To me, General Motors Corp. (NYSE: GM) is beginning to take on the persona of Rocky Balboa, the consummate tough guy who is winning against all odds. Forget for a moment who sells more autos and just look at all the smart work it has taken to get GM this far in the struggle to effectively manufacture and market automobiles. Take a contrasting look at the last few week's announcements from America's auto manufacturing block. Take a look at the news about Ford (NYSE: F) and Chrysler in contrast to what you hear about GM. It is my opinion that of those three, GM is the only company which has a realistic grasp on what it must do to survive and regrow.
General Motors posted 2007 second-quarter adjusted net income, excluding special items, of $1.4 billion, or $2.48 per diluted share, compared to $1.1 billion, or $2.03 per diluted share, in the year-ago quarter. However, bear in mind that while GM increased its market share over 9% outside of North America, it's global market share was down 0.4%, meaning that there was a decline in the number of vehicles sold at home. Current analyst consensus is a quiet hold on GM. I would take that position also, but overall I expect GM shares to move steadily upward as company outlook improves.
eBay (NASDAQ: EBAY) is expected to report EPS of 33 cents on October 17th according to Thomson First Call.
Investors will be focusing on revenue per listing, listing growth, active users, PayPal and an update on share repurchase program.
EBAY October straddle 37.5 straddle is priced at $3.00. EBAY November option implied volatility of 42 is above 26-week average of 34 according to Track Data, suggesting larger risk.
SanDisk (NASDAQ: SNDK), a supplier of flash data storage card products, closed at $48.32.
SNDK is expected to report EPS on 10/18.
Bear Stearns says: "3Q and 4Q should be solid quarters; we believe that 2H07 earnings strength is already largely priced into the stock."
SNDK October 47.5 straddle is priced at $5.10. SNDK November option implied volatility of 66 is above its 26-week average of 46 according to Track Data, suggesting larger near term price risks.
Daily options Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.
Office Depot, Inc. (NYSE: ODP) had 1,186 retail stores in North America and another 369 stores owned, licensed or franchised in other parts of the world as of June 30th.
Smith Barney says "shares of ODP appear undervalued but few data points loom in the next quarter or two to drive them higher." ODP is expected to report earnings per share (EPS) in late October. ODP January option implied volatility of 43 is above its 26-week average of 33 according to Track Data, suggesting larger price fluctuations.
Baker Hughes Incorporated (NYSE: BHI) is engaged in the oilfield service sector. BHI recently up $1.01 to $92.12.
BHI has a market cap of $29.5 billion with long term debt of $1 billion. BHI is expected to report EPS on October 26th. BHI reported on October 8th its September rig count rose to 1,032 from 1,009 in August 2007. BHI November 95 calls have traded 59 times on contract volume 2,878 contracts, above its open interest of 834 contracts. BHI November 100 calls have traded 170 times on contract volume 18,641 contracts above its open interest of 480 contracts. BHI November option implied volatility of 34 is near its 26-week average of 30 according to Track Data, suggesting slightly larger risk.
Daily options Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.
Google Inc. (NASDAQ: GOOG) recently trading up $15.29 to $609.20.
GOOG is expected to report earnings per share (EPS) on October 18th. GOOG October at the money 580 straddle is priced at $32.10. GOOG October option implied volatility of 38 is above its 26-week average of 27 according to Track Data, suggesting larger risk.
The Gap Inc. (NYSE: GPS) CEO Glenn Murphy hosted a meeting with analysts on October 5th.
Smith Barney says "Mr. Murphy is focused on making the company gets an adequate return on its investments. This includes a focus on the expense of the business. We suspect there will be continued focus on moderating the cost structure and assessing various cost components, including marketing. We think the real estate portfolio is under review." GPS over all option implied volatility of 31 is near its 26-week average according to Track Data, suggesting flat price risk.
Daily options Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.
Akamai (NASDAQ: AKAM), offers services for accelerating content and business processes online, is recently up .58 to $29.33. AKAM announced EPS will be reported on 10/24. AKAM call option volume of 17,326 contracts compares to put volume of 4,140 contracts. AKAM October option implied volatility is at 50, November is at 58; above its 26-week average of 45 according to Track Data, suggesting larger price fluctuations.
SunPower (NASDAQ: SPWR) designs, develops, manufacturers, and sells solar electric power products, systems, and services. SPWR will report EPS on 10/18. Thomas Weisel Partners-TWPT downgraded SPWR to Makeweight from Overweight on 10/1. TWPT says "investors have been bidding up the shares of SPWR over the last several months on expectations that a Federal Energy Bill will be a boon for the domestic photovoltaic industry." SPWR October call option implied volatility is at 53; puts are at 57, above its 26-week average of 43 according to Track Data, suggesting larger risk.
