Quantum Wealth Creation http://quantumwealthcreation.com Wealth Creation Strategies Wed, 22 Feb 2012 22:28:58 +0000 en hourly 1 http://wordpress.org/?v=3.2.1 http://quantumwealthcreation.com http://quantumwealthcreation.com/wp-content/mbp-favicon/money2.ico Quantum Wealth Creation Community Health Systems’ Earnings Trigger a Surge in Call Activity http://quantumwealthcreation.com/2012/02/22/community-health-systems-earnings-trigger-a-surge-in-call-activity/ http://quantumwealthcreation.com/2012/02/22/community-health-systems-earnings-trigger-a-surge-in-call-activity/#comments Wed, 22 Feb 2012 22:28:58 +0000 Quantum http://quantumwealthcreation.com/2012/02/22/community-health-systems-earnings-trigger-a-surge-in-call-activity/ Bearish bettors showed a rare interest in Finisar Corporation (FNSR – 22.65) yesterday, as roughly 3,600 puts changed hands, which was five times above the norm. Most active proved to be the March 23 strike, where over 2,500 of these puts were traded — more than half of them at the ask price, signaling buyer-driven activity. Open interest at this strike climbed by 1,954 contracts overnight, so it can be assumed that most of the volume consisted of newly opened positions. This option now carries peak put open interest of 2,135 contracts. By purchasing these puts to open, investors are wagering that the stock will continue its retreat beneath the $23 level through front-month expiration.

On the bullish side of the fence, it appears that a block of 80 calls was bought at the September 25 strike, while an equal number of calls were simultaneously sold at the September 30 strike. This activity implies the initiation of a bull call spread. In this strategy, the trader is expecting the stock to finish at or above the $30 mark by the time September options expire. In the best-scenario, his potential profit is limited to $4.50 — or the difference between the strike prices, minus the net debit of $0.50. At the other end of the spectrum, his maximum risk is capped at the net debit paid.

From a broader sentiment scope, the aforementioned uptick in put volume marks a change of pace for FNSR. The Schaeffer’s put/call open interest ratio (SOIR) sits at 0.46, confirming that calls more than double puts among options expiring within three months. This ratio ranks in only the 8th percentile of its annual range, which means that near-term options players have been more call-heavy toward the stock just 8% of the time over the last 12 months.

What’s more, FNSR’s 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) call/put volume ratio checks in at 9.60, indicating that calls bought to open have outnumbered puts by more than nine to one during the past two weeks. In fact, this ratio sits just five percentage points shy of a yearly acme, which means that speculators have been snapping up bullish options over bearish at an almost annual-high pace.

However, although short interest on the tech security slipped by 1.59% during the most recent reporting period, these bearish plays still make up a lofty 14.04% of FNSR’s float — or a week’s worth of pent-up buying pressure, at the stock’s average daily volume. This suggests that short sellers looking to hedge their bets may be contributing to some of the recent call volume.

Technically, FNSR is off to a great start in 2012, having added more than 34% year-to-date, and outperforming the broader SP 500 Index (SPX) by over 34% during the last 40 days. On the charts, the stock is poised to close the month above its 20-month moving average, which has acted as resistance since last June.

At last check, FNSR is up about 0.3% and is trading at $22.65.

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Article source: http://www.schaeffersresearch.com/marketcenters/optionscenter/default.aspx?c=bytefeed&ID=110080&single=true

