Wall Street Addict

Fed Cut: Najarian's big question is will the Fed cut 25 or 50 basis points. Finerman is surprised that the market is rallying on the Fed rate cut anticipation. Utilities Select Sector SPDR Fund (XLU) led the stock market higher on Monday. Adami likes Public Service (PEG) into earnings.
Crude oil rose to a record $93.80. Reuters saying that gas prices will now play catch up with crude. Najarian continues to like the oil service sector, with Adami suggesting Tesoro (TSO) as a buying opportunity.
Warren Buffett: Doesn't think China is a bubble; he just thinks the market has run up. Buffett sold his entire stake in PetroChina (PTR) because he made a handsome profit, not because he thinks it won't go higher. The real concern with China is what will happen after the Olympics.
Chartology: Carter Worth joined the show to review the charts of Liz Claiborne (LIZ) and Eastman Kodak (EK). Worth points out that stocks worldwide are rallying but nobody is buying Liz Claiborne. On the other hand, the Eastman Kodak chart displays bullish trends going into earnings.
Earnings Preview: Procter and Gamble (PG) is set to report earnings on Tuesday and Clorox (CLX) will report Wednesday. Najarian reminds investors about Colgate (COL), which he think has more upside then Procter. Exxon Mobil (XOM) is set to report earnings on Thursday before the open.
Stem Cell: Genentech (DNA), Gilead Sciences (GILD), Amgen (AMGN) all reside in Silicon Valley. Scientists are now excited about the potential of stem cell research and California is positioned the best to benefit from the controversial process. Najarian would keep an eye on Myriad Genetics (MYGN) and Cepheid (CPHD) for genetic plays.
Word on the Street
Merrill Lynch (MER) shares rose 2% on hopes that CEO Stan O'Neal is on his way out. Chip stocks rallied after a bullish industry report shows global sales rose 5.9%. Macke still loves Intel (INTC) and is long the stock. Adami mentioned that Goldman Sachs put a $35 price target on Dell (DELL). Kellogg (K) reported strong third quarter profits. Macke is long Safeway (SWY) for a play on the grocery store sector. Options action in Under Armour (UA) perked Najarian's interest on Monday. The options market is looking for a 10% move on Under Armour in either direction. Macke continues to like Nike (NKE). Oracle's (ORCL) $17 bid for BEA Systems (BEAS) expired on Sunday.
Pops & Drops
Pops - Garmin (GRMN) traded up 6%.
American Axle (AXL) traded up 12% on news the firm will extend product lines.
Lehman Brothers (LEH) traded up 4% on news that the investment bank is setting up a $3 billion fund to buy leveraged loans from struggling banks. Goldman Sachs (GS) is the preferred stock for Finerman.
Sohu.com (SOHU) popped up 7%.
Weyerhaeuser (WY) traded up 8%.
Drops- Tupperware Brands (TUP) dropped 4% off of disappointing profits. Najarian thinks this is an opportunity to buy it.
Office Depot (ODP) fell 14%.
Final Trade
Macke advised investors to trim positions in EMC Corp (EMC).
Adami likes Gilead Sciences (GILD) for the $300 million stock buyback they recently announced.
Finerman would buy Washington Group (WNG) for a takeover play.
Najarian believes Merrill Lynch (MER) is ready to go higher.

Labels: AMGN, CNBC, DNA, EK, fast money, Fast Money Recap, GILD, INTC, LIZ, MER, PEG, PTR, TSO, XLU

Here are 7 options to watch for today. This list comes directly from the TradingMarkets Options Indicators page. The list is created using OptionVue options analysis software.
Most Underpriced Calls: These are the most under priced calls of all stocks in our database. While the Equities Explosion List finds groups of calls for individual equities that are under priced, this list finds the most under priced individual calls. Thus, the options listed here will tend to be more severely under priced.
Goldman Sachs Sep 230 Calls (NYSE:GS - News).
Most Underpriced Puts: These are the most under priced puts of all stocks in our database. While the Equities Explosion List finds groups of puts for individual equities that are under priced, this list finds the most under priced individual puts. Thus, the options listed here will tend to be more severely under priced.
Frontline Ltd. Aug 50 Puts (NYSE:FRO - News).
Most Overpriced Calls: These are the most overpriced calls of all stocks in our database. While the Equities Implosion List finds groups of calls for individual equities that are overpriced, this list finds the most overpriced individual calls. Thus, the options listed here will tend to be more severely overpriced.
Mastercard Inc. Aug 185 Calls (NYSE:MA - News).
Most Overpriced Puts: These are the most overpriced puts of all stocks in our database. While the Equities Implosion List finds groups of puts for individual equities that are overpriced, this list finds the most overpriced individual puts. Thus, the options listed here will tend to be more severely overpriced.
Chipotle Mexican Grill, Inc. Aug 80 Puts (NYSE:CMG - News).
Stocks with Abnormal Call Volume: These are stocks which showed unusual call option volume not easily explained by arbitrage operations. The appearance of a stock on the Call Volume Alerts list suggests a possible takeover, extraordinarily good earnings report, or other news which may favorably affect the stock.
TD Ameritrade Holding Corporation (NasdaqGS:AMTD - News).
Stocks with Abnormal Put Volume: These are stocks which showed unusual put option volume not easily explained by arbitrage operations. The appearance of a stock on the Put Volume Alerts list suggests an extraordinarily negative earnings report, or other news which may negatively affect the stock.
Utilities Select Sector SPDR (AMEX:XLU - News).
Abnormal Put/Call $ Volume: These stocks have the highest dollar put volume in relation to their call volume. These high ratios are indicative of extreme bearish sentiment in the underlying stock.
Goodyear Tire & Rubber Co. (NYSE:GT - News).
PowerRatings are courtesy of TradingMarkets.com

Labels: AMTD, CMG, FRO, GS, GT, Hot Stock Options, MA, XLU