Today might have been one of the more boring options expiration dates. If you pretend that technology stocks weren't a part of the market, today was rather stable considering the major bounces we have seen. Oil stayed under $129.00 per barrel, which didn't give the bears much meat to chew on. We had essentially no government economic data today. Here are today's unofficial closing levels:
Apple Inc. (NASDAQ: AAPL) is set report earnings after the close of trading. Read a FULL EARNINGS PREVIEW. Shares of Apple were down over 3% at $166.10 in today's final minutes of trading.
Computer Sciences(NYSE:CSC) call volume and volatility spikes on renewed speculation. CSC is recently up .97 to $61.27 on unconfirmed deal chatter Blackstone(NYSE:BX) or HewlettPackard (NYSE:HPQ) will make a bid. CSC is frequently chatted as being sold to IBM (NYSE:IBM), Lockheed Martin(NYSE:LMT), United Technologies (NYSE:UTX) or private equity after Apollo Managements' bid for the CSC failed in the spring of 2006. CSC July 62.5 calls have traded 126 times on transaction volume of 3,459 contracts above its open interest of 2,356 contracts. CSC August option implied volatility of 36 is above its 26-week average of 25 according to Track Data, suggesting larger price fluctuations.
Royal Dutch Shell(NYSE:RDS) volatility flat as BP is mentioned as M&A partner. RDS is recently up .56 to $83.95. The Daily Mail is reporting that BP and RDS are in merger talks. RDS over all option implied volatility of 17 is near its 26-week average according to Track Data, suggesting non-directional risk.
Dendreon(NASDAQ:DNDN) implied volatility & volume at low end of range last two days. DNDN, a biotechnology company focused on discovery, development and commercialization of therapeutics to fight cancer, is recently trading up .73 to $7.99. DNDN over all option implied volatility of 57 is below its 26-week average of 111 according to Track Data, suggesting decreasing risk.
Starwood Hotels & Resorts Worldwide, Inc. (NYSE: HOT) -- volatility Elevated on renewed Kerkorian speculation. HOT, a leading hotel and leisure company, is frequently mentioned as a private equity break up/recapitalization candidate. Chatter is circulating that Kirk Kerkorian's Tracinda has a mid-$90's offer on the table for HOT. HOT is recently up $0.63 to $70.64. HOT has a market cap of $15 billion with long term debt of $1.8 billion. HOT reported quarterly March 2007 total revenue of $1.4 billion. HOT July option implied volatility of 34 is above its 26-week average of 27 according to Track Data, suggesting larger risk.
Countrywide Financial Corp. (NYSE: CFC) -- volatility not confirming renewed takeover speculation. CFC, the largest U.S. home mortgage lender, is recently up 26 cents to $38.16. CFC July option implied volatility of 36 is near its 26-week average of 34 according to Track Data, suggesting slightly larger price fluctuations.
Research In Motion Ltd. (NASDAQ: RIMM) opened at $152.74. So far today the stock has hit a low of $152.06 and a high of $158.06. As of 10:45, RIMM is trading at 156.94, up 4.94 (3.3%).
RIMM has made a series of jumps over the past eight months, launching shares to a new all-time high today. The stock has been getting some good press today as some analysts expect RIMM to benefit from the upcoming release of the Apple (NASDAQ: AAPL) iPhone. RIMM's Blackberry offers many of the same features but for a lower price tag, and when consumers go to upgrade their current phones, they may be more inclined to select a new Blackberry over the iPhone. Recent technical indicators for RIMM have been bullish and steady, while S&P gives the stock a neutral 3 STARS (out of 5) hold rating.
For a bullish hedged play on this stock, I would consider a July bull-put credit spread below the $120 range. RIMM hasn't been below $120 since October and has shown support around $147 recently. This trade could be risky if this typically volatile stock breaks downward below 130, but even if that happens, RIMM has strong support around 121 formed back in January.
DISCLOSURE: Mr. Archer owns and/or controls diversified portfolios of long and short stock and option positions that may include holdings in companies he writes about. At publication time, Brent neither owns nor controls a position in AAPL. Brent does control a long hedged position in RIMM.
