Explosive US Steel Options Volume (X)

United States Steel Corp. (NYSE: X) is seeing an explosion in its options trading on Wednesday.  Much is likely ahead of expiration for August this coming Friday.  But this also has to do with some speculation of a merger coming back to the metals sector.  If in ag and potash, why not steel or other metals?  As we always say, there are hundreds of rumors per year on buyouts, most never turn out to be true.  US Steel shares are currently up 5.5% at $49.95 on over 16 million shares versus average volume of 14.4 million shares.

Here is a breakdown of the NOON snapshot taken in CALLS option strike prices by month and the volume and open interest associated with them:

AUG$    Vol.    OpInt
$45.00    1,390    10,797
$46.00    1,786    9,714
$47.00    1,368    5,752
$48.00    10,207    7,120
$49.00    9,751    7,286
$50.00    19,890    13,479
$52.50    8,725    3,089
$55.00    7,194    5,331
$57.50    8,143    2,024
$60.00    1,123    330

SEPT$    Vol.    OpInt.
$47.00    1,625    2,804
$48.00    2,176    1,578
$49.00    1,343    1,250
$50.00    7,604    3,914
$52.50    4,711    3,451
$55.00    7,795    1,984
$60.00    8,522    2,096

OCT$    Vol. OpInt
$50.00    1,536    6,173
$52.50    2,102    2,178
$55.00    2,714    5,456
$57.50    2,870    1,455
$60.00    5,633    4,280
$62.50    337    648
$65.00    1,070    3,885
$70.00    2,712    2,068
$75.00    2,837    7,916

JON C. OGG

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Major Volume Spike in American Apparel (APP)

American Apparel, Inc. (AMEX: APP) is getting crushed.  Again.  We are seeing a second trading day of high stock volume after the Tuesday disclosure of a “going concern” where it might not be able to meet requirements and obligations inside its credit pact.  The company also disclosed that U.S. AG is looking into the circumstances of the resignation of Deloitte & Touche as auditor, as is the SEC.

The Wednesday drop is nearly the same as Tuesday.  Yesterday saw 2,550,600 shares trade hands and the stock closed down $0.36 at $1.03.  With average volume at 700,000 shares, this was a 3X volume alert.  We have another 3X volume alert today.  We have shares down $0.20 at $0.81 on more than 2.4 million shares already and the time is now only 11:05 AM EST.  This could trade more than 5 million shares at this pace, or more if the trading slowdown from 11 to 2:30 is not seen.

Shares hit a new 52-week low of $0.72 this morning.  Actually, that is an all-time low.

JON C. OGG

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Cardica Signs Deal With Intuitive

Cardica, Inc. (NASDAQ: CRDC), the company which makes medical instruments for coronary bypass operations, skyrocketed in pre-market trading today from $1.66 to $2.50, an increase of 5o.6%.  This growth comes during a 52-week range of $1.00 to $2.85, and is marked by the movement of 26,200 shares; a very significant amount for pre-market trading compared with the company’s daily average of 40,919.

The cause of this movement is a deal between Cardica and Intuitive Surgical, Inc. (NASDAQ: ISRG), in which Intuitive now owns 5% of available Cardica stock and has exclusive rights to the company’s intellectual property.

-Michael B. Sauter

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Education Battered, Many 52-WEEK LOWS (APOL, CECO, EDMC, COCO, DV, ESI, STRA)

Education stocks continue to get pounded after new Department of Education indications on guidelines and rules:

Apollo Group Inc. (NASDAQ: APOL) is actually getting some buying this morning and shares are up 0.4% at $39.10 on 275,000 shares pre-market.  This one might be better except the tape for peers is so bad.  The 52-week range here is $38.39 to $76.87.

Career Education Corp. (NASDAQ: CECO) is down 2% at $18.40 with a 52-week range of $18.21 to $35.88.  Thin volume here.

Education Management Corporation (NASDAQ: EDMC) NO VOLUME

Corinthian Colleges Inc. (NASDAQ: COCO) is getting crushed again with a 10.8% drop to $5.95 vs. a 52-week range of $6.64 to $20.29.  NEW 52-WEEK LOWS!  See that options trading volume from Friday…

DeVry, Inc. (NYSE: DV) is down 9% at $38.80 on 30,000 shares… NEW 52-WEEK LOWS!  Old trading range was $42.01 to $74.36.

ITT Educational Services Inc. (NYSE: ESI) is down 12% at $56.33… NEW 52-WEEK LOW.  Old range was $63.95 to $121.98.

