Stocks are poised to open higher on a couple of pieces of good news. In particular, folks are pleased to hear that Bear Stearns' (BSC - commentary - Cramer's Take) earnings, while terrible, finally seem to be a true throwing out of the kitchen sink. They must have had a nice house at one point because this is like the third kitchen sink they've thrown out in the past four months. Actually, the real positive is that this company is basically in foreclosure with outside investors trying to pick up a bargain, and word has that would lead to the ouster of CEO Jimmy Cayne.
Other positives are coming from not only Oracle's (ORCL - commentary - Cramer's Take) earnings but what has become the hot initial public offering for Larry Ellison's NetSuite (N - commentary - Cramer's Take). It's expected to raise about $150 million while his family and friends still own some 80% of the company. That should allow the Ninja software guru enough money to buy another 1,260 foot yacht. But what is it all worth if he can't reclaim America's Cup? I guess he could buy Australia.
Other names that should see above-average option activity include earnings-related names such as FedEx (FDX - commentary - Cramer's Take), Micron (MU - commentary - Cramer's Take) and of course Research In Motion (RIMM - commentary - Cramer's Take), which reports after the bell. I'll post soon about what options markets are expecting from RIMM and some strategy suggestions for the name.
P.S. Will you be there when Cramer makes his next move?
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Steven Smith Blog Steve Smith Returns Thursday 12/19/2007 9:26 AM EST Check back Dec. 20 for more of his options blogging.
Steven Smith Blog Expiration Configuration 12/18/2007 10:24 AM EST Lower open interest may lead to lower volatlity.
Steven Smith Blog Volatility Index Lifts 5.3% 12/17/2007 5:40 PM EST Also, a rising put-call ratio suggests we may get a start on an oversold rally.
Steven Smith writes regularly for TheStreet.com. In keeping with TSC's editorial policy, he doesn't own or short individual stocks. He also doesn't invest in hedge funds or other private investment partnerships. He was a seatholding member of the Chicago Board of Trade (CBOT) and the Chicago Board Options Exchange (CBOE) from May 1989 to August 1995. During that six-year period, he traded multiple markets for his own personal account and acted as an executing broker for third-party accounts. He appreciates your feedback; click here to send him an email.To read more of Steve Smith's options ideas take a free trial to TheStreet.com Options Alerts.
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