Somaxon, The Great Double (SOMX)

Somaxon Pharmaceuticals, Inc. (NASDAQ: SOMX) has soared in after-hours trading after it provided an update on the status of its New Drug Application for Silenor for the treatment of insomnia and said that the FDA acknowledged that this resubmission would be considered a complete response.  This also noted that no additional safety or efficacy data was needed and it now sees a decision from the FDA by March 21, 2010.

At 6:13 PM EST we have shares up literally over 100% at $2.56 (52-week range is $0.18 to $4.80).  The last prints show that it traded 1.79 million shares in the after-hours session since the 4PM closing bell.

JON C. OGG

Some Banks May Win In Regulation (CMA, FITB, STI, KEY, RF)

We won’t bother telling you about the proposed regulation that was just proposed by the White House today, nor will we bother telling you how bad that regulation will be for the bulge bracket brokerages and money center banks on huge volume losses earlier after the news broke this morning.  Oddly enough, this may actually be a positive development for many of the regional banks who do not rely upon extensive trading gains, hedge fund operations, private equity dealings, and other ‘risk-based activities’ that are now being directly targeted even after most ha ve repaid their debt back to the government.

• Comerica Incorporated (NYSE: CMA) up 10% at $36.97
• Fifth Third Bancorp (NASDAQ: FITB) up 9.3% at $12.36
• SunTrust Banks, Inc. (NYSE: STI) up 8.7% at $25.46
• KeyCorp (NYSE: KEY) up 7.76% at $7.50
• Regions Financial Corp. (NYSE: RF) up 5.2% at $7.09

Price moves as of 2:00 PM EST
JON C. OGG

Top Tech Movers (EBAY, GRMN, LOGI, PLXS, JAVA, ORCL, STX)

eBay Inc. (NASDAQ: EBAY) ex-Skype figures were up 18% and the company beat estimates and raised guidance.  Frankly, after a 125% gain the guidance did not seem strong enough to justify this move, but the market is always stronger than one voice or one opinion.  Shares are up 8.8% at $24.20 on 1.47 million shares. (8:46 AM EST)

Garmin Ltd. (NASDAQ: GRMN) is getting o deal with a free navigation tool, this time from Nokia rather than from Google.  You know what  this will do to the stock on ‘free’ GPS and PND services even if Garmin is a far leader.  Shares are down 7% at $33.62 on about 30,000 shares.  8:48 AM EST)

Logitech International (NASDAQ: LOGI) profits rose over 40% on cost cuts and the sales decline slowed; guidance: $500 million and $515 million in sales, gross margin of about 34%, and operating income between $15 million and $20 million.  Shares are trading up 0.3% at $18.52 on 173,000 pre-market shares (total average volume is only 1.05 million shares).  (8:50 AM EST)

Plexus Corp. (NASDAQ: PLXS) is running higher after posting $0.44 EPS vs. $0.34 estimates and sees next quarter $0.44 o $0.52 EPS vs. $0.31 estimates from Thomson Reuters.  Shares are up 7% at $31.02, a new high above the 52-week high of $31.00.  pre-market volume is only 37,000 shares versus average volume of 226,000 shares per day. (8:52 AM EST)

Sun Microsystems Inc. (NASDAQ: JAVA) is finally going to be acquired by Oracle Corporation (NASDAQ: ORCL) after the EU figured out they could clear the takeover after a drawn out investigation brought to light that Sun just can’t make it on its own.  Oracle is up 0.15% at $25.10 but was up almost 2% in overseas trading at one point this morning.  Sun Microsystems is up 0.5% at $9.48 on the news.  (8:41 AM EST)

Seagate Technology (NASDAQ: STX) proved that the world is addicted to storage and drives after significantly beating estimates and please on guidance. This sets up a very high bar for rival Western Digital that is reporting earnings after he close. Shares are trading up almost 11% at $19.70 after a $17.76 close, making a new 52-week high above $19.04. We have also seen 624,000 shares. (8:42 AM EST)

You are invited to join our free daily email distribution list to hear about top analyst upgrades and downgrades, IPOs and secondary offerings, ongoing day trader and options trader alerts, stock and market rumors, Buffett and guru investor news, M&A and more.

