Tag: S&P 500 CBOE Unusual Options Activity Andrew Keene Equity Options
MGM Resorts (MGM) reported a loss of $0.23 cents per share against consensus of $0.19. The stock saw continued selling and closed at $13.73. I would really watch this name if the market gets weak because now that earnings are out of the way, I still think there is room to swing this on the downside. I remain firm in my $12.40 target for MGM. Hewlett-Packard released guidance after hours that was short from what analysts were expecting. This was due to weak PC group sales. This really should not be a surprise to anyone. This name could see some trading action tomorrow. Stock is currently down 1.85% to $28.80 in after-hours trading. Netflix was unloved today, trading down 5 points to $112.40. But something really important to note is that NFLX filled the gap between $112 and $108. Netflix could really go either way here in my opinion but Momentum, MacD and RSI are starting to display signs of bearish divergence. Deckers (DECK), Crocs (CROX), E Commerce China (DANG), First Solar (FSLR), Foster Wheeler AG (FWLT), GAP (GPS), Molycorp (MCP), Rubicon Technologies (RBCN), Salesforce.com (CRM) and SandRidge Energy (SD) ALL REPORT TOMORROW. This will be a big day. Anything positive from DANG will lift the likes of RENN, BORN and YOKU, while FSLR will affect the solars. Some pin action names to watch off FSLR earnings would be SPWR, ASTI, STP, YGE and TSL. AVL and TC could really move off MCP earnings as well. AVL is forming a nice base around the $2.90 area as well as a little wedge. This name looks poised to run.
Written by Cameron Patrick
HPQ is currently trading near its 52 week highs and is getting ready to report after the close today. HPQ Quarterly Earnings and estimates (Q4E)- $.87 and Quarterly Revenue(Q4E)- $30.7B. HPQ has a 61% positive surprise history. Should be interesting to see how HPQ trades post report as Dell fell after earnings.
MGM posted a profit of $3.1B vs last year’s profit of $1.44B. Revenue rose 55% or $2.3B as MGM made more from entertainment and the consumer spending more. MGM resorts said its US properties improved occupancy and average daily room rate.
UNUSUAL OPTION ACTIVITY:
We have seen a Customer buy FCEL July 2 Calls for $.25. I also bought them due to the volume and massive move of the FCEL stock.
We have seen a huge seller of MS Apr 22 Calls for $.25. As Andrew Keene reported on Bloomberg.. He thinks these are institutions repositioning. I believe this is a closing trade due to the open interest in MS Calls.
By Greg Zimny
The ES futures are trading around key ES support level, 1250 this morning. We have seen a drastic increase in NYSE volume on S&P down days.
It will be a quiet day for US economic events. At 4:15 P.M ET 10 year treasury notes and Federal Fund rates. Also, we will get the latest US housing data number. Obama administration is getting ready to update us all on the corporate tax-rate plan.
AFTER THE BELL EARNINGS:
DECK: Quarterly Earnings and Estimates (Q4E)- $3.13 Quarterly Revenue(Q4E)-$562M. Deckers offer luxury shoes such as UGGs and multiple types of UGG accessories. Deckers Management reiterated their guidance after last quarter and stated, “pre- spring orders looking strong.” Expect a big move in one direction or another.
GPS: Quarterly Earnings and Estimates (Q4E)- $.42 Quarterly Revenue(Q4E)- $4.3B. Despite Gaps annual sales growth of $-1.75 for the last five years, could Gap miss analysts expectations and still run like Abercrombie is doing? Also, Gap is expanding into high-growth markets such as China, opening 30 new stores.
Also in the earnings spotlight: HPQ, Goodrich Petroleum, and TJX.
By: Greg Zimny