Daily options Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.
The Bear Stearns Companies Inc. (NYSE: BSC)'s option prices decrease after the Federal Open Market Committee lowers rates; BSC earnings per share (EPS) come out on September 20:
BSC is expected to report 3Q EPS of $1.78 on September 20, according to Thomson First Call. BSC was recently up $3.22 to $118.47. The FOMC lowered the Fed Funds rate by .50 to 4.75%. BSC September 120 straddle was priced at $7.30. BSC October option implied volatility of 49 was below a level 58 from two hours ago and below its 7-week average of 57 according to Track Data, suggesting decreasing price risk.
Morgan Stanley (NYSE: MS) volatility decreases after FOMC Lowers rates:
MS EPS comes out on September 19. MS is expected to report 3Q EPS of $1.53, according to Thomson First Call. MS was recently up $3.68 to $68.58. The FOMC lowered the Fed Funds rate by .50 to 4.75%. MS September 70 straddle was priced at $3.05. MS October option implied volatility of 35 was below a level of 38 from two hours ago and near its 7-week average of 38 according to Track Data, suggesting decreasing risk.
GS EPS comes out September 20. GS is expected to report 3Q EPS of $4.35, according to Thomson First Call. GS was recently up $11.75 to $199.35. The FOMC lowered the Fed Funds rate by .50 to 4.75%. GS September 200 straddle was priced at $8.40. GS October option implied volatility of 33 was below a level of 39 from two hours ago and below its 26-week average of 35 according to Track Data, suggesting larger risk.
Daily options Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.
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.
Nordstrom (NYSE: JWN) - overall implied volatility Elevated into EPS. JWN is expected to report EPS of .68 cents on 8/23 according to Thomson First Call. STFL say's "we believe JWN is successfully leveraging its sales success with operational improvements, better systems and well managed expenses." JWN over all option implied volatility of 42 is above its 26-week average of 30 according to Track Data, suggesting larger price risks.
TJX Cos (NYSE: TJX) - implied volatility Elevated into 8/14 EPS & Outlook. TJX, an off-price retailer with 1,530 T.J. Maxx & Marshall stores, is recently up .35 to $27.87. TJX is expected to report 2Q EPS of .36 cents on 8/14. Buckingham has a Strong Buy rating and $34 price target on TJX. BUCK say's "remains one of our top picks in the current weak retail environment." TJX over all option implied volatility of 35 is above its 26-week average of 25 according to Track Data, suggesting larger risks.
Office Depot (NYSE: ODP) - all volume & volatility Elevated as ODP near 2-year lows. ODP is recently up .34 to 23.74. ODP has a market cap of $6.4 billion. ODP September 25 calls have traded 404 times on transaction volume of 8,018 contracts above its open interest of 1,038 contracts. ODP September option implied volatility of 47 is above its 26-week average of 29 according to Track Data, suggesting larger risk.
US Steel (NYSE: X) volatility Up on unconfirmed chatter that Atticus is building stake. X is recently down $3.18 to $89.49. Unconfirmed chatter is circulating that Atticus Capital has acquired a 10% stake in X. X September option implied volatility of 45 is above its 26-week average of 38 according to Track Data, suggesting larger price fluctuations.
TiVo (NASDAQ: TIVO) calls active as TIVO trades near 10-month high. TIVO, a digital video recorder provider, is recently up 64 cents to $7.01. TIVO has a market cap of $682 million. TIVO September 7.5 calls have traded 25 times on transaction volume of 1,300 contracts above its open interest of 435 contracts. TIVO September option implied volatility of 57 is near its 26-week average according to Track Data, suggesting non-directional risk.
Brinker (NYSE: EAT) volatility up; EAT talking to investors about selling Macaroni Grill. EAT operates restaurant concepts including; Chili's, Macaroni Grill, Maggiono's & On the Border. Goldman Sachs says "EAT reported 4Q operating EPS of $0.57, ahead of our $0.47 estimate. The overage came largely from a lower tax rate, share count, and modest expense variance." Dow Jones reported EAT "is talking with a 'number of investors' about the possible sale of its Romano's Macaroni Grill chain." EAT September option implied volatility of 33 is above its 26-week average of 29 according to Track Data, suggesting larger risk.
Daily options Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.
Gap Inc.(NYSE: GPS) volatility Elevated into new CEO. GPS, the San Francisco based parent company of 3,200 Gap, Old Navy, and Banana Republic stores, appointed Glenn Murphy, 45, to serve as GPS's Chairman and CEO and as a member of the Board of Directors. Smith Barney upgraded GPS to Buy. SBSH says: "The new CEO can positively impact customer focus and in-store experience." GPS over all option implied volatility of 31 is above its 26-week average of 29 according to Track Data, suggesting larger price fluctuations.
