BloggingStocks http://www.bloggingstocks.com BloggingStocks http://www.blogsmithmedia.com/http://www.bloggingstocks.com/media/feedlogo.gif BloggingStocks http://www.bloggingstocks.com en-us Copyright 2012 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/<![CDATA[Advanced Micro Devices Hit with Heavy Call Volume]]>http://www.bloggingstocks.com/2010/12/29/advanced-micro-devices-hit-with-heavy-call-volume/http://www.bloggingstocks.com/2010/12/29/advanced-micro-devices-hit-with-heavy-call-volume/http://www.bloggingstocks.com/2010/12/29/advanced-micro-devices-hit-with-heavy-call-volume/#commentsFiled under: , ,

Call volume is unusually heavy on Advanced Micro Devices (AMD) today, with nearly 8,300 contracts changing hands during the first hour of the session -- easily outpacing the stock's average daily call activity of 6,774 contracts. However, the day's option volume isn't necessarily bullish in nature.

Nearly all of today's volume has taken place at AMD's January 2012 7.50 call, where a block of 8,000 contracts traded at the bid price -- suggesting they were most likely sold. This block appears to have been tied to a corresponding stock trade, which means we're likely seeing the initiation of a buy-write position.

Continue reading Advanced Micro Devices Hit with Heavy Call Volume

Advanced Micro Devices Hit with Heavy Call Volume originally appeared on BloggingStocks on Wed, 29 Dec 2010 14:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>Advanced Micro DevicesAMDbuy-writecallscovered callinthenewstechnical analysisWed, 29 Dec 2010 14:00:00 EST<![CDATA[Altria Shoots to New 52-Week High]]>http://www.bloggingstocks.com/2010/11/04/altria-shoots-to-new-52-week-high/http://www.bloggingstocks.com/2010/11/04/altria-shoots-to-new-52-week-high/http://www.bloggingstocks.com/2010/11/04/altria-shoots-to-new-52-week-high/#commentsFiled under: , ,

AltriaAltria (MO - option chain) shares are rising to a new 52-week high today of $26.15, up more than 20% from the stock's summer low. Altria has been moving steadily higher for the past four months, hitting new yearly highs with great frequency during that time. If you purchased MO in late June, the stock boasted a 7% annual yield, which has decreased as the stock price advanced. However, the company boosted its dividend recently to 0.38 per quarter, which at today's stock price is still good for 5.8% annually. To lift that adjusted dividend rate even higher, consider a hedged trade on MO where you can lower your basis by selling options.

MO opened this morning at $25.93. So far today the stock has hit a low of $25.83 and a high of $26.15. As of 12:15, MO is trading at $26.10 up 0.34 (1.3%). The chart for MO looks bullish and S&P gives MO a positive 5 STARS (out of 5) strong buy ranking.

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Altria Shoots to New 52-Week High originally appeared on BloggingStocks on Thu, 04 Nov 2010 12:50:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>52-week highAltriacovered calldividendinthenewsInvestors ObserverMOoptionstobaccoThu, 04 Nov 2010 12:50:00 EST<![CDATA[Alcoa Options: Potential Covered Calls]]>http://www.bloggingstocks.com/2010/01/19/alcoa-options-potential-covered-calls/http://www.bloggingstocks.com/2010/01/19/alcoa-options-potential-covered-calls/http://www.bloggingstocks.com/2010/01/19/alcoa-options-potential-covered-calls/#commentsFiled under: ,

A few days after Alcoa (AA) surprised to the downside with its fourth-quarter earnings report, option traders looked a bit longer term, selling upside calls in the July series, possibly as part of a covered-call strategy.

The July 20-strike call, which is out-of-the-money by more than $4, or about 28%, saw more than 20,000 contracts trade on Friday, versus open interest of just 2,512. This morning, open interest expanded to more than 22,000, meaning that nearly all of Friday's volume traded to open.

Continue reading Alcoa Options: Potential Covered Calls

Alcoa Options: Potential Covered Calls originally appeared on BloggingStocks on Tue, 19 Jan 2010 10:40:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>aaAlcoacall sellingcovered callfeaturedoptions tradingTue, 19 Jan 2010 10:40:00 EST<![CDATA[Microsoft: Will the Momentum in the Stock Continue?]]>http://www.bloggingstocks.com/2009/12/27/microsoft-will-the-momentum-in-the-stock-continue/http://www.bloggingstocks.com/2009/12/27/microsoft-will-the-momentum-in-the-stock-continue/http://www.bloggingstocks.com/2009/12/27/microsoft-will-the-momentum-in-the-stock-continue/#commentsFiled under: ,

I made some money with Microsoft (MSFT) earlier in the year. I did an earnings trade back in the summer. I also did a trade in the winter that involved covered calls. I've been thinking lately about initiating a new position in the stock.

Only problem is, we're bumping up against the new year. Microsoft did really well in 2009. It closed on Christmas Eve at $31 per share, a fresh 52-week high. It started the year priced at $20.33. You've got to love that kind of capital appreciation. Plus, the software company does deliver a stream of dividend payments to entice the patient investor. No, Microsoft isn't a grand source of yield, but in terms of total return, the stock was reasonably attractive over the past 12 months.

Continue reading Microsoft: Will the Momentum in the Stock Continue?

