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International markets are currently down, as the Hong Kong Hang Seng Index is down 2.3% and Europe is down 0.25%. p>

International markets are also up, as the Hong Kong Hang Seng Index is up 2% and Europe is up 2%.

International markets are also up slightly, as the Hong Kong Hang Seng Index is up 0.8% and Europe is up 0.2%.

After the market closes today, Intel (INTC), CSX (CSX) and Johnson & Johnson (JNJ) will report earnings figures. Analysts expect INTC to report 28 cents EPS, CSX to report 71 cents EPS and JNJ to announce $1.13 EPS. Stay tuned to ONN.tv for continued market updates.

International markets are mixed, as the Hong Kong Hang Seng Index is down 0.1% and Europe is up 1.3%.

We expect to see earnings season kick it up a notch, as the nation’s largest banks are expected to announce quarterly figures this week. Later this week, we’ll hear from J.P. Morgan (JPM), Goldman Sachs (GS), Citigroup (C) and Bank of America (BAC). Stay tuned to ONN.tv for continued market updates.

Fed Chairman Ben Bernanke said late yesterday that the Fed will reverse course and hike interest rates when the economic outlook is on a stable course. This statement sent the dollar slightly higher, taking commodities and the overall market into the red.

Several international markets are hovering near breakeven today. The Hong Kong Hang Seng closed up 0.03% although the Nikkei charged nearly 1.9% higher on the day. The German Dax is off a fraction as is the FTSE 100.

In economic news, the U.S. trade deficit narrowed slightly in August to negative $30.7 billion, compared to estimates for a modest widening in the figure to $33 billion. In June, the trade deficit totaled$32 billion – this number was revised slightly lower.

Stay tuned to ONN.tv for continued market updates.

Fed Chairman Ben Bernanke said late yesterday that the Fed will reverse course and hike interest rates when the economic outlook is on a stable course. This statement sent the dollar slightly higher, taking commodities and the overall market into the red.

Several international markets are hovering near breakeven today. The Hong Kong Hang Seng closed up 0.03% although the Nikkei charged nearly 1.9% higher on the day. The German DAX is off a fraction as is the FTSE 100.

Stay tuned to ONN.tv for continued market updates.

Weekly jobless numbers hit the Street at 8:30 Eastern Time, showing initial claims of 521,000, a drop of 33,000 and better than the 540,000 that was expected. This is the lowest initial jobless claims number since the first week of January. The prior week, however, was revised slightly higher to 554,000 from 551,000. Continuing claims dropped by 72,000 to 6.04 million from 6.11 million.

In earnings news, PepsiCo (PEP) announced earnings per share of $1.09 throughout last quarter, beating estimates by six cents. In addition, Alcoa (AA) announced better-than-expected earnings figures of four cents EPS compared to expectations of a nine-cent EPS loss. AA also beat revenue expectations.

Stay tuned to ONN.tv for continued market updates.

International markets are rallying slightly, with Hong Kong up 1% and Europe up 0.5%. In earnings news, PepsiCo (PEP) announced earnings per share of $1.09 throughout last quarter, beating estimates by six cents. In addition, Alcoa (AA) announced better-than-expected earnings figures of four cents EPS compared to expectations of a nine-cent EPS loss. AA also beat revenue expectations. Stay tuned to ONN.tv for continued market updates.

International markets are showing mixed sentiment. The Hong Kong Hang Seng Index closed up 2% while the FTSE 100 is down about half a percent and the German DAX has declined a fraction.

In equity news, Coca-Cola (KO) is higher in pre-market activity after scoring an upgrade from Deutsche Bank, which upped its rating on the beverage giant to a "buy" from a "hold," citing volume growth. Elsewhere, Amazon.com (AMZN) said it was dropping the price of its Kindle to $259 from $299 in the U.S. The online retailer will also unveil a new Kindle outside the U.S., priced at $279 and allowing wireless downloads of content.

Stay tuned to ONN.tv for continued market updates.

International markets showed mixed sentiment among investors. The Hong Kong Hang Seng Index is up 2% and Europe is up 0.4%. Stay tuned to ONN.tv for continued market updates.

International markets are also rallying following Australia’s central bank interest-rate boost to 3.25%. Australia was the first developed economies to push interest rates higher, and this could be viewed as a sign of expected global recovery. Hong Kong closed up 1.9% and the Nikkei was fractionally higher. Europe is currently trading up 1.6% and the FTSE 100 has reached back above the 5,000 level, currently up 1.52%.

In merger news, Emerson Electrical (EMR) said it will buy Avocent Corp. (AVCT) for $1.3 billion in cash. Elsewhere, Verizon Communications (VZ) and Google (GOOG) have forged a partnership to deliver mobile device and applications.

Stay tuned to ONN.tv for continued market updates.

International markets are also rallying following Australia’s central bank interest rate boost to 3.25%. Hong Kong is up 1.9%, and Europe is currently trading up 1.6%. Stay tuned to ONN.tv for continued market updates.

International markets are telling a mixed story, as the Hong Kong Hang Seng is currently up 0.3%, and Japan’s Nikkei 225 is down 0.6%. Europe is up 0.06%.

After the market closes tonight, The Mosaic Company (MOS) is scheduled to announce earnings figures of approximately 35 cents a share. Stay tuned to ONN.tv for continued market updates.

International markets are telling a mixed story, as the Hong Kong Hang Seng closed up 0.3%, and Japan’s Nikkei 225 finished off 0.6%. European markets are trading moderately higher.

In analyst news, Goldman Sachs analysts upped their opinion of U.S. banks to "attractive" from "neutral," giving special bullish nods to Wells Fargo & Co. (WFC) and Comerica Inc. (CMA). Goldman noted that "The market has failed to recognize the dramatic improvement in earnings power at the large banks versus the regionals."

After the market closes tonight, The Mosaic Company (MOS) is scheduled to announce earnings figures of approximately 35 cents a share. Stay tuned to ONN.tv for continued market updates.

International markets are also down, as Asia is down 2.5% and Europe is down 0.8%.

The monthly nonfarm payrolls report was a disappointment to the Street, showing a drop of 263,000 jobs versus the 170,000 decline Wall Street was expecting. The unemployment rate hit 9.8%, in line with expectations.

Stay tuned to ONN.tv for continued market updates.

International markets are also down, as Asia is down 2.5% and Europe is down 0.8%.

The Employment Situation report is due at 8:30 a.m. EST, and consensus estimates show a 170,000 drop month-over-month in nonfarm payrolls. Analysts expect a slow-down in overall job cuts, but a 0.1% rise in unemployment. Stay tuned to ONN.tv for continued market updates.

International markets are also down marginally, as Hong Kong closed off 0.3% and Europe has dropped 0.6% so far today.

Personal Income numbers for August edged 0.2% higher, edging out expectations for a 0.1% rise. Personal Spending, meanwhile, rose 1.3% versus the expected 1.1% increase. Jobless claims figures this week could tell a more pessimistic tale, however, as analysts expect to see a 7,000-application rise since last week.

In company news, Bank of America (BAC) will be in focus today following the retirement announcement of CEO Ken Lewis. Analysts are already speculating about replacements.

Stay tuned to ONN.tv for continued market updates.

International markets are also down marginally, as Hong Kong is trading in the red by 0.3% and Europe has dropped 0.6% in pre-market trading.

The Personal Income and Outlays monthly report is due at 8:30 a.m. EST, and we could see a slight improvement of 0.1% mother-over-month. Jobless claims figures this week could tell a more pessimistic tale, however, as analysts expect to see a 7,000-application rise since last week. Stay tuned to ONN.tv for continued market updates.

International markets are mixed, as Hong Kong closed down 0.3% and Europe is up about 0.2%.

The final second-quarter GDP number hit the Street at 8:30 and showed a decline of 0.7%, compared to the 1.2% drop expected by analysts. Personal consumption numbers showed a 0.9% drop versus the 1.0% decline expected by Wall Street.

Additionally, the ADP employment report indicated that private-sector firms in the U.S. eliminated 254,000 jobs in September. This flies against analysts’ estimates for a decline of 167,000 in nonfarm payrolls Friday.

Stay tuned to ONN.tv for continued market updates.

International markets are mixed, as Hong Kong is down 0.3% and Europe is up 0.1%.

The GDP report is due at 8:30 a.m. EST, and analysts expect to see a slight decrease in inventories but a slight gain in final sales. We could see an improvement in demand from last quarter, but the market expects real GDP to drop by 0.2%. Stay tuned to ONN.tv for continued market updates.