Dow Jones (NYSE: DJ) implied volatility Flat prior to CNBC report of NWS bid.
NWS makes $60 dollar bid for DJ according to CNBC's David Faber.
DJ overall option implied volatility of 24 was near its 26-week average according to Track Data prior to DJ trading halt, suggesting non-directional risk before report.
New York Times (NYSE: NYT) volatility spikes on NWS interest in DJ reported by CNBC.
NYT is recently up $1.82 to $25.21. NWS makes $60 dollar bid for DJ according to CNBC's David Faber.
NYT May option implied volatility of 27 is above its 26-week average of 23 according to Track Data, suggesting larger price risk.
The Volatility Index for S&P 500 Options (VIX) is up .14 to 13.10.
Oakley(NYSE: OO) -- implied volatility suggests flat risk as OO trades towards record high. OO, a designer, developer, manufacturer, and distributor of eye wear & accessories, has rallied sharply over the last four days. OO is recently up $1.59 to $23.16. OO has a market cap of $1.53 billion with zero long-term debt. OO reported 2006 annual revenue of $761 million. OO April option implied volatility is at 33, May at 31; near its 26-week average according to Track Data, suggesting non-directional price fluctuations.
Genentech(NASDAQ: DNA) -- option implied volatility suggests decreasing risk into 4/11 EPS. DNA is expected to report EPS of .67 cents on 4/11/07 according to Thomson Financial Network. Robert Bard says "despite DNA's tepid Q107 overall revenue guidance, we do think Avastin upside potential is strong, and may continue to drive the stock. Reiterate Outperform rating." DNA April option implied volatility of 21 below its 26-week of average of 25 according to Track Data, suggesting decreasing price fluctuations.
The Volatility Index for S&P 500 Options (VIX) is up .16 to 13.62.
Cypress Bioscience (NASDAQ: CYPB) -- option implied volatility Elevated at 194. CYPB closed at $7.46. Data from CYPB's end PII Milnacipran (Fibromyalgia Syndrome; FMS) trail, is expected to be released before mid-year. JEFF has a Buy on Attractive Risk/Reward with a $14 price target on CYPB. JEFF says "our diligence with investigators and statisticians increase our confidence in the prospects for a positive outcome." CYPB June option implied volatility is at 194 according to Track Data, suggesting large price fluctuation risk.
Starwood (NASDAQ: HOT) -- implied volatility suggests Flat risk; HOT at Record price on Chatter. HOT, a leading hotel and leisure company, is frequently mentioned as a private equity break up-recapitalization candidate. HOT is up $1.13 to $70.97. HOT's CEO Steve Heyer resigned on 4/12/07. HOT will announce EPS on 4/26. HOT has a market cap of $16 billion with long term debt of $2.3 billion. HOT reported 2006 annual total revenue of $5.9 billion. HOT May option implied volatility of 26 is near its 26-week average according to Track Data, suggesting non-directional risk.
It looks like Apple, Inc. (NASDAQ: AAPL) is using its power for good. Now that it's partnering with major music companies in the digital music arena, it's hoped that customers will soon be able to listen to their music without all the nasty Digital Rights Management (DRM) problems that limits their digital music choices.
The music industry has been deathly afraid of the transition from CDs and other physical media to digital formats (MP3, for example), and so it locked up files in a protective "wrapper" that prevented customers from trading digital music files for free like candy outside a candy store. The only problem with that was that the universe of digital music players ended up with different formats, incompatibility issues, extreme customer frustration and the actual limiting of music sales for many companies based on how heavily they all treated customers as criminals.
That day may be ending, and to a good part, we have Apple CEO Steve Jobs to thank for this. Although Jobs was not even close to being the first to publicly state the need for getting rid of digital protection in order for the music industry to expand, his voice was probably the most powerful. As such, the EMI Group will soon sell its digital music filed on Apple's iTunes music store with better sound quality and no digital rights management restrictions. Strike one up for pleasing the customer, not the stingy and protective record labels. Apple just can't seem to do wrong these days, and I think its shares reflect that, yes?
The Volatility Index for S&P 500 Options (VIX) is up 1.33 to 14.28.
