Options Trading Blog
Options Trading Tips and Strategies
Priceline is trading above $700 and looks to be going higher based on making higher-highs and lower-lows. GMCR is up 5 pts at the $55.66 level. Also, SBUX is following suite.
Chart Glance- After ORCL formed a double bottom on Dec 27th 2011 (around $25.50 level), ORCL has been off to the races. ORCL looks to be forming a broader, reverse head and shoulder-type pattern. Seems like ORCL has found a new support area at the $30 level. $32.50, and sellers start showing up to the party.
50 DMA ($28.94), 100 DMA ($29.44), 200 DMA ($7.58).
Support 1: $29.44 Support 2: $28.54
ORCL opens 2% higher after beating analysts’ estimates. ORCL reported earnings today that topped analysts expectations and software sales were strong. Revenue rose 3% to $9.1Billion, beating analysts’ expectations of $9Billion. Next, ORCL reported earnings of $0.62 per share, $0.06 better than the consensus. ORCL reported new software license revenue growth of positive (+) 8%. FBR and UBS raise price targets to $36 from $34. Finally, Elison bashes CRM’s cloud apps. Elison states, “CRM cloud apps does not have the same security features as the Fusion(ORCL’s cloud app).
Metals, (Silver and Gold) are finally trading in the green this morning after a few days of heavy selling pressure. Gold is trading at the all important support 1652 level and Silver caught a bid at the 31.75 level as investors want to own Gold rather than the Euro. Crude Oil is showing no sign of weakness and is staying above the 106 level for the time being. Their is a lot of risk premium built in Crude as speculators think a Middle-East war is inevitable.
UK BoE Minutes and 2012 Budget Data
Bernanke will be lecturing on Monetary Policy at George Washington Univ.
Existing Home Sales
Tomorrow bring us more housing data with Existing Home Sales at 9:00 AM CST and an important Oil Inventory Number at 9:30 AM CST. The important levels in the S & P 500 Futures for tomorrow will be 1391.75 and 1393 to the downside and 1408.25 and 1411 to the upside. I am bullish and always look to get LONG on dips. Have a great night guys.
ES is currently trading in a tight 14 point range. Crude Oil is down $1.76 or 1.7% at 106.25. Perhaps the “SPR (strategic Petroleum Reserve)” is priced in WTI. Also, Saudi Arabia will help with any shortages of Crude/Brent Oil. Also, Saudi Arabia reported that the ideal price for a barrel of oil should be around $100. BHP Billiton, the world’s largest miner, expressed concerns regarding the possibility of a slowdown in the demand of metals in China.
Todays Economic Events:
Bernanke speaks at 11:45CST
Wednesday’s Economic Events:
UK Bank Of England Minutes and 2012 Budget.
Chart Glance- TRGT is a Bio-Tech, High Speculation stock. Not alot can be said regarding TRGTs chart. NO DEMAND at this time and TRGT is currently, Tom Petty, “Free Falling.”
50 DMA ($6.52), 100 DMA ($7.76), 200 DMA ($12.94).
Support 1: NA Support 2: NA
Astrazeneca and Targacepts depression drug, “TC-5214,” DID NOT PASS PHASE III. Astrazeneca invested over $1.25 Billion dollars in the depression drug “TC-5214.” Targacepts CEO, DeBethizy states, “we will announce our plans regarding the Renaissance Program at the end of May of 2012.”
TRGT has a strong balance sheet, with positive cash-flow. If TRGT trades down in the low 5’s I might look to take a stab at it and buy some OTM Calls.
By Greg Zimny
USD is way higher and Saudi Arabia says they have an abundance of Oil. The VIX rose once again and the term structure flattened. Finally, average trade size in ES was the highest in 6 months yesterday. Americans are paying 3.8 cents “more” for a gallon of gasoline in just “one” week the U.S. government said on Monday.
Bank of America denied it has any plans to issue stock in a secondary offering and shares rebound in the after hours. BAC is up over 20% in the last five trading sessions. Last week, the bank was named as one of the 15 financial institutions that passed the Federal Reserve’s annual stress test.
Computer software company ADBE, posted fiscal first-quarter earnings of 57 cents per share, down from 58 cents a share in the year-earlier period. ADBE Revenue rose 1.9% to $1.05 billion from $1.03 billion a year ago. However, revenue growth of 1.9% was down big-time from the 14% reported in the fourth quarter of 2011.
By Greg Zimny
Apple opened higher in the pre-market at $605, was halted at $599.32, then reopened at $580 (higher then Fridays close). Apple announces plans today to initiate a $2.65 Quarterly Dividend in the fourth quarter of its fiscal 2012, which will begin on July 1st, 2012. Also, Apple announces that it plans to buy back $10 Billion shares over the next three years. Apple plans to spend over $45 Billion over the next three years
Economic Events for Tuesday, March 20th:
RBA Minutes and Italy Labor Market Reforms (Hopefully they can pass legislation before the end of the month.
UK CPI (Feb): Analysts expect a rise of 3% YOY.
By: Greg Zimny