Strayer Education Inc. (NASDAQ: STRA) down 17% at $166.23 on 190,000 shares, which is already a whole day’s volume.  The new 52-week range will be $163.75 to $262.44.  NEW 52-WEEK LOW ALERT!

(9:28 AM EST)

JON C. OGG

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Arena Regains Some Ground After Friday’s 7% Drop (ARNA)

Arena Regains Some Ground After Friday’s 7% Drop (ARNA)

Posted in pre-market 

On Friday, Arena Pharmaceuticals, Inc. (NASDAQ: ARNA) posted a 7.53% loss after Jefferies expressed concern about the company’s sound usage of risk calculation for the obesity drug Lorcaserin. As of 8:34AM EDT, the biopharmaceutical company was up 2.71% to $6.81, which is at the high end of the stock’s 52-week range of $2.70-$8.00. The stock has traded 40,684 shares, with an average volume of 8.8 million shares.

-Michael B. Sauter

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Unusual Options Volume Spikes on Friday (NLY, COCO, HPQ, PCS, NTAP, NFLX, PHM, SUN)

Friday had some incredibly wild options moves in select names on a standout basis.  We tracked some very unique and strange moves in options of Annaly Capital Management, Inc. (NYSE: NLY), Corinthian Colleges Inc. (NASDAQ: COCO), Hewlett-Packard Company (NYSE: HPQ), MetroPCS Communications, Inc. (NYSE: PCS), NetApp Inc. (NASDAQ: NTAP), Netflix, Inc. (NASDAQ: NFLX), PulteGroup, Inc. (NYSE: PHM), and Sunoco Inc. (NYSE: SUN).

Annaly Capital Management, Inc. (NYSE: NLY) saw unusual put options trading volume.  It looks like about 5-times normal trading volume.  Normally we’d say this is downside protection, but it may have been in part due to rolling expirations from August to September.  Over 16,000 were in the closest 3 August puts, and there were more than 20,000 of the September puts.

Corinthian Colleges Inc. (NASDAQ: COCO) gave a crazy read ahead of earnings next week.  Of the AUG $6 PUTS, we saw 8,262 contracts trade versus an open interest of only 868 contracts.  These expire next Friday and at a $6.66 close and a new 52-week range of $6.64 to $20.29, it seems like a serious bet was placed for an otherwise quiet option pattern.

Hewlett-Packard Company (NYSE: HPQ) is still seeing significant options trading.  Some was roll date trading, but The open interest for the $42 strike and $45 strike grew by more than half each today after 15,347 and 13709 contracts traded in each respectively.

MetroPCS Communications, Inc. (NYSE: PCS) saw some unusual activity out in the speculative longer-dated calls. There were over 3,000 of the JAN-2011 $10 CALLS versus an open interest of 1,155 contracts.

NetApp Inc. (NASDAQ: NTAP) gave an options flag today… earnings are next week.  The AUG $38 CALLS saw 4,206 contracts versus the open interest of 2,119 contracts.  There were more than 9,000 more in AUG strike prices in the CALLS.  There were also 4,080 of the AUG $38 PUTS versus an open interest of 2,321 contracts.  Someone’s playing the straddle for earnings.  We also saw some 9.875 of the September $40 CALLS trade versus an open interest of 4,395 contracts.

Netflix, Inc. (NASDAQ: NFLX) is not as strong as we saw this week in speculation, but one thing is obvious… The elevated put and call options trading is continuing and the reason is simple: getting leverage to upside and downside moves.

PulteGroup, Inc. (NYSE: PHM) saw a whopping 20,352 of the SEPT-2010 $8 PUTS versus a prior open interest of only 692 contracts.  The $7 PUTS also saw 1,444 contracts trade versus an open interest of only 1 contract (yep, one).

Sunoco Inc. (NYSE: SUN) had a professional trader making a spread bet that is up to them to figure out but this one initially saw crazy volume in the AUG calls:

• $Str    Volume    OpInt
• $26    3,600    407
• $27    6,300    695
• $28    4,501    512
• $29    20,000    850
• $30    384,004    13,102
• $31    26,400    1,264
• $32    52,507    3,645
• $33    6,306    1,394

Have a great weekend!

JON C. OGG

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Emergent Purchase Drives Up Trubion In Pre-Market

Trubion Pharmaceuticals, Inc. (NASDAQ: TRBN) shot way up in pre-market trading preceding the company’s acquisition by Emergent Biosolutions Inc. (NYSE: EBS).  At the 8:35 AM EST Trubion is up 49.67% from $3 to $4.49 during a 52-week range of 2.29 â€" 6.75.  The company has also already traded 3,000 shares, a significant figured compared with their average of 16,011.