]]> http://quantumwealthcreation.com/2012/02/22/community-health-systems-earnings-trigger-a-surge-in-call-activity/feed/ 0 Overstock.com Sees a Significant Upswing in Front-Month Put Volume http://quantumwealthcreation.com/2012/02/22/overstock-com-sees-a-significant-upswing-in-front-month-put-volume/ http://quantumwealthcreation.com/2012/02/22/overstock-com-sees-a-significant-upswing-in-front-month-put-volume/#comments Wed, 22 Feb 2012 22:28:56 +0000 Quantum http://quantumwealthcreation.com/2012/02/22/overstock-com-sees-a-significant-upswing-in-front-month-put-volume/ Bearish bettors showed a rare interest in Finisar Corporation (FNSR – 22.65) yesterday, as roughly 3,600 puts changed hands, which was five times above the norm. Most active proved to be the March 23 strike, where over 2,500 of these puts were traded — more than half of them at the ask price, signaling buyer-driven activity. Open interest at this strike climbed by 1,954 contracts overnight, so it can be assumed that most of the volume consisted of newly opened positions. This option now carries peak put open interest of 2,135 contracts. By purchasing these puts to open, investors are wagering that the stock will continue its retreat beneath the $23 level through front-month expiration.

On the bullish side of the fence, it appears that a block of 80 calls was bought at the September 25 strike, while an equal number of calls were simultaneously sold at the September 30 strike. This activity implies the initiation of a bull call spread. In this strategy, the trader is expecting the stock to finish at or above the $30 mark by the time September options expire. In the best-scenario, his potential profit is limited to $4.50 — or the difference between the strike prices, minus the net debit of $0.50. At the other end of the spectrum, his maximum risk is capped at the net debit paid.

From a broader sentiment scope, the aforementioned uptick in put volume marks a change of pace for FNSR. The Schaeffer’s put/call open interest ratio (SOIR) sits at 0.46, confirming that calls more than double puts among options expiring within three months. This ratio ranks in only the 8th percentile of its annual range, which means that near-term options players have been more call-heavy toward the stock just 8% of the time over the last 12 months.

What’s more, FNSR’s 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) call/put volume ratio checks in at 9.60, indicating that calls bought to open have outnumbered puts by more than nine to one during the past two weeks. In fact, this ratio sits just five percentage points shy of a yearly acme, which means that speculators have been snapping up bullish options over bearish at an almost annual-high pace.

However, although short interest on the tech security slipped by 1.59% during the most recent reporting period, these bearish plays still make up a lofty 14.04% of FNSR’s float — or a week’s worth of pent-up buying pressure, at the stock’s average daily volume. This suggests that short sellers looking to hedge their bets may be contributing to some of the recent call volume.

Technically, FNSR is off to a great start in 2012, having added more than 34% year-to-date, and outperforming the broader SP 500 Index (SPX) by over 34% during the last 40 days. On the charts, the stock is poised to close the month above its 20-month moving average, which has acted as resistance since last June.

At last check, FNSR is up about 0.3% and is trading at $22.65.

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Article source: http://www.schaeffersresearch.com/marketcenters/optionscenter/default.aspx?c=bytefeed&ID=110081&single=true

]]> http://quantumwealthcreation.com/2012/02/22/overstock-com-sees-a-significant-upswing-in-front-month-put-volume/feed/ 0 Post-Earnings, Call Players Flock Toward Chico’s FAS http://quantumwealthcreation.com/2012/02/22/post-earnings-call-players-flock-toward-chicos-fas/ http://quantumwealthcreation.com/2012/02/22/post-earnings-call-players-flock-toward-chicos-fas/#comments Wed, 22 Feb 2012 22:28:54 +0000 Quantum http://quantumwealthcreation.com/2012/02/22/post-earnings-call-players-flock-toward-chicos-fas/ Bearish bettors showed a rare interest in Finisar Corporation (FNSR – 22.65) yesterday, as roughly 3,600 puts changed hands, which was five times above the norm. Most active proved to be the March 23 strike, where over 2,500 of these puts were traded — more than half of them at the ask price, signaling buyer-driven activity. Open interest at this strike climbed by 1,954 contracts overnight, so it can be assumed that most of the volume consisted of newly opened positions. This option now carries peak put open interest of 2,135 contracts. By purchasing these puts to open, investors are wagering that the stock will continue its retreat beneath the $23 level through front-month expiration.

