Paul Foster
Chicago U.S.A. - http://
Paul Foster, a knowledgeable researcher has 21-years of professional experience in the capital markets, investments, trading, corporate finance, arbitrage, options and mergers and acquisitions.
Option update 12-11-07: Furniture companies at longtime lows
Ethan Allen (NYSE: ETH)'s share price is near a seven-year low. ETH closed at $29.45. ETH overall option implied volatility of 38 is near its 26-week average of 36 according to Track Data, suggesting non-directional risk.
La-Z-Boy (NYSE: LZB)'s share price is near a 16-year low. LZB closed at $6.68. LZB overall option implied volatility of 76 is above its 26-week average of 58 according to Track Data, suggesting larger risk.
Daily Options Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.
Option update 12-11-07: AT&T announces share buybacks, raised dividend
AT&T (NYSE: T) is recently trading at $39 in pre-open trading, above its close of $37.90. T announced a 12.7% dividend increase and a new 400 million share repurchase plan. T overall option implied volatility of 31 is above its 26-week average of 28 according to Track Data, suggesting larger risk.
Daily Options Update is provided by Stock Specialist Paul Foster of theflyonthewall.com
Option update: D. R. Horton volatility elevated on heavy January call volume
D. R. Horton, Inc. (NYSE: DHI), the largest homebuilder in the U.S., closed at $14.76.
DHI January 15 calls traded 191 times on transaction volume of 10,428 contracts, above its open interest of 6,097 contracts. DHI January option implied volatility of 65 is above its 26-week average of 52 according to Track Data, suggesting larger risk.
Daily Options Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.
Option update: Washington Mutual volatility up into quarterly dividend cut and convertible offering
Washington Mutual, Inc. (NYSE: WM) announced the capital offering of convertible stock with aggregate proceeds of approximately $2.5 billion and the reduction of the quarterly dividend rate to 15 cents from its most recent dividend rate of 56 cents per share:
WM is trading at $18.99 in after market trading, below its close of $19.88. WM December option implied volatility is at 71, January is at 84, above its 26-week average of 43 according to Track Data, suggesting larger risk.
Daily Options Update is provided by Stock Specialist Paul Foster of theflyonthewall.com
Option update 12-10-07: ARTC volatility high on heavy put volume
ArthroCare (NASDAQ: ARTC), a medical device company, is recently down $2.48 to $52.42. ARTC December 50 straddle is priced at $6.10. ARTC call option volume of 1,233 contracts compares to put volume of 8,267 contracts. ARTC January option implied volatility of 64 is above its 26-week average of 41 according to Track Data, suggesting larger downside risks.
Daily Options Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.
Option update 12-10-07: Honeywell, United Tech volatility flat into outlook
Honeywell (NYSE: HON) is hosting its 2008 guidance announcement on December 13. Alex Brown says, "We expect a bullish outlook from HON." HON overall option implied volatility of 28 is near its 26-week average of 27 according to Track Data, suggesting non-directional risk.
United Technologies (NYSE: UTX) is hosting its 2008 outlook meeting on Thursday, December 13. Smith Barney says, "Buy UTX; Sell BA – Use any strength in BA's stock to switch to UTX." UTX overall option implied volatility of 24 is near its 26-week average according to Track Data, suggesting non-directional risk.
Daily Options Update is provided by Stock Specialist Paul Foster of theflyonthewall.com
Option update 12-10-07: GE volatility higher ahead of annual outlook
General Electric (NYSE: GE) CEO Jeffrey Immelt will host GE's annual performance review and business outlook meeting on December 11. GE overall option implied volatility of 26 is above its 26-week average of 24 according to Track Data, suggesting larger risk.
Boeing (NYSE: BA) will give a mid-quarter update on the 787 Dreamliner program on December 11th. Jeffries says, "We feel comfortable with our $122 price target." BA overall option implied volatility of 28 is near its 26-week average of 27 according to Track Data, suggesting non-directional risk.
Daily Options Update is provided by Stock Specialist Paul Foster of theflyonthewall.com
Option update 12-7-07: Genentech volatility settles
Genentech (NYSE: DNA) is recently down $1.43 to $68. The FDA's Oncologic Drugs Advisory Committee rejected Avastin for the use in breast cancer on December 5. DNA January option implied volatility spiked to 39 on Dec. 5. DNA January option implied volatility of 26 is near its 26-week average of 25 according to Track Data, suggesting non-directional price risk.
Costco (NASDAQ: COST) shares are near a record high. COST is expected to report Q1 EPS 59 cents on December 13, according to Thomson First Call. COST December 70 straddle is at $4.30. COST January option implied volatility of 29 is near its 26-week average according to Track Data, suggesting non-directional risk.
Daily Options Update is provided by Stock Specialist Paul Foster of theflyonthewall.com
Option update 12-7-07: Morgan Stanley volatility up into EPS
Morgan Stanley (NYSE: MS) is expected to report EPS on December 18.