The transaftion, if it is completed, will provide Trubion shareholders with $1.365 in cash, as well as 0.1641 shares of Emergent common stock for each share of Trubion they currently possess.

-Michael B. Sauter

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Cisco Flakes On Confidence

Cisco Systems, Inc. (NASDAQ: CSCO) was down in pre-market trading as a result of weak guidance offered by the company.  At 8:35 AM EST is down 7.42% from $23.73 to $21.97, and has traded 876,856 shares, compared with the company’s average of 58,236,500 shares.  This drop comes during a 52-week trading range of $20.68 â€" $27.74.

Investor confidence was shaken by John Chambers, CEO of the IT company’s, characterization of the market as possessing “unusual uncertainty.”

-Michael B. Sauter

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Cree Offers Low-Ball Expectations

At 8:35 AM EST, Cree, Inc. (NASDAQ: CREE) is down 9.66% from $68.96 to $62.30.  This drop follows an announcement from the company that outlines Q1 goals targeting revenue of $270 million to $280 million,  trailing behind the Wall Street expectation of $283.96 million.  The pre-market move comes during a 52-week range of $31.56 â€" $83.38 and the company has already traded 101,543 shares, compared with the average 3,113,390.

Cree, Inc. is an LED lighting company based in Durham, North Carolina.  The company announced a Q4 net income increase of 268% year-over-year to $60.1 million.

-Michael B. Sauter

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Qiagen Down Pre-Market, Despite Exceeding Forecasts

Qiagen N.V., a diagnostic technology holding company, posted 2Q earnings yesterday which beat expectations.  Despite the positive news, stock of QGEN continues to lose ground pre-market after dropping .7% yesterday. As of 8:19AM EDT, shares were off 3.58% to 18.84 on 106,880 shares volume (average volume 2.32 million.) Qiagen is nearing its 52-week low of $18.06.

According to reuters, net income for Qiagen’s second quarter was $38.5 million. expected net income was $31.8 million.

-Michael B. Sauter

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Options Explosion in H-P (HPQ)

Hewlett-Packard Company (HPQ) was one we knew that there was going to be a massive volume spike in today when it came to the stock.  Rather than almost 20 million shares in a day, we have seen over 108 million shares trade hands.  The stock is lower by 6.7% at $42.90 after hitting 52-week lows in the Friday evening after-hours session.

What is also standing out is major put and call option trading.   It is not even NOON EST yet and we have seen over 30,000 CALLS in AUG-2010 and over 20,000 PUTS in AUG-2010 trade hands.  For September-2010 we have also just gone above the 30,000 contract mark for the CALLS and over 23,000 contracts trade in the PUTS.

So far the trading in the JAN-2011 options have seen much more trading volume in the PUTS versus the CALLS: over 12,000 PUTS versus only about 6,000 CALLS.

JON C. OGG

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Nabors Set To Buy Superior Well Services

Superior Well Services, Inc. (NASDAQ: SWSI) rocketed up at 8:35 AM EST 20.84%, resulting in shares increasing from $18.23 to $20.03.  This move is the result of Superior Well’s purchase by land rig contractor Nabors Industries Ltd. (NYSE: NBR) for approximately $900 million.  The morning has thus seen the movement of 2,964,810 shares, compared with Superior Well’s average volume of 547,172 shares.  The company’s success can also be measured with attention to its 52-week trading range, which currently stands at $5.66 â€" $19.96.

The pressure pumping company also just posted Q2 profits of $0.18 a share, totalling $6.1 million.  This is compared with analyst expectations, which predicted a loss of $0.10 per share.

-Michael B. Sauter

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Kulicke and Soffa Report Positive Q3 Earnings

Kulicke and Soffa Inc. (NASDAQ: KLIC) increased 13.19% from $7.20 to $8.15 at 8:35 AM EST this morning in pre-market trading following a third quarter profit of $0.65 per share and a revenue of $221.3 million.  Original estimates placed quarter earnings at $0.53 a share with a revenue of $205.3 million.  The company has also traded 51,510, compared with a daily average 2,244,910.  This move comes during a 52-week range of $4.03 â€" $9.58.

Kulicke and Soffa Inc. make semiconductor assembly equipment.  The company has announced that they expect a revenue of $250 million to $260 million for the fourth quarter.