JON C. OGG

Cree Soars (CREE)

Cree Inc. (NASDAQ: CREE) is up significantly in the early hours after beating estimates.  It posted $0.38 EPS vs. $0.30 estimates; revenues rose 35% to $200 million versus $187 million estimates. At 8:57 AM EST we have shares up over 12% at $60.75 on 145,000 shares.  The prior 52-week high was $60.00, the low is $16.07; average volume here is almost 1.7 million shares.

JON C. OGG

Eating Up Bare (BARE)

Bare Escentuals, Inc. (NASDAQ: BARE) is soaring this morning as the NASDAQ’s top gainer, on a buyout.  The all-natural cosmetics maker is being acquired by Japan’s Shiseido for $1.7 billion.  This comes to $18.20 per share.  The 52-week trading range is $2.45 to $14.87.  At 7:57 AM EST we have seen a rise of more than 40% to $18.07 and we have seen 235,000 shares trade hands.  Average volume is just over 1 million shares.  Keep in mind that this was a $30 to $40 stock back in 2006 and 2007 after it came public and it was north of $20 before the stock fell off a cliff in mid-2008.  This is a high-premium buyout, yet it will be challenged by some holders most likely.

JON C. OGG

A123 Scores New Pact (AONE)

A123 Systems, Inc. (NASDAQ: AONE) is surging this morning.  The electric car battery and appliance battery maker is up 12% at $22.49 at 8:46 AM EST on almost 450,000 shares.  It is hard to use ranges and averages since it is a recent IPO but average volume is 2.6 million shares and the post-IPO range is $14.31 to $28.20.  A124 has announced a battery supply agreement with Fisker Automotive, which is a new American automaker building premium green vehicles.  The company will also collaborate on Project Ninja, which is expected to commence in 2012.

JON C. OGG

Options Alert Seen in Anadys (ANDS)

Anadys Pharmaceuticals Inc. (NASDAQ: ANDS) is trading 8,000 calls, 20-times average, as the March $2.50/$5.00 call spread is bought for 4,000 contracts at a $0.35 cost with shares at $2.35.  Shares looked to have carved out a higher low here and are bouncing today, 5.4% higher.  Anadys has seen its Hepatitis C drug meet key goals in recent trials and shares trade 3.3X cash value, and may be set for a partnership.

Shares of Anadys are up 5% at $2.35 on about 450,000 shares as of NOON EST.  The 52-week trading range is $1.44 to $8.43 and the average daily volume in the stock is only about 600,000 shares.

JON C. OGG

Auxilium Pre-Data Options Trading (AUXL)

Auxilium Pharmaceuticals Inc. (NASDAQ: AUXL) is not your traditional options alert, but the trading is ahead of a conference presentation.  This has traded an odd spread that first traded for 2,500 contracts in a multi exchange sweep, and the trade has been emulated with more than 4,000 contracts trading.  Traders are buying the March $32.50 calls at the offer and selling the June $40 calls in a diagonal calendar spread that is bullish with shares at $29.50, trade costing $1 to put on that is profitable with shares above $35 in March, a 20% move from here.  Shares are currently near the lower end of its recent range, and the company will present at the JP Morgan Healthcare Conference on January 14th.  Auxilium is awaiting FDA approval of XIAFLEX for Dupuytren’s Contracture, expected soon.  Shares have a $42 target at Jefferies and there is a 10% short float, 10 days to cover.  Implied volatility recently touched near 1 year lows, making the trade a cheap way to take a bullish gamble in shares.  Data as of 2:21 PM EST.

