Options Recap: Merck, Cubist, Leap Wireless
OptionMonster co-founder Pete Najarian provides options picks Monday, Wednesday and Friday in TheStreet.com's Deep in the Money Calls newsletter.
By David Russell, a reporter at OptionMonster .
Frontier Oil (FTO): The oil company has given up about 30% of its value since the beginning of June when the price was above $18.
Plains Exploration (PXP): The oil and gas company is down 17% in the past month, and at least one large trader is betting on further downside.Sigma Designs (SIGM): The company is down more than 13% from its recent high, allowing one trader to take profits and maintain a bet against the semiconductor company. Merck (MRK): Shares of the pharmaceutical company are trying to claw back some of the losses from Thursday, but the options action is bearish. Cubist (CBST): The pharmaceuticals company will report earnings next week, and one trader is positioning for a bumpy ride in the shares. Monday Pre-Market: A closer look at bid/ask spreads: A reader recently asked how and why bid/ask spreads vary for different strikes and underliers. To explore the issue, we compare the cases of U.S. Steel (X) and AmBev (ABV) calls. Leap Wireless (LEAP): The wireless carrier is down 19% in the past month, prompting traders to bet on a rebound. ICICI (IBN): The Indian bank is near its highs and seeing some interesting options trading as both puts and calls light up our systems. Infosys (INFY): At least one big investor thinks the outsourcing firm is headed lower after it enjoyed four months of gains and ran up against potential resistance at $37.50.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV