Blog

EA Misses, Cuts Jobs

Electronic Arts (ERTS, $15.50, up $0.64) posted weaker-than-expected earnings after the bell and said it would delay the release of several hit games. And guess what? The stock went up. The company reported a profit of $0.56 a share versus expectations of $0.88 a share for the fourth quarter butRead more

More

Visa Call Option Activity/ EA Update

There seems to be some concentrated buying in the Visa (V, $50.55, up $0.58) February 55 calls (VBK, $1.10, up $0.25) as over 1,500 contracts have traded in the first hour. There is also over 1,600 contracts that have traded in the March 30 puts (VOF, $0.25, unchanged). These twoRead more

More

Biotech Grumblings

Genentech (DNA, $82.10, up $0.86) came out with some great news yesterday after the bell and said a late-stage study combining Avastin with Tarceva to treat lung cancer was a huge success. Tarceva is a drug from OSI Pharmaceutical’s (OSIP, $36.39, up $0.79) pipeline and is marketed by Genentech. TheRead more

More

Electronic Arts On Deck

Electronic Arts (ERTS, $14.86, down $0.58) will report earnings on Tuesday and Wall Street is expecting 90 cents a share for the quarter. The company will report after the closing bell as they are on the left coast and will announce at 2PM (5PM stock market time). This will giveRead more

More

Google Earth Creating Buzz

Google (GOOG, $340.25, up $1.72) is set to unveil its updated Google Earth in a few hours and Wall Street is eagerly awaiting the update. The Google Earth mapping software is one of the most popular free downloads available but what the new Google Earth will soon be able toRead more

More

Update on GLD, ERTS

The Spider Gold Shares (GLD, $90.30, down $1.01) opened lower this morning and these look like good entry points for the March 99 calls (GLDCU, $2.38, down $0.52) and the March 100 calls (GLDCV, $2.15, down $0.50). However, do not pay market price for them. Put in limit orders ofRead more

More

Weekly Wrap for 2/1/09

1. Commentary 2. Month-end Review 3. Opening and Managing a Trading Account 4. Using Option Straddles 5. Current Trades 6. Earnings 7. Closing Thoughts ************************************************** 1. Commentary The market suffered its fourth straight losing week but the losses were kept to less than 1%. The Dow got off to aRead more

More

Roche Goes Hostile

Roche threw us a curveball this morning and took its bid for Genentech (DNA, $80.95, down $3.14) directly to the shareholders. The company is now offering about $42 billion, or $86.50 a share for Genentech which is $2.50 less than the offer it made last July. Hogwash. Roche’s attempt toRead more

More

Down Day Triggers Stops

After a four-day winning streak, the market was due for a pause as all three major indexes traded lower. A couple of crummy economic reports really set the tone today and the Dow didn’t even come close to sniffing positive territory. Jobs and Housing were the culprits. The number ofRead more

More

IBM Breaks Through Resistance

Yesterday it appeared International Business Machines (IBM, $94.82, up $3.16) was not going to join the market’s party as the stock was only up by a few nickles. The Dow was enjoying a triple-digit gain, yet IBM was stuck in neutral. Turns out, IBM was the party on Wednesday. TheRead more

More

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.