Joe Kunkle, OptionsHawk.com

Immunomedics Stock/Option Spike on Patent (IMMU)

Immunomedics, Inc. (NASDAQ: IMMU) has spiked higher on a US patent #7,641,901 in a released titled “Potential Lupus Drug Gains U.S. Patent”…. After HGSI the lupus word is all thatw as needed.  The company already has 141 US patents and 302 worldwide patents…. Shares are off of highs already… Its $3.93 price is a gain of 20.2% after a $3.27 close yesterday and its 2.95 million shares as of 10:49 AM EST compares to average daily volume of 823,000 shares.  The market cap is $295.5 million after the gain, and the 52-week trading range is $0.84 to $7.17.

For whatever this is worth, the stock does trade options and the volume there has spiked up as well: the JAN10 $5 CALLS traded 1,499 contracts versus an open interest of 4,620 contracts.  The same strike for FEB10 traded 435 contracts versus 2,901 open interest.

JON C. OGG

When GE Gets a Volume Alert (GE)

General Electric Co. (NYSE: GE) is not the world’s most common stock to see giving high-volume trade alerts.  Yet that is what is happening today.   The market is fighting to remain positive, but GE shares are up considerably.  This may be on outside activity than anything as it has positive locomotive news and as airplane engine orders are strong.  But today may be more and more of an example of how the economy is recovering handily.  As long as the financial world doesn’t create another tail-spin, then GE is set to weather the recovery better than most.  There has been some activity in the stock options, but today’s move is mostly in the stock. At 12:47 PM EST we have seen 103 million shares trade hands, which is already getting close to 150% of the average daily volume 76 million shares.  More importantly this is already the most active share trading volume since November 9, 2009 when it traded 102.9 million shares.  The most active recent day was Nove mber 6, 2009 when the stock traded 165 million shares.

At 12:47 PM shares are up 5.95% at $16.36.

JON C. OGG

TASER’s Stunning Volume (TASR)

TASER International, Inc. (NASDAQ: TASR) is soaring this morning after receiving and shipping three significant orders in December 2009.  This now puts revenues above expectations at approximately $32 million for the quarter versus $28.7 million consensus.  The 2009 figure does include approximately $3.5 million of revenue deferred in Q3 2009 relating to the TASER X3 trade in program.

• The first order for 2,250 ADVANCED TASER(R) M26 Electronic Control Devices and related accessories for the Brazilian Ministry of Justice.
• The second order was for the Philadelphia Police, PA, for 1,000 TASER(R) X26(TM) ECDs and related accessories.
• The third order was for the Chicago Police Department, IL, for 386 TASER X26 ECDs and related accessories.

Shares are up 11.2% at $5.23 on 557,000 shares as of 9:38 AM EST.  That makes this already above the full daily volume in 8 minutes as teh average volume is 453,000 shares, and the 52-week trading range is $3.11 to $5.88.

JON C. OGG
January 6, 2010

Beazer Offering Trumps Orders (BZH)

Beazer Homes USA Inc. (NYSE: BZH) is down this morning after an after-hours sell-off.  The company said that quarterly orders jumped 37%, but the company is also raising cash.  Beazer is selling 18 million shares and $50 million in convertible notes.  This was down 7.75% at $5.00 versus a $5.42 close on Tuesday in the after-hours on over 100,000 shares last night.  At 8:49 AM EST we have shares trading down 9.5% at $4.90 on only about 8,000 shares.

JON C. OGG

CIENA Stock & Options On Move (CIEN, NOK, SI)

CIENA Corp. (NASDAQ: CIEN) has seen what is nothing short of an odd move today in both the stock and in in call options activity.  There are some hints out there that Nokia-Siemens, the venture of Nokia Corp. (NYSE: NOK) and Siemens AG (NYSE: SI), may go after CIENA after their failed attempt to acquire the Metro Ethernet Networks unit.  The Nokia-Siemens venture went after this unit, but CIENA won the deal despite some after-cut-off attempts.  CIENA shares are up 5% at $11.57 on 14.4 million shares as of 2:18 PM EST.  The 52-week trading range is $4.98 to $16.64 and the average volume is about 7.3 million shares per day.