In earnings news, Walgreen Co. (WAG) reported fourth-quarter results of 44 cents per share, a penny shy of last year’s results. Analysts were expecting per-share results of 39 cents. Sales edged higher to $15.7 billion, matching the Street’s consensus view. WAG shares are up 10% in pre-market trading.

The S&P Case-Shiller HPI report showed year-over-year declines of 13.3%, slightly better than the 14.2% drop expected by analysts. Consumer confidence figures are due at 10 a.m. EST. Analysts expect consumer confidence to rise approximately three points to 57 this month after gaining seven points in August. Stay tuned to ONN.tv for continued market updates.

International markets are also displaying mixed sentiment among investors, as Hong Kong is up 2% and Europe is down 0.3%.

The S&P Case-Shiller HPI report is due at 9 a.m. EST, and consumer confidence figures are due at 10 a.m. EST. Analysts expect consumer confidence to rise approximately three points to 57 this month after gaining seven points in August. Stay tuned to ONN.tv for continued market updates.

International markets are mixed despite rallying futures; European indices are up nearly 1% while the Hong Kong Hang Seng closed off 2%; the Japanese Nikkei dropped 2.5% on the day.

It’s another merger Monday, with Abbott Laboratories (ABT) spending $7.1 billion on Solvay SA’s pharmaceutical unit, Xerox (XRX) buying Affiliated Computer Services (ACS) for $6.5 billion, and Johnson & Johnson (JNJ) planning to acquire an 18% stake in Crucell (CRXL).

Investors remain concerned over prospects for a fast recovery following last week’s G-20 summit that ended Friday. We do not expect any significant earnings announcements today. Stay tuned to ONN.tv for continued market updates as earnings season starts back up throughout the next couple months.

International markets are mixed despite rallying futures; European indices are up 0.4 point and Asian indices are down more than 2% this morning.

Investors remain concerned over prospects for a fast recovery following last week’s G-20 summit that ended Friday. We do not expect any significant earnings announcements today. Stay tuned to ONN.tv for continued market updates as earnings season starts back up throughout the next couple months.

International markets are mixed; European indexes are fractionally higher and the Hong Kong Hang Seng closed off 0.13%. The Japanese Nikkei finished down 2.6%.

Durable Goods Orders dropped two point four percent in August, surprising analysts, who were expecting a slight increase of almost half a percent. Excluding transportation, the number was flat for the month. At 10:00 a.m. Eastern, we will hear new home sales for August.

The tech market may come under pressure today after Research in Motion Limited (RIMM) reported lackluster earnings results. While per-share earnings topped analysts’ estimates, the company’s third-quarter outlook fell short of the mark. The stock has dropped more than 13% in pre-market trading.

Stay tuned to www.ONN.tv for continued market updates for this morning.

International markets are mixed; European indexes are virtually unchanged and the Hong Kong Hang Seng closed off 0.13%. The Japanese Nikkei is down 2.6%. On the economic calendar today, durable goods orders for August will come through at 8:30;analysts are expecting a modest increase of 0.4%.

The tech market may come under pressure today after Research in Motion Limited (RIMM) reported lackluster earnings results. While per-share earnings topped analysts’ estimates, the company’s third-quarter outlook fell short of the mark. The stock has dropped more than 10% in pre-market trading.

Stay tuned to www.ONN.tv for continued market updates for this morning.

Jobless claims hit Wall Street at 8:30 ET and were a pleasant surprise, as the number of first-time claims for unemployment dropped to its lowest level since July. Specifically, the reading fell 21,000 to 530,000, surprising analysts who had expected an increase to 550,000. The four-week average of initial claims, meanwhile, dropped by 11,000, hitting its lowest level since late January.

In company news, Aeropostale (ARO) is dealing with the announced departure of its CEO, who has been with the retailer since 1996. And Red Hat (RHT) enjoyed an upgrade from Bank of America Merrill; the rating was upped to "buy" from "neutral."

Stay tuned to www.ONN.tv for continued market updates for this morning.

International markets are down; European indexes are up about 0.2% and the Hong Kong Hang Seng is down 2.5%. This week’s Jobless Claims report is due at 8:30 a.m. EST, and the market expects to see applications up by 10,000.

Stay tuned to www.ONN.tv for continued market updates for this morning.

International markets are mixed; European indexes are up about half a percent but the Hong Kong Hang Seng closed off 0.7 percent. All eyes will be on Ben Bernanke and the rest of the Federal Open Market Committee (FOMC) today, as they emerge from their scheduled meeting at 2:15 EST with the latest rate decision and commentary.

The FED is expected to keep rates steady for some time, but the accompanying statement will be dissected for clues regarding continued buybacks of $1.25 trillion worth of mortgage-backed securities.

In earnings news, General Mills (GIS) said first-quarter earnings rose 51% to $1.25 per share. Excluding items, the cereal company earned $1.28 per share, easily trumping analysts’ estimates of $1.02 per share. The equity is up 4.4% in pre-market trading.

Stay tuned to www.ONN.tv for continued market updates for this morning.

International markets are mixed; European indexes are up about half a percent but the Hong Kong Hang Seng closed off 0.7 percent. All eyes will be on Ben Bernanke and the rest of the Federal Open Market Committee (FOMC) today, as they emerge from their scheduled meeting at 2:15 EST with the latest rate decision and commentary.

In earnings news, General Mills (GIS) said first-quarter earnings rose 51% to $1.25 per share. Excluding items, the cereal company earned $1.28 per share, easily trumping analysts’ estimates of $1.02 per share. The equity is up 4.4% in pre-market trading.

Stay tuned to www.ONN.tv for continued market updates for this morning.

International markets are also up, with Europe up 0.8% and the Hong Kong Hang Seng closing nearly 1.1% higher. Investors are reflecting optimism as they anticipate added direction and commentary coming out of the two-day FOMC meeting due to end tomorrow at 2:15 p.m. EST.

In earnings news, ConAgra Inc. (CAG) said first-quarter earnings dropped to 37 cents per share, from 94 cents a year ago. This number did trump analysts’ expectations of 34 cents per share. For fiscal 2010, CAG officials expect to bank $1.70 per share (excluding items), a nickel better than estimates.

Stay tuned to www.ONN.tv for continued market updates for this morning.

International markets are also up, with Hong Kong up 1% and Europe up 0.8%. Investors are showing optimism as they anticipate economic signals from the two-day FOMC meeting due to end tomorrow at 2:15 p.m. EST. Stay tuned to www.ONN.tv for continued market updates for this morning.

International markets are also down, with Asia down 0.7% and Europe down just over 1%. This could be just a natural pullback amid an uptrend, as investors pause to take some profits off the table while stocks consolidate recent gains.

In merger-and-acquisition news, Dell (DELL) announced plans to buy IT company Perot Systems (PER) for $30 per share, a 68% premium to Friday’s closing price. The all-cash deal is worth $3.9 billion. DELL is down almost 5% in pre-market action; PER is up 66%.

Stay tuned to www.ONN.tv for continued market updates for this morning.

International markets are also down, with Asia down 0.7% and Europe down 0.5%. A pullback in futures could still be a sign of recovery, especially after the big run in stocks we saw going into options expiration Friday last week. Stay tuned to www.ONN.tv for continued market updates for this morning.

Following the U.S. market’s rally yesterday, international markets showed strength. The Hong Kong Hang Seng rose 2.6% on the day while the Japanese Nikkei gained half a percent. Meanwhile, European markets are trading modestly higher.

On the economic calendar today, housing starts rose 1.5% in August, matching analysts’ expectations. Single-family projects dropped 3% while production on new multifamily units saw an increase of 25%. Additionally, U.S. jobless claims fell by 12,000 last week to 545,000, topping analysts’ expectations of 563,0000.

Discover Financial (DFS) is nearly 4% higher in pre-market trading after reporting third-quarter profit of $1.07 per share, up from 37 cents in the year-ago period. Excluding items, the company earned a profit of 52 cents per share. Analysts were expecting a loss of 12 cents per share, according to Reuters.

Following the U.S. market’s rally yesterday, international markets are also rallying this morning. Asian markets are up nearly 2% and European markets are up 0.5%. Housing starts and jobless claims figures are due at 8:30 a.m. EST. Consensus estimates show a slightly improvement in housing starts to 0.6 million in August, and the markets expects to see jobless claims applications up by 25,000. Stay tuned to www.ONN.tv for continued market updates for this morning.

International markets are also showing signs of renewed bullishness, with Hong Kong closing up nearly 3%, the Nikkei tacking on 0.5% in the session, and Europe up 1.5%.

The CPI rose 0.4% in August, edging out consensus estimates for a 0.3% rise. Excluding food and energy costs, the core index edged 0.1% higher to match expectations. On a year-over-year basis, the index came in 1.5% lower. Retail companies are attempting to keep prices at bay so consumer spending can bounce back as we emerge from recession.

