1:00pm (EST)
The market started off on a strong note but has given back some of its gains as Wall Street awaits Alcoa’s (AA, $17.25, up $0.23) earnings report. The Dow is currently up 10 points to 10,628 while the S&P 500 is off by 3 points to 1,142. The Nasdaq is showing a decline of 13 points and is trading at 2,304 as we head to press.
The VIX is down 0.56 to 18.36, Oil is up fractionally at $82.75 and Gold is up $16 to $1,155 an ounce.
Alcoa will report earnings after the bell and Wall Street is looking for a profit of 6 cents a share on revenue of $4.8 billion. In the year ago quarter the company reported a loss of 28 cents a share on revenue of $5.7 billion.
The options pits are exploding with traders placing bets but we are staying on the sidelines with this one. The January 17.50 calls (AAAT, $0.53, up $0.25) are up 90% and have traded nearly 30,000 contracts while the January 17.50 puts (AAMT, $0.77, down $0.22) have dropped over 20%. This means the market is pricing in a 7%-8% move in the stock and a straddle trade would cost you $1.30 at current prices. No thanks, we’ll pass.
We have been busy updating our portfolio positions this morning and we were able to get into two NEW trades at the open. We are also CLOSING one trade for a slight profit to make room as we like the prospects a little better on our newer trades.
Current subscribers, please check the Members Area for the important updates.
Tags: Alcoa 4Q earnings report, Alcoa Earnings, alternative investments, asset management, blog Wall Street, buying call options, buying put options, call option trading, chicken option trades, Covered Calls, financial, financial investment, funds, future option trading, futures trading, gold investing, guide to investment, guide to options, guide to options trading, hedge fund, hedge funds, how to invest, income, index funds, index options, invest, invest money, investing for dummies, investing market, investment, investment advisor, investment management, investment services, investment strategy, investments, journal Wall Street, momentum stock option trading, mutual investing, new Wall Street, on Wall Street, online option trading, online trading system, option call, option exchange, option investment, option picks, option price, option selling, option trade, option trade picks, option trading online, options, options alerts, options blog, options expiration, options mentoring, options newsletters, options signals, options track record, options trade, options trading, options trading strategies, private equity, put option trading, Rick Rouse, software options, stock, stock exchange, stock investment, stock market, stock market options, stock option trade pick service, stock option trading, stock price, stock quotes, stock share, stock trading, straddle option trades, strangle option trades, strategies options, support and resistance levels, the Wall Street, trading, trading option, trading options, triple-digit option trades, wall st, Wall Street, Wall Street article, Wall Street blog, Wall Street history, Wall Street online, wealth management
This entry was posted
on Monday, January 11th, 2010 at 1:08 PM and is filed under Company Commentary, Earnings, Gold, Market Analysis, Oil, VIX.
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In Like Flynn
1:00pm (EST)
The market started off on a strong note but has given back some of its gains as Wall Street awaits Alcoa’s (AA, $17.25, up $0.23) earnings report. The Dow is currently up 10 points to 10,628 while the S&P 500 is off by 3 points to 1,142. The Nasdaq is showing a decline of 13 points and is trading at 2,304 as we head to press.
The VIX is down 0.56 to 18.36, Oil is up fractionally at $82.75 and Gold is up $16 to $1,155 an ounce.
Alcoa will report earnings after the bell and Wall Street is looking for a profit of 6 cents a share on revenue of $4.8 billion. In the year ago quarter the company reported a loss of 28 cents a share on revenue of $5.7 billion.
The options pits are exploding with traders placing bets but we are staying on the sidelines with this one. The January 17.50 calls (AAAT, $0.53, up $0.25) are up 90% and have traded nearly 30,000 contracts while the January 17.50 puts (AAMT, $0.77, down $0.22) have dropped over 20%. This means the market is pricing in a 7%-8% move in the stock and a straddle trade would cost you $1.30 at current prices. No thanks, we’ll pass.
We have been busy updating our portfolio positions this morning and we were able to get into two NEW trades at the open. We are also CLOSING one trade for a slight profit to make room as we like the prospects a little better on our newer trades.
Current subscribers, please check the Members Area for the important updates.
Tags: Alcoa 4Q earnings report, Alcoa Earnings, alternative investments, asset management, blog Wall Street, buying call options, buying put options, call option trading, chicken option trades, Covered Calls, financial, financial investment, funds, future option trading, futures trading, gold investing, guide to investment, guide to options, guide to options trading, hedge fund, hedge funds, how to invest, income, index funds, index options, invest, invest money, investing for dummies, investing market, investment, investment advisor, investment management, investment services, investment strategy, investments, journal Wall Street, momentum stock option trading, mutual investing, new Wall Street, on Wall Street, online option trading, online trading system, option call, option exchange, option investment, option picks, option price, option selling, option trade, option trade picks, option trading online, options, options alerts, options blog, options expiration, options mentoring, options newsletters, options signals, options track record, options trade, options trading, options trading strategies, private equity, put option trading, Rick Rouse, software options, stock, stock exchange, stock investment, stock market, stock market options, stock option trade pick service, stock option trading, stock price, stock quotes, stock share, stock trading, straddle option trades, strangle option trades, strategies options, support and resistance levels, the Wall Street, trading, trading option, trading options, triple-digit option trades, wall st, Wall Street, Wall Street article, Wall Street blog, Wall Street history, Wall Street online, wealth management
This entry was posted on Monday, January 11th, 2010 at 1:08 PM and is filed under Company Commentary, Earnings, Gold, Market Analysis, Oil, VIX. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.