MorningUpdate - Options Trading Email
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New PriceWatch Alerts for RIMM, AXP, WMT, JPM, and More...
May 13 - 8:30 AM EST - Before the open... PriceWatch Alerts for
RIMM, AXP, WMT, JPM, KSS, GD, NTAP, PRU, BRCM, and KR, Market
Overview, News Leaders and Laggards, and Today's Economic Calendar.
New PriceWatch Alerts for RIMM, AXP, WMT, JPM, KSS, GD, NTAP, PRU,
BRCM, and KR
PRICEWATCH ALERTS - HIGH RETURN COVERED CALL OPTIONS--------------
-- Research In Motion Ltd. (Nasdaq: RIMM)
Last Price 141.97 - JUN 140.00 CALL OPTION@ $9.45 -> 5.6% Return
(52.8% Annualized) assigned*
-- American Express Company (NYSE: AXP)
Last Price 49.95 - JUN 50.00 CALL OPTION@ $2.50 -> 5.4% Return
(50.3% Annualized) assigned*
-- Prudential Financial Inc. (NYSE: PRU)
Last Price 75.23 - SEP 75.00 CALL OPTION@ $6.10 -> 8.5% Return
(23.8% Annualized) assigned*
-- Broadcom Corp. (Nasdaq: BRCM)
Last Price 26.66 - AUG 25.00 CALL OPTION@ $3.40 -> 7.5% Return
(28.7% Annualized) assigned*
-- Kroger Co. (NYSE: KR)
Last Price 27.18 - OCT 25.00 CALL OPTION@ $3.40 -> 5.1% Return
(11.9% Annualized) assigned*
-- Wal-Mart Stores Inc. (NYSE: WMT)
Last Price 58.02 - SEP 57.50 CALL OPTION@ $3.60 -> 5.7% Return
(15.9% Annualized) assigned*
-- JPMorgan Chase & Co (NYSE: JPM)
Last Price 47.24 - SEP 47.50 CALL OPTION@ $3.60 -> 8.8% Return
(24.8% Annualized) assigned*
-- Kohl's Corp. (NYSE: KSS)
Last Price 49.07 - JUN 50.00 CALL OPTION@ $2.15 -> 6.4% Return
(12.1% Annualized) assigned*
-- General Dynamics Corp. (NYSE: GD)
Last Price 92.60 - NOV 90.00 CALL OPTION@ $8.00 -> 6.4% Return
(12.1% Annualized) assigned*
-- NetApp, Inc. (Nasdaq: NTAP)
Last Price 25.65 - SEP 25.00 CALL OPTION@ $2.65 -> 8.7% Return
(24.4% Annualized) assigned*
*Annualized returns are shown for comparison purposes only
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NEWS LEADERS AND LAGGARDS-----------------------------------------
So far today, St Jude Medical, SAIC Inc., and Boeing lead the list
of companies with the most news stories while Canadian Solar Inc.
and EMCOR Group, Inc. are showing a spike in news. Hewlett-Packard,
Fossil, and Electronic Data Systems Corp. have the highest srtIndex
scores to top the list of companies with positive news while Liz
Claiborne and Toll Brothers, Inc. lead the list of companies with
negative news reports. Wal-Mart has popped up with a high positive
news sraIndex score.
MARKET OVERVIEW---------------------------------------------------
Overseas trading is rather dismal this morning, with only 4 of the
11 foreign indices that we track in positive territory. The
cumulative average return on the collective stands at a gain of
0.07%. After a devastating earthquake struck China yesterday, the
Shanghai Composite ended its most recent session with a 1.84% loss.
An AFP report indicated that the confirmed death toll of the quake
reached nearly 12,000, with almost 2,000 aftershocks hitting the
Chengdu region in just a day. Elsewhere, Japanese stocks were
lifted by exporters such as Nissan Motor (NSANY), which reported
stronger-than-expected quarterly earnings.
Across the pond in Europe, stocks retreated from early highs, led
lower by firms in the financial sector. British-listed mortgage
bank Alliance & Leicester dropped more than 10.5% in U.K. trading,
after the lender announced that it has taken an impairment loss of
139 million pounds ($272 million) on treasury assets in the first 4
months of 2008. Other banks moved lower in the wake of a report
indicating that U.K. consumer price inflation rose to an annual
rate of 3% in April.
After last week's 8% gain, crude dropped $1.73 yesterday to settle
at $124.23 per barrel in the wake of news from China. China is the
world's second-largest oil consumer and it saw crude imports
decrease in comparison to those of a year ago, the first monthly
year-over-year decline in 18 months. This data stoked concerns that
high oil prices were starting to eat into demand. Since May 1, oil
has tacked on nearly 13% thanks to supply concerns stemming from
disruptions in the North Sea and Nigeria. These gains have prompted
some speculation that OPEC could consider boosting its output ahead
of its scheduled September meeting, although OPEC members have
disputed the possibility.
PUT/CALL RATIO ---------------------------------------------------
Equity option activity on the CBOE saw 1,475,323 call contracts
traded on Monday, compared to 969,684 put contracts. The resultant
single-session put/call ratio dipped to 0.66, while the 21-day
moving average fell to 0.68.
TODAY'S ECONOMIC CALENDAR ----------------------------------------
8:30 a.m. Apr Import and Export Prices
8:30 a.m. Apr Retail Sales
10:00 a.m. Apr Business Inventories
EARNINGS EXPECTED TODAY (w/current estimates) --------------------
AMAT 0.22
CCJ 0.35
ERTS 0.00
FOSL 0.40
GU 0.18
IAG 0.13
LIZ 0.11
STO 0.96
TJX 0.41
TOL N/A
WMT 0.75
WFMI 0.30
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