On the bullish side of the fence, it appears that a block of 80 calls was bought at the September 25 strike, while an equal number of calls were simultaneously sold at the September 30 strike. This activity implies the initiation of a bull call spread. In this strategy, the trader is expecting the stock to finish at or above the $30 mark by the time September options expire. In the best-scenario, his potential profit is limited to $4.50 — or the difference between the strike prices, minus the net debit of $0.50. At the other end of the spectrum, his maximum risk is capped at the net debit paid.

From a broader sentiment scope, the aforementioned uptick in put volume marks a change of pace for FNSR. The Schaeffer’s put/call open interest ratio (SOIR) sits at 0.46, confirming that calls more than double puts among options expiring within three months. This ratio ranks in only the 8th percentile of its annual range, which means that near-term options players have been more call-heavy toward the stock just 8% of the time over the last 12 months.

What’s more, FNSR’s 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) call/put volume ratio checks in at 9.60, indicating that calls bought to open have outnumbered puts by more than nine to one during the past two weeks. In fact, this ratio sits just five percentage points shy of a yearly acme, which means that speculators have been snapping up bullish options over bearish at an almost annual-high pace.

However, although short interest on the tech security slipped by 1.59% during the most recent reporting period, these bearish plays still make up a lofty 14.04% of FNSR’s float — or a week’s worth of pent-up buying pressure, at the stock’s average daily volume. This suggests that short sellers looking to hedge their bets may be contributing to some of the recent call volume.

Technically, FNSR is off to a great start in 2012, having added more than 34% year-to-date, and outperforming the broader SP 500 Index (SPX) by over 34% during the last 40 days. On the charts, the stock is poised to close the month above its 20-month moving average, which has acted as resistance since last June.

At last check, FNSR is up about 0.3% and is trading at $22.65.

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Article source: http://www.schaeffersresearch.com/marketcenters/optionscenter/default.aspx?c=bytefeed&ID=110084&single=true

]]> http://quantumwealthcreation.com/2012/02/22/post-earnings-call-players-flock-toward-chicos-fas/feed/ 0 Chico’s, Garmin, Herbalife Rise; Chesapeake, Dell, HP Fall http://quantumwealthcreation.com/2012/02/22/chico%e2%80%99s-garmin-herbalife-rise-chesapeake-dell-hp-fall/ http://quantumwealthcreation.com/2012/02/22/chico%e2%80%99s-garmin-herbalife-rise-chesapeake-dell-hp-fall/#comments Wed, 22 Feb 2012 16:28:34 +0000 Quantum http://quantumwealthcreation.com/2012/02/22/chico%e2%80%99s-garmin-herbalife-rise-chesapeake-dell-hp-fall/ 11:25 AM New York – Chesapeake Energy fourth quarter net surged to $429 million and Dell Inc quarterly net declined 18% to $764 million. Hewlett-Packard first quarter net slipped 18% to $764 million. Retailer, TJX Companies fourth quarter net surged to $475.9 million. Toll Brothers swung to a quarterly loss.

AGL Resources Inc. (GAS) fell 31 cents to $40.79 after the holding company reported fourth quarter net sales increased to $790 million from $665 million in the same quarter last year. Net income in the quarter declined to $33 million or 37 cents per diluted share compared to $64 million or 81 cents per diluted share in the year ago earlier.

Chico’s FAS, Inc. (CHS) soared 13.9% or $1.79 to $14.60 after the specialty retailer reported fourth quarter net sales increased 19.8% to $569.2 million from $475.0 million in the same quarter last year. Comparable sales increased 8.7%. Net income in the quarter
surged 25% to $25.1 million or 15 cents per diluted share compared to $20.7 million or 12 cents per diluted share in the year ago earlier.

Chesapeake Energy Corporation (CHK) slipped 1.5% or 38 cents to $24.24 after the oil and gas producer reported fourth quarter total revenue soared to $2.73 billion from $1.98 billion in the same quarter last year. Net income in the quarter surged to $429 million or 63 cents per diluted share compared to $180 million or 28 cents per diluted share in the year ago earlier.

For 2011 revenue increased to $11.6 billion from $9.37 billion in last year. Net income for the year fell to $1.57 billion or $2.32 per diluted share compared to $1.66 billion or $2.51 per share in the prior year.

