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Tag: S&P 500 CBOE Unusual Options Activity Andrew Keene Equity Options
The ECB has lent over $450 Euros since it incorporated LTRO on December 21, 2012. There is speculation that the ECB is going to inject another $470 billion this week. In my opinion, the market has anticipated this move for a while and I think the official announcement should be a non-event. Then again, the trick is always trying to determine what information is priced in to markets and what isn’t. Amyris Inc. (AMRS) is getting crushed since the company reported poor fourth quarter results from its leading drugs. AMRS is down over 11% to $5.72. Apple (AAPL) is expected to announce its iPad 3 on March 7th. AAPL made another new 52 week high of $534.62. Dominos Pizza (DPZ) broke out of its wedge today and shot up 13.50% to $38.02. Pizza stocks were some of the best performing stocks in 2011. ZAGG Inc. (ZAGG) saw a 10% rally today after a .02 earnings beat. I am surprised the stock isn’t up more given that 50% of its shares are sold short.
With Gold and Silver showing continued strength, small beta pin actions plays are starting to show signs of strength. I like Paramount Gold Mining (PZG) on a break of $2.82-$2.84. Very easy risk management as a stop can be placed underneath the descending trend line. A break of $3.15 on heavily volume could send PZG to $4 in a short amount of time.
Andrew Keene analyzes and dissects daily options order flow to compile the most complete “End of Day” Equity Options Report.
Apple makes another FRESH ALL-TIME HIGH AT $533.20. Ipad 3 is supposedly coming out next Wednesday March 7th in New York according to numerous reports.
The June CBOE VIX futures are trading at $26 and October CBOE VIX futures are at $29. Are the CBOE VIX future curves anticipating higher volatility to come?
Wednesday, keep an eye out for Bernanke’s (semi- annual testimony) speech. Also, Sweden and India reports Q4 GDP numbers. Finally, 2nd round of LTRO program in Europe to take place.
Wednesdays before the bell earnings:
Joy- Joy Global should meet or beat profits and sales expectations because it’s expanding into China’s International Mining Business. Analysts expect Joy to report $1.35 a share, up from $.96 a year ago. Revenue estimates are $1.15B for the quarter and year end revenue of $5.5B.
Liz Claiborne- Quarterly Earnings and estimates Q4E of $.10 Quarterly Revenue Q4E $477M. As of January 31st, their was a huge short float of 30%. Any good news regarding earnings could send the shorts running and the stock flying.
Levels to Watch: 50DMA- $53.5, 100 DMA -$50.04, 200 DMA- $47.59.
(Chart Glance) Before Earnings, Apollo was resting on its primary support level at $52. Apol has beeb underperforming the broader market since the beginning of the year. Today, a huge bearish gap down into previouss 2011 support. $40 seems like near term support.
Apollo shares plunge 14% as Apollo cuts its estimates for enrollment and operating profit. After board of directors gave positive numbers and forecasts for the last six months, insiders have been liquidating their positions and not adding to them.
By Greg Zimny
Levels to watch: 50 DMA- $519.98, 100 DMA -$507.59, 200 DMA- $507.59.
Support 1- $597
Support 2- $574.2
Support 3- $507.6
Chart Glance: rallied out of a major consolidation zone. Clean high volume breakout to new highs. Price action displays clear demand for current levels. The stock is in a clear uptrend. The $550 level was a resistance zone that PCLN struggled to get through.
After Earnings: PCLN CEO Jeffery Boyd stated, “PCLNs hotel bookings growth outperformed rivals.” Gross Margin has widened to 73% from 65.5%. International bookings were up %66 vs 55% forecast. PCLNs “name your own price” business model, was hurt by competitors “discount strategies.” Bookings predicted to slow down in quarters to come because of high gas prices cramping the consumer.
By Greg Zimny
I believe that the Credit Crisis is not yet over. The next Country to watch is Portugal. Portugal passed its third bailout review by the ECB this morning. S&P Kraemer s states, “if there is a country that will default, most likely it would be Portugal.”
Today after the close:
Azo- After bell earnings. Quarterly Earnings and Revenue: (Q2E) $4.01 Quarterly Revenue: (Q2E) $1.8B. Maybe some AZO news leaked after hours yesterday because AZO was trading around the $412 level.
Dpz- Domino’s Quarterly Earnings and Revenue: (QE4) $.49 Quarterly Revenue: $512M. Domino’s earnings have increased the last five consecutive years. In my opinion, this quarter will not be any different as the consumer is still spending money on eating out.
Kog- After the bell today. Quarterly Earnings and Revenue (QE4) $.09 Quarterly Revenue (QE4) $59.9M. History shows that KOG sells off after earnings. In my opinion, KOG will miss on earnings because of bad weather but give a positive forward guidance. Finally, we saw a customer buy 9,500 Mar 10 Puts. Either a customers huge bet to the downside or profit protection strategies.
By: Greg Zimny