Options trading is also VERY active considering the dead-money nature of this stock.  The JAN-2010 $12.50 CALLS have traded 15,615 contracts versus a prior open interest of 9,359 contracts.  The FEB-2010 $12.00    CALLS have also seen 13,110 contracts trade versus a prior open interest of 1,408 contracts.

While the markets stayed strong, CIEN remained fairly weak.  Yesterday’s $11.02 close was the first closing price above $11.00 since the day before Christmas.  If today’s gain hold, this would mark the highest CIENA share prices since December 11, 2009.

JON C. OGG

Delta Options Spiking (DAL, CAL, UAUA)

Delta Air Lines Inc. (NYSE: DAL) is seeing action in options trading this morning as the calls were hot off the open with more than 10,000 February $12 calls trading with shares at $11.80 and rising, 2X daily volume in 10 minutes of trading with offer side buying in large blocks.  Shares of airline stocks are higher despite oil prices recent rise after positive share moves in Continental Airlines, Inc. (NYSE: CAL) and UAL Corporation (NASDAQ: UAUA) up 8%.  Delta shares are up 7.75% at $12.09 in early morning trading.

Joe Kunkle, OptionsHawk.com

Irish Banks Continue Surge (AIB, IRE)

If you watched bank stocks on Monday, then you probably saw how the Irish banks may be in for a massive 2010 as Allied Irish Bank (NYSE: AIB) and Bank of Ireland (NYSE: IRE) were both up huge.  Despite these two being hit with negative ratings in new coverage at Barclays this morning, both banks are trading higher after double-digit gains.  At 8:52 AM EST we have AIB up 3.8% at $4.28 on 80,000 pre-market shares and Bank of Ireland (IRE) is up 3.3% at $9.15 on 45,000 pre-market shares.

More bankground is here on yesterday’s move and how it was affecting the other troubled banks in the EU countries which are under the cloud of ratings agencies.

Jon C. Ogg
January 5, 2010

2010 Actives Outlook: Options vs. Stock (AAPL, BAC, RIMM, XOM, PFE, CSCO, INTC, GLD, SLV)

2010 is here and we wanted to take a look at the largest catalyst for options volume and how it may translate into active stock trading for the January 2010 options expiration date.  In this matter we looked solely at the closest in-the-money and out-of-the-money call options that expire on January 15, 2010 because these will expire before almost all of these companies will have reported their calendar or fiscal Q4 earnings report.  We have looked at Apple Inc. (NASDAQ: AAPL), Bank of America Corp. (NYSE: BAC), Research in Motion Ltd. (NASDAQ: RIMM), Exxon Mobil Corp. (NYSE: XOM), Pfizer Inc. (NYSE: PFE), Cisco Systems, Inc. (NASDAQ: CSCO), and Intel Corporation (NASDAQ: INTC).  We even wanted to look at this in the metals of gold and silver ETFs via the SPDR Gold Shares (NYSE: GLD) and the iShares Silver Trust (NYSE: SLV).

We have then converted what each options contract series means in control of share exposure on a fully leveraged basis versus the average daily volume.  The CBOE VOLATILITY INDEX closed out 2010 under 20.0, meaning it is at least in theory very cheap for speculators to use stock options for exposure.

Apple Inc. (NASDAQ: AAPL) $210.73; Avg. Daily volume 18.3 million shares.  Apple does not look like much, but if you will go back to last Monday the readings of speculative options trading was literally off the charts with the equivalent of more than 14 million shares in options trading on a fully leveraged basis.
CALL$    OpInt    Share Equivalent
$210.00    59,605    5.96 million
$220.00    60,598    6.05 million
$230.00    36,605    3.66 million

Bank of America Corp. (NYSE: BAC) $15.06; Avg. Daily volume 201 million shares
CALL$    OpInt    Share Equivalent
$16.00    297,920    29.7 million
$17.50    297,065   29.7 million

Research in Motion Ltd. (NASDAQ: RIMM) $67.54; Avg. Daily volume 17.7 million shares
CALL$    OpInt    Share Equivalent
$70.00    61,526    6.15 million
$75.00    41,724    4.17 million
$80.00    103,290    10.3 million