Option volume leaders today are: Apple Computer (NASDAQ: AAPL), Tesoro (NYSE: TSO), Oracle (NASDAQ: ORCL) and Microsoft (NASDAQ: MSFT).
Dendreon (NASDAQ: DNDN) straddles the expensive rating on heavy volume, suggesting Large Risk. DNDN, a biotechnology company focused on the discovery, development and commercialization of therapeutics that harness the immune system to fight cancer, is recently up $.57 to $5.03. DNDN's lead drug Provenge (for treatment of asymptomatic, metastatic, androgen-independent prostate cancer) has a Prescription Drug User Fee Act (PDUFA) review date on May 15th. DNDN call option volume of 15,831 contracts compares to put volume of 14,850 contracts. The DNDN April 5 straddle is at $3.20 and the May straddle is priced at $4.05, suggesting large price risk.
The Daily Option Update is provided by Stock Options Specialist Paul Foster of theflyonthewall.com.
Volatility Index S&P 500 Options-VIX down 0.21 to 12.72
Genentech Inc. (NYSE:DNA) option volatility at all-time lows as news flows from Analyst day. DNA is recently down $3.06 to $82.22. DNA is providing investors today with an overview of recent developments. DNA says it "aims to bring at least 20 new molecular entities into clinical development between 2006 and 2008." Bloomberg reported DNA that said Avastin lung cancer study was stopped for safety. DNA call option volume of 12,491 contracts compares to put volume of 11,435 contracts. DNA April option implied volatility of 20 is below its 26-week of 25 according to Track Data, suggesting decreasing price risks.
Abbott Laboratories (NYSE:ABT) option implied volatility flat as ABT near 5-year high into ACC 2007. ABT is recently at $54.28. ABT has four business segments: Diagnostic Products, Nutritional Products, Pharmaceutical Products & Vascular Products. The American College of Cardiology annual meeting takes place in New Orleans, March 24-27. ABT overall option implied volatility of 18 near its 26-week average according to Track Data, suggesting non-directional risk.
Option volume leaders today are: Apple Inc. (NASDAQ:AAPL), Motorola Inc. (NYSE:MOT), Amgen Inc. (NASDAQ:AMGN) and Imclone Systems Inc. (NASDAQ:IMCL).
Note: The Daily Option Update is provided by Stock Options Specialist Paul Foster of theflyonthewall.com.
Volatility Index S&P 500 Options-VIX up .05 to 12.30
BJ Services Co. (NYSE:BJS) calls active at low implied volatility on M&A chatter. BJS, a provider of pumping and oilfield services for the petroleum industry, is recently up $0.51 to $27.24 on unconfirmed chatter Halliburton Co. (NYSE:HAL) is interested in BJS. BJS has a market cap of $7.9 billion with long term debt of $499 million. BJS reported annual 2006 sales of $4.3 billion. BJS call option volume of 15,700 contracts compares to put volume of 1,923 contracts. BJS April option implied volatility of 32 is below its 26-week average of 35 according to Track Data, suggesting decreasing price risk.
Unisys Corp. (NYSE:UIS) implied volatility indicates Flat risk; UIS mentioned as target of Dell Inc. (NASDAQ:DELL). UIS, a technology services and solutions company, is recently up $0.16 to $8.59. Dow Jones reported on 3/21 that Michael "Dell said in China that one of his company's top priorities is to boost its services business and that there will likely be acquisitions in that area." Dow Jones listed BE, SAPE & UIS as potential targets. DELL has a market cap of $52 billion. UIS has a market cap of $2.9 billion with long term debt of $1 billion and annual 2006 sales of $5.7 billion. UIS overall option implied volatility of 38 is near its 26-week average according to Track Data, suggesting non-directional price risk.
Option volume leaders today are: Apple Inc. (NASDAQ:AAPL), Motorola Inc. (NYSE:MOT) and Palm Inc. (NASDAQ:PALM).
Note: The Daily Option Update is provided by Stock Options Specialist Paul Foster of theflyonthewall.com.
With Apple's iPod and other products firing on all cylinders these days, current CEO Steve jobs appears to be on top of the world. His company's products are ultra-cool and are doing extremely well, Jobs is having great success with Pixar Studios as well as Apple Inc. (NASDAQ:AAPL) and AAPL shares are doing very well year after year.
