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The Word On GM, J. Crew & Airline Puts

Wednesday, 14 Mar 2007 | 9:22 PM ET

Go behind the headlines and get the latest word on today's hot trades -- this kind of info comes straight from buyers and sellers on the trading floor. You won't find straight talk like this, anywhere else.

ALL EYES ON TOMORROW'S PPI:
The news: The markets moving Producer Price Index or PPI number is released tomorrow morning.

The word: Eric Bolling says PPI doesn’t matter. CPI on Friday is more important.


GM SPUTTERS TO PROFIT:
The news: Shares of General Motors (GM) fall despite the fact that the automaker is reporting the largest quarterly profit in more than 2 years.

The word: Jeff Macke says GM made money selling cars! This could be a turn around story and they might be one to watch, maybe.


LEHMAN BROTHERS GRIMM:
The news: Lehman shares fall as much as 5.5% despite Lehman reporting a record quarterly profit.

The word: Guy Adami says Goldman Sachs (GS) beat EPS earnings by 36% yesterday and Lehman (LEH) beats it by a penny, yet they both trade with a 9.5 multiple. It makes no sense to him, though Guy says it’s neither an indictment of LEH or an endorsement of GS.


H&R BLUES:
The news: H&R Block (HRB) hits a 4-year low as sub-prime crisis worsens quarterly loss.

The word: Tim Strazzini says their Options One mortgage business lost $50 million dollars and they’ve’ set aside another $100 million– with management doing everything they can to get this under control. Tim says the smart trade is selling puts out into April or June or buying the stock although it’s going to be flat for a while.


OIL'S STEADY FLOW:
The news: At a meeting tomorrow, OPEC is expected to announce current output levels will remain unchanged

The word: Eric Bolling says it doesn’t matter. That’s priced into the market already.


J. CREW LOOKING GOOD?
The news: J. Crew (JCG) shares fall despite better-than-expected earnings

The word: Jeff Macke says J Crew has high inventory. He likes the name but says give it time before buying, don’t jump in tomorrow.


AMR ROUGH LANDING?
The news: AMR Put Buying Picks Up

The word: Guy Adami says traders are buying $30 puts (a bet the stock will go down) with the stock trading at $31.25. (That might be because last summer the airlines got crushed although Guy isn’t worried about that, yet.) However, Guys admits he will be keeping a close eye on the put buying in the sector.

  Price   Change %Change
GM
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GS
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HRB
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Questions? Comments? fastmoney@cnbc.com

Word on the Street
The word on how to play the market lows

Trader disclosure:
On MAR 14, 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders Bolling owns (PMI) Put Options, Gold, Silver, Soybeans,(DIS) is Short Corn Strazzini Owns (YHOO), (VZ), (BRCM)

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