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Monday, November 16th, 2009
9:10am (EST)
Lots of breaking news this morning…
Retail sales grew 1.4% in October, after a 1.5% gain in September but came in short of the Street’s estimate. Excluding autos, sales increased 0.2% which was below the 0.4% gain from last month.
The New York Federal Reserve’s Empire State manufacturing survey also came in lower than expected. After hitting a five year high in the previous month, manufacturing activity fell to 23.5 in November from 34.6 in October.
Lowe’s Companies (LOW, $21.85) reported earnings this morning and said profits for the quarter were $344 million, or $0.23 a share, down from $488 million, or $0.33 a share, in the same quarter last year.
Results included one-time costs and if you exclude those items, Lowe’s earned $0.24 a share, matching Wall Street’s expectations.
Revenue came in at $11.4 billion, down from $11.7 billion, but beat estimates of $11.3 billion. Lowe’s said it expects sales to increase 3%-4% a year on average over the next five years, and average earnings will increase 15% annually. This stock is slightly higher in pre-market trading.
Futures are pointing towards a strong open this morning and we are looking to take advantage of the next leg up. Current Members can check for a NEW TRADE this morning, one we are trying to get at the open, in the Members Area.
Tags: Lowe's, momentum options, MomentumOptionsTrading.com, option trading picks, options help, options mentoring, options track record, options trading, trading options Posted in Earnings, Economic News | Comments Off
Monday, August 17th, 2009
1:00pm (EST)
Abercrombie & Fitch (ANF, $31.96, down $2.29) is down 7% today and the September 32 puts (ANFUJ, $2.00, up $0.80) are up 67%. We went with the puts options at the open on Friday for $1.25 and I had accidentally listed the August 32.50 puts (ANFTZ, $1.05, up $0.70) at 40 cents as well. I can’t take credit for the August puts although some of you have emailed me and thanked me for the trade.
Wells Fargo (WFC, $26.82, down $0.91) is down over 3% and the September 26 puts (FHUUZ, $1.25, up $0.35) are right near our entry price. If the market continues to weaken these puts could quickly turn in-the-money. Our other bank plays have longer expirations and Citigroup (C, $4.02, down $0.02) and Bank of America (BAC, $16.77, down $0.62) have held up well depite the Dow’s 165 point drop today.
Imax (IMAX, $9.05, down $0.15) is holding $9 as the company officially closed its stock offering. The company sold nearly 6 million common shares at $8.50 per share that raised roughly $50 million.
Lowe’s (LOW, $20.86, down $1.97) is down 8.5% and don’t forget Home Depot (HD, $26.36, down $0.78) reports on Tuesday. The August 26 puts (JGLTM, $0.54, up $0.28) have doubled today on Lowe’s misfortunes and traders are loading up the the August 25 puts (HDTE, $0.26, up $0.16) as 4,000 contracts have traded hands. This is option expiration week and if you will recall I talked about these types of weeks during July expiration week. These trades are risky but they can double your money in a day or two as you can see. If you roll the dice on the 25′s just realize it’s all-or-nothing…
Rick@MomentumOptionsTrading.com
Tags: Abercrombie & Fitch, Bank of America, Citigroup, Home Depot, Imax, Lowe's, Wells Fargo Posted in Company Commentary, Earnings, Financial Stocks, Market Analysis, Market Commentary, Option Trades | No Comments »
Thursday, May 28th, 2009
9:00pm (EST)
Home Depot (HD, $22.70, down $0.63) and Lowe’s (LOW, $19.02, down $0.61) lost 3% after a report showed first quarter mortgage delinquencies jumped to 12%. That means more than one in 10 people are behind on their house payments.
Not only that, home owners with good credit are starting to feel the pinch. In fact, they now make up the largest share of foreclosures as job losses and pay cuts continue to cut like a knife.
All of this could mean more foreclosures and add to the already growing housing inventory which in turn depresses building activity. I had mentioned the sector a couple of weeks ago and said now was not the time to go chasing.
That would include Lowe’s and Home Depot. I would love to see Lowe’s fall back to $17 which is support and if it falls below that level it could test its March low of $13. Home Depot could get interesting at $20. They got a pop on good earnings but nobody is buying the higher priced items. We will have to see how they trade and it’s possible they may not even get to our “alert” prices. If they do, we can then decide if we should go long or short.