In merger news, Adobe Systems (ADBE) announced plans to buy Omniture (OMTR) for $1.8 billion. ADBE is down nearly 5% in pre-market trading while OMTR has jumped 25%.

Stay tuned to www.ONN.tv throughout the day for continued updates on the stock and options market.

International markets are also showing signs of renewed optimism in economic recovery, with Hong Kong up nearly 3% and Europe up 1.5%. The Consumer Price Index report is due out at 8:30 a.m. EST, and is expected to show that inflation remained in control in August. Consensus estimates show a 0.3% rise last month after a flat July, and we also expect to see a 1.7% drop year-over-year. Stay tuned to www.ONN.tv for continued market updates for this Wednesday morning.

International markets are mixed, with Hong Kong down 0.3% and Europe up 0.4%. The Japanese Nikkei closed up a fraction in Tuesday’s trading.

In economic news, August Producer Price Index (PPI) numbers rose 1.7% month-over-month, topping estimates for a 0.8% rise. The core number inched 0.2%, narrowly exceeding estimates. The year-over-year number was down 4.3% versus consensus expectations for a drop of 5.3%.

Elsewhere, retail sales jumped 2.7% in August, beating the expected move of 1.9%. Excluding autos, sales rose 1.1% last month.

And in stock news, Best Buy (BBY) said it earned 37 cents in the second quarter, a nickel shy of what analysts were expecting. Same-store sales dropped 3.9% during the reporting period. Revenue, however, rose 12% during the quarter, exceeding estimates for an 11% rise.

International markets are mixed, with Hong Kong down 0.3% and Europe up 0.3%. This month’s retail sales figures are due at 8:30 a.m. EST, and are expected to show a 2% improvement due to autos and gasoline. Additionally, we should see a slight gain in the Producer Price Index (PPI) in August thanks to a surge in oil prices. The PPI report is due at 8:30 a.m. EST, as well. Stay tuned to ONN.tv for continued market updates for this Friday morning.

International markets are also down due to international trade concerns, with Hong Kong down 1% and Europe down 0.7%. Friday night, the U.S. administration imposed trade penalties on tire-imports from China. China called this move protectionist and said it violated global trade rules. Stay tuned to www.ONN.tv for continued market updates for this Friday morning.

Friday’s Notable Option Activity–

Freeport McMoRan (FCX):

Freeport McMoRan (FCX) saw 14,000 Sept. 70 calls trade versus open interest of 17,200 contracts, and the Sept. 65 puts changed hands more than 10,000 times versus open interest of 16,500 contracts on Friday. The Sept. 70 straddle closed Friday at $3.74 with a price-over-strike of 5.3%. It looks like implied volatility moved in slightly from Thursday’s close when the same straddle traded at $4.14 with a price-over-strike of 5.9%. FCX shares closed Friday up $1.11, or 1.6%, to $70.37. It’s interesting that the stock rallied despite the down-market day Friday without any significant news out of the company.

Apple (AAPL):

Apple (AAPL) saw their shares drop for another straight day Friday to close down 40 cents to $172.16. We saw action in the Sept 175 calls and Sept. 170 puts. The Sept. 175 calls traded more than 15,000 times Friday versus open interest of 23,000 contracts, and the Sept. 170 puts, home to open interest of 17,000 contracts, changed hands 14,500 times. The Sept. 170 straddle traded at $5.53 with a price-over-strike of 3.3% Friday, compared to the Sept. 175 straddle, which closed Thursday at $5.89 with a price-over-strike of 3.4%. This change shows implied volatility remained relatively unchanged.

General Electric (GE):

Shares of General Electric (GE) dropped slightly on Friday to $14.67 (down from $14.80 at the close Thursday), and we saw heavy call volume to end the week. Looking at the March 19 calls, more than 10,000 of these options changed hands versus open interest of just 1,200 contracts. These calls closed at approximately 40 cents. The Sept 15 straddle closed at 80 cents with a price-over-strike of 5.3% on Friday, compared to the previous day straddle, which traded at 79 cents with a price-over-strike of 5.2%. GE did not announce significant news Friday to catalyze the call action we saw.

The ONN Thirteen: The 13 stocks with the heaviest option volume during the past 20 days

1. Citigroup Inc. (C)
2. Bank of America Corp. (BAC)
3. American International Group, Inc. (AIG)
4. General Electric Co. (GE)
5. Apple Inc. (AAPL)
6. Wells Fargo & Co. (WFC)
7. Altria Group (MO)
8. JPMorgan Chase & Co. (JPM)
9. Microsoft Corp. (MSFT)
10. Freeport-McMoRan Copper & Gold Inc.(FCX)
11. Research in Motion Ltd. (RIMM)
12. Fannie Mae (FNM)
13. Las Vegas Sands (LVS)

S&P futures are breaking to new highs since early October 2008, and international markets are also telling a bullish tale, with Hong Kong up 0.4% and Europe up 0.7%. Consumer Sentiment is due today at 9:55 a.m. EST, and consensus estimates show a slight improvement to 67 from 65.7 last month. Stay tuned to www.ONN.tv for continued market updates for this Friday morning.

Thursday’s Notable Option Activity–

Wells Fargo (WFC):

Wells Fargo (WFC) shares closed up 18 cents to $27.86 on Thursday. The bank saw nearly 60,000 Oct. 24 puts traded versus open interest of 130,000 contracts, and the Jan. 2010 25 puts changed hands 51,000 times versus open interest of 88,000 contracts. The Sept. 28 straddle closed Thursday at $1.33 with price-over-strike of 4.7%, which moved in from the same straddle Wednesday, which closed at $1.48 with price-over-strike of 5.3%. In addition, we saw premium sellers in the April expiration month. The implied volatility of the April 40 calls was 41.4 compared to 45 on Wednesday. The April 35 calls had an implied volatility of 44.3, down from 47 on Wednesday night.

Apple (AAPL):

It looks like we continued to see call selling action in Apple (AAPL), possibly due to the residual effects from the company’s investor meeting. We saw more action in the Sept. 175 and Sept. 170 call series. The Sept. 175 calls traded 17,900 times and climbed 25 cents on the day. The Sept. 170 calls traded 14,000 times and climbed 67 cents on the day. AAPL shares climbed $1.46 to $172.60 on the day Thursday. Looking at the deltas, the Sept 170 calls had a delta of 60, meaning the calls should have climbed approximately 90 cents. Likewise, the Sept. 175 calls should have gained 51 cents with a delta of 34, but they climbed only 25 cents after call sellers applied downward pressure. The Sept. 175 straddle closed at $5.92 with a price-over-strike of 3.4%, compared to the previous day straddle priced at $6.42 with a price-over-strike of 3.7%.

American International Group (AIG):

We saw more action in the Sept. 30 and Sept. 35 puts Thursday in American International Group (AIG) the same day the company’s former Chief Executive Officer Hank Greenberg said AIG hardly had any value since the government owned 80%. That announcement dragged AIG shares down nearly 3% to close at $37.77 on the day. It appears sellers dominated the Sept. 30 and Sept. 35 puts volume, however, and pushed down implied volatility in the optiions. The Sept. 30 puts closed down three cents. With a delta of 15, these puts should have risen 17 cents. The Sept. 35 puts gained six cents on the day, but should have gained 36 cents with a delta of 32. The lower put prices indicate put sellers in AIG on Thursday, and also brought the Sept. 38 straddle in to trade at $6.63 with a price-over-strike of 17.4% versus the previous day straddle, which traded at $7.15 with a price-over-strike of 18.3%.

The ONN Thirteen: The 13 stocks with the heaviest option volume during the past 20 days

1. Citigroup Inc. (C)
2. Bank of America Corp. (BAC)
3. American International Group, Inc. (AIG)
4. General Electric Co. (GE)
5. Apple Inc. (AAPL)
6. Wells Fargo & Co. (WFC)
7. JPMorgan Chase & Co. (JPM)
8. Microsoft Corp. (MSFT)
9. Research in Motion Ltd. (RIMM)
10. Freeport-McMoRan Copper & Gold Inc.(FCX)
11. Fannie Mae (FNM)
12. Las Vegas Sands (LVS)
13. Wal-Mart Stores Inc. (WMT)

Jobless claims beat consensus estimates of 565,000 applications and clocked in at 550,000 last week. Investors are expressing more bullishness in pre-market trading due to the positive report. The Federal Reserve’s announcement on recovery Wednesday could also contribute to renewed optimism in the markets today. The International Trade report, however, did not turn out as well, as the gap between imports and exports increased by 16%, the widest since a decade ago. Stay tuned to www.ONN.tv for continued market updates for this Wednesday morning.

