Paul Foster
Chicago U.S.A. - http://
Paul Foster, a knowledgeable researcher has 21-years of professional experience in the capital markets, investments, trading, corporate finance, arbitrage, options and mergers and acquisitions.
Option Update: Research in Motion volatility low
Research in Motion Limited (NASDAQ: RIMM) recently up $1.73 to $140.29:
The Wall Street Journal reported RIMM plans to introduce a Touch-Screen Blackberry in Q3. The new BlackBerry will be sold at Verizon Communications, Inc. (NYSE: VZ) and Vodafone Group Plc (ADR) (NYSE: VOD) only. RIMM call option volume of 66,506 contracts compared to put volume of 33,947 contracts. RIMM June option implied volatility of 42 wa below its 26-week average of 57 according to Track Data, suggesting decreasing price movement.
Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com
Option Update: CNet Networks volatility low as CBS agrees to buy it
CNet Networks (NASDAQ: CNET) closed at $7.94 Wednesday.
CBS (NYSE: CBS) announced it agreed to buy CNET for approximately $1.8 billion, or $11.50 a shares. CBS says the acquisition will make CBS one of the 10 most popular Internet companies in the United States.
CNET overall option implied volatility of 50 is below its 26-week average of 55 according to Track Data, suggesting decreasing price movement.
Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com
Option Update: Chesapeake Energy volatility elevated; shares near record high
Chesapeake Energy (NYSE: CHK) is the largest independent and third-largest overall producer of natural gas in the U.S.
Bloomberg reports Natural Gas Futures are up 0.20% to 11.621.
CHK option implied volatility of 40 is above its 26-week average of 32 according to Track Data, suggesting larger price movement.
NASDAQ 100-QQQQ overall implied volatility at 24; 26-week average is 28
Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com
Option Update: General Electric volatility low; shares near 4-year low
General Electric (NYSE: GE) closed at $32.51 Wednesday.
The WSJ reported that GE is seeking to sell its appliance division.
Smith Barney says: "Reiterate Hold Rating – GE appears to be on the path to much needed portfolio streamlining, but the processes could be disruptive in the near term."
GE overall option implied volatility of 23 is below its 26-week average of 26 according to Track Data, suggesting decreasing price risk.
Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com
Option Update: Volatility Index S&P 500 Options at seven-month lows; BUD downgraded
Volatility Index S&P 500 Options-VIX down 1.14 cents to 16.84 according to Track Data.
Anheuser-Busch (NYSE: BUD) is recently down 38 cent to $51.65.
Stifel Nicolaus lowered its rating on BUD to Hold from Buy on valuation.
BUD call option volume of 23,897 contracts compares to put volume of 3,558 contracts. BUD June option implied volatility of 35 is above its 26-week average of 25 according to Track Data, suggesting larger price movement.
Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com
Option Update: Autodesk June volatility flat into EPS & outlook
Autodesk Inc. (NASDAQ: ADSK), a leader of 2D and 3D design software, is at $40.48. ADSK is scheduled to report Q1 EPS on May 15. Goldman Sachs says, "we think it is less likely that shares will rise on earnings."
ADKS May 40 straddle is priced at $2.15, June 40 is at $4.05. ADSK June option implied volatility of 40 is near its 26-week average of 38 according to Track Data, suggesting non-directional price movement after EPS.
Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.
Option Update: Deere volatility elevated; shares weak on guidance
Deere (NYSE: DE) was trading at $84.99 in early trading, below its close of $90.19 Tuesday.
DE reported Q2 EPS of $1.74 versus consensus estimates of $1.75.
Goldman Sachs says: "Estimates and price target are under review."
DE May 90 straddle closed at $5.95, June at $11.10. DE June option implied volatility of 47 is above its 26-week average of 43 according to Track Data, suggesting larger price movement.
Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com
Option Update: Microsoft volatility at 28 -- MSFT has $26.3B in short term investments
Microsoft (NASDAQ: MSFT) closed at $29.78 Tuesday.
MSFT announced on May 5 the withdrawal of its proposal to acquire Yahoo (NASDAQ: YHOO) for consideration of approximately $41 billion.
MSFT had $11.8 billion in cash, $14.5 billion in short-term investments and zero long-term debt as of March 31, 2008.
