Market Outlook
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Mixed action on ETF country plays
EFA - iShares MSCI EAFE Index Fund - One investor appears nervous over a continued slide lower for global stocks and used a put option combination in the index fund tracking Europe, Asia and Far Eastern markets in an effort to profit from a further 10% slide. The iShares ETF is trading at an unc...
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Daily Stock Options Recap – August 12, 2010
Sentiment Stocks are broadly lower on disappointing earnings and economic news. After sharp losses sustained yesterday, stock index futures continued falling in after hours when Cisco Systems (CSCO) posted earnings and offered a disappointing outlook. The decline gathered additional momentum as e...
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Cisco put sellers shout loudest
CSCO - Cisco Systems Inc. - A disappointing revenue forecast for the current quarter by computer giant Cisco late on Wednesday spawned more fears about the strength of global demand moving forward. Cisco’s shares fell pretty close to a 52-week low and stand 24% lower than an April peak. Options tr...
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Market slide has Japanese tracker options active
EWJ - iShares MSCI Japan Index - Since the middle of May, shares in the Japanese market tracker have lunged between a peak at $10.00 and $9.15 creating a neat trading range. With an overnight confidence in global stocks hitting the fan and a capitulation to a 15-year high for the yen, the EWJ has pr...
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Optimist enacts bullish risk reversal on Dollar Tree Stores ahead of earnings
DLTR - Dollar Tree Stores, Inc. – An investor expecting shares in Dollar Tree to rally significantly by November expiration initiated a bullish risk reversal on the stock today with the price of the discount retailer’s shares up 2.55% at $43.10 as of 3:05 pm ET. It looks like the trader sold...
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Daily Stock Options Recap – August 10, 2010
Sentiment The major averages are lower on disappointing economic news and weakness in Intel (INTC) Tuesday. The table was set for morning losses on Wall Street following disappointing trade data from China and after JP Morgan cut earnings estimates on Intel, which is down 4 percent and the bigges...
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Daily Stock Options Recap – August 9, 2010
Sentiment Major averages are holding modest gains in light trade Monday. With no economic data to guide the action, players are in wait-and-see mode ahead of the Federal Reserve rate announcement tomorrow afternoon. The stock news was mixed. McDonald’s (MCD) is helping the Dow Jones Industrial ...
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Options investor sells Comcast Corp. strangle
CMCSK - Comcast Corp. – The use of a short strangle on the provider of video, high-speed Internet and phone and cable services suggests one strategist expects the price of the underlying stock to remain range-bound through August expiration. Comcast’s shares inched 0.75% higher during the fi...
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Pessimist plants put spread on Comerica Inc.
CMA - Comerica Inc. – The financial services firm’s shares declined as much as 4.8% today to touch down at an intraday low of $36.38. One options investor expecting Comerica’s shares to continue to head south ahead of October expiration purchased a plain-vanilla debit put spread. Shares ar...
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Daily Stock Options Recap – August 6, 2010
Sentiment Stocks slumped on disappointing jobs data Friday morning and the tone of trading has remained cautious throughout the session. Stock index futures were under pressure before the exchanges opened after the Labor Department said the US economy lost another 131,000 jobs in July, which was ...