Wednesday’s Notable Option Activity–

Apple (AAPL):

Apple (AAPL) shares dropped $2.08, or 1.2%, to close Wednesday at $170.85, and it looks like call sellers dominated options activity yesterday. We typically see option selling after a big event is out of the way, like AAPL’s investor meeting. We saw action in the Sept 175 calls, which changed hands 31,000 times versus open interest of 21,000 contracts, and 25,800 Sept. 170 calls traded versus open interest of 22,000 contracts. The presence of call sellers served to dampen volatility, now that the event is closed. The Sept. 170 puts were the picture of declining volatility as the puts fell to $2.41 from $2.51 at one point Wednesday despite the decline in the stock. Stock down, puts down. The Sept. 170 straddle was trading at $6.45 when we went home yesterday with a price-over-strike of 3.8%, compared to Tuesday’s Sept. 175 straddle, which closed at $7.48 with price-over-strike over 4.3%. Investors could have turned sour on the stock after the company’s media event closed, showcasing on a new model of the Nano when market participants expected to see improvements across the entire iPhone line up.

Wells Fargo (WFC):

Wells Fargo (WFC) saw 16,800 Oct 25 puts trade versus open interest of more than 49,000 contracts, and the Oct. 25 calls changed hands 10,300 times versus open interest of 35,700 contracts. The Sept. 27 straddle closed at $1.60 with a price over strike of 6%, which is unchanged from the previous day’s straddle. The Oct. 25 calls closed up 25 cents, and the Oct. 25 puts closed down 27 cents on the day. WFC shares climbed 50 cents, to 1.9%, to close at $27.47 on Wednesday night. The bank announced plans to expand its money transfer program to the Internet, and saw its mortgage modifications jump 64% throughout the last 30 days.

American International Group (AIG):

Following a 10.5% drop Tuesday, American International Group shares rallied nearly 9% to close at $38.91, or $3.09 higher on the day Wednesday. The company did not announce significant news, but investors could have boosted options volume yesterday due to news that Morgan Stanley (MS) could get a lead role in AIG’s Alico initial public offering. Looking at the Sept 35 puts, nearly 16,000 of these options traded versus open interest of 23,000. Additionally, the Sept. 30 puts changed hands 12,500 times and were home to open interest of 29,800 contracts. The Sept. 30 puts closed down $48 cents, and the Sept. 35 puts closed down $1.08 on the day yesterday. The Sept. 39 straddle traded for $7.38 with price-over-strike at 18.9%, compared to Tuesday’s Sept. 36 straddle trading at $7.15 with price-over-strike of 19.9%.

Wal-Mart (WMT):

Wal-Mart (WMT) shares closed down 29 cents to $51.11, or a 0.5% drop on the day Wednesday. The company did not report any significant news, but it’s interesting that we are seeing a pop in the stock in pre-market trading Thursday. WMT stock is currently up nine cents to $51.20.

The ONN Thirteen: The 13 stocks with the heaviest option volume during the past 20 days

1. Citigroup Inc. (C)
2. Bank of America Corp. (BAC)
3. American International Group, Inc. (AIG)
4. General Electric Co. (GE)
5. Apple Inc. (AAPL)
6. Wells Fargo & Co. (WFC)
7. JPMorgan Chase & Co. (JPM)
8. Microsoft Corp. (MSFT)
9. Research in Motion Ltd. (RIMM)
10. Freeport-McMoRan Copper & Gold Inc.(FCX)
11. Fannie Mae (FNM)
12. Las Vegas Sands Corp. (LVS)
13. Wal-Mart Stores Inc. (WMT)

Tuesday’s Notable Option Activity–

Fannie Mae (FNM):

Fannie Mae (FNM) was a new name on our Lucky-13 list yesterday. The stock dropped 14 cents, or nearly 8%, to close at $1.63 Tuesday night. The company did not announce significant news yesterday, but FNM regained compliance with NYSE minimum price listing standards going into the weekend. In pre-market trading, however, FNM shares are up three cents, to 1.8%, to $1.66.

Research in Motion (RIMM):

RIMM remained on the list Tuesday, and actually climbed a couple levels due to increased options volume. Looking at the Sept. 75 puts, more than 17,500 changed hands yesterday versus 16,870 contracts of open interest. Open interest of these options is currently 24,000 contracts. In addition, approximately 12,300 Sept. 80 calls traded versus open interest of 32,000 contracts. These calls have a current open interest of 31,800 contracts. The stock rallied $1.73, or 2.2%, to close yesterday at $79.28. Oppenheimer retained its bullish stance on the wireless sector, citing RIMM specifically as having the best exposure to the smart phone growth and being well-positioned to gain share in the overall handset market as smart phones become a bigger part of shipments. Oppenheimer raised its 2010 fiscal year earnings per share estimates for RIMM to $4.80 from $4.18, and increased its tgt to $94 from $90.

American International Group (AIG):

American International Group shares dropped $4.20, or 10.5%, to $35.85 on Tuesday following Credit Suisse’s downgrade to underperform from neutral. Credit Suisse also lowered its tgt to $15 from $30 because the firm believes AIG’s business valuation suggests little to no value for common equity. The Oct 2.5 calls traded more than 6,000 times versus open interest of 10 contracts, and the Sept. 5 calls traded 7,300 times versus open interest of 84 contracts. Current open interest of the Oct. 2.5 calls is 47 contracts, and the Sept 5 calls are home to current open interest of 11 contracts. The Sept. 36 straddle was trading at $7.18 yesterday with a price-over-strike of 19.9% compared to Friday’s activity, which showed the Sept. 40 straddle trading at $8.15 with price-over-strike of 20.4%.

Freeport-McMoRan Copper & Gold (FCX):

Freeport-McMoRan remained on the Lucky 13, with options volume in the Oct. 70 puts boosting activity Tuesday. These puts changed hands 11,770 times yesterday and were home to open interest of nearly 2,000 contracts. Open interest of the Oct. 70 puts has dropped to 1,000 contracts. FCX shares climbed $2, or 3%, to $68 on Tuesday, and are currently up 35 cents to $68.35 in pre-market trading Wednesday. FCX participating in the overall market rally yesterday, as commodities prices rose amid take-over and mergers and acquisitions rumors.

The ONN Thirteen: The 13 stocks with the heaviest option volume during the past 20 days

1. Citigroup Inc. (C)
2. Bank of America Corporation (BAC)
3. American International Group, Inc. (AIG)
4. General Electric Company (GE)
5. Apple Inc. (AAPL)
6. Wells Fargo & Company (WFC)
7. JPMorgan Chase & Co. (JPM)
8. Microsoft Corporation (MSFT)
9. Research in Motion (RIMM)
10. Freeport-McMoRan Copper & Gold (FCX)
11. Ford (F)
12. Las Vegas Sands Corp. (LVS)
13. Fannie Mae (FNM)

International markets are still telling a mixed tale, with Hong Kong down 1% and Europe up nearly 1%. Investors could be showing hesitation with the dollar at its two-month low against the yen and continues to hover near its lows for the year against the euro. Stay tuned to www.ONN.tv for continued market updates for this Wednesday morning.

Friday’s Notable Option Activity–

Research in Motion Limited (RIMM):

Looking at the Oct. 95 calls, open interest of these options climbed to 12,000 contracts from 545 contracts to close out last week. These options have a delta of 14. The Sept. 80 straddle was closed at $5.09 Friday night with price-over-strike at 6.8%. We didn’t see any significant news out of RIMM Friday. On Tuesday morning, Oppenheimer raised its handset forecast, earnings per share estimates and target prices for several technology stocks, including RIMM.

Las Vegas Sands (LVS):

Las Vegas Sands was a new name on our Lucky-13 list Friday. The stock rallied $1.18, or 8.23%, to close at $15.51 on Friday following news that the casino company is a step closer to unloading part of the $10 billion debt it took on to build a Chinese gambling venue to Macau by selling %600 million in bonds. The pre-IPO deal closed Tuesday morning. It’s interesting that the stock continues to climb in pre-market trading Tuesday morning (shares are up 6% to $16.40).

Bank of America (BAC):

The stock rose 0.25 point to $17.09. Looking at the Oct. 17 calls, these options are home to current open interest of 14,700 contracts, up from 11,226 contracts Friday night. The Sept 17 straddle closed at $1.20 on Friday, with price over stroke at 7.1%. The Oct. 17 calls have a delta of 55. BAC did not announce significant news recently.