Microsoft: Will the Momentum in the Stock Continue? originally appeared on BloggingStocks on Sun, 27 Dec 2009 10:20:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>covered callCoveredCallMicrosoftMSFTsoftwareSun, 27 Dec 2009 10:20:00 EST<![CDATA[Should you be trading Disney?]]>http://www.bloggingstocks.com/2009/05/26/should-you-be-trading-disney/http://www.bloggingstocks.com/2009/05/26/should-you-be-trading-disney/http://www.bloggingstocks.com/2009/05/26/should-you-be-trading-disney/#commentsFiled under: , , , , ,

Every few months, it seems, we get an article or two that says Disney (NYSE: DIS) might be a buy. TheStreet.com issued an upgrade on the stock based on several metrics. SmartMoney believes Disney might be a great company for the summertime.

When it comes to Disney, every investor has to be careful. Take every analytical article with a grain of salt. Why? Because even though the fundamentals might be good on the company from a valuation standpoint, Disney's stock has disappointed investors many times in the past. As a long-term shareholder, I know what I'm talking about. And many other pundits have made the same observation: Disney always seems to be cheap to someone at any given time.

Continue reading Should you be trading Disney?

Should you be trading Disney? originally appeared on BloggingStocks on Tue, 26 May 2009 10:20:00 EST. Please see our terms for use of feeds.

Read | Read | Read | Permalink | Email this | Comments]]>CBScovered callCoveredCallDISDisneyinthenewsmediaMicrosoftMSFTNews Corp.NewsCorp.NWStradingVIAViacomTue, 26 May 2009 10:20:00 EST<![CDATA[McDonald's (MCD) bumps up dividend again]]>http://www.bloggingstocks.com/2008/09/26/mcdonalds-mcd-bumps-up-dividend-again/http://www.bloggingstocks.com/2008/09/26/mcdonalds-mcd-bumps-up-dividend-again/http://www.bloggingstocks.com/2008/09/26/mcdonalds-mcd-bumps-up-dividend-again/#commentsFiled under: , , ,

MCD logoMcDonald's (NYSE: MCD - option chain) announced yesterday evening that it was increasing its dividend payout from 0.375 per share to 0.50 per share. If you think that the company 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 MCD, and a covered call should also allow you rake in the dividend in late November or early December.

MCD opened this morning at $62.05. So far today the stock has hit a low of $62.05 and a high of $62.99. As of 12:55, MCD is trading at $62.54, up 27 cents (0.4%). The chart for MCD looks neutral and S&P gives MCD a 3 STARS (out of 5) hold ranking.

For a bullish hedged play on this stock, I would consider a January covered call at the $65 level. A covered call is an options position that combines the purchase of stock with the sale of call options to hedge risk in case the stock doesn't do what you think but still leverage nice returns. For this particular trade, we will make an 8.6% return in just 4 months if MCD is above $65 at January expiration. If it isn't above $65, then we just get a free 2.60 per share. (I it a bonus dividend) McDonald's would have to fall by more than 4% before we would start to lose money. Learn more about this type of trade here.

MCD has not been below $60 (the break-even point) since early August and has shown support around $61 recently.

Brent Archer is an options analyst and writer at Investors Observer.

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 owns and controls a long hedged position in MCD.

McDonald's (MCD) bumps up dividend again originally appeared on BloggingStocks on Fri, 26 Sep 2008 13:12:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>covered callCoveredCalldividendinthenewsinvestors observerInvestorsObserverMCDMcDonaldsoptionsFri, 26 Sep 2008 13:12:00 EST<![CDATA[EDS quietly hits 52-week high in heavy volume]]>http://www.bloggingstocks.com/2007/02/13/eds-quietly-hits-52-week-high-in-heavy-volume/http://www.bloggingstocks.com/2007/02/13/eds-quietly-hits-52-week-high-in-heavy-volume/http://www.bloggingstocks.com/2007/02/13/eds-quietly-hits-52-week-high-in-heavy-volume/#commentsFiled under: , ,

Electronic Data Systems (NYSE:EDS) opened today at $28.27. So far, the stock has hit a low of $28.17 and a high of $28.39. As of 10:13 this morning, EDS was trading at $28.34, up $0.07 (0.25%) on extremely heavy volume.

After hitting a one year low of $22.42 on July 18, 2006, the stock snaked up 26.7% to a 52-week high of $28.40 yesterday at 2:59 in the afternoon. Electronic Data Systems reported earnings last week and investors seem to like the direction the company is headed. The technicals for EDS have been strongly improving lately and S&P gives the company a 4 STAR (out of 5) buy rating with a current 12-Month target price of $32.

For a neutral hedged play on EDS, I would consider a June covered call at the $27.50 level. There is even a small dividend on the stock with a 0.7% annual yield.

Vic Schiller is an analyst on the move at Investors Observer. (Free Subscription)

DISCLOSURE NOTE: Mr. Schiller owns and/or controls diversified portfolios of long and short stock and option positions that may include holdings in companies he writes about.

EDS quietly hits 52-week high in heavy volume originally appeared on BloggingStocks on Tue, 13 Feb 2007 11:15:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>covered callCoveredCallEDSElectronic Data SystemsElectronicDataSystemsTue, 13 Feb 2007 11:15:00 EST