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All I can say is — I understand that the Universe sent me to PSW for a reason. So, I'm listening!! …and studying. Your commentary is literally outstanding. …and your members are impressive as well.

- Seaquill

Thanks for the USO directions today. Made it 3 times (up/down/up) for a very nice win.

- Doro165

thanks for the DNDN recommendation last week phil. that was moneeeee….

- Kwan

The best play I made this year was PSW. Will renew my membership tonight. Looking for the same trading profit percentages next year, but will have an advantage from the compounding, and much better skills acquired from you and the many skilled PSW co-pilots. Thanks!

- Gel1

Phil: UNH, hedged stock position, doing great, up over 50 %,

- RMM

Speaking of the "Man Who Planted Trees", it really works. I bought BTU back in March at $49.87. I practically bought it at the tippy top. However, I soon afterward found this site, started learning Phil's methodology(and those in the strategy section) and began selling calls/puts regularly against my bad position. As of yesterday, I still own the original 100 shares, but have brought my basis down by over $11.00. Couldn't be happier, what started out as a really bad entry, I have managed to work down to a good basis. Had I not watched that video and learned your system, I would sold out of the position, and been kicking myself for making such a bad entry.

- Hoss

Phil - Moved today to send kudos. You're in my top 5 to see/read daily. I do not trade... but as former econ-finance adjunct faculty near Stanford U. I give you lots of attaboys.... and provide your links to many to spread some understanding of the mess we are in. Best to you and yours,

- HJ Kobbeman

On Optrader's section yesterday he was asked how he works with AAPL as an investment. He replied that he just ‘plays with the covers'. I've got a separate portfolio where I use primarily this technique over the past 6 months. Up 60% The principles involved are stock selection, patience, patience, using covers to protect profits, rolling covers to maximize premium return, and exiting when covers are gone and stock price is high. Sometimes it's hard to remember where you learn to do this stuff, but much of it is from integrating principles I've learned here with thing I already knew. Thanks for the help on this, Phil and others.

- Iflantheman

Phil - Another excellent teaching article - when you write like that it blows me away. Thank you! I had the ideas from earlier articles but what I didn't have was enough understanding. The familiarity of ideas through repetition, re-working, revision - over time - the variation, the pulling out of implications - it all contributes to understanding and mostly thats on the student - but a good teacher (worth their weight in gold) makes understanding a pleasure. I wanted to learn about trading options because it makes my brain feel better - fitter, healthier. Actually mostly it makes me happy to think about the trade and trading options. You are a good teacher and I know that or I wouldn't value the subscription the way I do. It pays for itself through the pleasure of understanding alone.

- Redfern1

I did the same thing via your logic (sold puts that is). I glanced one time and they were already up 15% which is considered a good return for an overnight hold in most circles. This is PSW though and to us it's just another day…

- Kwan

Phil I have been applying your arsenal (matresses, Edz plays, Ugl verticals etc.) to my gold holdings . So a big thank you for "teaching me how to fish" rather than just giving me the fish...

- Magret

Phil – Not that you dont usually, but you have DEFINITELY earned your money this week. THe recommendations have been PERFECT. Selling into the initial excitement (MULTIPLE TIMES), hedges, everything. Im reading this when I get home from work and want to cry b/c I cant trade at work! I might have to start getting up at 3 AM though to catch those trades bc youre killing it then too! May you and yours have a blessed weekend!

- Jromeha

Thanks Phil another great week of guiding us!

- Steven Parker

I've recently done exactly what Phil described. I upgraded my ability to trade the IRA acct. by transferring acct. from TDA to TOS. TDA would not allow spreads; TOS does. Neither will allow naked options. With spreads I am able to buy calls or puts several months out then sell front month calls or puts over and over. This allows me to collect premium, which is, of course, the goal. This wasn't an original idea. Phil put me onto it. Since the transfer I've substantially increased my performance in the IRA!

