MorningUpdate - Options Trading Email
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MORNING UPDATE: PriceWatch Alerts for XOM, GM, PM, AMR, and LRCX
April 3 - 8:30 AM EST - Before the open... PriceWatch Alerts for
XOM, GM, PM, AMR, and LRCX, Market Overview, News Leaders and
Laggards, and Today's Economic Calendar.
New PriceWatch Alerts for XOM, GM, PM, AMR, and LRCX
PRICEWATCH ALERTS - HIGH RETURN COVERED CALL OPTIONS--------------
-- Exxon Mobil Corp. (NYSE: XOM)
Last Price 88.52 – JUL 90.00 CALL OPTION@ $4.35 -> 6.9% Return
(23.4% Annualized) assigned*
-- General Motors Corporation (NYSE: GM)
Last Price 20.97 - MAY 20.00 CALL OPTION@ $2.66 -> 9.2% Return
(74.9% Annualized) assigned*
-- Philip Morris International (NYSE: PM)
Last Price 51.21 - JUN 50.00 CALL OPTION@ $3.30 -> 4.4% Return
(19.9% Annualized) assigned*
-- AMR Corporation (NYSE: AMR)
Last Price 9.59 - MAY 10.00 CALL OPTION@ $1.10 -> 17.8% Return
(144.3% Annualized) assigned*
-- LAM Research Corp. (Nasdaq: LRCX)
Last Price 40.93 - MAY 40.00 CALL OPTION@ $3.20 -> 6.0% Return
(48.8% Annualized) assigned*
*Annualized returns are shown for comparison purposes only
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NEWS LEADERS AND LAGGARDS-----------------------------------------
So far today, Southwest Airlines, MEMC Electronic Materials, and
Dendreon Corp. lead the list of companies with the most news
stories while Southwestern Energy Company and Cabela's Incorporated
are showing a spike in news. The Talbots, Cleveland-Cliffs Inc.,
and Dillards, Inc. have the highest srtIndex scores to top the list
of companies with positive news while Constellation Brands and
CROCS Inc. lead the list of companies with negative news reports.
Research In Motion Limited has popped up with a high positive news
sraIndex score.
MARKET OVERVIEW---------------------------------------------------
Overseas trading is holding its ground this morning, as 7 of the 11
foreign indices that we track are in positive territory. The
cumulative average return on the collective stands at a gain of
0.59%. In Asian, regional indices are mostly higher, with resource
stocks such as Inpex Holdings and Sumitomo Metal Mining gaining
ground in Tokyo due to a rebound in crude oil and metals prices.
Likewise, Australian stocks were lifted by strength in mining
giants BHP Billiton and Rio Tinto. However, Indonesian trading was
hit hard by concerns about rising inflation and price wars in the
local telecommunications sector.
Across the pond in Europe, banks and automakers have put the breaks
on a third session of gains for the region. While mining and oil-
related securities helped slow selling pressure, concerns remain
about the strength of the U.S. economy. Specifically, Bavarian
regional bank BayernLB reported $6.7 billion in asset write downs
related to the trouble in the U.S. housing market. The bank also
said it expects further write-downs later this year.
Following 2 sessions of sharp losses, gold rebounded 1.4% to finish
the trading session at $900.20 an ounce yesterday. Earlier in the
session, the malleable metal tagged a high of $903 an ounce.
Between Monday's and Tuesday's losses, gold had shed $48.70 an
ounce. Meanwhile, platinum prices saw an increase of $26.80 an
ounce, closing at $1,964.60 an ounce.
With the prices at the pump jumping to record levels overnight,
John Q. Public may have taken yesterday's surprise rise in crude
inventories as a sign that prices could come down. John would be
wrong, as oil futures finished the day with a gain of $3.85 per
barrel, settling at $104.83 per barrel after initially dropping
more than 1% following the stronger-than-expected crude data. The
driver for the gain came in the form of a sizeable drop in gasoline
supplies. Some of oil's strength came from the weaker dollar, as
well.
PUT/CALL RATIO ---------------------------------------------------
Equity option activity on the CBOE saw 1,182,478 call contracts
traded on Wednesday, compared to 924,125 put contracts. The
resultant single-session put/call ratio slipped to 0.78, while the
21-day moving average held at 0.88.
TODAY'S ECONOMIC CALENDAR ----------------------------------------
The economic calendar cools off a bit today, with only the most
recent initial jobless claims report and the Institute for Supply
Management's services index for March on tap. Friday will be
brimming with employment data, including March's nonfarm payrolls
and hourly earnings reports.
8:30 a.m. 3/29 Initial Claims
10:00 a.m. Mar ISM services
EARNINGS EXPECTED TODAY (w/current estimates) --------------------
STZ 0.25
SCHN 1.01
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