HPQ is currently trading near its 52 week highs and is getting ready to report after the close today. HPQ Quarterly Earnings and estimates (Q4E)- $.87 and Quarterly Revenue(Q4E)- $30.7B. HPQ has a 61% positive surprise history. Should be interesting to see how HPQ trades post report as Dell fell after earnings.

MGM posted a profit of $3.1B vs last year’s profit of $1.44B. Revenue rose 55% or $2.3B as MGM made more from entertainment and the consumer spending more. MGM resorts said its US properties improved occupancy and average daily room rate.

UNUSUAL OPTION ACTIVITY:

We have seen a Customer buy FCEL July 2 Calls for $.25. I also bought them due to the volume and massive move of the FCEL stock.

We have seen a huge seller of MS Apr 22 Calls for $.25. As Andrew Keene reported on Bloomberg.. He thinks these are institutions repositioning. I believe this is a closing trade due to the open interest in MS Calls.

By Greg Zimny

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
@Cam_Patrick 

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Unprofitable: This trade is unprofitable if DELL Closes under $16.80 by April 20, 2012. The most I can lose on this trade is the amount the Put Spread can be worth $1 minus the amount I sold it for, $.21 for a total of $.79.

Reason I like this Trade: 

We have seen strong earnings from “Old School” tech such as IBM, MSFT, and Intel.  Dell is up 25% YTD while the Nasdaq is only up 13%.  I would rather get long a pullback, than jump on a long into earnings.  They have received 5 downgrades in the last 2 days, but still remains very strong.  I think going forward they have issues with the Smart Phone market and their margins are now 22-23% vs historical level of 19%.  The stock has been to strong to buy into earnings, but I can not short into the strength.  I want to get long on a pullback, so I am putting the following trade on:

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