Market surges back dramatically, regaining losses from Tuesday originally appeared on BloggingStocks on Wed, 23 Jan 2008 16:43:00 EST. Please see our terms for use of feeds.

Alexion Pharm (NYSE: ALXN) is a product developer of anti-inflammatory therapeutics, primarily for hematological and cardiovascular discords, autoimmune diseases and cancer. ALXN is recently up $1.35 to $73.81 on unconfirmed & renewed takeover chatter. ALXN has a market cap of $2.7 billion, with long-term debt of $176 million. ALXN had June 2007 total quarterly revenue of $9.6 million. ALXN November option implied volatility of 57 is above its 26-week average of 41 according to Track Data, suggesting larger risks.

Sterlite (NYSE: SLT), a non-ferrous metals and mining company based in India, is recently up $2.47 to $22.10. SLT call option volume of 3,868 contracts compares to put volume of 521 contracts. SLT November option implied volatility of 84 is above its six-week average of 51 according to Track Data, suggesting larger risk.

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

Option update 10-11-07: Rise in Alexion (ALXN) and Sterlite (SLT) stirs higher volatility originally appeared on BloggingStocks on Thu, 11 Oct 2007 15:40:00 EST. Please see our terms for use of feeds.

Though August's market volatility is now a distant memory for some investors, it could be a spur to seek out assistance from financial planners. How can financial planners advise clients to deal with volatility, both from a psychological and portfolio standpoint? What does volatility actually indicate about underlying economic fundamentals (apart from fear and uncertainty)?

In my view, financial planners need to be honest about what they know and what they don't know. And they should advise their clients to prepare themselves for volatility through a combination of balancing their life - the psychological part -- and portfolio contingency planning - the portfolio perspective.

From a psychological perspective, I don't know if financial planners have a role - beyond recommending psychologists who specialize in helping people deal with psychological pressures related to money. But one thing financial planners can do is to be honest about the limitations of their knowledge:

Continue reading How financial planners can help investors deal with market volatility

How financial planners can help investors deal with market volatility originally appeared on BloggingStocks on Mon, 08 Oct 2007 16:00:00 EST. Please see our terms for use of feeds.

A piece in The Wall Street Journal laments that the day to day gyrations of the market are hard to predict. Duh. Furthermore, the methods that once appeared to be effective in making predictions no longer work. Double-duh.

It's an interesting piece, and a good one, focused on the role that hedge funds may be playing in increasing market volatility. The problem is this: who really cares? According to some, days where 90% of shares traded in the same direction, was a good indicator of a bottom:

"This used to be a good signal of a major bottom," says Tim Hayes, Ned Davis's chief investment strategist. "Now, it could be turning into a signal of the end of a less-significant market correction -- or it could be turning into an inconsistent signal" that simply means investors are anxious

Well wasn't that enlightening?

There have been very few market prognosticators, and not enough to make me think it's anything other than luck, who have correctly predicted the markets swings over an extended period of time. Does any of this volatility matter for the long-term investor? No, and the long-term investor is the only one who's likely to do well over the long-term.

So sit back, dollar-cost average, and count on the long-term growth of the economy for long-term returns. And don't pay attention to investment strategists who use the word could twice in the same sentence.

Wall Street Journal ponders difficulty in finding a bottom: who cares? originally appeared on BloggingStocks on Tue, 11 Sep 2007 18:32:00 EST. Please see our terms for use of feeds.

Continue reading Comfort Zone Investing: Ways to ease the pain

Comfort Zone Investing: Ways to ease the pain originally appeared on BloggingStocks on Sat, 28 Jul 2007 10:30:00 EST. Please see our terms for use of feeds.