Exxon Mobil Corp. (NYSE: XOM) $68.19; Avg. Daily volume 23.5 million shares
CALL$    OpInt    Share Equivalent
$70.00    81,379    8.13 million
$75.00    104,424    10.4 million
$80.00    70,442    7.04 million

Pfizer Inc. (NYSE: PFE) $18.19; Avg. Daily volume 52.8 million
CALL$    OpInt    Share Equivalent
$17.50    211,372    21.1 million
$19.00    102,084    10.2 million
$20.00    217,542    21.7 million

Cisco Systems, Inc. (NASDAQ: CSCO) $23.94; Avg. Daily volume 40 million shares
CALL$    OpInt    Share Equivalent
$22.50    44,248    4.42 million
$24.00    65,232    6.52 million
$25.00    132,091    13.20 million

Intel Corporation (NASDAQ: INTC) $20.40; Avg. Daily volume 61.3 million shares
CALL$    OpInt    Share Equivalent
$20.00    252,618    25.2 million
$21.00    97,351    9.73 million
$22.50    72,696    7.26 million

We also see this in both key metal ETF’s which track gold and silver prices, although these of course are metal price exposure plays rather than anything related to stocks:

SPDR Gold Shares (NYSE: GLD) $107.31; Avg. Daily volume 20.7 million shares and the equivalent of more than 46 million shares in options on a fully leveraged basis:
CALL$    OpInt    Share Equivalent
$100.00    66,713    6.67 million
$105.00    44,346    4.44 million
$110.00    74,437    7.44 million
$112.00    38,853    3.88 million
$113.00    22,898    2.28 million
$115.00    77,528    7.75 million
$116.00    27,953    2.79 million
$117.00    27,933    2.79 million
$120.00    88,176    8.81 million

iShares Silver Trust (NYSE: SLV) at $16.54; Avg. Daily volume 12.1 million shares; this comes to over 40 million shares on a fully leveraged basis:
CALL$    OpInt    Share Equivalent
$14.00    74,986    7.49 million
$15.00    15,300    1.53 million
$16.00    38,815    3.88 million
$17.00    74,446    7.44 million
$18.00    49,232     4.92 million
$19.00    128,848   12.8 million
$20.00    37,576    3.75 million

I would like to personally invite you to join in with the thousands of readers on our free daily email distribution list from 24/7 Wall St. to hear about ongoing day trader and options trader alerts, analyst upgrades and downgrades, stock and market rumors, Buffett and guru investor news, M&A and IPOs, and more.

JON C. OGG
January 2, 2010

Google News

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2010 Actives Outlook: Options vs. Stock (AAPL, BAC, RIMM, XOM, PFE, CSCO, INTC, GLD, SLV)

2010 is here and we wanted to take a look at the largest catalyst for options volume and how it may translate into active stock trading for the January 2010 options expiration date.  In this matter we looked solely at the closest in-the-money and out-of-the-money call options that expire on January 15, 2010 because these will expire before almost all of these companies will have reported their calendar or fiscal Q4 earnings report.  We have looked at Apple Inc. (NASDAQ: AAPL), Bank of America Corp. (NYSE: BAC), Research in Motion Ltd. (NASDAQ: RIMM), Exxon Mobil Corp. (NYSE: XOM), Pfizer Inc. (NYSE: PFE), Cisco Systems, Inc. (NASDAQ: CSCO), and Intel Corporation (NASDAQ: INTC).  We even wanted to look at this in the metals of gold and silver ETFs via the SPDR Gold Shares (NYSE: GLD) and the iShares Silver Trust (NYSE: SLV).

We have then converted what each options contract series means in control of share exposure on a fully leveraged basis versus the average daily volume.  The CBOE VOLATILITY INDEX closed out 2010 under 20.0, meaning it is at least in theory very cheap for speculators to use stock options for exposure.