- Iflantheman

Phil - I am 3 month follower and shout a big thanks for all the good advice and training. I read all the materials and posts as suggested. I am retired CFO and took over my investments 2 years ago from broker after frustration with returns. I followed some conservative advice for retirees and have 60% bonds currently in a 5m portfolio. I had been doing covered calls on my stocks to boost returns and slowly am getting more aggressive after following your site and my son who has been with you for 6 months. I allocated 1.5m to stocks and am scaling up from 30%. I did some of the trades suggested in early June using Aug & Oct buy/writes on CSCO, WMT, MON, WFR, DO in addition to calls on XOM, CVX, PEP, PG, WM, T that I owned. Most are doing very well (4-24%) in 60 days. My good problem is that instead of getting longer, I will be making 6% quickly (50% plus annualized) and getting called away on many positions. What would you advise for getting long again. Thanks again for such a great job advising all of us!

- TXChili

Phil - I just referred 10 people. Last week was a 50% gainer for me. There are companies that want to sell mentoring service for thousands of dollars. This is far better of a deal with very good advice.

- Steve

You guys gotta give it to phil–the voice of reason yesterday, last nite and this morning.

- Corleone

Greetings Phil, I am an Economist at Harvard and some of my colleagues and I would like to let you know that we follow your posts on SA, and find your analysis refreshing, rigorous, and acute. Great work! Though many of us (including myself) have our work covered in the Wall St Journal, in many ways your macro commentary is more fearless and accurate than what is generally found in that venerable publication. Kind regards, Daniel

- Daniel

Phil, 26% on the week for the 20% I day-trade, and since drinking the kool-aid last fall, the whole portfolio has doubled. Have a great weekend !!

- JRW III

Newer member here, but just wanted to say thank you too. I've learned so much and I hope you'll be around for a long time helping us learn along the way.

- Where

As a fellow "low-end" investor I like Phil's Buy/Write strategy on solid stocks. Before I came here I loved to try to "figure things out" with very little success "TRYING TO FIGURE THINGS OUT"! I traded too much and fell in love with stocks that "should have done" what they didn't do. Now a majority of my accounts are in Buy/Writes suggested here or cash (waiting for a better time for more Buy/Writes). I use 15-20% of my total holding to short term trade and hedge. This is manageable with my full time job as a business owner. I have found Phil's system a more discipline way to achieve the returns I want without relying on my ability (more like inability to "figure things out").

- DCalrk41

Phil - Rode the /QM down from 99.65 at 7pm and now I'm taking your advice, taking the $$ and going to enjoy a restful night sleep. I don't post often so I want to say thanks for sharing your incredible market acumen with all of us. Your site has a unusually talented group of investors (and some characters) and I enjoy my days trading more because of it.

- DaveW

Opt, I think the hardest thing is being disciplined enough to trade with you. Atleast now when I see something go in the red I know how much I'm going to loose and that I will profit somewhere else and have enough money left at the end of the day to trade again. Thanks for all your hard work! My stress levels are down 75% and I have even made a small profit in the short time I've been here

- Mopar

hil, I hit my targets for the year in my 401K (thanks in no small part to your site), so I cashed out of all positions a couple of weeks ago. Feels good... I'm conservative with this money –looking for 2% per month, which i've been able to do… thx.

- Lunar

I have learned more about options in the past 2 weeks as a full PSW member that the previous 5 yrs of making more bad than good option plays. The educational material alone is worth several times the price of admission. I have had an expensive education on what not to do- what is past is past- I am looking forward to profitable/fun future.

- Pstas

USO, QQQ- Phil, thanks for these plays. Out of USO for about 65% gain today and just keeping 1/4 QQQ.

- Ksone88

Dear Phil, I have followed along with your commentary and alerts and have been flabbergasted at your quick analytical skills and your journalistic skills to explain it clearly. In a little over three weeks I have cleared almost 1000.00 dollars and got an intensive education at the same time. I would like to immediately upgrade my membership. It is hard for me to follow all evening as I am in Tokyo but I can join you at the beginning of the market and read the next day.

- Tokyolife

Thanks to PSW I simply LOVE this market. I want it to go up. Then I want it to go down. I want it to do BOTH, day after day. And I don't care which stocks go up, nor do I care which stocks go down. I just want to FIND those that are going up today, down tomorrow, up the next, and so on, so that I can PLAY them like a fiddle thanks to what I've learned here!

- lflantheman

WOW, look at DRYS go. Nice call on the entry the other week Phil. I got 200 at $6.66 and sold a 7.5 call for $.50, then on the tear today sold another 7.5 call for $1. This should puts me in at an average of $5.91 and called away at $7.5 for a profit of $300+ after commisions. Once again another Phil trade pays for this months membership.

