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Bulls Scoop Up Sprint Nextel Corp. Calls

www.interactivebrokers.com

 Today’s tickers: S, FTR, JTX & SBUX

S - Sprint Nextel Corp. – Medium-term bullish positioning is building up in Sprint Nextel Corp. options today with shares in the name trading 3.00% higher on the session at $4.84 as of 12:20pm in New York. Investors expecting shares in the provider of various communications products and services to extend gains through May expiration engaged in plain-vanilla call buying, purchasing the options out-right to position for shares to potentially reach a new 52-week high in the next couple of months. Volume is heaviest at the May $6.0 strike where 20,750 calls have changed hands versus previously existing open interest of 7,482 contracts. It looks like roughly 18,000 of the calls were picked up at a premium of $0.08 each. Call buyers make money if Sprint’s shares jump 25.6% over the current price of $4.84 to surpass the effective breakeven price of $6.08 by expiration day in May. Sprint Nextel Corp. is scheduled to report first-quarter earnings before the market opens for trading on April 28, 2011.

FTR - Frontier Communications Corp. – Put volume on the communications company jumped today after sizable trades were initiated in the May contract. It looks like investors responsible for the put activity may be purchasing the contracts to brace for bearish movement in the price of the underlying stock. Shares in Frontier Communications Corp. are currently down 0.90% to stand at $8.00 as of 12:30pm. The selection of the May contract put options could be coincident with the firm’s first-quarter earnings report, which is scheduled for release before the opening bell on May 5, 2011. One trader appears to have purchased some 3,000 puts at the May $8.0 strike for a premium of $0.40 each. The investor starts to make money on the put-acquisition if shares in FTR decline 5.0% from the current price of $8.00 to breach the effective breakeven point at $7.60 by May expiration day. Volume is greatest, however, at the lower May $7.0 strike where 15,000 put…
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Sabrient Risers – 3/12/2011


Top 5 Risers

Stock Rating Analysis
VLO STRONGBUY An increasingly positive growth rate of past earnings, along with improving expectations for long term growth, make Valero a good prospect for high returns.
KRO STRONGBUY Kronos Worldwide has been gaining recognition from analysts as a good canditate for achieving higher than expected earnings along with higher overall projected valuation.
SFI BUY iStar is one of the top candidates projected to achieve both higher than previously projected earnings in the short run and a higher earnings growth rate in the long run.
AMAT STRONGBUY Applied Materials has been gaining recognition from analysts as a good canditate for achieving higher than expected earnings along with higher overall projected valuation.
TRW STRONGBUY TRW has been gaining recognition from analysts as a good canditate for achieving higher than expected earnings along with higher overall projected valuation.



Crashiversary Week – Friday Shakedown – Earthquake Edition

 What’s shaking?

That was a special message for our friends in Japan, who are very shaken today with an 8.9 quake which is, of course, devastating.   Here’s a picture and notice how stuff is just pulverized (before being washed away by the 30-foot Tsunami that followed (on the right of the picture):

[1jquake0311]

Somehow they are saying only 29 dead but I can’t see that.  Tens of thousands of people were evacuated and 4.1M people lost power so far.  Poor New Zealand was recently hit and now they have Tsunami warnings too (as does Hawaii).  

[JQUAKE]

 

At 3:24 p.m., a large aftershock struck, which could be felt standing on the ground outside of buildings in central Tokyo. People gasped while looking up at skyscrapers swaying gently and construction cranes shaking violently atop half-completed buildings. Glass panels on the ground floor of many newer buildings shimmied but few appeared to break.

Let’s hear it for the World’s strongest building code!  I very much doubt US buildings would fare so well.  

This will make a Japanese rate hike out of the question, probably for the rest of this year and so will be a dollar booster and EDZ will, of course, be flying.  This is not the way we like to win on our bets, unfortunately but it is a very good object lesson about why it is very foolish not to always have some kind of disaster protection in your virtual portfolio – because you never do know when a disaster is going to strike.  

Over time, it’s complacency that kills you…

Meanwhile, my kids are home today because their school is flooded – we are screwing up this planet in all kinds of crazy ways aren’t we?  I’m sure if we ignore all this stuff or call for "further research" (funded of course by the very same businesses that cause the pollution) for another few decades it will all be fine.

Oil is way down at $99.90 – so much for the "Day of Rage," which is kind of a fizzle in Saudi Arabia - If there is such a thing as a "long-squeeze" then you may be seeing it today as speculators need


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Sabrient Divers – 03/11/2011


Top 5 Divers

Stock Rating Analysis
CPB SELL Expectations for Campbell Soup are decreasing along with projected valuation.
AEE SELL Recent earnings changes for Ameren are troublesome, as is a sinking projected valuation.
ATPG SELL With projected value going down even more quickly than their recent historical earnings, ATP Oil and Gas is not looking good.
CVG SELL With projected value going down even more quickly than their recent historical earnings, Convergys is not looking good.
AFAM STRONGSELL Expectations for Almost Family are decreasing along with projected valuation.




 

Phil's Favorites

Mind Blowing Economic Charts – First Time Claims, The Stock Market, and The Fed

Courtesy of Lee Adler of the Wall Street Examiner

Improvement in first time unemployment claims is slowing. Actual, not seasonally manipulated data, including an adjustment for the usual weekly upward revision, shows that the year to year rate of change is on the cusp of a possible upside breakout, which would be good news for stock market bears if it happens.

