Futures were showing a nice pop late last night for Wall Street today ahead of Germany’s Constitutional Court decision which came shortly after the European markets opened. To make a long story short, the Germans approved $500 billion more in bailouts after signing-off on the European Stability Mechanism (ESM). Over half of Germany’s peeps were against the plan but the approval came with tougher conditions.
Elsewhere, Facebook’s (FB, $20.57, up $1.14) CEO, Mark Zukerburg, finally made a public appearance for the first time since the IPO and talked shop about the company’s stock. He said he was disappointed in the share price which seems to be weighing on company moral, but feels it’s a great time to “double-down” on the stock which broke above $20 today.
Zukerburg went on to say that Facebook has no plans for a phone and sees a unique opportunity in search. He also stated mobile will their primary goal over the next 3-5 years along with search.
Facebook trades WEEKLY options and there was a bevy of volume in both the calls and puts yesterday. We had a feeling Zukerburg would say something to please the suit-and-ties and we looked at the September 20 (WEEKLY) calls (FB120914C00020000, $0.55, up $0.30) yesterday which were under a quarter and are up 130% today. We stayed on the sidelines because we were also nervous Zukerburg would show up in a hoodie and blow off the stock’s performance.
We aren’t recommending any option plays as of right now on Facebook as we want to see if $20 holds, first. If it does and shares can move above $22, then it could be time to go long.
As far as the market, now that Germany is yesterday’s news, the attention will turn towards the Fed tomorrow. We aren’t sure what The Bernanke has up his sleeve but he better overpromise and deliver a QE3 package or things could take a turn for the worse.
Apple (AAPL, $660.39, down $0.20) is expected to announce the iPhone5 today and there are a ton of analysts saying shares have a history of selling off after a product announcement. While this is true, this time could be different as Apple will sell a ton of these phones. There is also rumors of an iPad mini which would also be big news.
We have a lot to cover in our Members Area so let’s get on it. As we head to press, the Dow is up 20 points to 13,343 while the S&P 500 is higher by 3 points to 1,436. The Nasdaq is showing a gain of 5 points and is at 3,109.
We will be back in the AM with our next update but stay on the alert for the remainder of the afternoon in case we see another trade we like or take action on our current ones.