FeedPosted Feb 9th 2010 3:00PM by Beth Gaston Moon (RSS feed)
Filed under: Earnings Reports, Options

As my colleague Karla Yeh pointed out over at
ONN.tv earlier today, Biogen Idec (
BIIB) saw some
unusual options trading in the wake of its positive earnings surprise before the bell.
BIIB gapped higher at the open, jumping almost 2% out of the gate. Less than a half hour into the trading day, large blocks of roughly 4,000 contracts each traded at four March strikes: the 45-strike put, the 50-strike put, the 55-strike call, and the 60-strike call. It appears as though this investor sold the March 50/55 strangle (the 50 put and the 55 call) and simultaneously purchased the March 45/60 strangle (the 45 put and the 60 call).
A short strangle is typically employed when the investor expects the underlying instrument to stay range-bound; a long strangle is used by traders who expect a sharp move in either direction. In this case, with one of each crossing the tape as part of one strategy, it can be referred to as an iron condor.
Continue reading Post Earnings, Biogen Idec (BIIB) Sees Unusual Options Activity
Posted Feb 9th 2010 10:40AM by Connie Madon (RSS feed)
Filed under: International Markets, Market Matters, Options
During a crisis, never mind what the media or government officials are saying, follow the money.
The Mercantile Exchange (CME) posts open contracts for each currency traded -- both long and short positions. By subtracting them you can get a sense of whether traders are net long or short. In the case of the euro, traders are net short 40,000 contracts or nearly $8 billion.
Meanwhile, officials of struggling countries, Greece, Spain and Portugal are telling the media that they have things under control. Elena Salgado, Spanish finance minister and Jose Manuel Campo, her deputy flew to London to meet with bondholders, the Financial Times reports. They want to reassure promises to cut Spain's budget deficit by 3% of GDP by 2013. But then the treasury wants to raise 116.7 billion euros.
Continue reading Traders Are Net Short the Euro by $8 billion
Posted Feb 9th 2010 9:00AM by Paul Foster (RSS feed)
Filed under: Motorola (MOT), Research in Motion (RIMM), Options
Research in Motion (RIMM) closed $66.67. RIMM is expected to report Q4 EPS on March 30. March option implied volatility is at 40, June is at 43, versus its 26-week average of 48 according to Track Data, suggesting decreasing price movement.
Motorola (MOT) closed at $6.57. Barron's said MOT shares look increasingly attractive on a sum-of-the-parts basis. March and April option implied volatility of 48 is below its 26-week average of 52, according to Track Data, suggesting slightly decreasing price movement.
Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.
Posted Feb 8th 2010 1:30PM by Brent Archer (RSS feed)
Filed under: Major Movement, Earnings Reports, Good news, Hasbro Inc (HAS), Options, Technical Analysis

Hasbro (
HAS -
option chain) shares are rising today after the company reported earnings this morning, posting a
fourth-quarter profit of $165.56 million, or $1.09 per share, on revenue of $1.38 billion. Analysts had forecast a profit of 81 cents per share on revenue of $1.34 billion. If you think that the stock won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on HAS.
HAS opened this morning at $33.65. So far today the stock has hit a low of $33.53 and a high of $35.19. As of 11:40, HAS is trading at $34.99 up $4.18 (13.6%). The chart for HAS looks bullish and
S&P gives HAS a positive 4 STARS (out of 5) buy ranking.
Continue reading Hasbro Soars on Q4 Earnings 22% Above Estimates
Posted Feb 8th 2010 9:00AM by Paul Foster (RSS feed)
Filed under: Options
Standard & Poor's Depository Receipts (SPY) is recently down 42 cents to $106.24 in pre-open trading. February and March put volatility is at 28; April is at 26; above its 26-week average of 24 according to Track Data, suggesting larger price movement.
MSCI Emerging Markets Index (EEM) closed at $37.20. EEM overall option implied volatility of 34 is near its 26-week average according to Track Data, suggesting non-directional price movement.
Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com
Posted Feb 5th 2010 1:30PM by Brent Archer (RSS feed)
Filed under: Major Movement, Forecasts, Bad News, Corning Inc (GLW), Options, Technical Analysis
Corning (GLW - option chain) stock is trading lower today after the company said it expects to see modest growth in sales and earnings in 2010, but did not offer specific forecasts. Analysts are expecting the company to earn $1.75 per share in 2010 on revenue of $6.28 billion, up from $1.28 per share and $5.4 billion, respectively. If you think this stock won't be rising too far in the coming months, then it could be a good time to look at a bearish hedged play on GLW.
This morning, GLW opened at $18.10. So far today the stock has hit a high of $18.24 and a low of $16.96. As of 12:10, GLW is trading at $17.65, down 60 cents (-3.3%). The chart for GLW looks bullish and S&P gives GLW a positive 4 STARS (out of 5) buy ranking.
Continue reading Corning Dips on Modest 2010 Outlook
Posted Feb 5th 2010 8:30AM by Paul Foster (RSS feed)
Filed under: Options
iShares Trust FTSE/Xinhua China 25 Fund (FXI) closed at $38.42. FXI is an index fund that seeks investment results that correspond generally to the price and yield performance of the FTSE/Xinhua China 25 Index. February put option implied volatility is at 37, March puts are at 39, May puts are at 38, versus its 26-week average of 34 according to Track Data, suggesting larger price movement in March.
CBOE Volatility Index (VIX) at 26.07; 10-day moving average is 24.05, 50-day is 21.25.
Nikkei 225 recently down 2.89%. DAX 30 recently down 1.51%, according to Bloomberg.
Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.
Posted Feb 4th 2010 1:30PM by Brent Archer (RSS feed)
Filed under: Major Movement, Forecasts, Good news, Gap Inc (GPS), Options, Technical Analysis

