Aug 30, 2011

Consumer Confidence at 10:00 AM EST

FOMC Minutes at 2:00 PM EST

AAPL pattern was a Whack-a-Mole day. Should've treated this day and possible week, as a Holiday. Labor Day is on Monday, SEP 5, 2011. Market should float up from here.....

One Day Gains in the Weekly Option market, even when Ben Bernanke speaks about nothing..

Everyday the Pure Play in this market appears to be the SPY. But, you can still find a few good ones as well.

AAPL pretty good mover the last couple of days and will have to see how it holds up to Thursday and Friday..

AAPL is on its way to Germany for the Samsung court hearings, that begins on Aug 25th. Markets pulled back a bit at the open and the traders let the market rip to new days highs on multiple levels. Plus everyone was caught short, so it should not be a surprise of the rip. Ben B. - Chairman speaks on Friday at 10:00 ET from Jackson Hole, WY. AAPL had a beautiful chart today, as you can see.

Looking for some good market action this week, due to "The markets want to force us into doing certain things - and that we won't do," says Angela Merkel in an interview to be aired tonight. "Eurobonds are not the answer" to solving the current crisis ... "This is a hard and arduous path, which we will not be able to avoid by means of some magic bullet." and What you probably won't hear from the Chairman at Jackson Hole: "No, we'll not do QE3 because QE2 simply didn't work. It temporarily jacked up stock and food and energy prices, but it resulted in zero hiring, zero new business activity and zero real estate market amelioration."

Sic options returns, if you were quick on Friday. One day!!

Analyst will take your dough, if you are not care. News searches are important.

This trader did some crazy stuff and it is not advised you do the same. This is what they call the "Moby" effect. Trying to catch the whale, you get the picture. This market is in a Whack-a-mole mode, it could have been very destructive to his account.

$GOOG 495 AUG Put were at .70 (around 3:00PM) and move nicely to 1.15. Ultimately should have been held and sold that the end of day for 3.80

Lets see in the morning, if this market blows out the long from 8/17/2011. Initial Jobs Numbers and bunch of other stuff at 8:30 Eastern Standard Time.

SAC brought the stake in Apple to almost 600 million shares -- making it one of the fund's top holdings, according to data compiled by Bloomberg. Greenlight Capital Up the amounts of its AAPL shares in a 13-D Filing from both companies.

3. Apple (AAPL): Hedge fund rating of 85. Hedge funds had $7.3 Billion in AAPL. Rob Citrone’s Discovery Capital had $633 Million in AAPL at the end of March.

Korean company Samsung Electronics will go to a German court on August 25 to try to overturn a ban on it selling flagship Galaxy tablets in most of the European Union.

Question: “How much money does it take to get started trading options?”

Answer: “Options contract usually cost between $1,000 per contract and $2,000 per contract on the stocks we play, something more and some times less. We do try and play options with as short of a time until expiration as possible.”

We like to pair three types for maximum flexibility and a range in options prices. Fast High Priced Options (150 +), Medium Speed High Price Options (70 to 150) and a Medium Speed / Medium Priced Movers (usually 30 to 70 priced stock) all for the sake of maximizing returns.

The stocks and sectors can be switched on a daily to weekly basis, if we feel the life has been drained out of them on the short and long term. But we will try to stay with the same stocks as much as possible. Stocks chosen for this strategy should have be capable of 5-point moves in one month.

Question: “Grouping of Stocks”

Answer: “Weekly and Monthly Options with the large and well cap names in the industry.”

• AAPL – Apple, Inc. – Technology

• AMZN – Amazon.com, Inc. - Services

• BIDU – Baidu, Inc. - Technology

• CAT – Caterpillar, Inc. - Industrial Goods

• FFIV – F5 Networks, Inc. - Technology

• GOOG – Google, Inc. - Technology

• GS – The Goldman Sachs Group, Inc. – Financial

• NFLX – Netflix Inc., - Services

• PCLN – Priceline.com, Inc. - Services

• POT – Potash Corp. of Saskatchewan, Inc. - Basic Material

• SPY – SPDR S&P 500 – Financial

• V – Visa, Inc. - Services

Question: “What is a Delta?”

Answer: “Option delta is represented as the price change given a 1 point move in the underlying asset and is usually displayed as a decimal value. Delta values range between 0 and 1 for call options and -1 to 0 for put options.”

Options In Play will have a Delta value of .50 or better. At-the-money options generally have deltas around 50. Deep-in-the-money options might have a delta of 80 or higher, while out-of-the-money options have deltas as small as 20 or less. As the stock price moves, delta will change as the option becomes further in- or out-of-the-money.

The market's unprecedented roller-coaster ride has has led to a 65% August gain for the CBOE Volatility Index (VIX -8.1%) going into today. A period of "bi-polar" market activity such as the present. Whack-A-Mole!!!

The European Commission welcomes the short-selling bans, according to a spokeswoman, who uses the occasion to call for a EU-wide framework for regulation of such activity.

Nouriel Roubini tells WSJ the risk of a global recession is greater than 50%, and the next two to three months will reveal the economy's direction. He also says he's putting his money into cash: "This is not the time to be in risky assets."

Korean company Samsung Electronics will go to a German court on August 25 to try to overturn a ban on it selling flagship Galaxy tablets in most of the European Union.

Dutch judge Edger Brinkman told the court on Thursday he would decide on the case by September 15, adding that if he ruled in Apple's favor, the injunction would come into effect four weeks later, on October 13.

We started to accumulate AAPL here and will have to see where it will take us. As most of you are aware of that this market is going towards the 2008 = Short Selling Ban. This will create an mortification of the market, again....

US Downgraded and Obama on the TV. FOMC and EcoNews for Tuesday should be fun...

AAPL provided some good action, but the markets was making it difficult to hold. The options were wicked. Whack a mole for this market.

10 contracts at 1.30 to 12.00 = Net 10K.

Look at the USDX

One word "Sic"........

On deck for earnings release is PCLN on 8/04/2011 after the markets closed with a conference call at 4:30 Eastern Standard Time.

AAPL was a descent trade today with the SPY rallying all the way back to positive gains this afternoon. You could pretty much have excepted that this market was not going down for the nine day in a row, all the news that should be coming out in the coming days, should reflex a positive light on the dismal Economic Outlook.

• 3:33 PM The prospect of potential Medicare cuts in a debt ceiling deal pressures hospital and managed-care stocks, negating Humana's (HUM -2.3%) solid Q2 results. The deal includes preset cuts that kick in if Congress doesn't adopt sufficient savings in a second wave of deficit reduction. Among hospitals: HCA -7.2%, [[UHS] -8.2%. In managed care, HUM and UNH -3.8% slip.
  Comment!
  [Healthcare, On the Move]
• 6:15 AM More on Humana's (HUM) earnings: Sees FY'11 EPS of $7.50-7.60, up from previous guidance of $6.70-6.90. (PR)
  Comment!
  [Earnings, Healthcare]
• 6:14 AM Humana (HUM): Q2 EPS of $2.50 beats by $0.45. Revenue of $9.28B (+8% Y/Y) misses by $40M. (PR)
  Comment!
  [Earnings, Healthcare]

Well we took the morning trade to the downside with the 82.50 August Puts.

In at 5.20 and cashed out at 8.10 for a 2.8K return.