technical analysis

Best Buy Singled Out for a Ratio Call Spread Ahead of Earnings

Posted on March 23rd, 2011 in BBY, Best Buy, calls, earnings, featured, fourth quarter, India Shares, inthenews, options, ratio call spread, spread, technical analysis

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Best Buy (BBY) logoBest Buy (BBY) is scheduled to unveil its fourth-quarter results Thursday morning, with analysts anticipating a profit of $1.85 per share — little changed from the big box retailer’s year-ago earnings of $1.82 per share. Best Buy has been hot-and-cold on the earnings front; during the past four quarters, the company has topped consensus bottom-line estimates twice, and fallen short on two other occasions.

Ahead of the quarterly report, one options player built a bullishly biased spread on BBY. Right after the opening bell Wednesday morning, the trader purchased 358 April 32 calls, and simultaneously sold 716 April 35 calls. In other words, two April 35 calls were sold for every one purchased April 32 call. This strategy is known as a ratio call spread, and it’s typically used by traders who are bullish on the underlying equity — but with a very specific upside target in mind.

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Best Buy Singled Out for a Ratio Call Spread Ahead of Earnings originally appeared on BloggingStocks on Wed, 23 Mar 2011 19:20:00 EST. Please see our terms for use of feeds.

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Betting Against Retail with an XRT Put Spread

Posted on February 03rd, 2011 in debit spread, ETF, exchange traded fund, India Shares, long put spread, options, puts, same store sales, SPDR SP Retail, technical analysis, XRT

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A parade of retailers reported their January same-store sales figures on Thursday morning, and the results were actually much better than expected. The aggregate 4.2% rise in monthly sales easily surpassed analysts’ expectations, leading to a solidly bullish session for the SPDR S&P Retail (XRT) exchange-traded fund (ETF).

However, not everyone was won over by January’s stronger-than-forecast sales data. Around midday on Thursday, one skeptical options trader initiated a long put spread on the XRT, in an attempt to capitalize on expected weakness in the retail-based fund.

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Betting Against Retail with an XRT Put Spread originally appeared on BloggingStocks on Thu, 03 Feb 2011 15:30:00 EST. Please see our terms for use of feeds.

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Juniper Networks Jumps Higher After Q4 Earnings Beat

Posted on January 26th, 2011 in credit spread, earnings, featured, first quarter, forecast, fourth quarter, guidance, India Shares, inthenews, JNPR, Juniper Networks, options, price target, profit, puts, revenue, technical analysis

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Juniper Networks (JNPR) is on the upswing, with the stock catching a 6% boost Wednesday morning on the heels of a well-received fourth-quarter earnings report. Juniper reported a quarterly profit of $190.2 million, or 35 cents per share, substantially improved from its year-ago results of $22.9 million, or 4 cents per share. Excluding items, earnings improved to 42 cents from 32 cents per share on a year-over-year basis.

Meanwhile, revenue for the quarter increased 26% to $1.19 billion. Gross margin retreated slightly, falling to 66.6% from 67.1%.

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Juniper Networks Jumps Higher After Q4 Earnings Beat originally appeared on BloggingStocks on Wed, 26 Jan 2011 12:00:00 EST. Please see our terms for use of feeds.

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Bank of America Posts $1.24 Billion Loss for Fourth Quarter

Posted on January 21st, 2011 in BAC, bac earnings, bac loss, bac stock price, Bank of America, banking, featured, India Shares, inthenews, investment bank, investment banking, technical analysis

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Early Friday morning, Bank of America (BAC) reported a fourth-quarter loss of 16 cents per share ($1.2 billion). This includes the company’s previously announced goodwill impairment charge of $2 billion that was related to its home loans and insurance business. Taking this charge out of the equation, BAC earned 4 cents per share. It could be an interesting morning for BAC, as experts predicted earnings of 18 cents per share.

Shares of BAC were down more than 2% as we await the opening bell. This drop should push the stock low enough to mount a serious challenge to the support of both BAC’s 20-month moving average and the $14 level.

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Bank of America Posts $1.24 Billion Loss for Fourth Quarter originally appeared on BloggingStocks on Fri, 21 Jan 2011 09:00:00 EST. Please see our terms for use of feeds.

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