Gap (
GPS -
option chain) shares are rising today after
the company said it expects to see Q4 EPS of 49 to 51 cents, well above analysts' estimates of 44 cents. GPS is also getting momentum from its January sales results. The retailer announced its
same-store sales rose 5.0 percent in January, topping analysts' forecasts of a 4.4 percent gain. If you think that the stock won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on GPS.
GPS opened this morning at $19.57. So far today the stock has hit a low of $19.25 and a high of $20.00. As of 11:40, GPS is trading at $19.59 up 57 cents (3.0%). The chart for GPS looks neutral and
S&P gives GPS a neutral 3 STARS (out of 5) hold ranking.
Continue reading Gap Lifts Q4 Forecast, January Sales Up
Posted Feb 4th 2010 9:00AM by Paul Foster (RSS feed)
Filed under: Toyota Motor Corp. (TM), Options
Toyota Motor (TM) is recently trading at $72.90 in pre-open trading, below its close of $73.49. TM reported better than expected Q3 EPS, raised its outlook despite recall. February put option implied volatility is at 47, March and April puts are at 42,versus its 26-week average of 29, according to Track Data, suggesting larger near term price movement.
CBOE Volatility Index (VIX) at 21.60; 10-day moving average is 23.67, 50-day is 21.17.
NASDAQ 100 (QQQQ) overall implied volatility at 22; 26-week average is 25.
Russell 2000 (IWM) overall implied volatility at 25; 26-week average is 29.
Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.
Posted Feb 3rd 2010 2:30PM by Elizabeth Harrow (RSS feed)
Filed under: Earnings Reports, MasterCard Inc'A' (MA), Options, Technical Analysis

MasterCard Incorporated (
MA) is scheduled to take its turn in the earnings spotlight before the market opens tomorrow morning. Analysts surveyed by Thomson Reuters are expecting the credit card issue to report a fourth-quarter profit of $2.46 per share, which would mark a significant improvement over the company's year-ago earnings of $1.87 per share.
While the bar is set pretty high, MasterCard has a solid history of topping consensus expectations -- the company has bested Wall Street's earnings predictions in each of the previous four reporting periods. Despite MasterCard's solid history on the earnings front, though, pessimism is heavy as investors await the firm's fourth-quarter results.
Continue reading Low Expectations for MasterCard's 4Q Earnings
Posted Feb 3rd 2010 11:40AM by Paul Foster (RSS feed)
Filed under: Toyota Motor Corp. (TM), Options
Toyota Motor (TM) is recently down $5.43 to $72.72. Transportation Secretary Ray LaHood said owners of recalled Toyotas should "stop driving" them and bring them to a Toyota dealer for repair, Bloomberg reports.
Toyota is expected to report Q3 EPS after the market close today. Call option volume of 10,509 contracts compares to put volume of 26,337 contracts. February put option implied volatility is at 48, March and April puts are at 42; verses its six-month average of 29, according to Track Data, suggesting larger near term price movement.
Options Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.
Posted Feb 3rd 2010 9:00AM by Paul Foster (RSS feed)
Filed under: CIGNA Corp (CI), Monster Worldwide (MNST), Options
Cigna (CI) closed at $35.24. CI is expected to report Q4 EPS on February 4. February option implied volatility is at 45, March is at 43, April is at 42, versus its 26-week average of 43, according to Track Data, suggesting non-directional price movement,
Monster Worldwide (MWW) closed at $16.04. MWW is expected to report Q4 EPS on February 3. February put option implied volatility is at 54, March and June puts are at 49, versus its 26-week average of 53 according to Track Data suggesting non-directional price movement.
Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com
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