-Michael B. Sauter

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Priceline Rockets Past Q2 Estimates

Priceline.com Incorporated (NASDAQ: PCLN) shot upwards in pre-market trading today from $230.67 to $270, a price increase of 17.05%.  This movement, which took place at 8:35 AM EST, is the result of an unexpectedly positive earnings review in which priceline.com reported earnings of $3.09 per share on revenue of $767.4 million, beating estimates of $2.65 per share on revenues of $733 million.

This increase for the internet travel company comes during at 52-week trading range of $128.36 â€" $273.93.  The average daily volume for the company is 1,633,640.

-Michael B. Sauter

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What are the factors determining the rise and fall of monetary evaluation of a currency?

Before embarking into the aggressive world of forex, it is paramount to analyse and apprise the constituents that check the advancement and the decline of a currency. It is important to understand how to trade forex.

For instance, a couple of years back, $1 was equal to Rs. 46 against the Indian Rupee. This merely entails that for the exchange of every one dollar bill an individual or an entity gets is Rs. 46 in exchange of the dollar. Following are the list of constituents that check the rise and fall of a currency;

Inflation – It is the consequence of ascending inflation in the United States of America, due to high growth in oil prices in modern years that the American currency dollar bill has fallen behind on many grounds versus the Indian rupee, that stand at around Rs. 43 for now. Rise in rising prices proves to be a potent component when aiming your bet on a currency. War, growth in oil prices, earthy calamity, governmental disorder are some of the agents that bestow to inflation, which is defined as rise in prices.

Demographics – Demographic of population, the age of population, the literacy rate of people are as important for influencing the economical valuation of a currency affiliated with a state. For instance, a secure dollar against Indian rupee only means that American economic system is booming at a much gush rate than the Indian economy. The demographics of people bring to the infrastructural and occupational essentials of a country, thereby casting a rich economical growth for the nation.

These are some of essentials that one should look into before trading the forex.

Sykes Suffers Following Q2 Announcement

Sykes Enterprises, Incorporated fell way down in pre-market trading afting posting weak Q2 profits.  At 8:35 AM EST the company is down 31.37%, from $15.30 to $10.50, and has already traded 58,700 shares.  This is significant for pre-market trading as Sykes’ average volume is just 401,211.  This comes during a 52-week trading range of $13.48 â€" $26.91.

For Q2, the business process outsourcing company announced earnings of $0.14 per share.  This is compared with estimates of $0.30.  Sykes now predicts 2010 adjusted earnings of $0.81 to $0.83 a share.  This is a major drop from earlier predictions of $1.33 a share to $1.50.

-Michael B. Sauter

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DryShips Looks Good In Pre-Market Trading

DryShips, Inc. (NASDAQ: DRYS) was slightly up this morning in pre-market trading as its rating was moved from Hold to Buy.  At 8:35 AM EST the company was up 3.99% from $4.51 to $4.69 and has traded 41,720 shares.  The average volume for the company is 12,073,700 market shares.  This comes in the middle of the 52 week trading range of $3.28 â€" $7.99.

DryShips has recently featured a high rate of volatility, implying that the the stock is neither overbought nor oversold for its price.

-Michael B. Sauter

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Volume Spike Investor

Crown Media Holdings, Inc (NASDAQ: CRWN) is listed under ticker “CRWNE” under some quote systems because of the recapitalization that was completed at the end of June.  The stock happens to be the largest percentage gainer today with a 51.7% price gain at a price of $2.70.  The price hit a high earlier today of $2.93 and the new adjusted 52-week range is $1.19 to $2.93.  At 1:10 PM EST there have been some 350,000 shares traded versus an average daily volume of only about 35,000 shares.

A 52-week high on a 10X volume alert is hard to ignore even for a $2 or $3 stock… This is the owner of cable TV stations and currently owns and operates The Hallmark Channel and Hallmark Movie Channel in the U.S. to 86 million subscribers.  The distribution is via a network of over 5,300 cable systems, communities, and satellite services.

When the company announced on June 29 its recapitalization completion, it noted the following data: “The Recapitalization transactions include, among other things, approximately $1.162 billion of amounts due to Hallmark Cards and its affiliates being restructured into $315.0 million principal amount of new debt instruments with maturities of December 31, 2013, $185.0 million liquidation preference of convertible preferred stock of the Company, Class B Common Stock being converted into Class A Common Stock with Class A Common Stock becoming the only authorized and outstanding common stock of the Company, and 254,887,860 shares of Class A Common Stock of the Company.”

