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Tuesday, January 19th, 2010
9:10am(EST)
Futures are mixed as we head towards the opening bell this morning. Dow futures are lower by 20, S&P 500 futures are off by 2 while the Nasdaq futures are up 4 points.
There was plenty of action in E*Trade Financial (ETFC, $1.84, up $0.11) last Friday as over 60 million shares traded hands. There was a report that the company is in “advanced” talks regarding a sale.
It’s hard to get excited about a company who once dominated the online brokerage industry and a share price at less than $2. From 1998 through 1999 this was one of the highest of flying stocks as two-for-one splits were common and shares made new highs daily.
There has been a lot of speculation as to who might buy the troubled brokerage firm but E*Trade has brand awareness which should account for some kind of premium. TD Ameritrade (AMTD, $18.32, up $0.10) and Charles Schwab (SCHW, $19.00, down $0.18) have been in the mix as possible acquirers of E*Trade but we really don’t see an option trade with this one.
Option volume was brisk and the stock already trades like one. However, we are avoiding options on stocks that trade under $5.00 because of the risk. That still didn’t stop traders from placing huge bets on the February 2 calls (EUSBF, $0.12, up $0.07) which opened at 4 cents and returned 200% by the closing bell. Over 10,000 contracts traded.
The April 2 calls (EUSDF, $0.20, up $0.05) traded 3,000 contracts after opening at 14 cents. Considering this has been an ongoing rumor for some time and the fact that it would be safer to buy the stock, these two call options could expire worthless if no bid comes. Stay away…
We have updated the Members Area for our current trades and there a few trades we are watching this morning. If we see something, we will send out an alert.
Tags: alternative investments, asset management, blog Wall Street, buying call options, buying put options, call option trading, Charles Schwab, chicken option trades, Covered Calls, E*Trade Financial buyout rumors, 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 Posted in Company Commentary, Market Analysis, Market Commentary | Comments Off
Thursday, January 14th, 2010
1:45pm (EST)
All eyes will be on Intel (INTC, $21.30, up $0.34) after the bell. Wall Street expects $0.30 a share and revenue is expected to rise to $10.2 billion from $8.2 billion last year.
Economic News…For retail sales, Wall Street was expecting an increase of 0.5%, weaker than November’s 1.3% increase. We came in worse than expected…retail sales for December decreased 0.3%.
For weekly jobless claims, Wall Street had penciled 430,000 new claims, off slightly from last week’s 434,000. We totaled 444,000. The latest tally marked a week-over-week increase of 10,000. Meanwhile, continuing claims retreated to 4.6 million from an upwardly revised 4.8 million.
As we head to press, the Dow is up 21 points to 10,702. As far as our current trades, they have been updated in the Members Area. We will be back in the morning with a full update.
Tags: 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 Posted in Company Commentary, Earnings, Economic News | Comments Off
Wednesday, January 13th, 2010
9:10am (EST)
We told you the volatility pick up…
The market was setting up for a steep decline yesterday but managed to bounce back in the last couple of hours after bullish traders stepped in and bought off the lows.
This is options expiration week and the kick-off of earnings season so we expected some movement. We were impressed by the bulls ability to fight off a serious attack but the bears did do some damage to the Tech sector.
The Dow finished Tuesday with a 37 point loss and ended at 10,627 after being down as much as 95 points. The S&P 500 got clipped for an 11 points and closed at 1,136 while the Nasdaq fell 30 points, or -1.3%, and settled at 2,282. It was the biggest point and percent drop for the Nasdaq since the end of November.
If the bears were really serious about slowing down the ongoing rally then they would have applied more pressure yesterday. Maybe they did and the bulls camp is just still too strong right now.
There are no heavy-hitters coming up with earnings today but on Thursday we get reports from Charles Schwab (SCHW, $19.09, down $0.02) and Intel (INTC, $20.61, down $0.34) which we will be listening to carefully. We also have an interest in Shuffle Master (SHFL, $8.26, down $0.42) which could give us clues on how strong the recovery is or isn’t for the Casino industry.
Google (GOOG, $590.48, down $10.63) is down $9 in pre-market trading after saying it is considering pulling its search engine out of China after a series of cyber-attacks on its system aimed at identifying human-rights activists. The company said it discovered e-mail accounts held by human-rights advocates had been accessed by third parties.
As a result, Google’s possible exit from China would be a windfall for Baidu’s (BIDU, $386.49, down $14.08) which is seeing its shares zoom this morning before the bell. Baidu is up $59 to $445 in pre-market trading.
We have mentioned this is option expiration week but do you want to see something crazy this morning? WATCH the Baidu January 400 calls (BPJAT, $1.60) at the open. Folks, they will open at $45 which means if you would have bought 10 contracts yesterday for $1,600 you would be waking up to $45,000 this morning…
As far as economic news, the Federal Reserve’s Beige Book report comes out at 2pm (EST). The report can offer clues about the Fed’s thinking on interest rates and monetary policy but we don’t expect any changes as far as a hike.
That is all we have for now. Current Subscribers, check the Members Area for the latest trade updates.
Tags: 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 Posted in Company Commentary, Earnings, Google, Hot Stocks, Market Commentary, Option Trades | Comments Off
Tuesday, January 12th, 2010
1:05pm (EST)
The market is testing the lows we got this morning after trying to battle back from a nasty open. The Dow started with a 72 point loss and fell to a low of 10,591, then recovered most of the losses but is currently down 65 to 11,598.
The S&P 500 is off by 12 points to 1,134 while the Nasdaq is taking one for the team. The index is down 33, or -1.4%, and is trading at 2,279 as we head to press.
