Quantum Wealth Creation

Human Genome Sciences (HGSI) is up 77 cents to $9.90 and options volume on the biotech is elevated, with 35,000 calls and 8,430 puts traded in the name so far. The top trades surfaced early when one strategist sold 1,900 February 8 puts at 18 cents and sold 1900 February 9 puts at 48 cents to buy 6,650 February 11 calls for 42 cents. The bullish play comes as shares attempt a rebound in 2012. After plummeting to a 52-week low of $6.51 in late-December, from a 52-week high of $30.15 in April, HGSI has rallied more than 50 percent in a little over a month. The stock was weighed down in 2011 by two quarters of hefty losses despite the FDA approval and commercialization of Lupus drug Benlysta. 21,150 Feb 11 calls now traded on the stock today, however, (against 932 in open interest) as some investors might be betting that the company will have some positive commentary about Benlysta sales in the weeks ahead. Roche’s bid for Illumina is likely giving HGSI a bid as well and implied volatility in the options on the stock is moving higher along with the underlying today — up 19.5 percent to 88.

Read more at WhatsTrading.com

Human Genome Sciences (HGSI) is up 77 cents to $9.90 and options volume on the biotech is elevated, with 35,000 calls and 8,430 puts traded in the name so far. The top trades surfaced early when one strategist sold 1,900 February 8 puts at 18 cents and sold 1900 February 9 puts at 48 cents to buy 6,650 February 11 calls for 42 cents. The bullish play comes as shares attempt a rebound in 2012. After plummeting to a 52-week low of $6.51 in late-December, from a 52-week high of $30.15 in April, HGSI has rallied more than 50 percent in a little over a month. The stock was weighed down in 2011 by two quarters of hefty losses despite the FDA approval and commercialization of Lupus drug Benlysta. 21,150 Feb 11 calls now traded on the stock today, however, (against 932 in open interest) as some investors might be betting that the company will have some positive commentary about Benlysta sales in the weeks ahead. Roche’s bid for Illumina is likely giving HGSI a bid as well and implied volatility in the options on the stock is moving higher along with the underlying today — up 19.5 percent to 88.

Read more at WhatsTrading.com

11:10 AM New York – Amgen fourth quarter net slipped to $937 million. Chevron fourth quarter net decreased to $5.1 billion and Caterpillar fourth quarter net surged 60% to $1.54 billion. Ford fourth quarter net surged to $13.6 billion. Procter Gamble second quarter net slumped 49% to $1.7 billion.

American Electric Power Company, Inc. (AEP) decreased 2.5% or $1.07 to $40.21 after the holding company reported fourth quarter total revenue flat to $3.4 billion from $3.4 billion in the same quarter last year. Net income in the quarter soared to $308 million or 64 cents per diluted share compared to $176 million or 38 cents per diluted share in the year ago.

Altria Group, Inc. (MO) fell 36 cents to $28.31 after the holding company reported fourth quarter net revenues increased 3.4% to $6.1 billion from $5.9 billion in the same quarter last year. Net earnings in the quarter decreased 9% to $836 million or 41 cents per diluted share compared to $919 million or 44 cents per diluted share in the year ago period.

Benchmarks lost out on the morning’s gains after disappointing home sales and initial claims data dragged the markets lower. As has been the case since late-December, cross-Atlantic tensions deter investors and economic data comes in to lift the sentiment. However, yesterday, while resumption of Greek debt negotiation talks spurred some optimism, economic reports dampened sentiment. Nonetheless, factory orders and a few corporate results emerged as positives for the day.

The Dow Jones Industrial Average (DJI) was down 0.2% and settled the day at 12,734.63. The Standard Poor 500 lost 0.6% and closed yesterday’s trading session at 1,318.43. The Nasdaq Composite Index dropped 0.5% and finished lower at 2,805.28. The fear-gauge CBOE Volatility Index (VIX) rose 1.4% to settle at 18.57. On the New York Stock Exchange, NYSE Amex and Nasdaq, consolidated volumes were 7.9 billion shares. The advance and decline ratio was almost even on the NYSE, as for 48% of the stocks that moved up, 49% stocks were on the declining side. The remaining 3% were left unchanged.

On Wednesday, the Dow had posted its highest closing levels since May 2011. Yesterday, the blue-chip index neared its highest levels since the 2008 meltdown. But, the benchmark lost all the gains to finally settle in the red zone following mixed economic data.

Copper prices reached a four-month high after the Federal Reserve said it will probably hold interest rates close to zero well into 2014. On the New York Mercantile Exchange, copper for March delivery rose 1.9%, to $3.9015 a pound Thursday. An intraday price of $3.9105 a pound was the highest since Sept. 19.

Reuters

| 26 Jan.

Recent research shows that private-equity deals don’t do much to destroy jobs or cut wages, but their returns to investors are poor. Managers’ fees are so high that they profit even when their deals collapse. A study by researchers at Yale University and the University of California, Davis, found that private-equity companies get two-thirds of their income from fixed fees, regardless of performance.

New York Times (tiered subscription model), The

| 24 Jan.

Greek officials and private bondholders will continue to negotiate a bond swap, with the goal of striking an agreement within days. “The talks focused on legal and technical issues, and progress was made. They will continue on Friday and probably on Saturday, too,” said a senior Greek government official. “We aim to conclude the deal very soon.”

Wall Street Journal, The

| 1/26

RIM is down $1.30 to $15.70 and forfeiting some of the 35 percent gain since the 52-week low one month ago. The Blackberry maker came under fire this morning on the unexpected departure of two co-CEOs and after RIM said it was focusing on its product line rather selling off part of the company. Options on the stock are actively traded, but sentiment seems mixed. 77,000 calls and 94,000 puts. May 16 put buyers surfaced early to drive some of the morning flow. 22,650 now traded. A Mar 13 – 19 bearish risk-reversal was apparently sold on the stock at 18 cents, 2000X. However, the top trade is an Apr – May 16 call spread, apparently bought for 20 cents, 10000X. This timespread looks opening and a bet that shares will hold around $16 through the April expiration, in 88 days. Meanwhile, implied volatility in RIM options has ticked 4.5 percent higher to 67, but a far cry from the extremes above 85 seen in the Fall.

Read more at WhatsTrading.com

RIM is down $1.30 to $15.70 and forfeiting some of the 35 percent gain since the 52-week low one month ago. The Blackberry maker came under fire this morning on the unexpected departure of two co-CEOs and after RIM said it was focusing on its product line rather selling off part of the company. Options on the stock are actively traded, but sentiment seems mixed. 77,000 calls and 94,000 puts. May 16 put buyers surfaced early to drive some of the morning flow. 22,650 now traded. A Mar 13 – 19 bearish risk-reversal was apparently sold on the stock at 18 cents, 2000X. However, the top trade is an Apr – May 16 call spread, apparently bought for 20 cents, 10000X. This timespread looks opening and a bet that shares will hold around $16 through the April expiration, in 88 days. Meanwhile, implied volatility in RIM options has ticked 4.5 percent higher to 67, but a far cry from the extremes above 85 seen in the Fall.

Read more at WhatsTrading.com

Quantum Wealth Creation

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