Written by |

Earnings Trade of the Day 4.18.2012

FFIV:
Trade: Selling the FFIV April 120-115 Put Spread for $1.56.  I sold the April 120 Puts for $3.50 and bought the April 115 Puts for $1.94.
Profitable: I make money on this trade if FFIV closes above $118.44 by April 20, 2012.
Break-even:  I breakeven on this trade if FFIV closes at $118.44 by April 20, 2012.
Unprofitable: I lose money on this trade if FFIV closes under $118.44 by April 20, 2012.  The most I can lose on this trade is the Price of the Spread can be worth $5 minus the Price I sold it for $1.56 for a total of $3.44.  

UPDATE 4.23.2012 I had this position on and bought back my short Put Spread on Thrusday for $.04.  Another big winner at KOTM.

MS:
Trade: Buying the MS APRIL 18-19 Call Spread and Selling the 17-16 Put Spread for $.15 total
Profitable: I make money on this trade if MS closes above $18.15 by April 20, 2012.
Break-Even: I breakeven on this trade if MS closes at $18.15 by April 20, 2012.
Unprofitable: I lose money on this trade if MS closes under $18.15 by April 20, 2012.  The most I can lose on this trade is the Price of the Spread can be worth $1 plus the Price I bought it for $.15 for a total of $1.15.

UPDATE 4.23.2012  As MS rallied over the $18 level, I took this Spread off for $.32 for a nice double and moving to the next trade.

EBAY:
Trade: Selling the EBAY April 37-38 Call Spread and April 35-34 Put Spread for $.44 total.
Profitable: I make money on this trade if EBAY closes between $34.56-$37.44 by April 20, 2012.
Break-even: I break-even on this trade if EBAY closes at $34.56 or $37.44 by April 20, 2012. 
Unprofitable: I lose money on this trade if EBAY closes under $34.56 or above $37.44 by April 20, 2012.  The most I can lose is the Price the spread can be worth $1 minus the price I sold it for $.44 for a total of $.56 

UPDATE 4.23.2012 I was offering this Spread in the book, but never got filled.  The Spread would have achieved full value or $1


Read more about above by www.keeneonthemarket.com

Written by |

Halftime Report for 4.18.2012

Following news overnight that Warren Buffet was diagnosed with an early form of cancer, Berkshire (BRK.A) shares are down 1.3% – not something that is indicative of any concern among investors. IBM is down 2.9% after reporting earnings last night, while Intel (INTC) has lost 1.7%. Haliburton (HAL) gained 4.4% following its earnings report.

Wynn Resorts (WYNN) shareholders are benefiting from rumors on additional Macao properties, up 5% at $131.00. 

Written by |

Morning Rage 4.18.2012

This morning, in earnings news, Abbott Labs (ABT) reported EPS of $1.03, 3 cents above expectations; BlackRock (BLK) reported EPS of $3.16 versus $3.02 expectations; PNC reported EPS that is 1 cent higher than expectations; and Southwest Bancorp beat the street with a $0.21 EPS versus expectations of a $0.01 quarterly loss.

Crude Oil futures are lower by 0.5% this morning, while Natural Gas futures are marginally higher. At 10:30 a.m. ET this morning, the Department of Energy will release the weekly report on Crude inventories. Gold is also lower by 0.5%, down $8.80 to $1,642.30.

In currency markets, EUR/USD is under pressure, trading down 60 pips to 1.3065. A close below the Ichimoku Cloud at 1.3055 could inspire further losses in sessions ahead. The US$ is also higher against JPY, which spiked to 81.57 before trading at 81.35 currently.