"As a result of the Financial Reform Act, certain trust preferreds can offer investment-grade safety, robust yields of around 6-7%, and capital gains potential," suggests Carla Pasternak.

The editor of High Yield Investing explains, "Among our top picks in this group are Bank of America Capital Trust IV, 5 7/8% Capital Securities (BAC-U) and Wells Fargo Capital IX 5.625% Trust Preferred Securities (JWF).

"Traditional preferreds are an equity investment in a company. They are normally perpetual -- that is, they have no maturity date. In contrast, trust preferreds are debt, not equity. As such, they provide greater safety than traditional preferred stock.

Continue reading Bank on Preferreds: Bank America and Wells Fargo

Bank on Preferreds: Bank America and Wells Fargo originally appeared on BloggingStocks on Tue, 14 Sep 2010 11:00:00 EST. Please see our terms for use of feeds.

Vail Resorts (NYSE: MTN) is expected to report EPS on December 12. Bank of America says: "November 30 weekend will lag last year. Vail Resorts' open mountain terrain is trailing far behind last year's strong open to the season." MTN call option volume of 93 contracts compares to put volume of 537 contracts. MTN December option implied volatility of 39 is above its 26-week average of 30 according to Track Data, suggesting larger risk.

Daily Options Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

Option update: Vail Resorts rallies on sparse snow originally appeared on BloggingStocks on Fri, 30 Nov 2007 14:47:00 EST. Please see our terms for use of feeds.

Oracle (NASDAQ: ORCL) is expected to release 1st quarter EPS of .21 after the close on 9/20. Goldman Sachs says "ORCL currently trades at a significant discount to the group on an EPS basis at 16X our CY08 EPS estimate (ex-ESOs) vs. the group median of 20X." GSCO has a $24 price target on ORCL. ORCL September 20 straddle is priced at .95 cents. ORCL October option volatility of 32 is above its 26-week average of 28 according to Track Data, suggesting larger near term fluctuations.

Business Objects (NASDAQ: BOBJ), a global provider of business intelligence software solutions, is recently up $2.52 to $44.90. BOBJ has a market cap of $4.2 billion. Bank America says "French newspaper Le Figaro has reported that BOBJ has put itself up for sale and citing interest by several companies, including SAP. BOBJ & SAP have declined to comment on the speculation." BOBJ September 45 straddle is priced at $2.65. BOBJ October option implied volatility of 48 is above its 26-week average of 34 according to Track Data, suggesting larger price risk.

Daily options Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.

Option update 9-17-07; Oracle option prices Elevated into 9/20 EPS & Outlook originally appeared on BloggingStocks on Mon, 17 Sep 2007 17:07:00 EST. Please see our terms for use of feeds.