Apple Inc. (NASDAQ: AAPL) $210.73; Avg. Daily volume 18.3 million shares.  Apple does not look like much, but if you will go back to last Monday the readings of speculative options trading was literally off the charts with the equivalent of more than 14 million shares in options trading on a fully leveraged basis.
CALL$    OpInt    Share Equivalent
$210.00    59,605    5.96 million
$220.00    60,598    6.05 million
$230.00    36,605    3.66 million

Bank of America Corp. (NYSE: BAC) $15.06; Avg. Daily volume 201 million shares
CALL$    OpInt    Share Equivalent
$16.00    297,920    29.7 million
$17.50    297,065   29.7 million

Research in Motion Ltd. (NASDAQ: RIMM) $67.54; Avg. Daily volume 17.7 million shares
CALL$    OpInt    Share Equivalent
$70.00    61,526    6.15 million
$75.00    41,724    4.17 million
$80.00    103,290    10.3 million

Exxon Mobil Corp. (NYSE: XOM) $68.19; Avg. Daily volume 23.5 million shares
CALL$    OpInt    Share Equivalent
$70.00    81,379    8.13 million
$75.00    104,424    10.4 million
$80.00    70,442    7.04 million

Pfizer Inc. (NYSE: PFE) $18.19; Avg. Daily volume 52.8 million
CALL$    OpInt    Share Equivalent
$17.50    211,372    21.1 million
$19.00    102,084    10.2 million
$20.00    217,542    21.7 million

Cisco Systems, Inc. (NASDAQ: CSCO) $23.94; Avg. Daily volume 40 million shares
CALL$    OpInt    Share Equivalent
$22.50    44,248    4.42 million
$24.00    65,232    6.52 million
$25.00    132,091    13.20 million

Intel Corporation (NASDAQ: INTC) $20.40; Avg. Daily volume 61.3 million shares
CALL$    OpInt    Share Equivalent
$20.00    252,618    25.2 million
$21.00    97,351    9.73 million
$22.50    72,696    7.26 million

We also see this in both key metal ETF’s which track gold and silver prices, although these of course are metal price exposure plays rather than anything related to stocks:

SPDR Gold Shares (NYSE: GLD) $107.31; Avg. Daily volume 20.7 million shares and the equivalent of more than 46 million shares in options on a fully leveraged basis:
CALL$    OpInt    Share Equivalent
$100.00    66,713    6.67 million
$105.00    44,346    4.44 million
$110.00    74,437    7.44 million
$112.00    38,853    3.88 million
$113.00    22,898    2.28 million
$115.00    77,528    7.75 million
$116.00    27,953    2.79 million
$117.00    27,933    2.79 million
$120.00    88,176    8.81 million

iShares Silver Trust (NYSE: SLV) at $16.54; Avg. Daily volume 12.1 million shares; this comes to over 40 million shares on a fully leveraged basis:
CALL$    OpInt    Share Equivalent
$14.00    74,986    7.49 million
$15.00    15,300    1.53 million
$16.00    38,815    3.88 million
$17.00    74,446    7.44 million
$18.00    49,232     4.92 million
$19.00    128,848   12.8 million
$20.00    37,576    3.75 million

I would like to personally invite you to join in with the thousands of readers on our free daily email distribution list from 24/7 Wall St. to hear about ongoing day trader and options trader alerts, analyst upgrades and downgrades, stock and market rumors, Buffett and guru investor news, M&A and IPOs, and more.

JON C. OGG
January 2, 2010

US HOT STOCKS: Stryker Up Slightly In Late Trading - Wall Street Journal

US HOT STOCKS: Stryker Up Slightly In Late Trading
Wall Street Journal
Shares rose 32 cents in after-hours trading. Small-cap company Flotek Industries, a supplier of drilling and production-related products and services to the ...

and more »

AIG Sets Method of Stock Payment for Top Execs - ABC News

AIG Sets Method of Stock Payment for Top Execs
ABC News
AIG shares lost 3 cents to $29.95 in after-hours trading Thursday after closing at $29.98, down 62 cents, or 2 percent, from a day earlier.

and more »