Wal-Mart (WMT):

Wal-Mart was also a new name on our Lucky-13 list bumping off Caterpillar (CAT) on Friday. The stock dropped 0.06 point to $51.68. The retailer did not announce significant news last week. It’s interesting that despite negative reports of two WMT workers in China arrest for a customer’s death, the stock is rallying slightly in pre-market trading (WMT shares are up 29 cents to $51.97).

The ONN Thirteen: The 13 stocks with the heaviest option volume during the past 20 days

1. Citigroup Inc. (C)
2. Bank of America Corporation (BAC)
3. American International Group, Inc. (AIG)
4. General Electric Company (GE)
5. Apple Inc. (AAPL)
6. Wells Fargo & Company (WFC)
7. JPMorgan Chase & Co. (JPM)
8. Microsoft Corporation (MSFT)
9. Ford Motor Company (F)
10. Freeport-McMoRan Copper & Gold (FCX)
11. Research in Motion, Limited (RIMM)
12. Las Vegas Sands Corp. (LVS)
13. Wal-Mart Stores Inc. (WMT)

Looking across the pond to international markets, Hong Kong and Europe are still up by 2% and 0.5%, respectively. Mergers and acquisitions news paints a positive picture for the companies involved. While futures are up on the good news, KFT shares are down $1.50 to $26.60 and CBY shares are up $15.34, or 41%, to $52.80. Other good news that two British mobile phone companies could merge could have catalyzed the optimism we’re seeing this morning. This week will be a relatively quiet week as investors revert focus to the upcoming earnings season. Stay tuned to www.ONN.tv for continued market updates.

The big jobs numbers was a good news, bad news situation. Starting with the downside, the unemployment rate rose to 9.7%, hitting the highest level since 1983 and topping expectations for a move to 9.5%. On the plus side, the number of job cuts reached 216,000, better than the 230,000 economists were expecting. Some of the major big companies to reduce their staffs recently were AMR Corp. (AMR) and Whirlpool (WHR).

Stay tuned to www.ONN.tv for continued market updates.

Thursday’s Notable Option Activity–

Research in Motion Limited (RIMM):

Research in Motion was a new name on our Lucky-13 list yesterday. The stock rose 2.07 points, or 2.8%, to $75.98. The September 75 call was active on Thursday, with nearly 16,000 contracts trading hands. The net open interest change was a modest decline. The front-month, at-the-money straddle is trading for $5.13, or 6.75% over strike, down from Tuesday’s close, at 7.56% over strike.

Citigroup (C):

The stock inched up 0.21 point, or 4.6%, to $4.77. Citi shareholders have approved final arrangements for the U.S. government to own 7.7 billion of common shares, or 33.6% of outstanding stock. Implied volatility inched in yesterday, with the straddle deflating to 11.8% over strike from 14.0% over strike on Wednesday.

In the Citigroup option pits, the October 4 put and September 5 call were active, seeing volume of 56,000 and 95,000, respectively. Open interest expanded by about 25,000 at the put strike and declined by about 16,000 contracts on the call.

Bank of America (BAC):

The stock rose 0.57 point, or 3.5%, to $16.84. Volume was notable yesterday at the September 14 call strike, where nearly 24,000 contracts changed hands. Open interest nearly doubled overnight, from 17,547 to 36,520, as many of these positions translated. The September 16 put was also active in Thursday’s trading, but volume of 20,000 resulted in minimal open-interest changes.

Ford Motor (F):

The stock rose 0.45 point, or 6.4%, to $7.48. A roll-out strategy may have been employed on Thursday, as the September 7 and October 7 calls both saw ample attention from options traders. Open interest at the front-month strike declined to 45,454 from 56,365 while open interest at the October-dated call rose to 17,288 from 3,303.

The ONN Thirteen: The 13 stocks with the heaviest option volume during the past 20 days

1. Citigroup Inc. (C)
2. Bank of America Corporation (BAC)
3. American International Group, Inc. (AIG)
4. General Electric Company (GE)
5. Apple Inc. (AAPL)
6. Wells Fargo & Company (WFC)
7. JPMorgan Chase & Co. (JPM)
8. Microsoft Corporation (MSFT)
9. Intel (INTC)
10. Ford Motor Company (F)
11. Cisco Systems, Inc. (CSCO)
12. Caterpillar (CAT)
13. Research in Motion, Limited (RIMM)

We expect the government’s employment situation report due at 8:30 a.m. EST today, and the Street expects to see further slowing in the rate of decline in job losses. Consensus estimates show a 200,000 nonfarm payroll drop month-over-month. Analysts say the unemployment rate, however, is likely to rebound. Stay tuned to www.ONN.tv for continued market updates.

Wednesday’s Notable Option Activity–

Microsoft (MSFT):

Stock lost 0.58%, or 14 cents, to $23.86. The April 22 put was active on the day, with nearly 5,000 contracts changing hands. The put closed up 12 cents, more than its 34-delta would indicate, so these were likely bought to open. Open interest increased from 633 contracts to 4,940.

American International Group (AIG):

The stock rose 5.4% to $37.95. AIG saw an intraday reversal on heavy volume shortly after 11:00 a.m., taking the volatile stock back into positive territory. The front-month, at-the-money straddle saw volatility come in slightly, moving to 25% over strike from 26.5% over strike in the previous session.

Bank of America (BAC):

Stock fell 1.15%, or 19 cents, to $16.27. One BAC strike in focus yesterday was the out-of-the-money January 21 call, where more than 20,000 contracts traded. Open interest expanded to 22,058 from 4,040, suggesting that the large majority of this volume was new trades. But while the stock dropped 19 cents, these calls – with a delta of 29 – dropped just one cent. Given this disparity in price action, it is possible that these calls were bought to open.

General Electric (GE):

The shares shed 1.05%, or 14 cents, to $13.20. A short-term strangle may have traded on GE yesterday, as volume was heavy at the September 14 call and September 12 put strikes. More than 27,000 contracts traded on the call and about 18,500 changed hands on the put. Together, the strangle traded for around 30 cents each. Open interest rose by about 14,000 contracts at the 14-strike call and by 7,000 at the 12-strike put.

The ONN Thirteen: The 13 stocks with the heaviest Option Volume during the past 20 days

1. Citigroup Inc. (C)
2. Bank of America Corporation (BAC)
3. American International Group, Inc. (AIG)
4. General Electric Company (GE)
5. Apple Inc. (AAPL)
6. Wells Fargo & Company (WFC)
7. JPMorgan Chase & Co. (JPM)
8. Ford Motor Company (F)
9. Microsoft Corporation (MSFT)
10. Intel (INTC)
11. Cisco Systems, Inc. (CSCO)
12. Caterpillar (CAT)
13. Freeport-McMoRan Copper & Gold Inc. (FCX)

The first day of September was not a pretty one; U.S. equities steered sharply lower, and our high-option-volume stocks were not immune. By the day’s merciful end, the Dow had lost almost 2%, the Nasdaq Composite was off an even 2%, and the S&P 500 Index dropped 2.2% to breach the 1,000 level.

In particular, the banking names on our list demonstrated how carnage swept through the market. Wells Fargo (WFC) dropped almost 5%; Bank of America (BAC) shed 6.4%, and Citigroup (C) fell 9.2% on the day.

Tuesday’s Notable Option Activity–

Wells Fargo (WFC):

Stock plunged 4.7% lower to $26.21. With five minutes left in the session, WFC announced plans to pay back TARP money; the bank also said it would not be raising capital to do so. The stock’s September straddle illustrated how implied volatility expanded across the market. The at-the-money straddle is now 8.8% of strike, up from 7% of strike at Monday’s close.

September 26 puts were active, as pricing expanded across the strikes amid rising implied volatility. More than 28,000 contracts changed hands, but this morning’s open interest translations indicated an increase of about 7,000 positions at this near-the-money strike.

American International Group (AIG):

The stock dropped $9.33, or 20.6%, to $36.00. Once again, this equity is showing that it is exceedingly volatile. The September at-the-money straddle, however, was unchanged as a percentage of strike (about 26.45%). Implied volatility on this strategy is a whopping 147%.

We saw some activity at the September 50 call strike, which is now bid at $1.01, asked at $1.06. Some of this may have been investors selling these to close after opening positions last week; open interest declined slightly this morning.

Citigroup Inc. (C):

Stock fell 9.2% to $4.54. Once again, C remains eluded by the $5 level. For three sessions in a row, the stock managed to close at or above this round-number level – for the first time since January. But yesterday’s massive selling pressure put it solidly below this threshold once again.

Nonetheless, more than 303,000 calls traded at the September strike. This is relatively small potatoes, however, as open interest on this option stands at 1.36 million. This is the site of heaviest open interest in the front-month series.