Initial Unemployment Claims Chart- Click to enlarge

Here’s why it’s mind blowing. I’ve plotted it below on an inverse scale with the S&P 500 overlaid.

Unemployemt Claims and Stock Prices - Click to enlarge

That speaks for itself. As the i...



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Option Review

Bulls Scoop Up Sprint Nextel Corp. Calls

 Today’s tickers: S, FTR, JTX & SBUX

...



more from Caitlin

ETF Selector

US Markets Drop On Italy Fear (EWI, DIA, SPY, QQQ, IWM, TLT, GLD)

Courtesy of John Nyaradi.

Major US Markets including (NYSEARCA:DIA), (NYSEARCA:SPY), (NASDAQ:QQQ), and (NYSEARCA:IWM) dropped over 3% each on Italian bond fears and an increased worry that Europe will not be able to bail out its 4th largest economy. Furthermore, the iShares MCSI Italy Fund (NYSEARCA:EWI) wiped out over 9% today, further illustrating the dire situation in Italy and the European Union: ...

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Chart School

S&P 500 Snapshot: Down for the Day and the Week

Courtesy of Doug Short.

The S&P 500 broke its string of four-consecutive weekly gains with loss of 0.63% for the day and 2.48% for the week.

The index is back in the red year-to-date, down 0.35% and 8.09% below the interim high of April 29.

From an intermediate perspective, the index is 85.2% above the March 2009 closing low and 19.9% below the nominal all-time high of October 2007.

Below are two charts of the index, with and without the 50 and 200-day moving averages.

 


Click for a larger image ...

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Zero Hedge

Dallas Fed Latest Economic Contraction Confirmation; Survey Respondents' Gloom Soars

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

The second economic disappointment of the day comes from the Dallas Fed, which dropped from -2.0 to -11.4 on expectations of -9.0- this was the 4th consecutive negative print month. The report was, in a word, horrible, with just 2 of the 15 constituent indices posting an increase, and the bulk solidly in the red, led by Unfilled and New Orders which dropped 16.8 and 11.2, respectively: not good for economic growth. On the employment side there was nothing good either, with both employment and hours worked declining by -...



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Insider Scoop

Diana Containerships Files To Offer Stock Up To $172.5M -Bloomberg (DCIX)

Courtesy of Benzinga

Bloomberg reports that Diana Containerships (NASDAQ: DCIX) files to offer stock up to $172.5M. Diana Containerships says that Diana shipping will also buy $20M of stock.

Visit Benzinga >

...

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Sabrient

Sabrient Risers - 3/12/2011

Top 5 RisersStockRatingAnalysisVLOSTRONGBUYAn increasingly positive growth rate of past earnings, along with improving expectations for long term growth, make Valero a good prospect for high returns.KROSTRONGBUYKronos Worldwide has been gaining recognition from analysts as a good canditate for achieving higher than expected earnings along with higher overall projected valuation.SFIBUYiStar is one of the top candidates projected to achieve both higher than previously projected earnings in the short run and a higher earnings growth rate in the long run.AMATSTRONGBUYApplied Materials has been...

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OpTrader

Swing trading virtual portfolio - week of March 7th, 2011

This post is for live trades and daily comments. Please click on "comments" below to follow our live discussion. All of our current virtual trades are listed in the spreadsheet below, with entry price (1/2 in and All in), and exit prices (1/3 out, 2/3 out, and All out).

We also indicate our stop, which is most of the time the "5 day moving average". All trades, unless indicated, are front-month ATM options. 

Please feel free to participate in the discussion and ask any questions you might have about this virtual portfolio, by clicking on the "comments" link right below.

To learn more about the swing trading virtual portfolio (strategy, performance, FAQ, etc.), please click here

Optrader 

Swing trading virtual portfolio

 

One trade virtual portfolio

...

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Stock World Weekly

Stock World Weekly

NEW: Elliott and Ilene are available to chat with Members regarding topics presented in SWW, comments are found below each post.

Here's the newest Stock World Weekly:  Illusion Based on a Fantasy 

Comments welcome... share your thoughts.  

Download Newsletter 3/6/11


Stock World Weekly archives here >

...

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Pharmboy

Biotech Junkies Update and Momenta Pharma Moving Forward

February is now past, and the Biotech Porfolio is loaded with winners and a miss (PLX).  MRK is down a bit, but I expect that trade to recover, and one could be more agressive and double down on it, or play another round at the Jan13 $30 options for roughly the same price.  Below is the summary, and note the grey boxes are ones that did not fill.  I am still a fan of BMRN, and like DEPO as well.  Now let's look at a few others.

Table 1.  PSW Biotech Plays Since January 2011

 

Our newest play is Momenta Pharmaceuticals (MNTA), who is pursuing a three-part business model which includes complex generic equivalents in partnership with the Sandoz division of Novartis, proprietary compounds, and follow-on- biologics (FOB).  It seems that this company is tied up in competition/litigation wit...



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About Phil:

Philip R. Davis is a founder Phil's Stock World, a stock and options trading site that teaches the art of options trading to newcomers and devises advanced strategies for expert traders...

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