It further noted: “Other aspects of the Recapitalization include a Credit Agreement for the new debt, an amendment to the Tax Sharing Agreement with Hallmark Cards, a registration rights agreement, an increase in the authorized Class A Common Stock to 500,000,000 shares and a decrease in the authorized preferred stock to 1,000,000 shares, mergers of two intermediate holding companies with and into the Company and a stockholders’ agreement pursuant to which certain Hallmark entities agree not to acquire, through December 31, 2013, additional shares of Class A Common Stock of the Company, subject to certain exceptions, and agree to certain restrictions on their ability to sell or transfer shares of Class A Common Stock of the Company until December 31, 2013 and, subject to lesser restrictions, until December 31, 2020. Concurrent with the closing of the Recapitalization transaction, the Company has also amended its credit facility with JP Morgan Chase Bank to continue a $30 million revolving credit facility through June 30, 2011, which will provide additional short-term liquidity to the Company.”

The company has also recently noted that the CFO, Brian Stewart, has resigned with an effective date of August 20, 2010.  That is after the scheduled August 12 earnings report date.

The last time this one traded this many shares was on June 25, back when the stock traded 451,600 shares, with a $1.71 close.  The last time this was above $2.00 was in April and March 2010 when the highs were $2.01 and $2.06 respectively.  This one was above $3.00 back in May 2009 and above $5.00 in October 2008.

JON C. OGG

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Power-One Moves On Q2/Q3 Announcement

Power-One, Inc. (NASDAQ: PWER) shot up at 8:35 AM EST from $9.96 to $11.73, an increase of 17.77%.  This pre-market movement came following an announcement that the company had a second quarter revenue of  $215 million and profits of 17 cents a share, beating the Street consensus of $185.7 million in revenue and profits of 10 cents a share.  The company has also projected impressive third quarter earnings.  These numbers come during a 52-week range of $1.19 â€" $10.28.

The company traded 95,505 shares this morning, compared with the daily average 2,769,270.

Power-One, Inc. design and sell power management solutions for renewable energy, communications infrastructure, and other high technology markets.

-Michael B. Sauter

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10X Volume Alert in Crown Media (CRWN)

Crown Media Holdings, Inc (NASDAQ: CRWN) is listed under ticker “CRWNE” under some quote systems because of the recapitalization that was completed at the end of June.  The stock happens to be the largest percentage gainer today with a 51.7% price gain at a price of $2.70.  The price hit a high earlier today of $2.93 and the new adjusted 52-week range is $1.19 to $2.93.  At 1:10 PM EST there have been some 350,000 shares traded versus an average daily volume of only about 35,000 shares.

A 52-week high on a 10X volume alert is hard to ignore even for a $2 or $3 stock… This is the owner of cable TV stations and currently owns and operates The Hallmark Channel and Hallmark Movie Channel in the U.S. to 86 million subscribers.  The distribution is via a network of over 5,300 cable systems, communities, and satellite services.

When the company announced on June 29 its recapitalization completion, it noted the following data:
“The Recapitalization transactions include, among other things, approximately $1.162 billion of amounts due to Hallmark Cards and its affiliates being restructured into $315.0 million principal amount of new debt instruments with maturities of December 31, 2013, $185.0 million liquidation preference of convertible preferred stock of the Company, Class B Common Stock being converted into Class A Common Stock with Class A Common Stock becoming the only authorized and outstanding common stock of the Company, and 254,887,860 shares of Class A Common Stock of the Company.”

It further noted:
“Other aspects of the Recapitalization include a Credit Agreement for the new debt, an amendment to the Tax Sharing Agreement with Hallmark Cards, a registration rights agreement, an increase in the authorized Class A Common Stock to 500,000,000 shares and a decrease in the authorized preferred stock to 1,000,000 shares, mergers of two intermediate holding companies with and into the Company and a stockholders’ agreement pursuant to which certain Hallmark entities agree not to acquire, through December 31, 2013, additional shares of Class A Common Stock of the Company, subject to certain exceptions, and agree to certain restrictions on their ability to sell or transfer shares of Class A Common Stock of the Company until December 31, 2013 and, subject to lesser restrictions, until December 31, 2020. Concurrent with the closing of the Recapitalization transaction, the Company has also amended its credit facility with JP Morgan Chase Bank to continue a $30 million revolving credit facility through June 30, 2011, which will provide additional short-term liquidity to the Company.”

The company has also recently noted that the CFO, Brian Stewart, has resigned with an effective date of August 20, 2010.  That is after the scheduled August 12 earnings report date.

The last time this one traded this many shares was on June 25, back when the stock traded 451,600 shares, with a $1.71 close.  The last time this was above $2.00 was in April and March 2010 when the highs were $2.01 and $2.06 respectively.  This one was above $3.00 back in May 2009 and above $5.00 in October 2008.

JON C. OGG

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