Derivatives

Several tier-1 firms are defending Dell (NASDAQ:DELL) this morning following FQ2 results:- Merrill Lynch notes Dell remained on course to reignite growth and in F2Q08 it gained share across its primary product segments and grew revenues 11% YoY, above their 6% estimate. However, aggressive pricing and increased deferred services revenue in EMEA resulted in gross margins over a pt. below MLCO estimate and a $0.03 miss on EPS. Firm reiterates their Buy rating and $27 price objective based on Dell’s traction in share gains as it benefits from the investment phase of its turnaround and in the long term operating leverage improvement….
Original Source: notablecalls.blogspot.com

I see DELL being defended by almost all tier-1 firms this AM - fyiMore to followNC…
Original Source: notablecalls.blogspot.com

There’s a battle over cotton that could affect its exchange traded note (ETN), and it’s anything but soft and fluffy.
The United States and Brazil have been in a war over cotton subsidies for around six years, with the United States on the losing end. The World Trade Organization has gotten involved, and things could get cotton-pickin’ scary. So far, the WTO has decided the Unite States is breaking the rules by subsidizing cotton exports. Sanctions could be in the billions of dollars, r…
Original Source: http://feeds.feedburner.com/etftrends-feed

Much of the talk these days has been about the incredibly low volume across the board. Well, “incredible” isn’t the right word at all - this is a perennially quiet time of year in the market. But what was kind of interesting was today’s meaty rally on such low volume: except for the Nasdaq, the major indexes were up more than 1.5%.  So we wondered:
Historically, would there be any edge in shorting large rallies that occur on very low volume?…
Original Source: http://feeds.feedburner.com/condoroptions

Click Here to Download…
Original Source: www.optionaddict.net

Inverse exchange traded funds (ETFs) played out well in 2008, as market conditions did a reverse and let these types of funds play their part.
These types of funds are merely two years old, and the timing of their market debut was perfect.
ProFunds originated these funds back in 1997, when bear market index funds were created for investment professionals, r…
Original Source: http://feeds.feedburner.com/etftrends-feed

In general, this has been a positive week for the market and we are near last Friday’s close. Monday, the market pulled back when it did not have any resolution to the financial crisis. Traders expected to hear of a Freddie Mac/Fannie Mae bail out and they thought a suitor for Lehman might have surfaced. When they did not get that news, they sold stocks heading into the Fannie Mae/Freddie Mac auctions. As it turns out, those auctions fared much better than expected and investors still have an appetite for that debt. The market rallied on the news and it has …
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Original Source: http://feeds.feedburner.com/oneOptionBlog

Now that the Olympics have come and gone, Taiwan and China are making plans to resume talks in Taipei at the end of 2008, the result of which would be a boost both economies and the Taiwan-focused exchange traded fund (ETF).
The rumored talks are to hit upon topics such as direct strait-shipping, and cargo flights on a charter basis, along with economic and cultural exchanges, s…
Original Source: http://feeds.feedburner.com/etftrends-feed

Wind energy is not just a bunch of hot air, as many companies are looking to this as a legitimate power source, blowing new life into related exchange traded funds (ETFs).
Public Service Enterprise Group Inc. (PEG) is planning on spending $20 million to develop services that compress air to store power, giving potential for electricity production via wind turbines and solar cells, r…
Original Source: http://feeds.feedburner.com/etftrends-feed

South Africa’s exchange traded funds (ETFs) are dancing on reports of a lower jobless rate.
In the second quarter, the country’s unemployment rate fell to 23.1% and economic growth rebounded from a six-year low, r…
Original Source: http://feeds.feedburner.com/etftrends-feed

Lenny Dykstra ponders whether Stop-Loss users hate America.Many people will tell you that one of the best ways to limit your risk is to employ a stop-loss on your investments. It’s a common practice across the investing landscape and one I don’t use — and won’t use. Ever!Not just ever, but Ever!…
Original Source: adamsoptions.blogspot.com

Stocks and exchange traded funds (ETFs) received a breath of fresh air today after it was announced that the U.S. economy grew faster than expected in the second quarter.
Economists had called for a 2.7% growth rate, but instead got 3.3%, r…
Original Source: http://feeds.feedburner.com/etftrends-feed

The markets are feeling challenged right now, and it’s likely that we won’t see a ton of new assets flowing into the markets and exchange traded funds (ETFs) until we’re in bull territory once again.
So far this year, 25 ETFs have closed up shop. Is the industry settling down after the rapid growth of the past two years? Many analysts agree that the industry may be growing up, but it is far from becoming mature, r…
Original Source: http://feeds.feedburner.com/etftrends-feed

Since first becoming a tropical depression on the morning of August 25th, Gustav became a tropical storm, then a hurricane, and is now back to being a tropical storm – at least for the time being. Most models have Gustav reaching hurricane strength again later today, perhaps as soon as the next N…
Original Source: http://feeds.feedburner.com/VixAndMore

As we know, China is in the midst of a building boom that’s been digging up potential for a number of exchange traded funds (ETFs), and industrials are no exception.
Heavy equipment maker Caterpillar (…
Original Source: http://feeds.feedburner.com/etftrends-feed

Quick, somebody sell Tim Knight some option premium!
There’s something wrong with the picture at left, but nothing wrong with these markets if you’ve been a premium seller for the past couple weeks.
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Original Source: http://feeds.feedburner.com/condoroptions

Got forwarded this email from Minyanville yesterday.Wanted to see if you could clarify an aspect of options premium-decay. I realize the adage you should never short a dull tape. And comprehend the the point Dr. Najarian made about the possible merger-acquisition of exm & drys. What are the more complex dynamics at work that would cause a drys sep. 60 put (+dqrul) that sold for $1.15 last thursday go for .50 today when the price of the underlying equity drys is at the same price it was last thursday? I realize the effects of weekends on options at least conceptually. Obviously the earings release last friday played a part but…..? I appreciate the time & any insight you could provide. I am still a rookie ,this one has me perplexed. Have great weekend!…
Original Source: adamsoptions.blogspot.com

I experienced Katrina’s terror during my stay at Austin, Texas. We were advised to store food supplies, water, and dry food and evacuate to safer places. We could hardly find enough of anything to eat on the walmart’s Shelves. Hardly a bottle of mineral water was available. I pray Gustav doesn’t gain strength.  According to M…
Original Source: www.optionpundit.net

When it comes to foreign investing, don’t forget about currency exchange traded funds (ETFs).
WisdomTree Dreyfus Brazilian Real (BZF) presents a great way to get exposure to global currency and diversification all in one ETF. A little exposure to such funds could benefit investors if the dollar trends lower again. …
Original Source: http://feeds.feedburner.com/etftrends-feed

Some discussion yesterday on Minyanville regarding the RTH and the poor proxy it can be for retail in general (too concentrated on WMT, HD and LOW)….
Original Source: adamsoptions.blogspot.com