Discussing sell-off in Facebook, Twitter and Pandora as the market soars, with CNBC's Melissa Lee and the Options Action traders.» Read More
The stock market's main fear gauge moved past a key level on Monday, indicating possible troubles ahead for the market.
I can't think of a worst industry than the airlines. The group flies on paper thin margins, subject to the ebbs and flows of the price of oil and huge capital expenditures. Even in good times, these guys have trouble making money, leaving the sector more or less uninvestable.
Growing up, I was a huge fan of The Peanuts, especially when Lucy would hold a football out for Charlie Brown, only to pull it away and cause Charlie to fall. A similar dynamic is taking place with Apple shareholders and the closely-followed Developers Conference.
Interesting trade hitting the tape today: A bearish investor made a $1.5 million bet that Mosaic stock would trade below $35 before the third week in September, purchasing over 14,000 contracts of the 35-strike puts. Yikes!!
The stock market had a banner day today, despite the fact that General Motors - one of America's most storied corporate icons - officially filed for Bankruptcy. A couple key positive economic data points and it was off to the races.
As a society, we are obsessed with seemingly random numeric milestones: Dow 10,000. Obama's first 100 days. The 20th episode of 'Options Action.' (The last one might be a stretch, but for those keeping score, that would be May 29th). But one number that has grabbed everyone's attention is 30, or more specifically, the level the VIX broke through yesterday.
On Friday's edition of "Options Action," we did something that we rarely do: recommended buying options, or more specifically, buying the Hewlett-Packard June 35 straddle for $3.50.
The last of the big tech earning will arrive on Tuesday, when Hewlett-Packard reports results. Currently the options market is pricing in a 6.5% move on the big day, which would be slightly more than the 6% move that the stock recorded over the last four quarters.
One of the things I like most about "Options Action" is that we talk about making money even when stocks do nothing. Case in point: Baidu.
Options traders continue to hit the reset button on what is fast emerging as their favorite game: playing Electronic Arts for a takeover. On little news today, the May 21 and 22.5 calls are particularly active, with the 22.5 strike calls seeing 21,000 contracts trading hands.
On Friday's very fine episode of "Options Action," the fab five discussed how implied volatility was rich compared to realized volatility. More simply put, options traders were overpricing expected moves for stocks, which means if you had sold some of that volatility heading into earnings, you'd be sitting on some extra cash.
In minutes from now, Apple will release quarterly earnings. In what could be a preview of what's to come, AT&T reported results that topped expectations. The telecom giant added 1.2 million net new subscribers, with the company getting a heavy assist from Apple in the form of 1.6 million new iPhone accounts.
What to make of the relative strength of Morgan Stanley? The bank is set to report earnings on Wednesday, and on a day when the broader financials are off 11%, with Citigroup and Bank of America off a respective 19% and 24%, Morgan is hanging in there, down only 5%.
For tech fans, and even casual investors, few events pique interest like Google earnings...After all, it is not hyperbole to say that Google IS the Internet.
Most people - even my own beloved mother, who watches CNBC everyday and can talk P/E multiples with the best of them - are afraid of options.
Today, the VIX again broke through 40, albeit slightly, reflecting the hopes that things may be settling down a bit.
Not since US weekly had a double issue has the rumor mill been in such high gear. Of course, the rumors I'm talking about have nothing to do with Brad or Angelina, (apparently Brad is demanding marriage) or the latest turn in the life of some tragic starlet.
Always love to talk a good tech trade, and one stock that appears to be grabbing options traders' interest today is Garmin, the maker of those nifty navigation devices.
One company that we highlighted on Friday was NetApp, which was formerly known as Network Appliance. The company primarily offers data storage services to businesses and, according to our Stacey Gilbert of Susquehanna, is a perennial takeover candidate.
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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.