- Craigzooka

Phil Thank you very much, I appreciate your help and wisdom.

- CdsdpDean

Author Archive for Option Review

Bullish Bets Build In Wynn Resorts Weekly Options

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by Option Review - February 21st, 2012 1:39 pm

Today’s tickers: WYNN, CTRP, DTV & WMT

WYNN - Wynn Resorts, Ltd. – Weekly options on Wynn Resorts are humming with activity today on news the casino operator is cutting ties with principal shareholder and director, Kazuo Okada. Wynn is the biggest gainer in the S&P 500 Index this afternoon, with the stock trading 6.7% higher on the day at $120.24. Options activity suggests some traders expect the stock to extend gains on the news, at least through the end of this week. Feb. ’24 $120 strike calls printed the most volume of the weekly contracts, with some 2,660 lots changing hands against open interest of 204 positions. It looks like most of the $120 strike calls were purchased for an average premium of $2.04 apiece. Traders long the contracts stand ready to profit at expiration in the event that Wynn’s shares rally another 1.5% to surpass the average breakeven price of $122.04. Bullish activity spread to the higher Feb. ’24 $125 strike where around 1,100 call options were snapped up at an average premium of $0.50 each. Finally, fresh interest is building in far out-of-the-money contracts at the Feb. ’24 $130 strike where some 925 contracts traded against zero open positions. Most of the calls appear to have been purchased for an average premium of $0.16 each, positioning traders to profit should shares soar 8.25% to top the average breakeven price of $130.16 by expiration. Shares in WYNN last traded above $130.16 in November of last year.

CTRP - Ctrip.com International, Ltd. – Shares in China’s largest online travel site took a big hit Tuesday after the Company reported lower-than-expected fourth-quarter earnings on Monday. The earnings miss was followed by a number of analyst downgrades, helping drive Ctrip.com’s shares down as much as 10.3% to an intraday…

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Tags: CTRP, DTV, WMT, WYNN

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Good Fortune For Some As Shares In P.F. Chang’s China Bistro Boom

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by Option Review - February 17th, 2012 1:34 pm

Today’s tickers: PFCB, IMAX & VRA

PFCB - P.F. Chang’s China Bistro, Inc. – Options on the owner and operator of two restaurant chains, P.F. Chang’s China Bistro and Pei Wei Asian Diner, were more active than usual this week following the Company’s fourth-quarter earnings report ahead of the bell on Thursday. Shares are up sharply today on a number of analyst upgrades, trading higher by as much as 8.1% to touch an intraday peak of $38.50. Traders that purchased calls on P.F. Chang’s yesterday despite the Company’s earnings miss, in some cases saw the value of their positions significantly increase overnight. It looks like investors purchased as many as 750 calls at the Mar. $35 strike yesterday for an average premium of $1.34 each. The calls today cost more than two times that amount, with the last traded price on the contracts up at $3.40. Finally, options traders positioning for shares to extend gains purchased some 250 calls up at the Mar. $40 strike at a premium of $0.60 apiece. Investors long the $40 strike calls stand prepared to profit in the event that shares in P.F. Chang’s increase 7.0% over the current price of $37.95 to exceed the effective breakeven price of $40.60 at March expiration. PFCB’s shares last traded above $40.60 back in July 2011.

IMAX - IMAX Corp. – Shares in the entertainment technology company are up 0.35% at $23.81 this morning, down 4.75% off a six-month high of $25.00 reached earlier in the week. The stock has rallied 90.0% off its October 2011 52-week low of $12.57, but options activity on IMAX Corp. today suggests one strategist expects the price of the underlying to reverse course in the near term. The stock and option combo initiated on IMAX in the first hour of…

Tags: IMAX, PFCB, VRA

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J.M. Smucker Co. Calls In Demand Despite Earnings Jam

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by Option Review - February 16th, 2012 1:42 pm