Dell Inc. (DELL) dropped 6.4% or $1.17 to $17.04 after the computer peripherals maker reported fourth quarter revenue rose 2% to $16.0 billion from $15.7 billion in the same quarter last year. Net income in the quarter slipped 18% to $764 million or 43 cents per diluted share compared to $927 million or 48 cents per diluted share in the year ago.

For 2011 revenue grew 1% to $62.1 billion from $61.5 billion in last year. Net income for the year soared 33% to $3.5 billion or $1.88 per diluted share compared to $2.6 billion or $1.35 per share in the prior year.

Donaldson Company, Inc. (DCI) decreased 3.2% or $2.50 to $74.43 after the filtration systems maker reported second quarter net sales grew 8% to $581 million from $537 million in the same quarter last year. Net earnings in the quarter increased 21% to $54 million or 70 cents per diluted share compared to $45 million or 56 cents per diluted share in the year ago quarter.

Dollar Tree, Inc. (DLTR) fell 47 cents to $87.54 after the discount stores operator reported fourth quarter consolidated net sales increased 13% to $1.95 billion from $1.73 billion in the prior year. Net income for the quarter increased 16% to $187.9 million or
$1.60 per diluted share compared to net income of $162.5 million or $1.29 per share a year ago.

Garmin Ltd. (GRMN) soared 10.5% or $4.70 to $49.39 after the communication equipment provider reported fourth quarter total revenue rose 9% to $909.6 million from $837.7 million in the same quarter last year. Net income in the quarter increased to $165.5 million or 85 cents per diluted share compared to $132.9 million or 68 cents per
diluted share in the year ago earlier.

Hewlett-Packard Company (HPQ) slipped 1.5% or 46 cents to $28.89 after the hardware and software company reported first quarter revenue rose 2% to $16 billion from $15.7 billion in the same quarter last year. Net income in the quarter slipped 18% to $764 million or 43 cents per diluted share compared to $927 million or 48 cents per
diluted share in the year ago.

Herbalife Ltd. (HLF) gained 6.1% o $3.84 to $66.30 after the Cayman Islands based nutritional products seller reported fourth quarter net sales grew 23% to $884.6 million from $738.4 million in the same quarter last year. Net income in the quarter increased to
$105.4 million or 86 cents per diluted share compared to $86.3 million or 69 cents per diluted share in the year ago period.

Intuit Inc. (INTU) increased 2.6% or $1.54 to $59.06 after the software company reported second quarter total revenue increased 16% to $1.02 billion from $0.88 billion in the same quarter last year. Net income in the quarter increased to $118 million or 39 cents per diluted share compared to $73 million or 23 cents per diluted share in the year ago period.

The TJX Companies, Inc. (TJX) fell 17 cents to $35.05 after the off-price retailer reported fourth quarter net sales grew 6% to $6.7 billion from $6.3 billion in the same quarter last year. Comparable store sales for the quarter increased 7%. Net income in the quarter surged to $475.9 million or 62 cents per diluted share compared to $334.4 million or 42 cents per diluted share in the year ago earlier.

For 2011 revenue increased 6% to $23.2 billion from $21.9 billion in last year. Comparable store sales for the quarter increased 4%. Net income for the year increased to $1.50 billion or $1.93 per diluted share compared to $1.34 billion or $1.65 per share in the prior year.

Toll Brothers, Inc. (TOL) slipped 2.3% or 56 cents to $23.14 after the luxury homebuilder reported first quarter revenues fell 4% to $321.96 million from $334.12 million in the prior year. Net loss for the quarter was $2.79 million or 2 cents per diluted share compared with a profit of $3.42 million or 2 cents per share last year.

Waste Management, Inc. (WM) fell 6 cents to $35.04 after the recycling, and disposal service provider reported fourth quarter total revenue soared 27% to $3.71 billion from $2.92 billion in the same quarter last year. Net income in the quarter increased to $118 million or 39 cents per diluted share compared to $73 million or 23 cents per diluted share in the year ago period.

