Options Trading Blog
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The ES futures are trading around key ES support level, 1250 this morning. We have seen a drastic increase in NYSE volume on S&P down days.
It will be a quiet day for US economic events. At 4:15 P.M ET 10 year treasury notes and Federal Fund rates. Also, we will get the latest US housing data number. Obama administration is getting ready to update us all on the corporate tax-rate plan.
AFTER THE BELL EARNINGS:
DECK: Quarterly Earnings and Estimates (Q4E)- $3.13 Quarterly Revenue(Q4E)-$562M. Deckers offer luxury shoes such as UGGs and multiple types of UGG accessories. Deckers Management reiterated their guidance after last quarter and stated, “pre- spring orders looking strong.” Expect a big move in one direction or another.
GPS: Quarterly Earnings and Estimates (Q4E)- $.42 Quarterly Revenue(Q4E)- $4.3B. Despite Gaps annual sales growth of $-1.75 for the last five years, could Gap miss analysts expectations and still run like Abercrombie is doing? Also, Gap is expanding into high-growth markets such as China, opening 30 new stores.
Also in the earnings spotlight: HPQ, Goodrich Petroleum, and TJX.
By: Greg Zimny
EU finance ministers approved a $173 billion package for the struggling nation. GLD closed up 2.18% to $171.02 while SLV closed up 3.47% to $33.40. Oil also spiked higher due to the news on Greece. Spot crude closed up 2.20% to $105.50. The 2x long oil fund UCO broke through a key $45 resistance level and closed at $46.17. Like I said earlier last week, MGM Resorts (MGM) was to be put on watch for a breakdown. Stock broke its steep trend line at $14.60 and traded down sharply after. Boyd Gaming (BYD) reported earnings in pre-market today and reported poor results. BYD is a smaller casino operator than MGM, LVS or WYNN but it has holdings in Las Vegas. MGM reports earnings tomorrow and is expected to report a loss of $0.19 per share on revenues of $2.17 billion. MGM closed down 3.38% to $14.17. With earnings tomorrow, swinging this name makes it difficult because there is no real edge. MGM closed right on its 20-dma but $12.40 would be my first downside target. This could easily be reached with an earnings catalyst. The street will focus more on MGM’s business operations in China, specifically Macau. Casinos in Macau have been the main revenue drivers for MGM, WYNN and LVS. Sears Holding Corp. (SHLD) is starting to display signs of weakness again. Stock fell 6.58% to $50.94. Dell reported earnings after the bell and is down over 4% in after hours trading despite its strong results. Almost Family (AFM), DryShips (DRYS), Qihoo 360 Technology (QIHU) and Yandex (YNDX) all report earnings tomorrow. DRYS has seen quite a meteoric rise and has made a short-term top at $3.82. Pay attention to this one tomorrow. The stock is up over 50% in 12 trading days and the breakdown could be epic.
Written by Cameron Patrick
After the bell today, Dell reports earnings. Dell is expected to report Quarterly earnings of $.52 and Quarterly Revenue of $16B. Dell made a fresh 52 week high last Thursday at $18.33. Also, WMT, reports earnings after the bell. WMT is expected to report Quarterly earnings of $.46 and Quarterly Revenue of $.24B. WMT made a new 52-week high at $62.64 on February 1st.
Unusual Option Activity:
A customer Bought 20k KKR Jan 2013 17 Calls for $.95, while the stock was trading at $15.12.
A customer Sold 2500 MWW Mar 7 Puts for $.3, while the stock was trading at $7.01.
A customer Bought 4000 CTRP Mar 28 Calls for $.1, stock was trading at $22.6.
We didn’t put on any new positions today as their was no positive order flow. We usually like to take new positions when the risk/reward ratio is attractive.
By: Greg Zimny