Target Corp. (NYSE: TGT) volatility increases; TGT sells off after Ackman announces position. TGT closed at $62.10. William Ackman's Pershing Square owns a 9.6% position in TGT. Robert Ulrich, TGT's Chairman of the Board, filed to sell one million shares of TGT on 7/12 through SEC form 144. TGT August option implied volatility of 35 is above its 26-week average of 24 according to Track Data, suggesting larger price risks.
GlaxoSmithKline (NYSE: GSK) volatility Elevated into 7/30 FDA meeting on Avandia. GSK closed at $49.63. A FDA advisory committee meeting on 7/30/07 will review GSK's diabetes drug Avandia. The New England Journal of Medicine carried a story on 5/21 saying, Avandia "significantly increases" the risk of heart attack. Cowen says: "It is difficult to envision what GSK could present that would significantly alter FDA and prescriber sentiment." GSK August option implied volatility of 30 is above its 26-week average of 20 according to Track Data, suggesting larger risk.
General Motors Corp. (NYSE: GM) volatility Elevated on tighter credit and into 7/31 EPS. GM closed at $31.10. GM will report EPS on July 31st. GM August over all option implied volatility of 53 is above its 26-week average of 37 according to Track Data, suggesting larger risk.
Daily options Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.
Google Inc. (NASDAQ: GOOG) -- option prices Elevated into EPS & Outlook. GOOG is estimated to report EPS of $3.59 today according to Thomson First Call. BAMO says, "Expecting a solid quarter on better than expected query growth." GOOG July 550 straddle is priced at $27.30. GOOG August option implied volatility of 35 is above its 26-week average of 29 according to Track Data, suggesting larger near term risk.
Microsoft Corp.(NASDAQ: MSFT) -- July straddle Flat into EPS. MSFT is expected to report EPS of $0.32 according to Thomson Financial today. MSFT announced a $1.15 billion charge last week related to an Xbox design flaw. MSFT July 30 straddle is priced at $1.42. MSFT August option implied volatility of 23 is near its 26-week average according to Track Data, suggesting non-directional risk.
General Motors (NYSE: GM) option implied volatility Flat at 39. GM is recently up $1.14 to $36.60. Goldman Sachs added GM to its Buy list and upped the target to $42 "on momentum into UAW talks." The analyst goes on to say "We also recommend buying Sept $37.50/$42.50 call spread for $1.25, to gain leverage upside exposure within a range." GM September overall option implied volatility of 39 is near its 26-week average according to Track Data, suggesting non-directional risk.
Nike (NYSE: NKE) July implied volatility Elevated into 6/26 EPS and Outlook. NKE will report EPS on 6/26. Thomson First Call estimates EPS of $0.86. Thomas Weisel Partners says that "Nike appears well positioned into FY08." NKE July option implied volatility of 29 is above its 26-week average of 21 according to Track Data, suggesting larger price fluctuations.
Ethan Allen is one of the few companies that have positioned themselves to survive and possibly thrive when the Fed decides to fuel up the economy again. Management honesty in the way they evaluate their own performance translates into honestly on how they communicate to investors. Therefore, a good source for what is going on in the economy.
The furniture maker began warning of a slowdown very close to when the housing industry rolled over. It appeared the economy was moving along fine, but once again Ethan proved to be a good and correct data point on housing and subsequently the economy.
It is time to start using Ethan Allen as the indicator as to when the economy will bottom. If the stock does little to the downside today, it is most likely a sign the selling is done and the Fed will move to lower rates.
The Volatility Index S&P 500 Options-VIX closed at 14.29.
Goldman Sachs (NYSE: GS) -- option implied volatility suggests slight risk into March 13 EPS. GS closed at $199.44. GS is expected to announce EPS of $4.83 on March 13 according to Thomson Financial. GS over all option implied volatility of 27 is near its 26-week average of 25 according to Track Data, suggesting non-directional risks.
Lehman Brothers (NYSE: LEH) -- option implied volatility indicates inline risk into EPS. LEH is expected to report EPS on March 14. LEH over all option implied volatility of 29 is near its 26-week average according to Track Data. LEH March at the money straddles is priced at $3.65 above its theoretical value of $2.71, suggesting inline EPS risk.
Bear Stearns (NYSE: BSC) -- March options implemented as Hedge into March 15 EPS. BSC closed at $152.06. BSC is expected to report EPS on March 15. BSC over all option implied volatility of 29 is near its 26-week average according to Track Data. BSC March at the money straddle is priced at $7.25, suggesting slightly larger risks into EPS.
The Daily Option Update is provided by Stock Options Specialist Paul Foster of theflyonthewall.com.
To me, 
eBay
The Bear Stearns Companies Inc.
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