Thursday's Earnings Watch

6:00AM

Altria Group (MO, $22.30, up $0.25). The company spun-off Philip Morris (PM, $52.00, up $1.93) last month so this will be its first quarterly report without the tobacco business. The move was designed to separate the fast-growing international business from all the litigation and headaches associated with the tobacco industry. The company reports after the bell.

American Express Company (AXP, $44.38, up $0.41). Reports after the market closes. Financials have bounced back as of late but will the short-lived rally hold up?

Baidu.com (BIDU, $349.66, down $0.44). Baidu was flat yesterday and announces earnings after the market closes. Today could get volatile as traders place their bets on whether this stock is headed for $400 or back down to $300. The stock has gained 40 points in a week so we could get a huge move after the bell in either direction.

Potash (POT, $204.12, down $12.71). The stock was due for a pause and will announce earnings BEFORE the bell this morning. The May 200 calls (PYPEX, $17.70) were profiled at $6.40 and I told you to set higher stops on Monday when they reached this level if the stock continued to go up. The May 200 calls hit a high of $25 yesterday before selling off big-time. If you had used a “trailing” $2 stop, you would have been out at $23 as the stock started to fade. This is how you squeeze out extra profits in trades while at the same time protecting your gains.

Taser (TASR, $9.42, down $0.10). After hitting a 52-week high of nearly $20 back in October, Taser has been treading water at $10 for most of 2008. Not a good sign and the stock always brings legality issues with it. I just don’t trust this stock. The company announces earnings BEFORE the bell.

Rick Rouse
Rick@OptionsMentoring.com

]]>

Leave a reply Cancel reply

CFTC Disclosure:

GOVERNMENT REGULATIONS REQUIRE DISCLOSURE OF THE FACT THAT WHILE THESE METHODS MAY HAVE WORKED IN THE PAST, PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE PERFORMANCE. WHILE THERE IS A POTENTIAL FOR PROFITS THERE IS ALSO A RISK OF LOSS. A LOSS INCURRED IN CONNECTION WITH Momentum Options Trading, LLC CAN BE SIGNIFICANT. YOU SHOULD THEREFORE CAREFULLY CONSIDER WHETHER TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL CIRCUMSTANCE. THERE IS SUBSTANTIAL RISK IN TRADING. A LOSS INCURRED IN CONNECTION WITH FUTURES TRADING CAN BE SIGNIFICANT. WE MAKE NO CLAIM REGARDING PAST OR FUTURE PERFORMANCE. WE MERELY TRACK EVERY TRADE AND SHOW THE PERFORMANCE OF ALL TRADES THE SYSTEM OR NEWSLETTER PRODUCES. SIMULATED TRADING IS DIFFERENT THAN TRADING REAL MONEY. HYPOTHETICAL RESULTS ARE NOT REAL RESULTS. PLEASE CONTACT YOUR BROKER ABOUT THE RISK OR TRADING STOCKS, OPTIONS OR FUTURES. ALL COMMUNICATIONS ARE OPINIONS NOT ADVICE.

CFTC RULE 4.41 – HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.

Blog