Today’s tickers: SJM, MS & NILE

SJM - J.M. Smucker Co. – Shares in the maker of branded food products fell as much as 9.8% to $70.50 today after third-quarter earnings missed expectations and the Company cut its full-year earnings estimate. The sharp correction in the shares may be temporary, by the looks of trades placed in J.M. Smucker Co. options straight out of the gate this morning. Investors snapped up calls across several expiries, perhaps taking advantage of deeply discounted premiums on the contracts in the view that shares may rebound. March expiry call buyers targeted the $75 strike, buying around 280 lots for an average premium of $0.60 each. Traders long the calls may profit at expiration next month if shares in the peanut butter producer rally 6.5% over the current traded price of $71.00 to exceed the effective breakeven point at $75.60. Same-strike price calls in the April contract were purchased 200 times at an average premium of $1.10 apiece, positioning buyers to profit above a breakeven share price of $76.10. Meanwhile, third-quarter results and the revision to full-year guidance seem to have sparked concern in other strategists buying SJM puts. Traders positioning for shares to extend losses purchased around 150 of the Mar. $65 strike puts at a premium of $0.41 each, and picked up around 220 July $70 strike put options at an average premium of $3.50 per contract.

MS - Morgan Stanley – It looks like some Morgan Stanley options players paid heftier premiums than necessary for downside puts this morning. Reports that Moody’s may cut its rating on MS by up to three notches sent shares in the financial services firm down as much as 4.0% to $18.20, sparking demand for downside protection. The shaky start to the trading day was…

Tags: MS, NILE, SJM

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Options Feeding Frenzy Ensues At The Cheesecake Factory

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by Option Review - February 15th, 2012 2:20 pm

Today’s tickers: CAKE, LIZ & K

CAKE - Cheesecake Factory, Inc. – Traders are loading up on Cheesecake Factory call and put options today, perhaps ahead of the restaurant operator’s fourth-quarter earnings report next Tuesday. Shares in CAKE rose 1.6% to stand at $31.51 as of 12:55 p.m. in New York. March expiry calls garnered much of the attention from traders, with appetite for CAKE calls outpacing that of puts by around 1.4 to 1. The Mar. $34 strike calls are the most active as some 2,780 contracts changed hands against open interest of just 20 positions. It looks like the majority of the calls were purchased by one investor at a premium of $0.25 each. The strategist may profit at expiration in the event that Cheesecake Factory’s shares rally another 8.7% to surpass the effective breakeven point and new 52-week high of $34.25. The same investor may also be responsible for the purchase of call options at the Mar. $33 strike, where roughly 750 contracts traded for an average premium of $0.54 apiece. Time stamps for trades in the Mar. $33 and $34 strike calls exactly match those of transactions in the Mar. $29 strike puts. Nearly 950 of the $29 strike put options were purchased for an average premium of $0.55. The strategist snapping up both call and put options on the stock is prepared to see CAKE’s shares make big moves in either direction. The rise in demand for Cheesecake options has the overall reading of options implied volatility 31.5% on the day at 42.3% in early-afternoon trade.

LIZ - Liz Claiborne, Inc. – Shares in the owner of Juicy Couture, Kate Spade and other retail-based premium brands rallied to a fresh 52-week high of $10.38 today, extending year-to-date gains to 23.4%. A spate of…

Tags: CAKE, K, LIZ

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Michael Kors Options On Trend After Earnings Blowout

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by Option Review - February 14th, 2012 1:42 pm

Today’s tickers: KORS, AMLN & ACI

KORS - Michael Kors Holdings Ltd. – A number of options strategists appear to have benefitted handsomely from bullish positions held in the House of Kors today, with shares in the luxury retailer ballooning on better-than-expected third-quarter earnings. Shares in Michael Kors Holdings Ltd. have more than doubled since the December IPO, trading 22.7% higher on the day at $41.25 as of 11:40 a.m. Options on Kors are abuzz with after-earnings activity, with around 3.6 call options changing hands for each single put option in play. Some traders that placed bullish bets on the retailer in the weeks leading up to earnings in some cases saw the value of their positions sky-rocket. One buyer of a 1,500-lot Feb. $34/$37 call spread at an average net premium of $1.05 per contract on Feb. 9th may reel in maximum possible profits on the position at expiration, given shares in KORS are now trading well above the upper $37 strike. Call open interest in the front month is heaviest at the $33 strike where more than 5,480 positions were opened before today. It looks like most of the volume was generated in a single block of 4,831 calls that traded at $1.15 each on Feb 7th. The calls traded to the middle of the market one week ago with the bid/ask showing $1.05/$1.30. Today, these deep in-the-money calls trade at bid/ask of $8.20/$8.40 as of 12:15 p.m. The impact of better-than-expected earnings on the shares certainly makes for a happy Valentine’s Day for the trader in the event he or she purchased the contracts last week or a rather Grey day were the calls originally sold. Finally, investors positioning for shares in Kors to extend gains snapped up in-the-money calls at the $40 strike in February and March, as well as picked up around 255 calls out at the May $44 strike at an average premium of $1.56 each.…

