Futures are up slightly lower as we get ready for this morning’s trading action. Yesterday, the bears ruled Wall Street and it looks like they could get the ball first this morning. Dow futures are down 25 points to 9,278 while the Nasdaq futures are lower by 4.5 points, to 1,591. S&P futures are down by 3.5 points and are at 993 as we head towards the opening bell.
There are a couple of “winners” and “losers” I want to talk about this morning but neither stock is worth owning.
Well, if you didn’t think American International Group (AIG, $36.00) had iny big moves left in it you were wrong. I profiled this stock all last week and how it had made an incredible move from $13 to $50 in August. I also mentioned to close the September 35 calls (IKGII, $5.05) on Friday when they were at $15.80 and had touched a high of $21 for the day. Look at them now.
The September 25 puts (AIGUY, $1.15) were trading for 40 cents last Friday and have jumped nearly 200% since. I told you these kind of strangle trades can be a monster if you manage them correctly. AIG is down $2.12, to $33.88, in pre-market trading.
It seems there are quite a few “famous” or “infamous” names on the “stocks for under $5” list. It looks like there is another one trying to rise from the ashes of past glory days.
Vonage (VG, $1.43) was up 45%, to $2.05, in the after-hours last night after it said Apple (AAPL, $165.30) has approved its mobile application for the iPhone and iPod Touch. This news was not a surprise when the stock was at 60 cents but the easy money has already been made.
Don’t chase Vonage. The stock is up 70 cents to $2.13 in early action.
The Members Area has all of our current trades and if you are a subscriber, please check the updates for this morning. We got off to a good start with First Solar (FSLR, $114.98) yesterday.