Goldman Sachs Group, Inc. (GS) is recently down 1% due to Rajat Gupta (who served on the boards of Goldman Sachs and Procter & Gamble (PG) both), having been charged by the SEC in an insider trading scheme.

GS March 155 and 160 puts were active. March and July put option implied volatility of 27 is near its 26-week average of 29 according to Track Data. Large put volume suggests traders hedging for downside price movement.

Staples, Inc. (SPLS) March call option implied volatility is at 37, June is at 29 according to Track Data, compared to its 26-week average of 28, suggesting larger near-term movement into Q4 results on March 2.

Options Update is by Stock Specialist Paul Foster of theflyonthewall.com.

Options Update: Goldman Sachs Puts Active on SEC Charging Director for Insider Trading originally appeared on BloggingStocks on Tue, 01 Mar 2011 17:30:00 EST. Please see our terms for use of feeds.

Fifth Third Bancorp (FITB - option chain) stock is trading lower today after the company disclosed in a regulatory filing that it has been subpoenaed by the Securities and Exchange Commission regarding commercial-loan practices. If you think this stock won't be rising too far in the coming months, then it could be a good time to look at a bearish hedged play on FITB.

This morning, FITB opened at $13.97. So far today the stock has hit a high of $14.15 and a low of $13.67. As of 11:50, FITB is trading at $14.02, down $0.58 (-4.0%). The chart for FITB looks bullish and S&P gives FITB a positive 4 STARS (out of 5) buy ranking.

Continue reading Fifth Third Bancorp Subpoenaed by SEC

Fifth Third Bancorp Subpoenaed by SEC originally appeared on BloggingStocks on Tue, 01 Mar 2011 13:00:00 EST. Please see our terms for use of feeds.

Microsoft (MSFT) CEO Steve Ballmer sold about 50 million shares of his Microsoft stock for $1.34 billion, as reported in the Wall Street Journal (subscription required).

Let's listen to a fictitious exchange between Steve and his tax accountant: "Steve, you know you hold 408 million shares of Microsoft. For the end of the year tax adjustments, it's a good idea to sell some of it, say 50 million. Microsoft's earnings are strong. The mutual and hedge guys most likely will be buying. We can sell into that strength."

Continue reading Microsoft's Ballmer Sells $1.34 Billion of Microsoft Stock

Microsoft's Ballmer Sells $1.34 Billion of Microsoft Stock originally appeared on BloggingStocks on Sat, 06 Nov 2010 12:40:00 EST. Please see our terms for use of feeds.

After nearly five months, federal regulators have been able to dissect the events of May 6, the day when the Dow plunged almost 1,000 points.

A joint report issued by the Commodity Futures Trading Commission and the Securities and Exchange Commission (SEC) pieced together that day's events and came up with this finding, as reported in the Wall Street Journal. A computerized trading program run by a Waddell & Reed trader automatically sold 35,000 e-mini S&P contracts. These contracts mirror the larger S&P contracts. The trader's program was triggered at 9% of the trade volume.

Continue reading Flash Crash Report: What Really Happened?

Flash Crash Report: What Really Happened? originally appeared on BloggingStocks on Sat, 02 Oct 2010 09:40:00 EST. Please see our terms for use of feeds.

Continue reading Green Mountain Coffee's SEC Woes Inspire a Bearish Strangle

Green Mountain Coffee's SEC Woes Inspire a Bearish Strangle originally appeared on BloggingStocks on Wed, 29 Sep 2010 14:30:00 EST. Please see our terms for use of feeds.

Continue reading Can Regulators Fix the Market?

Can Regulators Fix the Market? originally appeared on BloggingStocks on Tue, 14 Sep 2010 11:30:00 EST. Please see our terms for use of feeds.

On May 6, we saw the Dow plunge almost 1,000 points in a matter of minutes. To date, no one has pinpointed the cause of the crash.

Meanwhile the Securities and Exchange Commission (SEC) has been scrambling to plug the leak in the dike. An article in USA Today outlines the expanded SEC rules.

Continue reading More Stocks Are Covered by Circuit-Breaker Rule

More Stocks Are Covered by Circuit-Breaker Rule originally appeared on BloggingStocks on Sat, 11 Sep 2010 12:40:00 EST. Please see our terms for use of feeds.

With sophisticated high-frequency trading and quant funds, it seems that the proverbial Hal 9000 has taken over Wall Street. Of course, a stark example of this was in May 6, in which the market inexplicably lost $862 billion in market value within 20 minutes. It was the "Flash Crash."

Since then, the SEC and other government regulators have been investigating the matter. Already, there are some changes that have been put in place, such as circuit breakers. And yes, these have been triggered in some cases already.

Continue reading SEC's Schapiro Hints at 'Flash Crash' Reforms

SEC's Schapiro Hints at 'Flash Crash' Reforms originally appeared on BloggingStocks on Tue, 07 Sep 2010 16:00:00 EST. Please see our terms for use of feeds.

The Securities and Exchange Commission pretty much fell asleep for the past two years. Now, there's talk that the agency plans to get tough on violators whose greed and recklessness took this country to its knees. The Federal Reserve had to pledge or spend $12.8 trillion to bail them out.

The $12.8 trillion is gone and we have a country with 17 million unemployed and underemployed. Fed Chairman Ben Bernanke could have done much better just taking that $12.8 trillion and help those in need. All he had to do was use one good bank for Americans to switch their money into, and let the greedy ones take a hit. With $12.8 trillion Bernanke could have put this country back on its feet again.