MS December 50 straddle is priced at $4.90. MS January option implied volatility of 46 is above its 26-week average of 41 according to Track Data, suggesting larger price risk.
Bear Stearns (NYSE: BSC) is expected to report EPS in mid-December.
BSC December 100 straddle is priced at $6.90. BSC January option implied volatility of 46 is near its 26-week average of 46 according to Track Data, suggesting flat price risk.
Daily Options Update is provided by Stock Specialist Paul Foster of theflyonthewall.com
Option update: Lehman and Goldman Sachs volatility up into EPS
Lehman Brothers(NYSE:LEH) is expected to report EPS on December 13th. LEH December straddle is at $6.50. LEH January option implied volatility of 53 is above its 26-week average of 46 according to Track Data, suggesting larger price risk.
Goldman Sachs(NYSE:GS) is expected to report EPS on December 18. GS December 220 straddle is priced at $18.90. GS January option implied volatility of 46 is above its 26-week average of 40 according to Track Data, suggesting larger price risk.
Daily Options Update is provided by Stock Specialist Paul Foster of theflyonthewall.com
Option update 12-7-07: AIG volatility elevated as shares rally off lows
AIG (NYSE: AIG) closed at $61.35 Thursday.
Maurice Greenberg -- former Chairman and CEO of AIG -- and several other parties filed a 13D on November 2, indicating the group is considering strategic alternatives to maximize their holdings. AIG December option implied volatility of 36 is above its 26-week average of 29 according to Track Data, suggest larger price fluctuations.
Palm (NASDAQ: PALM) closed at $6.59 Thursday.
Bank of America says: "PALM negatively pre-announces again. After disappointing guidance last quarter, PALM fails to deliver, revising estimates down for 2QF08. We stay Neutral and lower our target from $15 to $5." PALM over all option implied volatility of 71 is above its 26-week average of 35 according to Track Data, suggesting larger risk.
Daily Options Update is provided by Stock Specialist Paul Foster of theflyonthewall.com
Option update: UnitedHealth volatility flat into settlement with former CEO
UnitedHealth Group Inc. (NYSE: UNH) announced that a Special Litigation Committee (SLC) reached a settlement agreement with former CEO Dr. William W. McGuire.
SLC concluded all claims against all named defendants should be dismissed. Dr. McGuire will surrender UNH stock options worth approximately $320 million, interest in retirement plan valued at approximately $91 million, and $8 million in his executive savings plan. UNH has a market cap of $72 billion. UNH over all option implied volatility of 24 is near its 26-week average of 26 according to Track Data, suggesting non-directional risks.
Daily Options Update is provided by Stock Specialist Paul Foster of theflyonthewall.com
Option update: Timberland (TB) volatility flat, shares rally on M&A chatter
Timberland (NYSE: TBL) is recently up 87 cents to $16.64. The Wall Street Journal has frequently reported in the past that TBL is exploring a plan to sell itself. TBL December and January option implied volatility of 48 is near its 26-week average of 46 according to Track Data, suggesting flat price fluctuations.
EnCana (NYSE: ECA), a leading North American natural gas producer, will be holding its 2008 Outlook Meeting on December 12th. WTI Crude Futures are up 0.87% to $88.25 according to Bloomberg. ECA overall option implied volatility of 33 is near its 26-week average according to Track Data, suggesting non-directional price fluctuations.
Daily Options Update is provided by Stock Specialist Paul Foster of theflyonthewall.com
Option update: Tribune (TRB) volatility collapses; Zell's buyout could close soon
Tribune (NYSE: TRB) is recently up $32.08.
CNBC's David Faber says the TRB deal could close very soon. TRB has expected its $34 per share sale to Sam Zell, private equity, debt holders and employees to be closed by year-end. The FCC granted temporary waivers to complete the deal. TRB announced this morning it intends to use cash on hand to reduce total amount of bridge loan to $1.6 billion from $2.1 billion. TRB January option implied volatility of 33 is below a level of 79 from Dec 6th and below its 26-week average of 38 according to Track Data, suggesting the close of the $34 deal is near.
Daily Options Update is provided by Stock Specialist Paul Foster of theflyonthewall.com
Option update: Rambus May volatility elevated as SEC ends investigation
Rambus Inc. (NASDAQ: RMBS) said it was notified by the SEC that it had ended its formal investigation into the company's past stock options practices. RMBS closed at $19.84. RMBS has upcoming patent infringement and anti-trust claim issues in 2008. RMBS January option implied volatility is 54 and May is at 74. RMBS average option implied volatility over the last 26-weeks is 64 according to Track Data, suggesting larger price movement.
Micron Technology Inc. (NYSE: MU) is recently up 18 cents to $9.13. MU has been frequently mentioned as takeover candidate over the last 18-months. MU December and January option implied volatility of 57 is above its 26-week average of 42 according to Track Data, indicating larger price risk.