The ONN Thirteen: The 13 stocks with the heaviest Option Volume during the past 20 days

1. Citigroup Inc. (C)
2. Bank of America Corporation (BAC)
3. American International Group, Inc. (AIG)
4. General Electric Company (GE)
5. Apple Inc. (AAPL)
6. Wells Fargo & Company (WFC)
7. JPMorgan Chase & Co. (JPM)
8. Ford Motor Company (F)
9. Microsoft Corporation (MSFT)
10. Intel (INTC)
11. Cisco Systems, Inc. (CSCO)
12. Freeport-McMoRan Copper & Gold Inc. (FCX)
13. Caterpillar (CAT)

Days following significant market drops such as Tuesday’s big sell-off are always filled with uncertainty. In pre-market trading, international markets are down, with Asia down 2% and Europe down 0.5%. Investors are expressing hesitation ahead of the ADP Employment Report at 8:15 a.m. EST and the productivity and costs report due at 8:30 a.m. EST. Stay tuned to www.ONN.tv for continued market updates.

In essence, the margin will increase by a factor commensurate with the leverage. For example:

• An investor has bought 100 shares of the Direxion Daily Financial Bull 3x Shares (FAS) (a triple-leveraged fund) for $80 – market value of $8,000.
• Current margin requirement is 25% of the market value, or $2,000.
• Under the new regulations, margin requirement for this position would be $6,000

FINRA is also increasing the maintenance margin requirements for uncovered options traded on these ETFs. The percentages used to determine ETF market value in the pricing formula will also be increased by an amount commensurate with the leverage factor of the fund in question.

For example, instead of using 15% of the ETF market value to determine margin, an option on the Direxion Daily Financial Bear 3x Shares (FAZ) would use 45% (three times 15%).

Update:  Read George Ruhana’s thoughts on this notice in "Leveraged ETFs: The Day of Reckoning Arrives."

Monday’s Notable Option Activity–

Bank of America (BAC):

Stock slipped 2% lower to $17.59. The straddle came in slightly on BAC, suggesting that implied volatility is moving lower on the shares. Friday night, the front-month, at-the-money straddle closed at $1.55, or 8.6% over strike. Yesterday, it shifted to $1.50 (8.3% of strike). Notable options-trading activity came through on the September 17 puts and September 18 calls, where about 20,000 contracts traded at each strike; this was potentially a strangle trade which, if purchased, would depend on volatility in the underlying to succeed.

Open interest at the call strike rose slightly to nearly 120,000 contracts; open interest on the put increased by roughly the same amount – about 4,000 contracts.

American International Group (AIG):

The stock dropped $4.90 to $45.33. Once again, AIG saw some interesting option activity cross the tape. The bears finally had their chance at the stock after several sessions of monster gains. In the options pits, the front-month 40-put strike saw more than 15,000 contracts cross the tape.

Some of these may have been sold to close, as open interest declined in this morning’s translations. Those holding long puts may have used yesterday’s decline in the shares to get out of their position. September options expire in a little less than two weeks.

Microsoft (MSFT):

Stock edged three cents lower to $24.65. Microsoft options traders honed in on the January series, likely buying the 24-strike puts (out-of-the-money) and the 26-strike calls. Approximately 11,000 contracts traded at both of these strikes, about 8,000 of which translated as new open interest this morning.

If these traded as a spread, it may have been a strangle purchase, with the out-of-the-money put and out-of-the-money call both being purchased. Breakevens for this strangle will be the call strike plus the premium paid and the put strike minus the premium paid.

The ONN Thirteen: The 13 stocks with the heaviest Option Volume during the past 20 days

1. Citigroup Inc. (C)
2. Bank of America Corporation (BAC)
3. General Electric Company (GE)
4. American International Group, Inc. (AIG)
5. Apple Inc. (AAPL)
6. Wells Fargo & Company (WFC)
7. JPMorgan Chase & Co. (JPM)
8. Ford Motor Company (F)
9. Microsoft Corporation (MSFT)
10. Intel (INTC)
11. Cisco Systems, Inc. (CSCO)
12. Freeport-McMoRan Copper & Gold Inc. (FCX)
13. Caterpillar (CAT)

In pre-market trading, international markets are telling a mixed story, with Asian markets up 0.5% and Europe down 1.3%. Investors are expressing hesitation ahead of the ISM Manufacturing Index and pending home sales figures due out at 10 a.m. EST. Stay tuned to www.ONN.tv for continued market updates.

Friday’s Notable Option Activity–

American International Group (AIG):

Stock gained another 5% to $50.23, though the stock was off its highs for the day. Yes, AIG was prominent once again in the options pits, with action at the September 55 and 60 calls. But the real story here is implied volatility, which continues to expand. The front-month, at-the-money straddle was trading for $13.60 at Thursday’s close and moved to $14.47 on Friday. Implied volatility in the February 50 call series, for example, is at 108%!

Freeport-McMoRan Copper & Gold (FCX):

Stock traded up $1.22 to $65.48. Copper futures have been moving higher in 2009, nearly doubling off their early-March bottom. Copper producers such as FCX serve as a microcosm of how active commodity stocks have been from an options perspective – hence, a new name on the ONN Lucky 13.

Implied volatility has declined on FCX during the past week, moving from about 61.5% to 54.8%. At Friday’s close, the front-month, at-the-money straddle closed at $6.32, or 9.72% over strike. Last Friday, the similar straddle was at $7.67, or 11.8% over strike.

Intel (INTC):

Stock rose 4% to $20.25 on Friday, after issuing a positive guidance for the third quarter. The out-of-the-money October 21 and 22 calls were popular right out of the gate, with close to 20,000 contracts trading on both strikes. While this isn’t a lot of volume overall, it is interesting that call buying activity came through so quickly in the first half hour of the trading day. Open interest expanded notably at both of these strikes, suggesting that the lion’s share of Friday’s volume was new positions.

Also of note is the fact that implied volatility on the October 20 straddle expanded to 33.6% to 30% on Thursday. Intel earnings are expected during the October expiration period, making this the straddle of import for event-based traders. Jud Pyle, Chief Investment Strategist for ONN, noted that "…theoretically, earnings should be less of an event now that Intel has preannounced. But counter intuitively, the straddle still expanded."

The ONN Thirteen: The 13 stocks with the heaviest Option Volume during the past 20 days

1. Citigroup Inc. (C)
2. Bank of America Corporation (BAC)
3. General Electric Company (GE)
4. American International Group, Inc. (AIG)
5. Apple Inc. (AAPL)
6. Wells Fargo & Company (WFC)
7. JPMorgan Chase & Co. (JPM)
8. Ford Motor Company (F)
9. Microsoft Corporation (MSFT)
10. Yahoo! Inc. (YHOO)
11. Intel (INTC)
12. Cisco Systems, Inc. (CSCO)
13. Freeport-McMoRan Copper & Gold Inc. (FCX)

In pre-market trading, Asian markets are down roughly 2% and Europe is unchanged. China’s Shanghai Composite Index dropped nearly 7% overnight, its biggest drop since June 2008. Stay tuned to www.ONN.tv for continued market updates.

In pre-market trading, Asian markets are mixed with Hong Kong down 0.7% and Japan up 0.6%. European stocks are trading 1% higher on good news out of consumer goods companies and an increase in European economic confidence. Personal income figures were unchanged for July, slightly below the 0.1% increase expected by economists. And personal spending matched estimates with a 0.2% increase.

Last night, Dell (DELL) reported second-quarter earnings of 28 cents per share, four cents better than analysts’ estimates. Revenue also topped Wall Street’s expectations. Looking ahead to the third quarter, the company expects seasonal demand to improve. The stock is up 4.6% in pre-market trading today.

Stay tuned to www.ONN.tv for more updates on the stock and options market.

Thursday’s Notable Option Activity–

American International Group (AIG):

Stock rallied $10.15, or 26.9%, to $47.84. What a story! One of the slowest trading weeks of the year, but AIG delivers some excitement. The stock continues to zoom higher and volume is growing as well. As more people trade the shares and the options, one could expect more stability, but in fact, implied volatilities are exploding! The front-month, at-the-money straddle moved from 22.8% over strike to 27.1% over strike in Thursday’s session and implied volatility jumped to 143% from 115%! The at-the-money buy-write in the January series, meanwhile, shows an implied volatility of 106%, up from 95% Wednesday.

Volume was especially heavy on the upside September 50 calls, where more than 48,800 contracts traded versus open interest of 6,655. The downside November 30 puts were also active, with 42,800 contracts changing hands versus open interest of 1,400. After the stock jumped in early trading, investors may have been selling the calls and buying the puts, creating a synthetic short stock position on this name that remains impossible to borrow.