Continue reading SEC, Asleep During the Financial Meltdown, Vows to Get Tough

SEC, Asleep During the Financial Meltdown, Vows to Get Tough originally appeared on BloggingStocks on Fri, 27 Aug 2010 11:00:00 EST. Please see our terms for use of feeds.

Continue reading Whistleblowing Provision in Financial Reform Act Could Mean Big Payouts

Whistleblowing Provision in Financial Reform Act Could Mean Big Payouts originally appeared on BloggingStocks on Mon, 09 Aug 2010 09:30:00 EST. Please see our terms for use of feeds.

Continue reading Closing Bell: Taking Back the Bernanke Loss from Yesterday (WFC, GDOT, USO, GS, ACF, DELL)

Closing Bell: Taking Back the Bernanke Loss from Yesterday (WFC, GDOT, USO, GS, ACF, DELL) originally appeared on BloggingStocks on Thu, 22 Jul 2010 16:00:00 EST. Please see our terms for use of feeds.

If you are familiar with Securities and Exchange Commission cases, you will recognize this boilerplate settlement. By "boilerplate" I mean that Goldman Sachs (GS) is fined, but neither admits nor denies any of the charges.

Goldman settled for a measly $550 million. This amounts to about a week's worth of trading. Goldman further got regulators to drop all fraud charges and settle for a lower charge, which said the marketing material for collateralized debt obligations(CDOs) "contained incomplete information."

Continue reading Goldman Settles with the SEC for $550 Million

Goldman Settles with the SEC for $550 Million originally appeared on BloggingStocks on Fri, 16 Jul 2010 10:00:00 EST. Please see our terms for use of feeds.

The exodus is set to begin. Rumors have pegged today as the day that Colorado is going to leave the Big 12 athletic conference for the "greener pastures" of the PAC-10.

This move will be the first in what will become the end of one of NCAA Football's most storied and most profitable athletic conferences. The Big 12 was one of the leaders of the NCAA Football world, but it is set to become nothing more than a carcass, left to be picked over by the major predators of the football world (most notably the PAC-10, SEC, and the Big Ten).

Continue reading JockStocks: RIP Big 12

JockStocks: RIP Big 12 originally appeared on BloggingStocks on Fri, 11 Jun 2010 12:30:00 EST. Please see our terms for use of feeds.

Continue reading SEC Levels Charges in $40 Million Ponzi Scheme

SEC Levels Charges in $40 Million Ponzi Scheme originally appeared on BloggingStocks on Thu, 03 Jun 2010 14:40:00 EST. Please see our terms for use of feeds.

For weeks, Goldman Sachs has been swinging in the wind as the SEC charges were made, Senate hearings (chest pounding) were conducted and it was announced that the DOJ was investigating Goldman and the rest of the Wall Street banking club.

This week, I posted How Much Further Can Goldman Sachs Drop? at the behest of one of our editors. Today, amid the rumors that settlement talks are under way between Goldman Sachs and the SEC, I am wondering how much the stock will bounce when rumors become reality? I would bet a lot. I have bet a lot.

Continue reading Get Ready for Goldman Sachs to Bounce!

Get Ready for Goldman Sachs to Bounce! originally appeared on BloggingStocks on Sat, 22 May 2010 14:40:00 EST. Please see our terms for use of feeds.

The Securities and Exchange Commission is planning to institute trading curbs on major exchanges and individual stocks starting in mid June. The proposal is for "circuit breakers" to kick in when the market drops 5% between the hours of 9:45 a.m. and 3:35 p.m.

Why are these proposals inadequate? First, Gary Gensler of the Commodity Futures Trading Commission testified that it was the sale of 75,000 e-mini S&P contracts by Waddell and Reed that started the sell off. This kicked off high-speed computers by big banks and traders all over the country. Within 20 minutes, the trading in just this one contract swelled to over 840,000 contracts, plunging the Dow down 998 points, or nearly $1 trillion dollars.

Continue reading Proposed Trading Curbs Are Inadequate for 21st Century Trading

Proposed Trading Curbs Are Inadequate for 21st Century Trading originally appeared on BloggingStocks on Wed, 19 May 2010 12:30:00 EST. Please see our terms for use of feeds.

Continue reading Congress, SEC and Goldman Sachs Failures -- Part 2

Congress, SEC and Goldman Sachs Failures -- Part 2 originally appeared on BloggingStocks on Wed, 12 May 2010 17:00:00 EST. Please see our terms for use of feeds.

Continue reading Closing Bell: Market Bounces Back with a Vengeance (AIB, MCO, NBG, GS, PLD)

Closing Bell: Market Bounces Back with a Vengeance (AIB, MCO, NBG, GS, PLD) originally appeared on BloggingStocks on Mon, 10 May 2010 16:00:00 EST. Please see our terms for use of feeds.

Goldman Sachs

Continue reading Goldman Sachs in Settlement Talks with the SEC

Goldman Sachs in Settlement Talks with the SEC originally appeared on BloggingStocks on Fri, 07 May 2010 10:00:00 EST. Please see our terms for use of feeds.

It's been great theater. Goldman Sachs (GS) executives appeared before Congress and staunchly denied any wrongdoing.

Now Goldman is expected to file a motion with the SEC to dismiss the action. This would set in motion the grounds for a negotiated settlement.

Before the congressional committee, CEO Lloyd Blankfein was aggressive and outspoken in defending his and the bank's actions. He said: "I heard nothing today that makes me think anything went wrong."

Continue reading Will Goldman Sachs and the SEC Arrive at a Settlement?

Will Goldman Sachs and the SEC Arrive at a Settlement? originally appeared on BloggingStocks on Sat, 01 May 2010 11:40:00 EST. Please see our terms for use of feeds.