MSFT paid a special $3 dividend in December of 2004.
MSFT overall option implied volatility of 28 is below its 26-week average of 30 according to Track Data, suggesting slightly less price risk.
Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com
Option Update: Bank of America volatility low as shares approach 5-year lows
Bank of America (NYSE: BAC) is recently down 71 cents to $36.71.
BAC call option volume of 42,197 contracts compares to put volume of 19,995 contracts. BAC June option implied volatility of 30 is below its 26-week average of 34 according to Track Data, suggesting decreasing price movement.
Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.
Option Update: Low volatility at major Chinese companies
China Petroleum & Chemical (NYSE: SNP), an energy and chemical company based in the People's Republic of China, closed at $98.35. WTI Crude Futures are down 0.33% to $123.82 according to Bloomberg. SNP overall option implied volatility of 46 is below its 26-week average of 57 according to Track Data, suggesting decreasing price risk.
China Life Insurance (NYSE: LFC) offers products and services, including individual life insurance, accident insurance and health insurance in China. LFC closed at $62.37. LFC overall option implied volatility of 42 is below its 26-week average of 50, suggesting decreasing price risk.
Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com
Option Update: Electronic Arts June volatility at 36 into EPS & TTWO offer
Electronic Arts (NASDAQ: ERTS) closed at $54.27 Monday.
ERTS is scheduled to report Q1 EPS after the market close today.
ERTS unsolicited $2 billion buyout offer for Take Two (NASDAQ: TTWO) expires on May 16.
ERTS May 55 straddle is priced at $3.55. ERTS June option implied volatility of 36 is near its 26-week average according to Track Data, suggesting non-directional price fluctuations after EPS & TTWO offer expiration.
Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com
Option Update: Hewlett-Packard calls active; shares sell off on report of EDS talks
Hewlett-Packard (NYSE: HPQ) is closed down $2.48 to $46.65.
The WSJ reported HPQ is in advanced talks to acquire Electronic Data Systems (NYSE: EDS) for between $12 billion and $13 billion according to sources.
HPQ call option volume of 59,863 contracts compares to put volume of 21,209 contracts. HPQ June option implied volatility of 35 is near its 26-week average of 33 according to Track Data, suggesting slightly larger price risk.
Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com
Option Update: Research in Motion volatility down as shares at record high
Research in Motion (NASDAQ: RIMM) is recently up $6.77 to $139.55.
RIMM announced the introduction of BlackBerry Bold smartphone.
Smith Barney says: "We expect its 3G capability will help drive strong international growth for RIMM. We expect AT&T (NYSE: T) will be the first domestic carrier to offer the Bold."
RIMM call option volume of 77,745 contracts compares to put volume of 45,526 contracts. RIMM June option implied volatility of 45 is below its 26-week average of 57 according to Track Data, suggesting decreasing movement.
Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com
Option Update: Clear Channel call active as shares rally on reports of trial delay
Clear Channel (NYSE: CCU) is recently up $1.70 to $31.96.
Thomas H. Lee Partners and Bain Capital have filed suits to try to force a bank group to fund their $19 billion buyout of CCU. The bank group is asking the courts to dismiss a part of the litigation.
Bloomberg is reporting that the CCU trail in New York State Court has been delayed by one day and that lawyers decline to comment on whether a settlement is in the works.
CCU call option volume of 23,870 contracts compares to put volume of 5,295 contracts. CCU May 32.5 straddle is priced at $4.10. CCU June option implied volatility of 89 is above its 26-week average of 61 according to Track Data, suggesting larger price risk.
Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com
Option Update: EnCana volatility at 35 as it plans to split into two firms
EnCana (NYSE: ECA) plans to separate into two companies, one focused on oil and the other natural-gas assets.
ECA closed at $85.93 Friday.
Friedman Billings Ramsey says: "The sum-of-the-parts DCF valuation is $92/share based on the company's most reserve data."
ECA over all option implied volatility of 35 is above its 26-week average of 33 according to Track Data, suggesting slightly larger price fluctuations.
Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com
JC Penney (JCP) gets hit by economic slowdown, but beats analyst estimates
Ford (F) recalls over 650,000 pickup trucks
The Toyota (TM) Prius turns one million
