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Options traders cannot leave the casino - at least if call activity on Las Vegas Sands is any indication.
No Monday would be complete without a thorough recap of our traders' picks. Our time slot has changed, but our ability to make smart trades and employ the right options strategies has not, and Friday's show offered several prime examples of that.
Hello Options Action faithful. We promised a recap of the trades - so here it is.
As we have head into Cisco's earnings print tonight, the implied move int he options market has ticked up a bit from ~2.5% last last week to almost 5% which is a bit rich to the avgerage over the last 8qtrs of about 4%.
Nothing feels worse than having to leave a party, race home as fast as you can, only to miss snippets of that cable sensation "Options Action" (known within the industry as "The O/A").
Whenever I think of about the Yahoo-Microsoft deal, I'm reminded of the closing lines of "Jerry McGuire," when Tom Cruise tells his wife that she completes him. But in truth, the better line to describe the deal came earlier in the film, when Cuba Gooding Jr. screamed "Show me the money."
Apparently, Nancy Reagan isn't the only one saying no to drugs. Options Traders appear to be living in an 80s PSA as well, shunning shares of Pfizer through some heavy put buying.
While the surge in tech and financials grab the headlines, a rather profound rally has occurred in media land. Look no further than stocks like Disney, CBS and Discovery Communications, which have posted respective gains of 31%, 28% and 35% over the last three months.
Not since Michael Phelps captured his record eighth Olympic gold medal has a nation been so captivated by a single broadcast event. What am I referring to? Friday's fine edition of "Options Action", of course.
Few companies, or stocks for that matter, capture the imagination like Apple, with its snazzy array of iProducts.
Call it Schadenfreude, tech style. Dell shares are off about 8% today after CEO Michael Dell announced yesterday that rising costs were weighing on margins. But could Dell's pain be Intel's gain?
Some bright signs emerging in option land recently. Yesterday, an investor went out and gobbled up 100,000 contracts of the XLF July 12-strike calls ahead of Goldman's earnings. Meredith Whitney may have taken the wind out of that trade by upgrading the bank ahead of what were fantastic earnings this morning.
Yesterday, I flagged some bullish options bets on Alcoa ahead of its earnings tonight, with investors snapping up nearly 50,000 of the 10-strike calls in the August expiry.
I'll be the first to admit it: I am obsessed with the Jacko coverage today. But for those able to take their eyes off the spectacle, I promise you, there's a no less riveting development taking hold in the options pits today. Case in point: Alcoa call options.
A couple weeks back, "Options Action" fans got a lesson in volatility when education provider Apollo released earnings. The stock had averaged a 15% move over the last eight quarters, but a funny thing happened after it posted results: nothing.
Between the death of Michael Jackson, a prolonged and spectacular car chase, and the Madoff sentencing, the cable news world has been in a virtual frenzy this afternoon. It's like a gift from God for those who make a living producing this stuff.
At one point today, the VIX fell 7% and touched its post Lehman-low. This despite what had been some very bearish posturing from market participants just last week. Case in point, heavy upside call buying on VIX options in the July and August expiry at the 50-strike.
On a day when the market is taking it on the chin, some decidedly bullish bets are emerging in retail land in the options pits. Case in point: Coach.
With June expiration today, I thought a little housekeeping would be in order. On May 8th, Dan Nathan suggested putting on a calendar spread, where he sold the Apple June 140 call for $2.35 to finance the purchase of the July 140 call for $4.35. Talk about turning time into money.
Not to beat a dead horse, but one can't help but notice the number of very large defensive options trades on RIMM today heading into the close and the company's earnings release.
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Mike Khouw, Options Action trader, shares his view on News Corp stock on the heels of testimony from Rupert Murdoch before British Parliament.
Do you have a question for the Options Action team? Options Action selects a viewer's question and gives the answer on the show's Make The Call Web Extra video.