Tags: ACI, AMLN, KORS

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Bear Put Spreads Take Shape In NetApp Ahead Of Earnings

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by Option Review - February 13th, 2012 4:33 pm

Today’s tickers: NTAP, LYV & SGEN

NTAP - NetApp, Inc. – Options on the supplier of enterprise storage and data management software and hardware products and services are among the most active by volume today. Bearish positions are accumulating in the front month, with debit put spreads comprising the majority of overall options volume in the name. Shares in NetApp are currently down 1.1% to stand at $39.25 as of 1:20 p.m. ET, three days ahead of the Company’s third-quarter earnings report after the close on Thursday. The stock was cut to ‘hold’ from ‘buy’ with a share price target of $42.00 down from $54.00 at ThinkEquity today. It looks like one or more investors purchased the Feb. $34/$39 put spread roughly 9,000 times for an average premium of $1.85 per contract. Traders harnessing the strategy may be hedging long positions in the underlying shares or, alternatively, establishing outright bearish stances on the stock in the expectation that shares will pullback following earnings. Profits are available on the spread if shares in NetApp drop 5.35% to trade below the average breakeven price of $37.15. Put-spreaders could walk away with maximum potential profits of $3.15 per contract should NTAP’s shares plunge 13.4% to settle below $34.00 at expiration.

LYV - Live Nation Entertainment, Inc. – Put options on the live entertainment and eCommerce Company are more active than usual today, with more than 10 put contracts changing hands in the first half of the session for each single call option in play. Shares in the operator of Ticketmaster.com are up 0.90% at $10.82 just before 12:00 p.m. in New York. Traders may be snapping up put options on Live Nation Entertainment ahead of the Company’s fourth-quarter earnings report next Thursday after the close. The April $10 strike saw the…

Tags: LYV, NTAP, SGEN

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True Religion Falls Apart At The Seams After Earnings

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by Option Review - February 10th, 2012 1:22 pm

Today’s tickers: TRLG, KR & IGT

TRLG - True Religion Apparel, Inc. – Disappointing fourth-quarter earnings and weaker-than-expected 2012 guidance from high-end apparel maker, True Religion, saw shares down as much as 25.0% this morning to $27.57. The sharp pullback in the price of the underlying is a true kick in the pants for some traders holding bullish options, as the value of their positions tumbled overnight. One hard-hit strategy, a bull call spread initiated at $1.50 per contract yesterday afternoon, is practically worthless today. It looks like the trader purchased a 1,000-lot Feb. $37/$41 call spread for a net premium outlay of $1.50 per contract, looking for maximum possible profits of $2.50 per contract provided True Religion’s shares settled above $41.00 by February expiration. As of the close of trading on Thursday, with shares in TRLG at $36.80, the stock would have needed to rally % for the spread to yield maximum gains to the investor. But, with shares now sharply lower, the price of the underlying must soar nearly 40.0% to $38.50 in order for the trader to at least break even on the position. The trader takes maximum possible losses of $1.50 per contract on the spread if shares fail to rally above $37.00 by expiration next week. Meanwhile, investors that purchased bearish or protective put options heading into the earnings report saw the value of their positions soar. One such trade, the purchase of around 500 Feb. $31 puts for an average premium of $0.70 each at the end of January, is up big today. Investors buying the now deep in-the-money puts this morning paid an average premium of $3.22 per contract this morning, or nearly five times as much. Finally, investors positioning for shares in True Religion to extend losses ahead of February expiration snapped up some 500 puts at the $26 strike and another 140 puts at the $25 strike, at average premiums of $0.34 and $0.13 apiece, respectively.…