Bank of America (JPM):

Stock traded up 13 cents, or 0.73%, to $17.92. The September 18 call had nearly 40,000 contracts trade on Thursday, and the September 17 put saw nearly 30,000 contracts change hands. Open interest increased by about 6,000 on the call and by 10,000 on the front-month put. Implied volatility came in a bit, as evidenced by the front-month, at-the-money straddle, which fell to $1.57 from $1.65, moving from 9.19% of strike to 8.72% of strike.

The ONN Thirteen: The 13 stocks with the heaviest Option Volume during the past 20 days

1. Citigroup Inc. (C)
2. Bank of America Corporation (BAC)
3. General Electric Company (GE)
4. American International Group, Inc. (AIG)
5. Apple Inc. (AAPL)
6. Wells Fargo & Company (WFC)
7. JPMorgan Chase & Co. (JPM)
8. Ford Motor Company (F)
9. Microsoft Corporation (MSFT)
10. Yahoo! Inc. (YHOO)
11. Intel (INTC)
12. Cisco Systems, Inc. (CSCO)
13. Pfizer (PFE)

In pre-market trading, Asian markets are mixed with Hong Kong down 0.7% and Japan up 0.6%. European stocks are trading 1% higher on good news out of consumer goods companies and an increase in European economic confidence. ONN.tv will provide updates on the Personal Income and Outlays report at 8:30 a.m. EDT and consumer sentiment status at 9:55 a.m. EDT, which could show an improvement in how consumers view the economy. Stay tuned to www.ONN.tv for more updates on economic data and pre-market trading.

Looking overseas, European stocks are trading marginally higher, but Chinese stocks fell on a number of capital raises and on rumors that the government is vowing to curb steel, cement, wind, and silicon glut. The Japanese Nikkei and Hong Kong Hang Seng also closed solidly in the red.

The GDP report, rolled in at 8:30 a.m. EDT. Preliminary reports for the second quarter show a 1.0% decline, better than the 1.5% drop expected by economists. The price index was flat versus expectations for a 0.2% rise. Initial jobless claims, meanwhile, came in at 570,000 compared to estimates of 565,000. Continuing claims dropped to 6.13 million from 6.25 million.

In equities news, Apple (AAPL) is reportedly working to debut its iPhone in the Chinese market. Looking at earnings, Toll Brothers (TOL) is trading slightly lower pre-market after reporting a third-quarter loss of $2.93 per share, wider than analysts were expecting.

Tune in to the Sidewinder channel later today for breaking updates on unusual option-trading activity.

Wednesday’s Notable Option Activity–

Pfizer (PFE):

Stock edged three cents lower to $16.77. The in-the-money September 17 put saw some attention in Wednesday’s trading, with more than 6,000 contracts trading. The put, along with the stock, was flat on the day. The at-the-money, front-month straddle position, however, came in slightly to 4.35% over strike, down from 4.75% over strike Tuesday night. Those expecting volatility in PFE shares could scoop up the September 17 straddle for 74 cents each.

JPMorgan Chase (JPM):

Stock traded 0.64% lower on the day to $43.30. The September 33 puts were active, with more than 17,500 contracts trading hands. At least 5,000 of these contracts were sold at seven cents each and were likely sold to close at this price. Open interest declined by about 3,000 contracts in this morning’s translations.

Wells Fargo (WFC):

Stock gained 1.06% to $27.62. The October 20/25 put spread was bought for 90 cents 10,000 times versus open interest of 13,561 at the 25 strike and 40,955 on the 20 strike. Additionally, the at-the-money straddle came in to $2.40 from $2.45 the previous trading session.

General Electric (GE):

Stock pulled back 1.3% to $14.11. During the afternoon, it hit newswires that GE is shopping around its security business, which reportedly could fetch up to $2 billion. The January 12.50 put was in focus yesterday along with the September 11 put. The front-month position saw nearly 9,300 contracts change hands, and open interest dipped by about 8,000 contracts come this morning, indicating these were likely sold to close. The January 12.50 put saw nearly 16,000 contracts trade; this put option gained two cents on the day and the large majority of yesterday’s volume translated as new open interest.

Microsoft (MSFT):

Stock edged nine cents lower to $24.55. The January 25 straddle was a popular choice for option traders on Wednesday; more than 14,000 contracts traded at both the call and the put but open interest expanded only slightly on both options. This near-the-money spread is now priced at $3.69, or 15% over strike. The call slipped seven cents in the session while the put gained three cents.

The ONN Thirteen: The 13 stocks with the heaviest Option Volume during the past 20 days

1. Citigroup Inc. (C)
2. Bank of America Corporation (BAC)
3. General Electric Company (GE)
4. American International Group, Inc. (AIG)
5. Apple Inc. (AAPL)
6. Wells Fargo & Company (WFC)
7. JPMorgan Chase & Co. (JPM)
8. Ford Motor Company (F)
9. Microsoft Corporation (MSFT)
10. Yahoo! Inc. (YHOO)
11. Cisco Systems, Inc. (CSCO)
12. Intel (INTC)
13. Pfizer (PFE)

In pre-market trading, European stocks are trading marginally higher, but Chinese stocks fell on a number of capital raises and on rumors that the government is vowing to curb steel, cement, wind and silicon glut. The GDP report, due out at 8:30 a.m. EDT, could show a 1.5% drop in the second quarter, according to consensus estimates. Additionally, the market expects a drop in jobless claims to 565,000 from 576,000 two weeks ago. Stay tuned to www.ONN.tv for more updates on economic data and pre-market trading.

The healthcare market was rattled by the death of Senator Ted Kennedy, a huge proponent for healthcare reform and a key Senatorial vote. The iShares Dow Jones US Health Care ETF (IHF) finished 1.1% lower today.

Meanwhile, homebuilders turned higher today on the heels of data showing sales of new homes rose for the fourth month in a row in July. New home sales jumped by 9.6% to an annual rate of 433,000, topping analysts’ expectations of 395,000. Since January, sales are up 31.6% (though still down about 13% from last year at this time). At the close, the SPDR S&P Homebuilders Index (XHB) was 1.8% higher.

Crude futures continued to decline today, shedding 62 cents, or 0.9%, to $71.43 a barrel, off its intraday low of $70.67. Crude inventories, as reported by the Energy Information Administration, rose by 200,000 barrels last week; analysts had been expecting a drop in supplies.

In the precious-metals sector, December gold futures edged 20 cents lower to $945.80 an ounce; silver and platinum also closed slightly in the red.

On tap for Thursday: weekly jobless claims and the preliminary GDP number for the second quarter. Earnings are due from American Eagle Outfitters (AEO)and Toll Brothers (TOL) before the open and Dell (DELL) after the close.

We’re seeing stock futures continue to trade in a narrow range. Durable goods orders were up 4.9% compared to the 3.0% rise expected on Wall Street. June’s reading was revised to a 1.1% drop, nudged higher from the originally-reported 2.2% decline. Excluding transportation, the number edged up 0.8%, slightly off expectations for a 0.9% increase.

Later this morning, the Commerce Department is expected to release a report that shows improvement in housing sector. New Home Sales for July are expected to come in at 390,000, up from the prior reading of 384,000.

In earnings news, Dollar Tree (DLTR) said second-quarter profit increased to 63 cents per share, from 42 cents in the year-ago period. Analysts were expecting per-share results of 54 cents. Meanwhile, Williams-Sonoma (WSM) said second-quarter income decline to breakeven from a profit of 17 cents last year. Adjusted income dropped to five cents per share, which was better than the nine-cent loss analysts expected. WSM is up 13% in pre-market trading and DLTR shares have risen 4.6%.

Stay tuned to www.ONN.tv for more updates on the stock and options markets.

Tuesday’s Notable Option Activity–

General Electric (GE):

Stock rose $0.10, or 0.7%, to $14.30. Although the stock finished higher, the January 15 calls were lower by two cents. This could indicate that investors are executing buy writes – buying the stock and selling out-of-the-money calls. This buy-write is currently yielding 7.9%, down from 8% at Monday’s close. Elsewhere, the October 14 puts saw more than 11,000 contracts trade compared to open interest of 1,561, which expanded this morning to 10,251. The bid/ask spread at this strike is very tight – one penny – making it more difficult to determine if these were initiated by a buyer or a seller.

