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Showing posts from September, 2010

Industrial Strength

Brian Stutland, contributor to CNBC's Options Action shown on Fridays, likes Ford going forwards even after F is up more than 20% this year. However, other names in the sector are lagging which is warning sign. Brian suggests to buy the Nov 11 put for $0.25 for downside protection. With VIX down to 20 level, Brian recommends to buy cheap put for high dividend stocks. Brian on Final Call

Trading Volume and HPQ protection

Brian Stutland, contributor to CNBC's Options Action shown on Fridays, analyzes the trading volume pattern of the past four months. He recommends to watch the treasury market closely. Once the interest rate rises slightly, money will flow into the stock market and volume will surge. As a results, exchange and retail brokers will benefit from the rising trading volume. Brian suggests to buy cheap downside HPQ put as protection heading into analyst meeting which is on Sep 28th, 2010. Brian on Final Call Brian on Options Action

S&P 500 breakout?

Dan talks about the reverse head and shoulders pattern in the S&P 500 index. On Monday, the market broke above the right shoulder which signals further upside. Recent M&A activities of IBM and other Tech names have helped this sector break to the upside as well. Dan remains cautiously optimistic. The technicals certainly look good, but Dan warns about a shift in expectations. He believes the market has priced in a Republican victory this fall. Any deviation to that could jeopardize the rally.


Brian Stutland, contributor to CNBC's Options Action shown on Fridays, is bullish on the emerging market. Specifically, he likes ishares MSCI-EMF (EEM) and recommend selling existing stocks position and buy the risk reversal (Buy Jan12 50 call at $2.7 and sell Jan12 35 put @2.85), collecting 15 cents and willing to long the stocks at 35. Brian Fast Money Final Call

Dollar Smackdown?

Brian Stutland, contributor to CNBC's Options Action shown on Fridays, is bearish on US dollar, which is under the pressure of Japan and China strengthing their currency. Specifically, he recommends buying puts on UUP, for example buying Oct 24 put for $0.6. Brian on CNBC

VIX Signals a Pullback?

The spreads between the VIX cash and back month futures has widened to extreme levels over the past week. There appears to be demand for less expensive volatility protection as the VIX moves well below the recent mean. The expectation is for the market to see increased volatility as we move into the fall. Dan on CNBC

S&P 500 “Means” 1100

The solid demand for the Portuguese bond offering helped propelled the US market higher on Wednesday. Dan expects short term, a sideways trending market and thin volumes for the rest of the week. The 1100 level in the S&P 500 appears to be a level of value, particularly if you look at the longer term chart pattern. For the sideways market, Dan suggests that an option overlay strategy creates opportunities to take advantage of reduced volatility. Stutland Volatility Group offers different overlay strategies depending on your risk appetite. Dan on Bloomberg

Fast Money Final Call and Options Action

Brian Stutland, contributor to CNBC's Options Action shown on Fridays, is bullish on India and the emerging market. Specifically, he likes Tata Motors (TTM), an indian based auto company. Brian also thinks TLT is very volatile recently due to the sensivities of prospect of interest rate change. However, he doesn't expect a huge interest rate hike in the near term and expects to get back into the bond market if TLT falls into the 95-103 levels. On Friday's "Options Action", Brian suggests to buy put and sell call on INTC. Brian Fast Money Final Call

1040 Support

Is the third time the charm? Stock market opens September with a bang. Dan points out a combination of technical, psychological and fundamental indicators helped propel this market higher. He saw very active put buying in the VIX pit as it appeared traders were repositioning for lower volatility expectations. Short term, the market has broken the August downtrend.