Tags: IGT, KR, TRLG

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Appetite For Diamond Foods Options Rises As Shares Tumble

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by Option Review - February 9th, 2012 1:55 pm

Today’s tickers: DMND, MHS & TRIP

DMND - Diamond Foods, Inc. – Investors sent shares in the maker of Pop Secret and Emerald snack nuts sharply lower on Thursday after the Company said it will replace its top two executives and restate earnings for the past two years. The already hard-hit stock opened down more than 40.0% this morning to touch an intraday- and multi-year low of $21.44. Options on Diamond Foods attracted all kinds today, with some strategists nibbling at calls and selling puts, while others position for further downside in the name. Investors expecting shares to somewhat recover in the next six trading sessions picked up call options in the front month. Approximately 1,400 calls were purchased at the Feb. $25 strike for an average premium of $0.86 each. Call buyers may profit at expiration next Friday in the event that DMND’s shares rally 11.2% off the current price of $23.25 to top the average breakeven price of $25.86. Meanwhile, out-of-the-money put selling in the front month may mean some traders expect the stock is unlikely to tumble much further from here within the next week. Put sellers looked to the Feb. $20 strike, selling around 1,500 of the contracts to receive an average premium of $0.64 per contract. Traders keep the full amount of premium as long as shares in Diamond Foods exceed $20.00 through expiration. Options volume on the food products company today currently exceeds 95,000 contracts, an active day for the stock, which has 158,981 contracts comprising overall open interest.

MHS - Medco Health Solutions, Inc. – Shares in the pharmacy-benefits-manager (PBM) are off slightly this morning, down 0.20% at $60.70 as of 11:30 a.m. in New York, but options activity in the name suggests the stock…

Tags: DMND, MHS, TRIP

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Jobs Report Drives Heavy Trading Traffic In Ford, General Motors Options

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by Option Review - February 3rd, 2012 1:42 pm

Today’s tickers: F, GM, MAS & GILD

Options commentary to resume on Thursday February 9th.

F - Ford Motor Co. – The better-than-expected jobs number out this morning revved up investor appetite for automobile stocks, driving shares in Ford Motor Co. up 4.0% to $12.75. Call options on the U.S. automaker are flying off the shelves, with nearly 5 calls in play on the stock for each single put option traded. The single-largest transaction in Ford options appears to be a bull call spread that yields maximum possible profits if the price of the underlying rallies nearly 20.0% during the next few months to expiration. It looks like one trader purchased a 30,000-lot April $14/$15 call spread for a net premium of $0.15 per contract. The position may be profitable at expiration if shares in Ford Motor Co. climb 11.0% to surpass the effective breakeven price of $14.15. Maximum potential profits of $0.85 per contract are available on the spread should shares in the auto manufacturer surge 17.6% to exceed $15.00 by expiration. Overall options volume on Ford is up above 175,000 contracts just before 1:00 p.m. ET.

GM - General Motors Co. – GM’s shares are outperforming fellow U.S. automaker, Ford Motor Co., this afternoon, with the stock trading 8.4% higher on the session at $26.35 as of 12:55 p.m. in New York. Optimism spurred by this morning’s stronger-than-expected jobs report was followed by greater-than-usual options action in the name. A debit put spread in the March expiry, which may be an outright bearish bet…

Tags: F, GILD, GM, MAS

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Heavy Action In BP Call Options With Earnings On The Horizon

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by Option Review - February 2nd, 2012 2:31 pm

Today’s tickers: ZNGA, UPS & SXC

ZNGA - Zynga Inc. – Options on the social game developer behind wildly popular games such as Words with Friends and FarmVille continue to trade at a Facebook-IPO-induced fever pitch today. Investors exchanged roughly 45,000 option contracts on Zynga by 12:30 p.m. in New York, while the price of the shares reached new heights one day after the highly-anticipated Facebook filing became a reality. Shares in ZNGA rallied as much as 21.8% in the first half of the trading session to an all-time high of $12.91. Out-of-the-money call buying in the front month suggests some traders are positioning for the price of the underlying to extend gains in the near term. February $13 strike call options that cost around $0.15 apiece at the beginning of the week, are now more than five times as expensive given the current asking price of $0.80 per contract. Traders looked to the Feb. $14 and $15 strikes, buying calls this morning at average premiums of $0.35 and $0.22 each, respectively. Call buyers may profit at expiration if Zynga’s shares continue to post strong gains in the next few weeks, but only risk losing the premium paid for the options should the stock’s run-up reverse course. Meanwhile, buyers of some 5,000 puts at the Feb. $12 strike stand to profit in the event that Zynga’s shares pull back off their highs ahead of expiration. Investors that bought into Zynga call options weeks ago when shares in the game developer were down sharply off their December-IPO price of $10.00 saw, in some cases, the value of their positions sky-rocket this week. Traders that paid an average premium of $0.85 apiece for Feb. $8.0 strike calls back on January 9 now find those call options cost $4.30 each as of 1:00 p.m. in afternoon trade.…

