report for March and weekly
jobless claims, and Friday rounds out the week with the revised
University of Michigan consumer sentiment index for April.
EARNINGS EXPECTED TODAY (w/current estimates) --------------------
ALMN -0.48
BAC 0.41
ARTC 0.32
BSX 0.11
CX 0.16
LLY 0.96
EFX 0.57
GCI 0.77
HAS 0.14
HAL 0.64
HPC 0.34
MAT 0.01
MRK 0.86
NBR 0.76
NVLS 0.16
DGX 0.70
ROH 0.89
TXN 0.43
WFT 1.00
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