MorningUpdate - Options Trading Email
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New PriceWatch Alerts for AIG, HAL, MRK, LDK, and WFT
May 14 - 8:30 AM EST - Before the open... PriceWatch Alerts for
AIG, HAL, MRK, LDK, and WFT, Market Overview, News Leaders and
Laggards, and Today's Economic Calendar.
New PriceWatch Alerts for AIG, HAL, MRK, LDK, and WFT
PRICEWATCH ALERTS - HIGH RETURN COVERED CALL OPTIONS--------------
-- American International Group, Inc. (NYSE: AIG)
Last Price 39.16 - JUN 39.00 CALL OPTION@ $2.14 -> 5.3% Return
(51.4% Annualized) assigned*
-- Halliburton Company (NYSE: HAL)
Last Price 48.79 - JUL 47.50 CALL OPTION@ $3.30 -> 4.4% Return
(24.4% Annualized) assigned*
-- Merck & Co. Inc. (NYSE: MRK)
Last Price 39.17 - JUL 37.50 CALL OPTION@ $3.60 -> 5.4% Return
(30.0% Annualized) assigned*
-- LDK Solar Co. Ltd. (NYSE: LDK)
Last Price 35.94 - JUN 35.00 CALL OPTION@ $3.10 -> 6.6% Return
(63.2% Annualized) assigned*
-- Weatherford International Ltd. (NYSE: WFT)
Last Price 87.09 - JUN 85.00 CALL OPTION@ $5.70 -> 4.4% Return
(42.6% Annualized) assigned*
*Annualized returns are shown for comparison purposes only
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NEWS LEADERS AND LAGGARDS-----------------------------------------
So far today, AstraZeneca, CB Richard Ellis Group, and EI DuPont
lead the list of companies with the most news stories while Freddie
Mac and Pan American Silver Corp. are showing a spike in news.
Fluor Corp, Cleveland-Cliffs Inc., and Knight Capital Group have
the highest srtIndex scores to top the list of companies with
positive news while Fannie Mae and Zimmer Holdings lead the list of
companies with negative news reports. Deere & Co. has popped up
with a high positive news sraIndex score.
MARKET OVERVIEW---------------------------------------------------
Overseas trading is mixed this morning, with 6 of the 11 foreign
indices that we track in positive territory. The cumulative average
return on the collective stands at a gain of 0.30%. In Asian
trading, stocks ended mostly higher as Shanghai-listed shares
rebounded 2.73% from yesterday's close. However, 29 publicly traded
Chinese companies are tentatively suspended from trading as
officials assess the recent earthquake damage. Elsewhere,
Australian trading was boosted by commodity-related stocks BHP
Billiton (BHP) and Rio Tinto (RTP), after reports circulated that
China was considering taking a stake in BHP.
Across the pond in Europe, BHP and rival RTP also helped aid gains,
lifting other miners such as Xstrata and Vedanta Resources. In
French trading, markets got a boost from Airbus parent EADS, up
more than 5.5% after reporting a stronger-than-expected first-
quarter profit. In other earnings-related moves higher, German
chemical firm Lanxess also issued a stronger-than-forecast 13% rise
in first-quarter net income.
Strength in the U.S. dollar wreaked havoc with gold futures on
Tuesday, as the June gold futures contract shed $15.30, or 1.7%, to
close at $869.60 an ounce. The malleable metal may have given up
some of its safe-haven allure in the face of the rebounding dollar,
but analysts expect gold to bounce back as inflationary concerns
and record-high crude prices persist.
Crude futures crept as high as $126.98 per barrel in pre-market
trading yesterday, while peaking at $126.60 during the regular
session. Yesterday's main driver was concern about production
output in Iran. A report from Fars News Agency said that Iran was
planning to slash its daily output by 400,000 barrels beginning
next month – a bit of speculation that was dismissed by the
country's oil minister, Gholam-Hossein Nazari. Nonetheless, the
news prompted supply-related panic that outweighed a lowered demand
forecast from the International Energy Agency. By the close, June-
dated crude oil settled at $125.85 per barrel, a gain of $1.62.
PUT/CALL RATIO ---------------------------------------------------
Equity option activity on the CBOE saw 1,578,711 call contracts
traded on Tuesday, compared to 948,866 put contracts. The
resultant single-session put/call ratio dipped to 0.60, while the
21-day moving average held at 0.68.
TODAY'S ECONOMIC CALENDAR ----------------------------------------
8:30 a.m. Apr CPI
10:00 a.m. 5/10 Crude Inventories
EARNINGS EXPECTED TODAY (w/current estimates) --------------------
A 0.48
MT 1.82
BRCD 0.14
DE 1.75
FRE -0.92
M -0.02
CHUX 0.19
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