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Traders Bet on a VIX Bounce with Call Options

The CBOE Market Volatility Index (VIX) is up nearly 10% this afternoon, buoyed by a down day in the U.S. equities market. Today's jump in the VIX likely comes as no surprise to option speculators, who have recently been loading up on VIX call options.

During the past five days, option traders on the Chicago Board Options Exchange (CBOE) have bought to open 177,441 calls on the VIX, compared to just 74,637 puts. In other words, about 2.38 times more calls than puts have been purchased on the so-called "fear index" during the past week.

Continue reading Traders Bet on a VIX Bounce with Call Options

Closing Bell: Not all earnings created equal (GOOG, BAC, GE, AMD, PMTI, JNJ)

Today's earnings were deemed a disappointment despite some bottom-line comfort here. A weaker University of Michigan Consumer Survey report kept the DJIA muted, and whether we'd close above or under the 10,000 mark was something that wasn't known until the final hour of trading.

Here were today's unofficial closing bell levels:

Dow 9,996.21 -66.73 (-0.66%)
S&P 500 1,087.71 -8.85 (-0.81%)
Nasdaq 2,156.80 -16.49 (-0.76%)

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Continue reading Closing Bell: Not all earnings created equal (GOOG, BAC, GE, AMD, PMTI, JNJ)

Johnson & Johnson earnings: More of the same from this blue chip

Johnson & Johnson (NYSE: JNJ), the huge producer of pharmaceutical and over-the-counter drugs and consumer healthcare products, reported earnings before the market opened today. Earnings per share for the second quarter of 2009 were $1.15 on $15.2 billion in revenue, compared to the $1.11 average and $1.14 high expected from analysts. The consensus revenue target was $15 billion, so the firm also beat on the top line despite seeing a single-digit percentage drop in revenues from last year.

Similar to consulting firm Accenture (NYSE: ACN), international results were hurt by foreign exchange effects, which offset nearly 4% operational growth overseas. Half of Johnson & Johnson's total revenues for the quarter came from outside the United States. Shares, which are down year-to-date and are underperforming the S&P 500, were up fractionally today in mid-day trading.

Continue reading Johnson & Johnson earnings: More of the same from this blue chip

Symbol Lookup
IndexesChangePrice
DJIA+79.0112,880.24
NASDAQ+28.042,931.92
S&P 500+9.971,352.61

Last updated: February 13, 2012: 03:14 PM

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