Tags: SXC, UPS, ZNGA

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Phil's Favorites

Crude Oil vs. Iran: Who Blinks First?

February 23rd, 2012 12:07 am

Courtesy of www.econmatters.com.

By EconMatters

Oil futures spiked more than 2% in one day to their highest level in nine months on Tuesday Feb. 21. WTI front month contract closed at $105.84, while Brent ended at $121.66 on ICE, primarily on investors fear of potential conflict over the escalating tensions between the US, Europe, Israel, and Iran. A second Greek bailout deal of €130bn (£110bn; $170bn) also helped to inject some optimism into the market (which would seem totally mis-placed as we may need to relive this Greek drama in two years). Nevertheless, the fact remains crude oil market supply and demand has not changed a bit to warrant a 2%+ price jump in one day.

...

more from Ilene

Zero Hedge

Scandal: Greece To Receive "Negative" Cash From "Second Bailout" As It Funds Insolvent European Banks

February 22nd, 2012 12:15 pm

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

Earlier today, we learned the first stunner of the Greek bailout package, which courtesy of some convoluted transmission mechanisms would result in some, potentially quite many, Greek workers actually paying to retain their jobs: i.e., negative salaries. Now, having looked at the Eurogroup's statement on the Greek bailout, we find another ...

Insider Scoop

Morning Social Media Outlook for Wednesday Feb 22

February 22nd, 2012 11:05 am

Courtesy of Benzinga.

In recent years, traders and investors have increasingly turned to social media to discuss their investments. Now, interested parties can get a scientific look at what is being discussed on a weekly, monthly, and even hourly basis.

Provided by Social Market Analytics, here is the morning social media outlook for Wednesday, February 22.

Most Bullish

Sentiment has been most bullish this morning on two tech companies.

Sourcefire (NASDAQ: FIRE) reported stellar earnings yesterday afternoon, which prompted several analysts to upgrade their price targets on the stock. The company hit a fresh 52-week high earlier this morning, as shares surged over 23%.

Procera Networks (NASDAQ: ...

http://www.insidercow.com/ more from Insider

Chart School

The Mindset For Successful Trading In Today’s Market

February 22nd, 2012 11:03 am

Courtesy of David Grandey.

In today’s market, it’s more important that ever to have a mindset to maintain a sane mental state and stay peaceful calm and centered.
Keep in mind with the markets as stretched as they are, we are in a high risk zone for pulling back as we have been in an accelerated uptrend with barely any pullback to speak of which as we all know can not continue forever — it never does. That said the music can stop at a moment’s notice and odds favor when it does it will be a gap down. So using that as a backdrop let’s look at SXCI. SXCI — SXC Health Let’s say that issue breaks above the pink line and triggers a long side trade. That’s all fine and dandy HOWEVER it’s what happens next that we have no control over. At that point it either follows through or it doesn’t. WE NOR YOU HAVE ANY CONTROL ...

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Sabrient

Sabrient Risers - 2/22/2012

February 22nd, 2012 12:00 am

Top 5 RisersStockRatingAnalysisAGBUYAn increasingly attractive expected long term growth rate and a significantly higher projected valuation from just a few weeks ago make AGCO a company to watch.PCUBUYThe recent earnings history for Southern Copper shows significant improvement while projected valuation continues to rise.PAGBUYAn increasingly attractive expected long term growth rate and a significantly higher projected valuation from just a few weeks ago make Penske a company to watch.FEICBUYAn increasingly attractive expected long term growth rate and a significantly higher projected va...

