2:00pm (EST)
The Dow is struggling after starting off the morning in the green. Intel (INTC, $20.25, up $0.78) got the ball rolling after the company raised its sales forecast for the current quarter from $8.9 billion to $9.2 billion and Dell (DELL, $16.08, up $0.43) came in with better-than-expected earnings. However, all the major indexes are now lower as the Dow has fallen 65 points and is currently trading at 9,515. The Nasdaq has slipped 6 points to 2,021 while the S&P 500 is down 5 to 1,025.
We added the Citigroup (C, $5.20, up $0.15) call options this morning and there are a few other names I like and don’t like.
As far as specific stocks, make sure you close the AIG (AIG, $49.81, up $1.97) call options today. The stock hit a high of $55.90 this morning which represented the perfect opportunity to sell the September 35 calls (IKGII, $15.80, up $1.70) which printed $21.00 today. Incredible. I’ve got another strangle option trade in the works for Sunday night and AIG has proven the kind returns that can made with strangles
DryShips (DRYS, $6.05, down $0.19) couldn’t carry the momentum from yesterday so there was no day trade.
I’ll be back Sunday night with the updates.











Hewlett-Packard Reports After The Close
Monday, November 23rd, 2009
12:45pm (EST)
The market is off to a strong start this week and we called it right in the Weekly Wrap last night. Futures were pointing toward a big day and the Dow is currently up 132 points to 10,450. All 30 Dow stocks are showing a gain and the index has traded as high as 10,495 this morning.
The S&P 500 is back over 1,110 and is up 16 points to 1,107. The Nasdaq is up 30 to 2,176.
Hewlett-Packard (HPQ, $50.82, up $0.78) is set to report earnings after the closing bell today. The stock is approaching its 52-week high of $51.43 which was set last week and there is a ton of action in the option pits.
Wall Street expects HP to report earnings of $1.13/ share on revenue of $30.4 billion for the quarter. There are 30 analysts that cover the stock and the high estimate is $1.14 while the low estimate is $1.09. This means there is a lot of room for upside price movement should the company beat expectations.
After the number Dell (DELL, $14.67, up $0.38) posted there could also be the surprise of an earnings miss. We don’t think that is the case as we actually feel HP has been taking Dell’s lunch money. The options look cheap for us to play a possible move to $55 should the stock get some legs to where we might make a double.
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Tags: Dell, Hewlett-Packard, momentum stock option trading, Netflix, option trading online, option trading picks, options mentoring, options newsletters, options track record, support and resistance levels, triple-digit option trades
Posted in Company Commentary, Earnings, Market Analysis, Option Trades | Comments Off