Buying blue chips doesn't mean buying what you know originally appeared on BloggingStocks on Thu, 20 Mar 2008 15:33:00 EST. Please see our terms for use of feeds.

Yahoo! (NASDAQ: YHOO) implied volatility elevated at 40. YHOO is recently down 37 cents to $22.95. YHOO overall option implied volatility of 40 is above its 26-week average of 35 according to Track Data, suggesting larger risk.

Microsoft (NASDAQ: MSFT) implied volatility elevated at 40. MSFT is recently down 19 cents to $27.91. MSFT overall option implied volatility of 40 is above its 26-week average of 23 according to Track Data, suggesting larger risk.

Amgen (NASDAQ: AMGN) implied volatility elevated at 34 after restructuring. AMGN is recently down $1.57 to $49.02. Goldman Sachs says: "Sales and costs in line. Maintain estimate and intrinsic value of $45." AMGN September option implied volatility of 34 is above its 26-week average of 26 according to Track Data, indicating larger risks.

Cisco Systems (NASDAQ: CSCO) implied volatility elevated at 34. CSCO is recently up 9 cents to $30.01. CSCO will be holding an analyst meeting on September 5 in San Jose. Jeffreies has a Buy rating on CSCO. CSCO September option implied volatility of 34 is above its 26-week average of 28 according to Track Data, suggesting slightly larger risk.

Volatility Index S&P 500 Options-VIX up 2.68 to 33.35.

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

Option update: NASDAQ blue chips -- YHOO, MSFT, AMGN, CSCO originally appeared on BloggingStocks on Thu, 16 Aug 2007 13:50:00 EST. Please see our terms for use of feeds.

When I look for value, I generally look for deep value, such as stocks trading near or below their liquidation value, or companies with assets that are understated on the balance sheet. But a piece in today's New York Times talks about the more common kind of value stock: companies with above-market dividend yields and low price/earnings ratios. Standard & Poor's investment strategist Sam Stoval says there is great value to be had in some of America's best-known blue chips, such as Citigroup Inc. (NYSE: C) and General Electric Co. (NYSE: GE).

Oppenheimer's chief investment strategist, Michael Metz, has an interesting explanation for the value some see in blue chips: The recent run-up has been driven by hedge funds and buyouts, neither of which have much interest in companies of that size. With the market soaring to new highs, it seems that blue chips are a little bit boring for many investors, and value investors may be moving in to seize the opportunity.

Investors are feeling good right now because everything's going well. When people are optimistic, they tend to shy away from defensive investments. But if the market takes a turn for the worse, scared investors may seek refuge in companies like Citigroup and General Electric. If they do, investors buying those stocks now could look pretty smart.

Finding value in America's best-known blue chips originally appeared on BloggingStocks on Sun, 03 Jun 2007 12:10:00 EST. Please see our terms for use of feeds.

"As a professional trader, there's nothing I like more than going with the odds," says Keith Fitz-Gerald, who also says that the odds are calling for as much as a 50% gain in the next 12 months. The reasoning behind this bullish forecast is one of the market's most consistent seasonal patterns, the Presidential Effect.

He explains, "Since 1933, no single third year 12-month period in a presidential term beginning in October has registered a loss, the average total return has been 28%, and the worst positive return has been 6.6%."

To clarify, the one-year period that runs from the current month through the end of next October represents the third year of the Presidential Cycle. The following 12-month period ending at the 2008 elections will be year four. "I'm licking my chops in anticipation of the Presidential Effect."

For his stock selections, Fitz-Gerald uses a system that he pioneered known as non-linear analysis, which applies pattern recognition to historical and current market data. And while his trading and hedging services are limited to institutions and high net worth clients, his stock advice is easily accessible through The Skeptical Investor newsletter.

And while his system will frequently uncover small, lesser known stocks, today it's pointing to some of the biggest players around - Microsoft Corporation (NASDAQ: MSFT) and General Electric Company (NYSE: GE), a pair "beaten down true blues that I think are poised for serious gains in the months ahead -- perhaps as much as 20%-50%."

Continue reading MSFT and GE: 'Presidential' blue chips

MSFT and GE: 'Presidential' blue chips originally appeared on BloggingStocks on Fri, 27 Oct 2006 11:00:00 EST. Please see our terms for use of feeds.

GE after the bell 9/20/06: NBC's Fall schedule might help GE out of the doldrums originally appeared on BloggingStocks on Wed, 20 Sep 2006 18:06:00 EST. Please see our terms for use of feeds.