MorningUpdate - Options Trading Email
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MORNING UPDATE: PriceWatch Alerts for JPM, QCOM, AGN, UTX, and ZMH
April 2 - 8:30 AM EST - Before the open... PriceWatch Alerts for
JPM, QCOM, AGN, UTX, and ZMH, Market Overview, News Leaders and
Laggards, and Today's Economic Calendar.
New PriceWatch Alerts for JPM, QCOM, AGN, UTX, and ZMH
PRICEWATCH ALERTS - HIGH RETURN COVERED CALL OPTIONS--------------
-- JPMorgan Chase & Co (NYSE: JPM)
Last Price 47.00 - MAY 47.50 CALL OPTION@ $2.33 -> 6.3% Return
(50.3% Annualized) assigned*
-- QUALCOMM Inc. (Nasdaq: QCOM)
Last Price 42.22 - MAY 42.50 CALL OPTION@ $2.03 -> 5.7% Return
(45.6% Annualized) assigned*
-- Allergan Inc. (NYSE: AGN)
Last Price 59.55 - MAY 60.00 CALL OPTION@ $2.35 -> 4.9% Return
(38.8% Annualized) assigned*
-- United Technologies Corp. (NYSE: UTX)
Last Price 71.24 - AUG 60.00 CALL OPTION@ $5.10 -> 5.8% Return
(15.5% Annualized) assigned*
-- Zimmer Holdings Inc. (NYSE: ZMH)
Last Price 79.38 - MAY 80.00 CALL OPTION@ $3.00 -> 4.7% Return
(37.6% Annualized) assigned*
*Annualized returns are shown for comparison purposes only
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NEWS LEADERS AND LAGGARDS-----------------------------------------
So far today, Baidu.com, General Electric, and Monsanto lead the
list of companies with the most news stories while Sun Microsystems
and Lululemon Athletica are showing a spike in news. Carmax, Simon
Property Group, and Best Buy have the highest srtIndex scores to
top the list of companies with positive news while Toyota Motor
Corporation and Boeing lead the list of companies with negative
news reports. Apple Computer has popped up with a high positive
news sraIndex score.
MARKET OVERVIEW---------------------------------------------------
Overseas trading is in rare form this morning, as all 11 foreign
indices that we track are in positive territory. The cumulative
average return on the collective stands at a gain of 1.5%. In
Asian trading, financial stocks such as Mizuho Financial Group in
Tokyo, DBS Group Holdings in Singapore, and Ping An Insurance in
Hong Kong surged on hopes that the worst of the global credit
crisis may be over. Spurring the optimistic investor sentiment was
yesterday's news that UBS and Lehman Brothers planned to raise
capital to boost liquidity. Meanwhile, exporters such as Cannon
and Nikon rose sharply in Japanese trading, as the U.S. dollar
strengthened against the yen.
Across the pond in Europe, regional indices extended their second-
quarter gains, with financial stocks leading the way higher there
as well. However, automakers were a sore spot following weak U.S.
sales figures for March and a downgrade of Daimler (DAI).
Specifically, Porsche was off 3.5% as the luxury carmaker's sales
in the U.S. fell 25% in March to 2,467 units. Daimler dropped 2.6%
following a decline in U.S. sales and a cut to "underweight" from
"overweight" at Morgan Stanley.
The U.S. dollar rebounded sharply in Tuesday's trading, rallying
from late Monday's reading of 71.75 to yesterday's close of 72.53.
The old greenback gained strength from an unexpectedly strong March
Institute of Supply Management manufacturing index, which rose to
48.6% in March from February's reading of 48.3%. Meanwhile,
construction spending was stronger-than-expected in February,
adding to the strength in the currency pits. By the close, the
euro was trading at $1.56, while the dollar was up at 101.85 yen.
A stronger U.S. dollar once again proved to be the downfall of gold
prices yesterday. The precious metal tapped an intraday low of
$876.30 in the midst of a broad-based commodities sell-off. June-
dated gold gave up $33.70, or 3.7%, to settle at $887.80 an ounce.
Elsewhere in the metals market, platinum for July delivery took a
5.2% haircut to finish at $1,937.80.
PUT/CALL RATIO ---------------------------------------------------
Equity option activity on the CBOE saw 1,293,883 call contracts
traded on Tuesday, compared to 1,043,398 put contracts. The
resultant single-session put/call ratio slipped to 0.81, while the
21-day moving average inched dipped to 0.88.
TODAY'S ECONOMIC CALENDAR ----------------------------------------
8:15 a.m. Mar ADP Employment
10:00 a.m. Feb Factory Orders
10:15 a.m. 3/29 Crude Inventories
EARNINGS EXPECTED TODAY (w/current estimates) --------------------
BBY 1.65
KMX 0.16
MU -0.36
MON 1.72
RT 0.18
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