Which brings me to another point. I wanted to give everybody some more details on our new OptionsMentoring.com trading service. It is going to be a monthly service that allows you full access to our exclusive menbers area. Here you will find archived training sessions that you can view anytime at your leisure. Plus, we will be offering live training classes three days a week. You will also have unlimited email and phone support as well as our trade picks.
Folks, this is an incredible deal because you will learn so much about options that will make you a better trader. And if you are brand new to options trading, this program is a must! You will learn credit spreads, directional trading, chart reading and much more. The response we have received has been great and I encourage those of you who haven’t emailed me to do so. I want those of you who follow me to be the first to get in.
Rick Rouse
Rick@OptionsMentoring.com
Tags: blog options, Home Depot, Lowe's, option trading service, options blog Posted in Company Commentary, Earnings, Market Analysis, Option Trades, Watch Lists | No Comments »
Monday, May 18th, 2009
10:45am (EST)
Although Lowe’s (LOW, $19.37, up $0.92) reported a 20% drop in profits, they managed to beat Wall Street’s estimates this morning and raised its full-year outlook. The company said that they are seeing an improvement in consumer confidence while they believe housing is showing signs of a bottoming.
Customers are still holding back on big ticket items but the news was a relief for the market.
Lowe’s reported earnings of $476 million, or $0.32 a share, versus $607 million, or $0.41 a share, in the year ago period. Wall Street was expecting a profit of $0.25 a share. For the current quarter, Lowe’s said it expects to earn $0.51-$0.55 a share and $1.13-$1.25 for all of 2009. Lowe’s had previously expected earnings of $1.04-$1.20 a share.
Pretty good news. Home Depot (HD, $25.47, up $1.07) is also getting a lift and they report earnings on Tuesday. Even more impressive is the fact that Lowe’s still plans to open 60 to 70 stores this year.
The Dow is back over 8,400 as it is currently enjoying a triple-digit gain in just a little over an hour into trading.
Rick Rouse
Rick@OptionsMentoring.com
Tags: Lowe's Posted in Company Commentary, Earnings | No Comments »
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Abercrombie & Fitch Put Options Up Over 50%
Monday, August 17th, 2009
1:00pm (EST)
Abercrombie & Fitch (ANF, $31.96, down $2.29) is down 7% today and the September 32 puts (ANFUJ, $2.00, up $0.80) are up 67%. We went with the puts options at the open on Friday for $1.25 and I had accidentally listed the August 32.50 puts (ANFTZ, $1.05, up $0.70) at 40 cents as well. I can’t take credit for the August puts although some of you have emailed me and thanked me for the trade.
Wells Fargo (WFC, $26.82, down $0.91) is down over 3% and the September 26 puts (FHUUZ, $1.25, up $0.35) are right near our entry price. If the market continues to weaken these puts could quickly turn in-the-money. Our other bank plays have longer expirations and Citigroup (C, $4.02, down $0.02) and Bank of America (BAC, $16.77, down $0.62) have held up well depite the Dow’s 165 point drop today.
Imax (IMAX, $9.05, down $0.15) is holding $9 as the company officially closed its stock offering. The company sold nearly 6 million common shares at $8.50 per share that raised roughly $50 million.
Lowe’s (LOW, $20.86, down $1.97) is down 8.5% and don’t forget Home Depot (HD, $26.36, down $0.78) reports on Tuesday. The August 26 puts (JGLTM, $0.54, up $0.28) have doubled today on Lowe’s misfortunes and traders are loading up the the August 25 puts (HDTE, $0.26, up $0.16) as 4,000 contracts have traded hands. This is option expiration week and if you will recall I talked about these types of weeks during July expiration week. These trades are risky but they can double your money in a day or two as you can see. If you roll the dice on the 25′s just realize it’s all-or-nothing…
Rick@MomentumOptionsTrading.com
Tags: Abercrombie & Fitch, Bank of America, Citigroup, Home Depot, Imax, Lowe's, Wells Fargo
Posted in Company Commentary, Earnings, Financial Stocks, Market Analysis, Market Commentary, Option Trades | No Comments »