For 2011 revenue grew 1% to $13 billion from $10.2 billion in last year. Net income for the year soared 33% to $3.5 billion or $1.88 per diluted share compared to $2.6 billion or $1.35 per share in the prior year.

Article source: http://www.123jump.com/us_stockmovers/Chico’s-Garmin-Herbalife-Rise;-Chesapeake-Dell-HP-Fall/47734/

]]> http://quantumwealthcreation.com/2012/02/22/chico%e2%80%99s-garmin-herbalife-rise-chesapeake-dell-hp-fall/feed/ 0 Stock Market News for February 22, 2012 http://quantumwealthcreation.com/2012/02/22/stock-market-news-for-february-22-2012/ http://quantumwealthcreation.com/2012/02/22/stock-market-news-for-february-22-2012/#comments Wed, 22 Feb 2012 16:28:29 +0000 Quantum http://quantumwealthcreation.com/2012/02/22/stock-market-news-for-february-22-2012/ The Dow hit the 13, 000 mark thanks to optimism over the Greek bailout deal, but markets finally receded to end mostly flat. Euro-zone finance ministers approved $172 billion worth of financial aid and that sparked the morning rally. However, as the news became a bit old and higher gasoline prices took a toll on sentiments, the benchmarks lost most of its earlier gains.

The Dow Jones Industrial Average ended the day at 12,965.69, after gaining a mere 0.1%. The Standard Poor 500 (SP 500) closed yesterday’s trading session mostly unchanged at 1,362.21, which is just a 0.1% improvement from the prior trading day. The tech-laden Nasdaq Composite Index closed in the red, losing 0.1% to finish at 2,948.57.The fear-gauge CBOE Volatility Index (VIX) gained 2.3% to settle at 18.19. Consolidated volumes on the New York Stock Exchange, NYSE Amex and Nasdaq were 6.7 billion shares, somewhat lower than the daily average of 7 billion. Decliners were marginally ahead of the advancers on the NYSE, as for 49% of the stocks that declined, 48% of the stocks moved up. The remaining stocks were left unchanged.

Investors had hoped for Dow would cross the 13, 000 mark and it did not disappoint. The benchmark had been moving closer to this pre-recessionary level over the last couple of days. However, the blue-chip index could not remain above this level for long. Two hours into the day’s trading session, the Dow broke the 13, 000 mark, but it survived at those levels for only 30 seconds. Later during noon and at 1:30 P.M., the Dow scaled similar heights, but it could never sustain the level.

The big news for the day was euro-zone finance ministers granting Greece much-needed bailout funds. The $172 billion worth of financial aid came in after weeks of doldrums. The country’s ministers finalized steps to reduce Greece’s debt to 120.5% of its gross domestic product by 2020 after a meeting lasting for 13 long hours. Following the decision on the bailout fund, Greece will not have to default on its debt or make an exit from euro. This will also save Europe and even the global economy from a significantly chaotic situation.  

While this development pushed the benchmarks higher, most of the gains were lost during the closing session. Since late last week, investors were hopeful about Greece securing the bailout money, and thus the optimism to an extent was already rather high. Thus, expectations had already pushed the benchmarks higher, and the final event could only spark off a momentary rally.

Separately, new highs in oil prices also dampened sentiment, and benchmarks lost some of their impetus owing to this development. Higher oil prices cannot be good for an economy. Among many adverse impacts, higher fuel charges pushed up transportation costs, leading to increased food and raw material prices, eventually making a dent in the consumer’s pocket. Worries over oil supply from Iran powered the US crude futures to a nine-month high. Prices gained 2.5% to reach $10.584 per barrel.

Meanwhile, the Energy SPDR Select Sector Fund (XLE) moved up 0.7%. Stocks including Exxon Mobil Corporation (NYSE:XOM), Chevron Corporation (NYSE:CVX), Schlumberger (NYSE:SLB), ConocoPhillips (NYSE:COP), Halliburton Company (NYSE:HAL) and National Oilwell Varco, Inc. (NYSE:NOV) jumped 1.1%, 1.6%, 1.1%, 0.6%, 2.0% and 0.9%, respectively.

