FeedPosted Jul 30th 2010 5:40PM by Paul Foster (RSS feed)
Filed under: Research in Motion (RIMM), Options

Research in Motion (
RIMM) closed up $1.83 to $57.53. RIMM is expected to launch its Blackpad in November. August put option implied volatility is at 40, September at 51, December is at 46; versus its 26-week average of 43 according to Track Data, suggesting larger September price movement.
Rambus (
RMBS) closed up 30 cents to $19.65. RMBS call option volume of 9K contracts compares to put volume of 1K contracts. August put option implied volatility is at 50, September is at 51, November is at 55, January is at 57; versus its 26-week average of 66 according to Track Data, suggesting decreasing price movement.
Options Update is by Stock Specialist Paul Foster of theflyonthewall.com.Posted Jul 30th 2010 11:40AM by Elizabeth Harrow (RSS feed)
Filed under: Major Movement, Earnings Reports, Forecasts, Bad News, Options, Technical Analysis
It seems that 92% year-over-year earnings growth wasn't quite enough to impress Wall Street. Shares of DVD rental kiosk operator Coinstar Inc. (CSTR) are taking a beating as traders pan the company's softer-than-forecast second-quarter results and lackluster revenue forecast.
For the recently concluded quarter, Coinstar banked a profit of $13.4 million, or 41 cents per share, up from last year's results of $7 million, or 23 cents per share. Revenue for the quarter climbed 35% to $342.4 million. As recently as May, Coinstar predicted its quarterly revenue would arrive between $363 million and $383 million.
Continue reading Coinstar Hammered After Disappointing Earnings
Posted Jul 29th 2010 5:40PM by Paul Foster (RSS feed)
Filed under: Colgate-Palmolive (CL), Procter and Gamble (PG), Options

The Procter & Gamble Company (
PG) closed down $1.03 to $61.67. PG is expected to report Q4 EPS on August 3. August and October put option implied volatility is at 21, January is at 22; above its 26-week average of 20. Call option volume of 8K contracts compares to put volume of 25K contracts according to Track Data, suggesting traders hedging for downside price movement.
Colgate-Palmolive Company (
CL) closed down $5.02 to $78.85 in pre-open trading on Hill's pet food sales down 7.5%. Call option volume of 19K contracts compares to put volume of 19K contracts. Overall option implied volatility of 19 is near its 26-week average according to Track Data.
Options Update is by Stock Specialist Paul Foster of theflyonthewall.com.Posted Jul 29th 2010 12:00PM by Elizabeth Harrow (RSS feed)
Filed under: Earnings Reports, Options
American Axle & Manufacturing Holdings (AXL) is prepping for its turn in the earnings spotlight. The auto parts issue is slated to confess its second-quarter results ahead of Friday's opening bell, and at least one speculator is looking for a major post-event move from the shares. Bright and early Thursday morning, an ambivalent options trader opened an at-the-money straddle on AXL.
Specifically, the trader simultaneously purchased several matching blocks of August 9 puts and calls. With AXL trading just pennies above $9, both of these options are at the money. By scooping up equal numbers of puts and calls at the same strike, the trader is hoping to capitalize on a drastic move higher or lower from the security.
Continue reading American Axle Targeted by a Pre-earnings Straddle
Posted Jul 29th 2010 8:00AM by Paul Foster (RSS feed)
Filed under: Kellogg Co (K), Dean Foods (DF), Options

Kellogg (
K) closed down 95 cents to $51.52. K is expected to report Q1 EPS on July 29. August put option implied volatility is at 26, December is at 22, versus its 26-week average of 18. Call option volume of 481 contracts compares to put volume of 9,000 contracts according to Track Data, suggesting hedging for downside price movement.
Dean Foods (
DF) is expected to report Q2 EPS on August 3. DF August put option implied volatility is at 58, December puts are at 52, versus its 26-week average of 37, according to Track Data, suggesting larger price movement.
Options Update is by Stock Specialist Paul Foster of theflyonthewall.com.
Posted Jul 28th 2010 1:30PM by Brent Archer (RSS feed)
Filed under: Major Movement, Earnings Reports, Forecasts, Bad News, Options, Technical Analysis

Cephalon (
CEPH -
option chain) stock is trading lower today after
the company reported second-quarter earnings of $89.1 million, or $1.11 per share yesterday evening. Excluding one-time items, CEPH earned $2.05 per share, or $712.4 million. Analysts had forecast a profit of $1.77 per share on revenue of $693 million. However, shares of the stock are trading lower today after the company forecast 2010 revenue of $2.63 to $2.71 billion, below analysts' estimates of $2.73 billion. 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 CEPH.
This morning, CEPH opened at $60.67. So far today the stock has hit a high of $61.42 and a low of $58.71. As of 12:15, CEPH is trading at $59.24, down $3.66 (-5.8%). The chart for CEPH looks bullish and
S&P gives CEPH a positive 4 STARS (out of 5) buy ranking.
Continue reading Cephalon Falls On Disappointing Full-Year Forecast
Posted Jul 28th 2010 8:30AM by Paul Foster (RSS feed)
Filed under: Boeing Co (BA), Barrick Gold (ABX), Options