With the impending release of the Apple iPhone, it seems that Apple (and Jobs) can do no wrong at this point in time. One can make a case for Apple products being more popular in the consumer electronics and computing field than they ever have been. Not a bad decade for Jobs and company, so far.
Contrast this with the impending departure of Bill Gates from Microsoft Corp. (NASDAQ:MSFT) to focus on his worldly philanthropic efforts. I am a great admirer of Gates and the philanthropy that bears his name based on the projects he donates to and funds. It's been said that the rise of Microsoft and MSFT stock was made on ill-gotten strategies, illegal monopolistic tactics, and other not-good things. Have those who have bought Microsoft products (default on almost every PC these days) actually subsidized the Bill & Melinda Gates Foundation? Hmm.
That aside, the release of Windows Vista -- so far -- is what I what consider to be a nonevent for the software giant. Sales are not expected to ramp up nicely for quite a while as critic after critic says that the consumer market should be just fine with that older copy of Windows XP.
Is Windows Vista, which has been torn apart viciously already by reviewers, just another upgrade without much potential except for padding Microsoft's bottom line? If history judges it that way, then Bill Gates will leave Microsoft with hardly an explosion at all. The one lingering -- and hugely important -- piece of Gates's legacy won't be at Microsoft at all.
Note: The Daily Option Update is provided by Options Specialist Paul Foster of theflyonthewall.com.
Volatility Index S&P 500 Options-VIX down .32 to 10.02.
eBAY, Inc.-(NASDAQ:EBAY) option volume & implied volatility elevated at 52 into EPS
eBAY, an operator of a global online trading marketplace including an electronic payment platform PayPal, is expected to report EPS of .28 cents after the close. EBAY will implement fee changes-increase on 1/30/07. EBAY February option implied volatility of 52 is above its 26-week average of 40 according to Track Data, indicating larger risks.
Corning Inc. (NYSE:GLW) option volume heavy, implied volatility decreases as GLW rallies on EPS
Corning reported 4th quarter EPS of .31 cents verses consensus estimates of .28 cents. Corning is recently up $2.00 to $20.84. Buckingham has a $34 price target on Corning. Corning call option volume of 46,801 contracts compares to put volume of 16,919 contracts according to Track Data. Corning February option implied volatility of 31 is below a level of 44 prior to Corning releasing EPS. Decreasing option implied volatility suggests decreasing price fluctuations.
Option volume leaders today were: Yahoo! Inc. (NASDAQ: YHOO), Apple, Inc. (NASDAQ: AAPL), Advanced Micro Devices (NYSE: AMD), Qualcomm (NASDAQ: QCOM) and eBay (NASDAQ: EBAY).
These days, history isn't being kind to Apple Inc. (Nasdaq:AAPL) CEO Steve Jobs. That's ironic considering how much he's obsessed about what people think of him and the company he co-founded.
Jobs has another legal battle of historical proportions on his hands besides the options backdating scandal. Bloomberg News is reporting (via the Los Angeles Times) that Jobs has lost a battle to demolish a Spanish Colonial style mansion he owns near San Francisco.
A preservation group sued after the city of Woodside and Jobs didn't consider alternatives to destroying the 17,250-square foot mansion, which Jobs bought 21 years ago and has never liked, Bloomberg says.
Perhaps Jobs can figure a way to preserve the Jackling House, named after copper magnate Daniel C. Jackling. Maybe he can restore it its original glory. While he's at it, he might take a stab trying to mend the damage to his reputation caused by the options backdating mess.
These have got to be tough times for the tech mogul. Jobs, who made his fortune looking ahead, now has to spend quite a bit of time looking back.
Computer Sciences
Starwood Hotels & Resorts Worldwide, Inc.
Dow Jones
It looks like 
Note: The Daily Option Update is provided by Options Specialist Paul Foster of theflyonthewall.com.
Big 3 CEOs drive to Washington to suck up to Congress
GM and Ford ready weak pitches for taxpayer bucks
Cramer on BloggingStocks: A troika of opportunity and trouble 
