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Morning Rage 10.4.2012

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All index, energy, metals, and grains futures are higher today. The Dow futures are up fifty three points, S&P futures are up five and a half, and Nasdaq futures are up eleven. Crude is up a half of a point, while gold futures are up fifteen, silver is up a quarter and platinum gains thirteen. Corn bounces back up seven points.

Marriott (MAR) released its earnings after the market closed yesterday, beating the estimate of $0.40 by four cents. However, the company lowered its yearly earnings outlook. Marriott has been bolstering its lagging US revenue by focusing on overseas growth, especially in China.

Weekly jobless claims are reported today, which may be pushing futures higher this morning as well. Jobless claims are expected to grow this week up three thousand from its prior revised count of 363 thousand.

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Associate Option Battle 10.3.2012

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Associate Jim:

Trade: Buy 28 MAR Oct 41-43 Call Spreads for $0.35

Risk: $35 per 1 lot

Reward: $165 per 1 lot

Notes: I think the stock will rally on earnings, Its trading a few
points below its 52 week high.  I think it could break out above 52
week high territory

Associate Alex:

I am long 2 lot of Mastercard (MA) weekly 460-470-480 Iron Butterfly for a net credit of $5.02 (Short Put Spread/Short Call Spread)

My risk is $408 per one lot

My reward is $502 per one lot

Why: I like this trade because Mastercard made a huge move today and I think it will  trade within a tight range for the rest of the week due to traders waiting to see what happens next before buy or selling. I hope this will last till Friday.