OP’s Perspective, Week Ahead (2/26)

My perspective to begin the day and week: 

  • Beside the “departed” Oscars story, the biggest story of the day is TXU’s $44 billon buyout by LBO that has surely heated-up stock market futures. Soon after the news share were trading about 17% higher i.e. about $70. Excluding $12 billions in debt, the market cap is valued at $32 billions ($44-$12) and based on 459.24 million outstanding shares that is roughly $69.68/share. I may pick-up some shares if it opens few bucks less than that.
  • All the metals are shining. Nickel, Aluminum, Copper, Zinc and Lead, all are shining. Look out for XLB or equivalents for some bullish spreads.  
  • There are stories around oil. As such, JFM is generally speaking a bullish quarter for Oil. There have been week-end stories around oil. So check out for OIH, XLE or Individual stocks. 
  • There are several market moving data are due this week that can push market in either direction: Tuesday 8:30am Durable goods order, Wednesday 8:30am Preliminary GDP and Thursday 8:30am Personal Income and outlay data followed by ISM Mfg data at 10am 
  • Yahoo/IBD has profiled 10 fast growing small caps (Generally speaking these are momentum plays, so you may want to use momentum driven option strategies should you choose to play). The names are CUTR, HMIN, SIMO, ZUMZ, MR, PRFT, VTIV, BWLD, GFIG, and HWCC. Check out the whole story here.
  • There is particularly unusually high volume in PTNR,GRMN, MTC,MICC,AMG,JLL,CMI,LMS, and WCG  

 

 

Let’s begin a wonderful profitable week, OptionPundit

 


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