S&P Emini & Unusual Options Activity Daily Vid Recap 7.23.2012
Options Trading Blog
Options Trading Tips and Strategies
Trade of the Day (TXN) 7.23.2012
Unprofitable: I lose money on this trade if TXN closes under $25.22 or above $26.78 or July 27, 2012. The most I can lose on this trade is the amount I bought the Spread for $.22.
Risk: $22 per 1 lot
Reward: $78 per 1 lot
Chart: Bearish overall , but looking for a good risk vs reward that it tests back lower and the measured move target of $25.73
Read more about futures by www.keeneonthemarket.com
Doherty at the Close 7.23.2012
Heading the decline are the six Spanish regions expected to request central government aid according to Spains El Pais newspaper. Leading the decline, McDonald’s (MCD) fell -2.85% after the fast food company reported a larger than expected drop in second quarter profits and warned of slowing same store sales growth.
European stocks also plunged, with the Stoxx Europe 600 sliding 2.5%. Spain’s IBEX 35 index fell 1.1%, trimming losses after the country’s financial regulator imposed a short-sale ban. Spanish borrowing costs rose to a euro-era high, with the country’s 10-year bond recently yielding 7.44%. The euro fell as far as $1.2067, a new two-year low against the dollar.
The CBOE VIX index, jumped 15%, the largest one day climb this summer.
In the corporate news, Haliburton rose 2.14% after the oil-services company reported better-than-expected second-quarter results. Wet Seal (WTSLA) slid after firing its chief executive and saying it expects to report a deeper-than-expected second-quarter loss than previously forecast.
S&P Emini Pivot Points for 7.24.2012
Euro (6E) and Oil (CL) Pivot Points for 7.24.2012
Halftime Report 7.23.2012
S&P 500 futures fell 20.50 points to 1337.75, NASDAQ futures fell 53.00 points to 2560.25, and Dow Jones Industrial Average futures fell 163.00 points to 12610.00.
Soybean futures gave back over 35 cents of last week’s parabolic gains and easing drought fears.
WTI crude futures dipped below the $90.00 level and were trading at 89.00, down $2.83 on the day. Gold futures followed other futures with a decline of $7.90 to trade at $1574.90.
Hasbro Inc. (HAS) was yet another stock that posted weak earnings, yet managed to rise due to beating estimates. HAS rose over 4%.
Peet’s Coffee & Tea Inc. (PEET), a Seattle favorite and alternative to Starbucks, rose over 29% after John A. Benckiser agreed to buy the company for $1 billion or $73.50 a share.
McDonald’s Corp. (MCD) fell over 2.5% after reporting a drop in profit. MCD blames the strong USD for the drop in profit.
PetMed Express Inc. (PETS) fell almost 13% after announcing weak profit and revenue.
Sprint Nextel (S) lost over 4.5% this morning as signs of the telecommunications industry weakening became more evident.
Halliburton Co. dipped around 2% this morning and then rose to a positive 1.56% after releasing positive earnings. They had a profit of $737 million and 79 cents a share, up from $627 million last year with 68 cents a share. Revenue gained to $7.23 billion from $5.94 billion a year ago.
Apple (AAPL) declined 1.22% in preparation for tomorrow’s earnings release scheduled for after the close.
David Cornes holds a degree in economics from the University of Montana.
Movers and Shakers – NXY – 7.23.2012
CNOOC agreed to buy NXY for $27.50 a share or 61% higher than Friday’s close. NXY reported Q2 earnings of 19 cents, missing analysts’ expectations of 39 cents a share. Last year at this time NXY reported earnings of 46 cents a share and blames the earnings decrease on oil and gas prices. Q2 revenue jumped gained 11.5% to 1,769.3 million from 1654.7 million last year. the buyout is estimated to be finished in the fourth quarter.
Nexen holds a diversified portfolio consisting of both production and exploration units. Their exploration branch primarily functions in the Gulf of Mexico, West Africa and the North Sea.
David Cornes holds a degree in economics from the University of Montana.
Chris Cruises the Globe 7.23.2012
Even harder hit was the Hang Seng losing just about 3%, its worst day Since May. HSBC Holdings was
the big news hitting a 40 month low losing 5.7% today, an 8.6B dollar market value loss in China. China
Merchant Holdings also took a blow losing 5.9%.
European markets, as you may have guessed, were down. The FTSEurofirst shed 1.4% and in the heart of
the problem the Spanish Ibex lost 3.2%. European bank shares fell 4.4% and shares in Italian banks were
temporarily suspended from trading. While these fears are resurfacing in the market many know they
had never gone away.
The Eurozone’s government debt to GDP ratio stands at 88.2% at the end of the first quarter compared
to 87.3% and the end of Q4.
Futures appear to be hard hit before opening with crude losing almost 3%, natural gas and silver 1% and
1.5% respectively and gold .7%.
Contributer Chris Rygh is currently pursuing his MBA in Wisconsin and has a passion for the Market.
Comments can be directed to ryghcw19@uww.edu
First Business Interview 7.23.2012
Morning Rage 7.23.2012
Announcements today include the Chicago Fed National Activity Index and earnings
this morning from Mcdonalds, Haliburton, Hasbro and Coke.
The S&P 500 is down 1.01% from its rise last week due to troubles in Europe. 10-
year treasuries and Oil took an even bigger hit down 4.11% and 3.44% respectively.
The only bright spot is the dollar, up 0.41% at the open.
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