Options Trading Blog
Options Trading Tips and Strategies
Monday, CTB and PCLN are set to report earnings.
CTB: Quarterly Earnings and estimates of $.39 and Quarterly Revenue of $1B. CTB has a new management team and provide a lot of aftermarket tires. Is a USW deal close?
PCLN: Quarterly Earnings and estimates of $5.02 and Quarterly Revenue of $967M. Is it time to lock in profits? PCLN might give negative forward guidance because of high gas prices. PCLN has been in a 5 point trading range all day.
UNUSUAL OPTIONS ACTION:
We have seen a Customer buy 16,900 IVN Mar 20 Calls for $.25. This is 7.6x usual trading volume. This Could be a closing trade because open interest is only 25,000.
A Customer bought 10,000 AA Mar 11 Calls for $.12.
Also, we have seen a customer buy 10,800 Jun 3.5 Puts for $1.05.
By Greg Zimny
Reaction: Was trading as high as $148.02 this morning. It quickly sold off to $140, but bounced from there. CRM opened at $145.54 on 2.5x average daily volume.
Next Targets to Upside and Downside: CRM has been trading in a huge range between the July 2011 Highs of $160 and traded as low as $98 in January of 2012.
Estimates and Guidance are increasing for Salesforce . Morgan Stanley predicts continued margin expansion. Salesforce mentioned in the conference call that it won 100(+) 7 figure deals during the quarter. Also, Nomura reiterated its “BUY” recommendation on CRM. Nomura expects CRM to exceed revenue and increase its guidance. CRM’s 50 day moving average is around $113.82 and 200 day moving average is $128.20. Salesforce mentioned in the conference call that it won 100+ (7 figure) deals during the quarter. Also, Nomura reiterated its “BUY” recommendation on CRM. Nomura expects CRM to exceed revenue and higher guidance.
Jcp- Quarterly earnings estimates ending(Q4E) $ .67 and $5.5 Billion quarterly revenue estimates ending (Q4E). In my opinion, JCP could miss bad on earnings and its PPS could still rise due to low expectations. Also, I can see JCP beating earnings and selling off due to low guidance that’s already baked in the stock price.
Newmont Mining Corp- Quarterly earnings estimates ending QE4 of $1.26 and quarterly revenue estimates of $2.7 billion. Since Obama has been president it has been, “DRILL, DRILL, DRILL.” With US oil production up 9% and US oil leases higher year over year, it is hard to be short oil mining stocks with WTI Crude at $109.
American International Group (AIG) saw profit in their fourth quarter rise by 77%. This was due to a big tax benefit. Shares are trading up 4.5% to $29.00. This could lift the financial sector as a whole tomorrow. Deckers Outdoor Corp. (DECK) is trading down pretty heavily. The company beat EPS and Revenue estimates but is still getting smacked. Stock is currently down 6.85% to $82.41. Good old Crocs Inc. (CROX) is getting hammered as well; this shouldn’t be a surprise to anyone. Only in America can the most hideous pair of clogs sell. Stock down 9.85% to $18.25 as CROX issued poor Quarter 1 guidance. The SPY closed at $136.70 after putting in a low at exactly $135.50. The trend of morning sell offs and afternoon buy programs stills seems to be the status quo for 2012. The SPY is up 7.5% for the year so far.
Written by Cameron Patrick