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[Option Update: Pilgrim's Pride volatility at 189 into credit compliance warning]]>http://www.bloggingstocks.com/2008/09/25/option-update-pilgrims-pride-volatility-at-189-into-credit-com/http://www.bloggingstocks.com/2008/09/25/option-update-pilgrims-pride-volatility-at-189-into-credit-com/http://www.bloggingstocks.com/2008/09/25/option-update-pilgrims-pride-volatility-at-189-into-credit-com/#commentsFiled under:

Pilgrim's Pride (NYSE: PPC) informed its lenders it does not expect to be in compliance with its fixed-charge coverage ratio covenant under its principle credit facilities. PPC is the U.S.'s second largest chicken processor. PPC November option implied volatility of 189 is above its 26-week average of 56 according to Track Data, suggesting larger price fluctuations.

Transmeta (NASDAQ: TMTA) said it has begun a process to seek a potential sale of the company. TMTA, a designer of chip technology, closed at $13.50. TMTA over all option implied volatility of 66 is above its 26-week average of 54 according to Track Data, suggesting larger price movement.

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

Option Update: Pilgrim's Pride volatility at 189 into credit compliance warning originally appeared on BloggingStocks on Thu, 25 Sep 2008 08:22:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>inthenewsoption implied volatilityppctmtaThu, 25 Sep 2008 08:22:00 EST<![CDATA[Intel sinks on $250M settlement with Transmeta]]>http://www.bloggingstocks.com/2007/10/24/intel-sinks-on-250m-settlement/http://www.bloggingstocks.com/2007/10/24/intel-sinks-on-250m-settlement/http://www.bloggingstocks.com/2007/10/24/intel-sinks-on-250m-settlement/#commentsFiled under: , , , ,

INTC logoIntel Corp. (NASDAQ: INTC) stock is dropping today after the company agreed to pay a $250 million settlement to Transmeta Corp (NASDAQ: TMTA) in a patent dispute. The terms include one initial payment of $150M plus annual $20M disbursements. 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 INTC.

Intel stock has climbed over the past six months, hitting a one-year high of $26.98 last week. This morning, INTC opened at $26.33. So far today the stock has hit a low of $25.62 and a high of $26.39. As of 11:50, INTC is trading at $25.72, down $1.08 (-4.0%). The chart for INTC looks bullish and steady, while S&P gives the stock a positive 4 STARS (out of 5) buy rating.

For a bearish hedged play on this stock, I would consider a January bear-call credit spread above the $30 range. A bear-call credit spread is an options position that combines the purchase and 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 a 4.3% return in 3 months as long as INTC is below $30 at January expiration. Intel would have to rise by more than 16% before we would start to lose money. Learn more about this type of trade here.

Continue reading Intel sinks on $250M settlement with Transmeta

Intel sinks on $250M settlement with Transmeta originally appeared on BloggingStocks on Wed, 24 Oct 2007 11:50:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>INTCIntelinthenewsInvestors ObserverInvestorsObserveroptionspatentsettlementTMTATransmetaWed, 24 Oct 2007 11:50:00 EST