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Market Montage

Breadth is Narrowing

February 21st, 2012 2:23 pm

Submitted by Mark Hanna

Courtesy of MarketMontage. View original post here.

Other than that rally last Thursday that caught a lot of technicians flat footed (i.e. post the Apple reversal) the breadth in this market has been relatively poor the past 5 sessions or so. The Russell 2000 has been lagging the major indexes dominated by large caps, and my watch lists have contained far more red than green. Some people have been calling it the NBA market ("Nothing but Apple") but it's been a bit broader than that – i.e. Microsoft has acted well, and some groups are still working.

A bearish take on this is of course what I cited above – breadth is narrowing which usually happens near tops. Fewer and ...

All About Trends

Mid-Day Update

February 21st, 2012 1:40 pm

Reminder: David is available to chat with Members, comments are found below each post.

Click here for the full report.

To learn more, sign up for David's free newsletter and receive the free report from All About Trends - "How To Outperform 90% Of Wall Street With Just $500 A Week." Tell David PSW sent you. - Ilene...

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Option Review

Bullish Bets Build In Wynn Resorts Weekly Options

February 21st, 2012 1:39 pm

Today’s tickers: WYNN, CTRP, DTV & WMT

...

OpTrader

Swing trading portfolio - week of February 20th, 2012

February 21st, 2012 8:58 am

Reminder: OpTrader is available to chat with Members, comments are found below each post.

This post is for all our live virtual trade ideas and daily comments. Please click on "comments" below to follow our live discussion. All of our current 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

...

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ETF Selector

Global Markets, Euro, Jump On Greece (FXE, SPY, EWG, UUP)

February 20th, 2012 10:36 pm

Courtesy of John Nyaradi.

Monday comes and goes with no agreement on Greece until late night settlement on Greece.

European finance ministers met in Brussels Monday and deep into the night and finally, in the wee hours, apparently have struck an agreement for the next round of bailout money for Greece.

In overnight trading, the European indexes were up with the DAX gaining 1.46%, the STOXX 50 adding 1.2% and the FTSE climbing 0.7%

In Asia, major indexes were down slightly as the world waited for an answer on Greece.

The U.S. Dollar (NYSEARCA:UUP) declined after announcement of the agreement while the Euro Dollar (NYSEARCA:FXE) jumped.

The issue remains the same as it always ha...

Stock World Weekly

Stock World Weekly: Balancing Act

February 19th, 2012 3:12 am

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

Here's the most recent Stock World Weekly, Balancing Act. Click on this link to sign in or sign up to read.

...

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IRA Strategy/Income Trader

Weekend Virtual Portfolio Update 1/30/2012

January 30th, 2012 7:22 am

Here is a quick update of past trades and our current position. AA Money No trade this week as we wait for AA to settle. Phil remarked last week that AA seemed overvalued. In the meantime, it looks like we might have to roll our Feb 9 calls. Good thing we sold only 5 of them against our position. Last week P&L - 310.00 We lost ground last week, but we still have 11 months to sell premium! FAS Money Very good week for FAS Money as we benefited from the large amount of premium sold the previous week. We covered most of the shorts in advance of the Fed speech, but sold another set of options on Wednesday after the speech - 2 FAS calls that expired worthless on Friday, 2 FAS put that we are still holding and 2 FAZ put that we bought back for a profit on Friday. A late stick comparable to last week's almost gave us problems at the end of the day though! Last week P&L - $4277.00 IWM Money A decent week in this virtual portfo...

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Pharmboy

Biotech Investing for 2012

January 18th, 2012 1:09 am

Reminder: Pharmboy is available to chat with Members, comments are found below each post.

Finding new and exciting Biotech companies that target novel mechanisms is like trying to find a needle in a haystack. Sure there are many companies working on cutting edge science, but investing in those companies to reap the rewards of their work is a very dangerous game. More often than not, companies fail because the mechanism does not pan out, the compound(s) do not have pharmacokinetics (get into the body or last very long in the body), or an adverse event happens that knocks years off a development timeline. In addition, the stock can be manipulated by market makers so investors don't know which way is up. I approach investing in biotechs as a long term prospect. I continue to like our current portfolio of biotech companies (join in chat for many of those plays), and we continually add/subtract shares and sell/buy options on ...

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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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