Result speculationToday's tickers: CAT, CLX, S & ELX
CAT - Caterpillar, Inc.- Signs of bullish feeling on the machinery manufacturers appeared in the options market today morning with the course of the Caterpillar stock rising as 3.1% to an intraday high of $112.20. strong earnings from a number of large industrials names of this week report before the opening half CAT's shares higher at the own earnings in the first quarter Bell on Friday. Weekly options on the floor are $105 April ' 29 strike put options most active. Two-way trade in the puts beats mixed feelings in the days to the CAT's result. Buyers of the puts may be a result Miss, careful, while sellers of contracts seem to say that they expect at least shares on behalf of over $105.00 by expiration on Friday. In the meantime the may contract is a-buzz with activity as well. Call options are more dense populated sets in early afternoon trade. Bullish players positioning for the price of the underlying share continues to climb before the expiration day next month, calls bought and sold. Volume is heaviest in the may $115 call strike, where have moved around 6,300 contracts, fewer contracts as the 11,355 open many previously existing interest at this strike. Buyer options are dominated, payment buy an average premium of $1.60 per contract for the right to the underlying share at $115.00. Investors long the may $115 strike calls to profit at the end, if rally further shares in CAT 3.9% above the current price of $112.20 the average profitability limit upside risks on $116.60 exceed. More than 1,100 call options are taken at each of the may $120 and $125 strikes at average premiums of $0.52 and $0.17, respectively. Caterpillar shares get a recent all-time-high of $113.93 on 4 April 2011. options Player contracts more than 55,000 on the machine manufacturer of 1:20 pm in New York.
CLX - Clorox co.- Shares in the Clorox co. are on the rise today trading around 0.9% higher at the meeting of the $69.14 as from 11:30 pm, with a week to go, before the consumer products manufacturer reported earnings in the third quarter. Initiated an options trader, what appears to be a protective game on the stock exchange before the earnings. The three-legged spread protects disadvantage in the case of a result Miss sends price of the underlying lower, while indicate the parameters of the transaction that the merchant no collapse of Clorox's shares when before the may end it likely to see. It looks like the investor sold partly to finance 950 calls until the may $72,5 set strike for a premium of $0.15 per share, a ratio spread. The dealer bought 950 is at the may $67.5 does strike at an average premium of $0.69, and sold 1,900 $65 on the bottom may strike for an average premium of $0.20 per pop. The sale of twice as many of the lower strike puts, as well as the sale of call options, reduced the net cost of the three-legged spread to about 0.14 US dollars per contract. Therefore, the investor is responsible for the transaction under a breakeven price of $67.36 protected, he should currently hold a long position in the underlying. Alternatively, the dealer can be placed an outright bearish bets on Clorox. In this scenario, the investor for maximum potential profits of $2.36 per contract pocket can if CLX day next month decline shares at $65.00 at the end. The sale of the may $72,5 strike calls for an investor long the stock indicates the willingness, at the price of a strong rally in Clorox shares sell post earnings next week. If the investor is short the stock selling of call options bet him potentially devastating losses, the shares rally 4, 9% above the current price of $69.14 to top-$ 72.50 at the end of day in May.
S - Sprint Nextel Corp- Call buyers took directly from the Sprint goal today morning with earnings in the first quarter from the third-largest U.S. carrier expected to be released, before the trading market will on Thursday open. The Sprint Nextel Corp. shares are currently flat on the session at $4.80 as of 12:00 pm in New York. Investors populate Sprint options at the beginning of the meeting appear some 8,100 calls at the June $5.0 bought strike for an average premium of $0.23 per share. More than 10,700 calls have only 1,948 contracts changed hands in this strike on previously existing open interest. 9.0% Should increase to exceed the break-even average price of $5.23 at the end of day in June to benefit buyer calls are the price of the underlying stock. Sprint's shares traded last of $5.23 back on the 18 March 2011, before news rivals AT & T's proposal, T-Mobile United States buy $39 billion shares in the Sprint sent lower.
ELX - Emulex Corp.- Shares in Emulex Corp. fell approximately 10.1% to an intraday deep from $9.30 clock after the telecommunications equipment company earnings in the third quarter report after the close on Monday. Emulex earnings forecast of $ 0.08 to $0.12 a share for the fourth quarter came under the 0.14 US dollars a share estimate analysts were expected, in the average. Pared earlier losses, but still up-to-date are shares in ELX 4.7% lower at the meeting of the $9,86 as of 12:20 pm in New York. Options traders expected shares in Emulex, next strike for an average premium collected in the near future more than 2,100 calls at the May $10 recovered from $0.17 per share. Almost 3,000 calls changed hands in this strike on previously existing open interest only 755 contracts. Call money to buyer the ELX's shares rally 3.1% above the current price of $9,86 earn the break even average price of $10.17 at expiration day next month to Excel. Options implied volatility is at present by 17.2% as of 12:25 pm, 28.94% post-earnings.
Caitlin Duffy
Equity options analyst
ibanalyst@interactivebrokers.com
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