MorningUpdate - Options Trading Email
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MORNING UPDATE: PriceWatch Alerts for FSLR, WM, DE, SBUX, and BRCM
April 7 - 8:30 AM EST - Before the open... PriceWatch Alerts for
FSLR, WM, DE, SBUX, and BRCM, Market Overview, News Leaders and
Laggards, and Today's Economic Calendar.
New PriceWatch Alerts for FSLR, WM, DE, SBUX, and BRCM
PRICEWATCH ALERTS - HIGH RETURN COVERED CALL OPTIONS--------------
-- First Solar, Inc. (Nasdaq: FSLR)
Last Price 278.00 - APR 270.00 CALL OPTION@ $19.00 -> 4.2% Return
(103.3% Annualized) assigned*
-- Washington Mutual Inc. (NYSE: WM)
Last Price 10.17 - MAY 10.00 CALL OPTION@ $1.60 -> 16.7% Return
(141.6% Annualized) assigned*
-- Deere & Co. (NYSE: DE)
Last Price 85.74 - MAY 85.00 CALL OPTION@ $5.10 -> 5.4% Return
(45.9% Annualized) assigned*
-- Starbucks Corp. (Nasdaq: SBUX)
Last Price 18.50 - JUL 17.50 CALL OPTION@ $2.13 -> 6.9% Return
(23.8% Annualized) assigned*
-- Broadcom Corp. (Nasdaq: BRCM)
Last Price 21.41 - MAY 22.50 CALL OPTION@ $1.05 -> 10.5% Return
(89.2% Annualized) assigned*
*Annualized returns are shown for comparison purposes only
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NEWS LEADERS AND LAGGARDS-----------------------------------------
So far today, Anadarko Petroleum Corporation, Ceradyne, Inc., and
SAIC, Inc. lead the list of companies with the most news stories
while Discover Financial Services and Yahoo! Inc. are showing a
spike in news. Citigroup, Microsoft, and News Corp. have the
highest srtIndex scores to top the list of companies with positive
news while Advanced Micro Devices Inc. and Mitsubishi UFJ Financial
Group lead the list of companies with negative news reports.
Kinetic Concepts, Inc. has popped up with a high positive news
sraIndex score.
MARKET OVERVIEW---------------------------------------------------
Overseas trading is in the black this morning, with all 11 foreign
indices that we track in positive territory. The cumulative average
return on the collective stands at a gain of 1.33%. In Asia,
resource-related stocks were leading the trek higher, with Rio
Tinto (RTP), BHP Billiton (BHP), and PetroChina (PTR) all soaring.
Meanwhile, Hong Kong-listed Zijin Mining Group muscled 11.5% higher
after rumors circulated about the Chinese gold miner possibly
raising as much as $1.4 billion in initial public offering,
potentially slated for release in Shanghai this week.
Across the pond in Europe, resource-related stocks were also
picking up steam. Most notably was Anglo American, with Goldman
Sachs resuming coverage of the U.K.-listed firm with a "buy"
rating, adding it to the conviction buy list. Speaking of upgrades,
Swiss bank UBS (UBS) tacked on 4.5% after Merrill Lynch upped the
lender to "buy" from "neutral." In other news, chocolate guru
Nestle was making headlines after agreeing to sell slightly less
than 25% of Alco to Novartis in a deal with $11 billion
The futures contract on the 30-year bond (US/1 –119'03) surged 1-
18/32 on Friday, as Treasury traders looked upon the weak March
jobs report as an opportunity to buy in the safe-haven fixed-income
market. According to the Labor Department, the economy lost 80,000
jobs last month, while the unemployment rate rose to 5.1%. The
data led to speculation over a U.S. economic recession, running
counter to inflationary pressures which erode at the returns of
Treasurys.
Crude oil futures added $2.40 to close at $106.23 per barrel on
Friday, as weak economic data pointed to signs that the U.S. may
already be in a recession. Despite the potential for weakening
demand, crude prices skipped higher as the U.S. dollar plunged on
the March jobs report. Elsewhere, May reformulated gasoline gained
4 cents to end at $2.76 per gallon and May heating oil gained 7
cents at $2.99 per gallon. Crude is also higher this morning by
more than another 1%.
PUT/CALL RATIO ---------------------------------------------------
Equity option activity on the CBOE saw 1,085,293 call contracts
traded on Friday, compared to 889,288 put contracts. The resultant
single-session put/call ratio slipped to 0.82 while the 21-day
moving average held at 0.88.
TODAY'S ECONOMIC CALENDAR ----------------------------------------
The economic calendar this week starts out with the February
Consumer Credit report today. Tuesday will bring us the latest
pending home sales data, as well as the minutes from the latest
Federal Open Market Committee meeting. Wednesday we'll see the
February wholesale inventories report, as well as the usual crude
inventories report. On Thursday, the Street will be graced with the
latest initial claims data, on top of the February Trade Balance
and March Treasury Budget. Friday ends the week with March import
and export prices, as well as the April preliminary University of
Michigan Sentiment index.
3:00 p.m. Feb Consumer Credit
EARNINGS EXPECTED TODAY (w/current estimates) --------------------
AA 0.48
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