Almost in tune with the broader markets, the rally in the financial sector also faded during the final hours. The financial sector ended marginally lower with the Financial SPDR Select Sector Fund (XLF) losing 0.1%. As for the individual stocks, JP Morgan Chase Co. (NYSE:JPM), Visa Inc. (NYSE:V), Hartford Financial Services (NYSE:HIG) and Zions Bancorporation (NASDAQ:ZION) lost 0.03%, 0.7%, 3.2% and 1.8%, respectively.

Read the full analyst report on XOM

Read the full analyst report on CVX

Read the full analyst report on SLB

Read the full analyst report on COP

Read the full analyst report on HAL

Read the full analyst report on NOV

Read the full analyst report on JPM

Read the full analyst report on V

Read the full analyst report on HIG

Read the full analyst report on ZION

Article source: http://www.zacks.com/stock/news/70048/Stock+Market+News+for+February+22%2C+2012

]]> http://quantumwealthcreation.com/2012/02/22/stock-market-news-for-february-22-2012/feed/ 0 Agency outlines plan to shut down Fannie Mae and Freddie Mac http://quantumwealthcreation.com/2012/02/22/agency-outlines-plan-to-shut-down-fannie-mae-and-freddie-mac/ http://quantumwealthcreation.com/2012/02/22/agency-outlines-plan-to-shut-down-fannie-mae-and-freddie-mac/#comments Wed, 22 Feb 2012 16:28:18 +0000 Quantum http://quantumwealthcreation.com/2012/02/22/agency-outlines-plan-to-shut-down-fannie-mae-and-freddie-mac/ The U.S. Federal Housing Finance Agency, which oversees Fannie Mae and Freddie Mac, released a plan for shutting down the government-backed mortgage finance corporations by gradually shrinking them and creating a new market for mortgage-backed securities. The two companies guarantee 75% of all new home mortgages in the U.S.

Washington Post, The

| 21 Feb.



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This story published in CFA Institute Financial NewsBrief on 02/22/2012

Freddie will profit from U.S. borrowers trapped in overpriced loans

Tuesday, January 31, 2012

U.S. task force will focus on packaging of mortgage securities

Thursday, January 26, 2012

Goldman buys $6.2 billion in RMBS from N.Y. Fed

Thursday, February 9, 2012

Article source: http://www.smartbrief.com/servlet/rdrc?u=%2Fnews%2FstoryDetails.jsp%3Fissueid%3DB9427535-24F0-4BBC-9CEC-2FEAAAE12420%26copyid%3DFCBFD7B4-AE68-477B-9309-BB2DAD8161D8%26brief%3Dcfa%26sb_code%3Drss%26%26campaign%3Drss&i=B9427535-24F0-4BBC-9CEC-2FEAAAE12420

]]> http://quantumwealthcreation.com/2012/02/22/agency-outlines-plan-to-shut-down-fannie-mae-and-freddie-mac/feed/ 0 Greece faces painful and dangerous future despite rescue http://quantumwealthcreation.com/2012/02/22/greece-faces-painful-and-dangerous-future-despite-rescue/ http://quantumwealthcreation.com/2012/02/22/greece-faces-painful-and-dangerous-future-despite-rescue/#comments Wed, 22 Feb 2012 16:28:15 +0000 Quantum http://quantumwealthcreation.com/2012/02/22/greece-faces-painful-and-dangerous-future-despite-rescue/ Although a default on Greece’s sovereign debt has been headed off in the short-term, experts warned that Greece may not be able to endure the severe austerity measures imposed as part of the deal. A confidential International Monetary Fund analysis given to European leaders suggests that the very measures being forced upon Greece will drive the nation deeper into recession and eliminate any hope for economic growth for a decade.

Kathimerini (Greece)

| 21 Feb.



