Traders Exclusive Videos 7.6.2012
Options Trading Blog
Options Trading Tips and Strategies
Trade of the Day (AA) 7.6.2012
Unprofitable: I lose money on this trade if AA closes above $8.57 or July 13, 2012. The most I can lose on this trade is the amount I sold the Spread for $.57.
Risk: $43 per 1 lot
Reward: $57 per 1 lot
Chart: Bearish overall , but looking for a good risk vs reward that it tests back lower
Notes: I am playing this as an even money bet that AA will sell-off next week on earnings.
UPDATE 7.9.2012 This Spread is worth $.60, but I am leaving this trade on until earnings today after the bell.
UPDATE 7.21.2012 I covered this Spread at $.26 on the sell-off to my measured move target of $8.20. Taking profits and moving on is how I roll.
Read more about futures by www.keeneonthemarket.com
Halftime Report 7.6.2012
The U.S. unemployment rate came in unchanged at 8.2%, and although nonfarm payrolls were stronger than last month, they came in 10K less than analysts’ expectations of 90K.
Gold futures slid $22.00 to $1587.40 and WTI crude futures fell $2.77 to $84.45.
Financial stocks had a steady fall across the sector after the weak jobs number. Bank of America (BAC) lost 1.42% and J.P. Morgan Chase lost 1.25%.
Alcoa Inc. fell 3.14% before their 2012 Q2 earnings release coming this Monday the 9th.
Among today’s biggest gainers, LaCrosse Footwear Inc. (BOOT) rallied 80.97% after Tokyo-based ABC Mart Inc. agreed to buy them out for $20 a share.
Informatica Corp. (INFA) fell 30.09% after lowering the business software developer’s guidance.
EUR/USD futures fell below $1.23 and were trading at $1.2283, down 118 pipps on the day.
David Cornes holds a degree in economics from the University of Montana.
Yorba Radio – Interview 7.5.2012
Chris Cruises the Globe 7.6.2012
Europe looks to be ending their 5 week rally with index’s currently showing red. The rate cuts proves to
not be what is needed, they seem to be signaling for more financing; when do you cut them off becomes
the question. London is at -.2%, Paris -.3, and Frankfurt .3. Spanish banks are down 1.5% after a big sell-
off, with BBVA currently down 5%.
The US seems to be following suit with our indices currently showing losses of .1%, and commodities
beginning low with crude, gold, and silver down, while natural gas is showing a 1% gain.
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
Movers and Shakers – INFA – 7.6.2012
Oppenheimer changed their price target for Informatica from $57.00 to $46.00 and Deutsche Bank downgraded their rating of shares from “buy” to “hold.” The downgrades came shortly after INFA reduced its second quarter earnings guidance to below Wall Street analysts’ estimates. INFA expects Q2 revenue to be within the $188 million to $190 million range, with non-GAAP earnings between 27 and 28 cents a share. Analysts expected earnings of $217.2 million and 37 cents respectively. INFA also agreed on a $100 million stock buyback.
Sohaib Abbbasi, Informatica Co.’s CEO admitted, “clearly, we did not adapt as rapidly as we should have to the changing macroeconomic environment, especially in Europe.” Mr. Abbasi plans to increase his company’s growth efforts to adjust for the contracting global economy.
David Cornes holds a degree in economics from the University of Montana.
Morning Rage 7.6.2012
As for the European crisis, the new Greek Prime Minister, Samaras, is supposed to
explain how he and his government are going to deal with Greece’s massive debt to
Parliament today. The debate will last three days and will hopefully yield a problem
solving solution.
Moving back to the U.S, the Employment Situation was announced this morning
and nonfarm payrolls are up 90,000 while the unemployment rate stayed at 8.2%.
Average hourly earnings were up 0.2% and the average workweek stayed at 34.4
hours.
While the employment report did not bring any horrible news the stock market is
down today with the S&P 500 down 0.47%, 10-year treasuries are down 0.62% and
oil is down 1.88%. The only increase was with the dollar, it was up 0.05% at the
open.
Make sure to check out our first exclusive webinar this Sunday, July 8 th for a 90min
session with Andrew Keene!
Follow us on Twitter for stock updates and trades, @keeneonmarket!
Keene at the Close 7.5.2012
Another day, another slow day as we wait for the Jobs Report tomorrow. This is now the 8th straight day were the intraday movement in the S and P 500 Futures were small and tight. What was a mover and shaker today? AAPL surging past the $600 level and traded to almost $613. The biggest dropper today, the Euro getting crushed and I covered part of my Short position, but I still remain short it.
I think the market is very overbought, but it can continue to climb higher longer than I can stay in business, so if I am trading counter trend I want to make sure that I get a great risk vs reward set-up. Have a great night and see everyone tomorrow.
S&P Emini & Unusual Options Activity Daily Vid Recap 7.5.2012
Tablet Wars By Andrea Schrage
The Nexus 7 is supposed to be the iPad’s biggest competition but in my mind nothing can even come close to the iPad. The iPad has retina display, 4G capability and top of the line applications. And while the Nexus 7 does use Jelly Bean, which is Google’s latest version of Android, it does not have 3G or a rear camera. As for the Kindle Fire, the tablet cannot create art, music or edit photos and spreadsheets as the iPad can. Putting both tablets in a separate market from the iPad.
But that’s exactly what Google wanted. To grab the market share that cannot afford Apple’s $499 price tag on the iPad. So lets compare the Nexus 7 and Kindle Fire. For starters the Kindle Fire only comes in the 8GB form, there is no 16GB option like there is with the Nexus 7. The Nexus 7 also boasts a front camera and a higher resolution screen than the Fire. And thanks to being a Google product the Nexus also has a greater app selection and storage.
Between the apps, front camera and storage ability the Kindle Fire unfortunately is put into a distant last choice for the tablet market. The Fire is a good choice for those who had the original Kindle, like the format and don’t have a lot of data. But customers who want the full package and are not loyal to Kindle than the Nexus is by far the best choice if the iPad is not in the price range. If the iPod is in the price range than by all means join the millions of other Apple users and learn for yourself why the brand has created such a cult following.