Like cotton on sheep, the bulls are all over the opening bell. The Dow just opened and is currently up 110 to 8,610; the Nasdaq is up 22 to 1,796 and the S&P 500 has added 12 and is at 931.
The big news of course is General Motors which filed for Chapter 11 bankruptcy. The news is being viewed as positive and many think GM will come out leaner and meaner. Um, I’m speechless about this subject right now. I’m still in shock on how a company can lose so much tax-payer money in a short period of time. The stock has yet to open and it remains to be seen if it will keep the same symbol or trade under a new one.
The other surprise is that there were two replacements announced for the Dow. Cisco Systems (CSCO, $19.08, up $0.58) and Travelers (TRV, $41.53, up $0.87) will replace Citigroup (C, $3.73, up $0.01) and GM (GM, $0.52, down $0.23) which just opened. The GM June 1 puts (GMVR, $0.67, up $0.07) are up 10% and that was an easy trade from Friday. Making 10% over a weekend isn’t a bad gig.
Freeport-McMoRan (FCX, $57.52, up $3.09) keeps on Rocking the Free World as it is up nearly 6% this morning. Neil Young would be proud of this performance. The June 55 calls (FCXFK, $4.50, up $1.72) have now officially doubled from an entry price of $2.10 on May 20th. The June 60 calls (FCXFL, $2.02, up $0.72) have more than doubled as they were profiled at 80 cents. Raise your stops.
I told you last night in the Weekly Wrap that Freeport was in a “breakout” and it is clearly visible today. As you know, this was the two last trades I provided before our new trading service launches. Please read the next blog to find out more. The response has been overwhelming and I encourage you to send me an email. Slots are filling up fast.