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This story published in CFA Institute Financial NewsBrief on 02/22/2012

Greece approves austerity, but eurozone ministers demand more

Friday, February 10, 2012

Greece’s leaders work on overcoming final obstacle to bailout

Thursday, February 9, 2012

Greek economy is in doubt of recovery, IMF says

Friday, January 27, 2012

Article source: http://www.smartbrief.com/servlet/rdrc?u=%2Fnews%2FstoryDetails.jsp%3Fissueid%3DB9427535-24F0-4BBC-9CEC-2FEAAAE12420%26copyid%3D067E6A69-1E58-43C9-9E33-92092B1BE0FB%26brief%3Dcfa%26sb_code%3Drss%26%26campaign%3Drss&i=B9427535-24F0-4BBC-9CEC-2FEAAAE12420

]]> http://quantumwealthcreation.com/2012/02/22/greece-faces-painful-and-dangerous-future-despite-rescue/feed/ 0 Obama’s corporate tax proposal to close loopholes, cut rate http://quantumwealthcreation.com/2012/02/22/obamas-corporate-tax-proposal-to-close-loopholes-cut-rate/ http://quantumwealthcreation.com/2012/02/22/obamas-corporate-tax-proposal-to-close-loopholes-cut-rate/#comments Wed, 22 Feb 2012 16:28:13 +0000 Quantum http://quantumwealthcreation.com/2012/02/22/obamas-corporate-tax-proposal-to-close-loopholes-cut-rate/ U.S. President Barack Obama’s proposed overhaul of corporate taxes would reduce the basic tax rate from 35% to 28% while eliminating dozens of subsidies and loopholes, a senior administration official said. Manufacturers would be given incentives that bring their effective tax rate down to 25%, while a new minimum tax rate for multinational corporations would be established to curb “accounting games to shift profits abroad.”

New York Times (tiered subscription model), The

| 22 Feb.



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This story published in CFA Institute Financial NewsBrief on 02/22/2012

Many tax breaks would end under Obama’s plan, Geithner says

Wednesday, February 15, 2012

Analysis: Fairness in taxation has nothing to do with tax rates

Monday, January 23, 2012

U.S. unemployment data exclude millions who stopped job search

Tuesday, February 7, 2012

Article source: http://www.smartbrief.com/servlet/rdrc?u=%2Fnews%2FstoryDetails.jsp%3Fissueid%3DB9427535-24F0-4BBC-9CEC-2FEAAAE12420%26copyid%3D2E268FFC-14E1-4F39-B9B3-CD0800C3A6C4%26brief%3Dcfa%26sb_code%3Drss%26%26campaign%3Drss&i=B9427535-24F0-4BBC-9CEC-2FEAAAE12420

]]> http://quantumwealthcreation.com/2012/02/22/obamas-corporate-tax-proposal-to-close-loopholes-cut-rate/feed/ 0 eBay Calls Fly Off the Shelves Amid PayPal Reassurance http://quantumwealthcreation.com/2012/02/22/ebay-calls-fly-off-the-shelves-amid-paypal-reassurance/ http://quantumwealthcreation.com/2012/02/22/ebay-calls-fly-off-the-shelves-amid-paypal-reassurance/#comments Wed, 22 Feb 2012 09:29:43 +0000 Quantum http://quantumwealthcreation.com/2012/02/22/ebay-calls-fly-off-the-shelves-amid-paypal-reassurance/ Investors have shopped for Dollar Tree (DLTR – 88.79) calls today, as more than 2,600 of these options have changed hands so far, which is five times above the norm. Most popular has been the out-of-the-money March 92.50 strike, where at least 655 calls have crossed. This option currently holds open interest of just 224 contracts, making it safe to assume that new positions are being opened here today.

Digging deeper into the data, it appears that a block of 100 puts was also bought at the March 80 strike, while an equal number of puts were simultaneously sold at the March 85 strike. By initiating this bull put spread, the trader is betting that the stock will finish at or above $85 by front-month expiration — which would render both options worthless, and allow him to pocket the maximum profit of $0.65 per pair of puts, or the net credit received. On the other hand, his potential loss is limited to $4.35, or the difference between the strike prices, minus the net credit.