Barrick Gold (
ABX) closed down $1.72 to $40.03. ABX is expected to report Q2 EPS on July 29. Call option volume of 15,000 contracts compares to put volume of 2,000 contracts. Gold is recently down 2.01% to $1,163.10, according to Bloomberg. ABX weekly July 40 straddle is price at $1.30, October is at $4.82. August and January option implied volatility of 34 is near its 26-week average of 38 according to Track Data, suggesting decreasing price movement.
Boeing (
BA) reported a 21% drop in second-quarter earnings on Wednesday before the bell . BA August put option implied volatility is at 33, November and January is at 37, versus its 26-week average of 32, according to Track Data, suggesting non-directional near-term price movement.
Options Update is by Stock Specialist Paul Foster of theflyonthewall.com.
Posted Jul 27th 2010 1:00PM by Brent Archer (RSS feed)
Filed under: Major Movement, Earnings Reports, Good news, U.S. Steel (X), Options, Technical Analysis

US Steel (
X -
option chain) stock is trading lower today after
the company reported Q2 2010 earnings this morning, posting a loss of $25 million, or 17 cents per share. Excluding one-time items, X earned 45 cents per share on revenue of $4.68 billion. Analysts had forecast a profit of 63 cents per share on revenue of $4.63 billion. The company said it expects to return to profitability in the third quarter. 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 X.
This morning, X opened at $47.70. So far today the stock has hit a high of $70.95 and a low of $33.25. As of 12:05, X is trading at $45.98, down $2.91 (-5.9%). The chart for X looks bullish and
S&P gives X a positive 4 STARS (out of 5) buy ranking.
Continue reading US Steel Tanks After Q2 Loss
Posted Jul 27th 2010 9:00AM by Paul Foster (RSS feed)
Filed under: Johnson and Johnson (JNJ), BP p.l.c. ADS (BP), Options, Genzyme (GENZ)

BP (
BP) closed up $1.79 Monday to $38.65. The company reported a $17 billion loss Tuesday morning and announced it has replaced CEO Tony Hayward with Bob Dudley. Overall option implied volatility of 51 is below a level of 78 from June 28, according to Track Data, suggesting decreasing price movement.
Genzyme (
GENZ) closed up $4.86 to $67.38. Sanofi-Aventis (
SNY), GlaxoSmithKline (
GSK) and Johnson & Johnson (
JNJ) may be interested in making a play for GENZ, reports the
Wall Street Journal. Overall option implied volatility of 40 is above GENZ 26-week average of 31, according to Track Data, suggesting larger price movement.
Update is by Stock Specialist Paul Foster of theflyonthewall.com.
Posted Jul 26th 2010 1:30PM by Brent Archer (RSS feed)
Filed under: Major Movement, Forecasts, Good news, FedEx Corp (FDX), Options, Technical Analysis

FedEx (
FDX -
option chain) shares are rising today after
the company announced this morning it now expects to report Q1 EPS of $1.05 to $1.25, up from a previous range of $0.85 to $1.05. Analysts are expecting the shipping giant to earn $1.01 per share. In a statement, company CFO Alan Graf Jr. said, "Our revenue and earnings growth are exceeding original expectations, primarily due to better-than-anticipated growth in FedEx Express and FedEx Ground volumes." FDX reports earnings on September 16 before the opening bell. 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 FDX.
FDX opened this morning at $82.26. So far today the stock has hit a low of $82.00 and a high of $83.64. As of 12:35, FDX is trading at $83.12 up $4.16 (5.3%). The chart for FDX looks bullish and
S&P gives FDX a positive 5 STARS (out of 5) strong buy ranking.
Continue reading FedEx Raises Q1 Guidance 20%
Posted Jul 26th 2010 12:30PM by Elizabeth Harrow (RSS feed)
Filed under: Earnings Reports, Options
C.H. Robinson Worldwide (CHRW) attracted a heavy dose of put volume on Friday, with approximately 16,000 contracts crossing the tape. This flurry of activity represented about 19 times the stock's expected daily put volume.
Data from the International Securities Exchange (ISE) confirms this bearish bias, with CHRW racking up a single-day put/call volume ratio of 11.62 on the exchange. In other words, traders on the ISE bought to open nearly a dozen puts for every call on Friday.
Continue reading Puts Popular Ahead of Earnings from C.H. Robinson Worldwide
Posted Jul 25th 2010 9:10AM by Paul Foster (RSS feed)
Filed under: Pfizer (PFE), Citigroup Inc. (C), Options
Citigroup (C) closed at $4.03. The U.S. Treasury Department said that it plans to sell additional 1.5B shares of C. Overall option implied volatility of 45 is below its 26-week average of 50, according to Track Data, suggesting decreasing price movement.
Pfizer (PFE) closed down 28 cents to $14.53. Pfizer is expected to report Q2 EPS on August 3. Call option volume of 157K contracts compares to put volume of 20K contracts. August and September put option implied volatility is at 28; December is at 31; verses its 26-week average of 28, according to Track Data, suggesting nondirectional price movement.
Options Update is by Stock Specialist Paul Foster of theflyonthewall.com.
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