There are pockets of strength and one sector that continues higher is the Casino stocks. MGM Mirage (MGM, $11.76, up $0.86) is up 8% after getting an upgrade this morning. Goldman Sachs (GS, $167.43, down $4.13) came out and upped the shares to ”Buy” from “Neutral” and slapped a $16 price target on the stock. Sorry, Goldman, you are a little late to the party.
Our Atlantic City trip was a win-win as we went behind the scenes to see what was up during the holidays. We didn’t come away with the feeling that the industry has turned around overnight but we took notice in the action the casinos were getting.
It was good to get away and when we got back, we profiled a trade in Las Vegas Sands (LVS, $18.50, up $0.13) that has paid off in spades. Last Tuesday, our subscribers placed their bets on some call options and they have nearly doubled their money a week later.
Las Vegas Sands was under $17 when we told our subscribers ”LVS has been a solid past performer in our portfolio and has a shot at $20 if the casino stocks can rally over the next month or so.”
Folks, here is the power of options if you pick the right ones. As you can see, the stock has made a $2 move in a week which is 12% from $17 to $19. If you would have bought 100 shares of the stock it would have cost you $1,700. Today you would have a $200 profit. Not bad.
Now, take a look at what options can do for you. That $1,700 would have bought you 17 call option contracts that were trading for around a $1 last Tuesday. Today, those same call options are standing at $1.85.
If you do the math, 17 x 1.85 gets us 31.45 which means your $1,700 is now worth $3,145 or 95%. Hmmm. An 8% return with the stock or a 95% return by playing options.
We have updated this position in the Members Area…
Another stock we had recent success with is Amazon.com (AMZN, $128.03, down $2.28). We recently profiled a trade that returned our subscribers over 50% but shares are getting hit again today after touching a high of $142 before the end of 2009. We caught some of that action on the way up and recommending closing the trade after looking at the charts. Since then the stock has been torched but has come back down to serious support levels. We are doing the legwork now to see if there is another trade in Amazon…
Also getting our attention is A123 Systems (AONE, $20.75, up $0.05) which has made a huge bounce of its support areas. The stock recently made a run from $14 to $23 in a little over a month and we got some of that action as well. Our subscribers made nearly a 120% return as we had a target of $23-$24 and got out at the top.
See, it does pay to do your homework folks but that is why you have us. We are still on the fence with A123 but we wouldn’t be surprised to see a quick run back to $23.
That is all we got for today and for those of you who care…Kid Rock at the Borgata in Atlantic City on Valentine’s Day and Jay-Z in March. Be there or be square! The Members Area is updated…
Tags: A123 Systems, 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, Goldman Sachs, 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, MGM Grand upgrade, 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 Posted in Company Commentary, Earnings, Market Analysis, Market Commentary, Trading Psychology, Trading Tips | Comments Off
Tuesday, January 12th, 2010
9:10am (EST)
Futures are pointing towards a nasty open this morning after Alcoa (AA, $16.15, down $1.30) disappointed Wall Street with its earnings report. After the bell on Monday, the company reported a $277 million loss for its most recent quarter, or $0.28 a share, compared with a profit of 6 cents a share that Wall Street had been looking for.
If you exclude one-time items and special charges, Alcoa actually reported a penny a share profit but they still missed estimates by a mile. We said yesterday the market was pricing in a 7%-8% move in the shares and at pre-market levels Alcoa is down 7.5%.
As we head to press, Dow Jones futures are down by 66 points to 10,538. The S&P 500 index futures are off by 9, to 1,133, while the Nasdaq 100 index futures are lower by 17 to 1,866.
We have much more to talk about this morning in the Members Area and we are short on time out here. Current subscribers, please check for the trade updates as we have raised our exit targets on some positions to lock in profits.
Tags: Alcoa's 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 Posted in Earnings | Comments Off
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E*Trade On The Block
Tuesday, January 19th, 2010
9:10am(EST)
Futures are mixed as we head towards the opening bell this morning. Dow futures are lower by 20, S&P 500 futures are off by 2 while the Nasdaq futures are up 4 points.
There was plenty of action in E*Trade Financial (ETFC, $1.84, up $0.11) last Friday as over 60 million shares traded hands. There was a report that the company is in “advanced” talks regarding a sale.
It’s hard to get excited about a company who once dominated the online brokerage industry and a share price at less than $2. From 1998 through 1999 this was one of the highest of flying stocks as two-for-one splits were common and shares made new highs daily.
There has been a lot of speculation as to who might buy the troubled brokerage firm but E*Trade has brand awareness which should account for some kind of premium. TD Ameritrade (AMTD, $18.32, up $0.10) and Charles Schwab (SCHW, $19.00, down $0.18) have been in the mix as possible acquirers of E*Trade but we really don’t see an option trade with this one.
Option volume was brisk and the stock already trades like one. However, we are avoiding options on stocks that trade under $5.00 because of the risk. That still didn’t stop traders from placing huge bets on the February 2 calls (EUSBF, $0.12, up $0.07) which opened at 4 cents and returned 200% by the closing bell. Over 10,000 contracts traded.
The April 2 calls (EUSDF, $0.20, up $0.05) traded 3,000 contracts after opening at 14 cents. Considering this has been an ongoing rumor for some time and the fact that it would be safer to buy the stock, these two call options could expire worthless if no bid comes. Stay away…
We have updated the Members Area for our current trades and there a few trades we are watching this morning. If we see something, we will send out an alert.
Tags: alternative investments, asset management, blog Wall Street, buying call options, buying put options, call option trading, Charles Schwab, chicken option trades, Covered Calls, E*Trade Financial buyout rumors, 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
Posted in Company Commentary, Market Analysis, Market Commentary | Comments Off