Today’s put activity aside, DLTR calls continue to be favored over puts. According to the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the equity sports a 10-day call/put volume ratio of 2.67, confirming that calls bought to open have more than doubled puts during the past two weeks. This ratio ranks in the 60th percentile of its annual range, which means that traders have been buying bullish bets over bearish at an accelerated clip.

Analysts following the discount retailer seem to share this upbeat view of DLTR. According to Zacks, the stock boasts 11 “strong buys” and one “buy” endorsement, compared to seven “holds” and not a single “sell.”

From a technical standpoint, DLTR has gained over 69% on a year-over-year basis. On the charts, the stock continues to be pushed higher by support at its 10-month moving average, a trendline that hasn’t been breached on a monthly closing basis since May 2008. In fact, the stock tagged a new all-time high of $89.98 earlier in this session.

It should also be noted that DLTR is scheduled to report its fourth-quarter earnings before tomorrow’s opening bell, and has bested analysts’ bottom-line estimates in each of the previous four quarters. At last check, however, the stock is off about 0.6% and is trading at $88.79.

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Article source: http://www.schaeffersresearch.com/marketcenters/optionscenter/default.aspx?c=bytefeed&ID=110054&single=true

]]> http://quantumwealthcreation.com/2012/02/22/ebay-calls-fly-off-the-shelves-amid-paypal-reassurance/feed/ 0 Bearish Bettors Bolster Comerica’s Front-Month Put Volume http://quantumwealthcreation.com/2012/02/22/bearish-bettors-bolster-comericas-front-month-put-volume/ http://quantumwealthcreation.com/2012/02/22/bearish-bettors-bolster-comericas-front-month-put-volume/#comments Wed, 22 Feb 2012 09:29:42 +0000 Quantum http://quantumwealthcreation.com/2012/02/22/bearish-bettors-bolster-comericas-front-month-put-volume/ Investors have shopped for Dollar Tree (DLTR – 88.79) calls today, as more than 2,600 of these options have changed hands so far, which is five times above the norm. Most popular has been the out-of-the-money March 92.50 strike, where at least 655 calls have crossed. This option currently holds open interest of just 224 contracts, making it safe to assume that new positions are being opened here today.

Digging deeper into the data, it appears that a block of 100 puts was also bought at the March 80 strike, while an equal number of puts were simultaneously sold at the March 85 strike. By initiating this bull put spread, the trader is betting that the stock will finish at or above $85 by front-month expiration — which would render both options worthless, and allow him to pocket the maximum profit of $0.65 per pair of puts, or the net credit received. On the other hand, his potential loss is limited to $4.35, or the difference between the strike prices, minus the net credit.

Today’s put activity aside, DLTR calls continue to be favored over puts. According to the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the equity sports a 10-day call/put volume ratio of 2.67, confirming that calls bought to open have more than doubled puts during the past two weeks. This ratio ranks in the 60th percentile of its annual range, which means that traders have been buying bullish bets over bearish at an accelerated clip.

Analysts following the discount retailer seem to share this upbeat view of DLTR. According to Zacks, the stock boasts 11 “strong buys” and one “buy” endorsement, compared to seven “holds” and not a single “sell.”

From a technical standpoint, DLTR has gained over 69% on a year-over-year basis. On the charts, the stock continues to be pushed higher by support at its 10-month moving average, a trendline that hasn’t been breached on a monthly closing basis since May 2008. In fact, the stock tagged a new all-time high of $89.98 earlier in this session.

It should also be noted that DLTR is scheduled to report its fourth-quarter earnings before tomorrow’s opening bell, and has bested analysts’ bottom-line estimates in each of the previous four quarters. At last check, however, the stock is off about 0.6% and is trading at $88.79.

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Article source: http://www.schaeffersresearch.com/marketcenters/optionscenter/default.aspx?c=bytefeed&ID=110056&single=true

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