Bank of America (BAC):

Stock rose 40 cents, or 2.3%, to $17.75 amid a strong financial sector. The front-month, at-the-money straddle (September 18 strike) declined, suggesting that volatility is coming in on BAC. The September 18 straddle is currently priced at $1.73, or 9.6% over strike, down from 11.12% over strike at Monday’s close. In the options pits, the September 18 calls were active along with the September 17 puts. More than 32,000 front-month calls traded versus open interest of 97,560, while about 25,000 puts changed hands on open interest of 38,270. Open interest at both of these strikes expanded slightly this morning.

Ford Motor (F):

Stock rose $0.18, or 2.4%, to $7.59. By the closing bell, more than 10,000 contracts had traded at the September 8 call with close to 9,800 moving at the September 7 put. More of the put volume evidently translated as new open interest this morning.

The ONN Thirteen: The 13 stocks with the heaviest option volume for the past 20 trading days

1. Citigroup Inc. (C)
2. Bank of America Corporation (BAC)
3. General Electric Company (GE)
4. Apple Inc. (AAPL)
5. Wells Fargo & Company (WFC)
6. American International Group, Inc. (AIG)
7. JPMorgan Chase & Co. (JPM)
8. Microsoft Corporation (MSFT)
9. Ford Motor Company (F)
10. Yahoo! Inc. (YHOO)
11. Cisco Systems, Inc. (CSCO)
12. Intel (INTC)
13. Caterpillar Inc. (CAT)

We’re seeing stock futures continue to trade in a narrow range, as the market anticipates the Durable Goods Orders report and other housing reports due out today. Analysts expect U.S. factories orders to show a 3% increase in July.

In addition, the Commerce Department is expected to release a report that shows improvement in housing sector. Prior to these announcements, international markets are mixed, with Hong Kong up 0.1% and Europe down 0.5%. Stay tuned to www.ONN.tv for more updates on economic data and pre-market trading.

We also saw some decent economic news today. The Conference Board’s index of consumer confidence jumped to 54.1 from 47.4 last month, topping expectations of 47.9. The Expectation Index showed exceptional gains, rising to 73.5 from 63.4 in July. Elsewhere, the Case-Shiller U.S. National Home Price Index posted a 15.4% year-over-year drop but managed to surprise analysts’ expectations to the upside.

At the close, the Dow Jones Industrial Average (DJIA – 9,539.44) had tacked on 30.16 points. The S&P 500 Index (SPX – 1028.00) rose 2.43 points, and the Nasdaq Composite (COMP – 2,024.23) was higher by 6.25 points. Advancers topped decliners by a margin of 61 to 37 on the NYSE and by 53 to 42 on the NASDAQ.

After topping the $75 per barrel mark, crude futures stumbled, closing down more than 3%, or $2.32, to end the regular session at $72.05. Natural gas futures gave back 1.4% during the session.

Tomorrow will see the release of durable goods orders ahead of the open and new home sales due at 10:00 a.m. ET. On deck to report earnings are Dollar Tree (DLTR), Williams-Sonoma (WSM), and TiVo (TIVO) (the last of which reports after Wednesday’s close).

President Obama has reappointed Federal Reserve Chairman Ben Bernanke for a second term, which could send equities on greater swings. Bernanke’s second four-year term would kick off on January 31 following approval from the Senate.

In stock news, Burger King Holdings (BKC) is up nearly 6% in pre-market action after reporting a positive earnings surprise. The fast-food company earned 43 cents per share, a dime better than analysts were expecting. Elsewhere, Ford Motor (F) is showing weakness as the "cash-for-clunkers" program grinds to a halt.

June’s S&P Case-Shiller Index of home prices dropped 15.44% on a year-over-year basis, better than the 16.4% decline expected by economists. For the second quarter, the year-over-year index showed a drop of 14.9% compared to expectations for a 19.75% pullback. The Consumer Confidence report is due at 10 a.m. EDT. Tune in to today’s Options News for more updates on the stock and options markets.

Monday’s Notable Option Activity–

Caterpillar (CAT):

Stock rose $0.26, or 0.55%, to $47.56. The agriculture stock saw investors buying the September/October 45-strike put spread for 97 cents each. More than 12,000 options traded on the front-month strike while about 10,800 changed hands at the October strike. Elsewhere, the January 42 put was active, with more than 10,000 contracts trading versus open interest of 610. At the open, this strike was home to 10,574 contracts, meaning nearly all of yesterday’s volume translated.

JPMorgan Chase (JPM):

Stock declined $0.65, or 1.49%, to $43.01. The October 45 calls saw more than 11,000 contracts trade and the October 45 puts saw more than 6,300 contracts change hands. These were both new strikes in the wake of August options expiration. Some of this activity may have been straddle purchases. Additionally, the October 45 call may have been bought as part of a call spread with the September 40 calls.

Microsoft Corporation (MSFT):

Stock rose $0.23, or 0.94%, to $24.64. Call buying was notable at the January 27.50 strike, where more than 15,000 contracts traded yesterday, although open-interest translations were minimal. The September 25 call, meanwhile, saw almost 22,000 contracts trade, about half of which translated as new open interest. Implied volatility is moving lower on MSFT, as the at-the-money, front-month straddle is currently priced at 5.4% over strike, down from 6% at Friday’s close. Specifically, the September 25 straddle is trading at $1.36.

General Electric (GE):

Stock closed off $0.01, or 0.07%, at $14.20. October 14 and 15 calls were active on Monday as a new series opened for GE option traders. The in-the-money 14-strike call saw more than 5,000 contracts change hand, some of which were purchased by investors who simultaneously sold the September 11 puts. The October 15 call saw nearly 9,000 contracts cross the tape.

The ONN Thirteen: Most-Active Option Volume

1. Citigroup Inc. (C)
2. Bank of America Corporation (BAC)
3. General Electric Company (GE)
4. Apple Inc. (AAPL)
5. Wells Fargo & Company (WFC)
6. American International Group, Inc. (AIG)
7. Microsoft Corporation (MSFT)
8. JPMorgan Chase & Co. (JPM)
9. Ford Motor Company (F)
10. Yahoo! Inc. (YHOO)
11. Cisco Systems, Inc. (CSCO)
12. Intel (INTC)
13. Caterpillar Inc. (CAT)

International markets are not experiencing the slight optimism the U.S. is seeing ahead of the opening bell. Hong Kong was down 0.5% and Europe is currently off 0.2%. President Obama is expected to reappoint Federal Reserve Chairman Ben Bernanke for a second term today, which could send equities on greater swings.

We are expecting the S&P Case-Shiller HPI report at 9 a.m. EDT and the Consumer Confidence report at 10 a.m. EDT. Stay tuned to www.ONN.tv for more updates on pre-market trading.

In the world of commodities, crude futures rose 48 cents, or 0.6% to $74.37, hitting their highest level in 10 months. Natural-gas futures jumped 11.9 cents, or 4.2%, to $2.92 per million British thermal units. Gold, meanwhile, fell $11 (1.2%) on the day to $943.70 an ounce. Platinum and copper were also lower, but silver managed to eke out a 3.1-cent gain to $14.195 an ounce.

Consumer confidence numbers for August will come in at 10:00 a.m. tomorrow; analysts are expecting a confidence reading of 47.9, up slightly from 46.6 in the prior month. The S&P/Case-Shiller Home Price Index will come in at 9:00 a.m. as well.

On the earnings front, we’ll hear from Big Lots (BIG), Burger King (BKC), Chico’s (CHS), and Staples (SPLS) before the bell; International Rectifier (IRF) will announce after the close.

The markets are continuing to experience renewed optimism after last week’s rebound from Monday’s pullback. Federal Reserve Chairman Ben Bernanke also helped restore market confidence, but we’ll get a true taste of how consumers feel with the consumer confidence report tomorrow and consumer sentiment figures Friday.

In equities news, Procter & Gamble (PG) said it may unload its prescription drug unit to Warner Chilcott (WCRX) for $3 billion.

Check out Options News at http://www.ONN.tv for more updates on the stock and options markets.

The ONN Thirteen: Most-Active Option Volume for Thursday, August 20

1. Citigroup Inc. (C) (Friday’s rank: 1)
2. Bank of America Corporation (BAC) (Friday’s rank: 2)
3. General Electric Company (GE) (Friday’s rank: 3)
4. Apple Inc. (AAPL) (Friday’s rank: 4)
5. Wells Fargo & Company (WFC) (Friday’s rank: 5)
6. American International Group, Inc. (AIG) (Friday’s rank: 10)
7. Microsoft Corporation (MSFT) (Friday’s rank: 6)
8. JPMorgan Chase & Co. (JPM) (Friday’s rank: 9)
9. Ford Motor Company (F) (Friday’s rank: 7)
10. Yahoo! Inc. (YHOO) (Friday’s rank:
11. Cisco Systems, Inc. (CSCO) (Friday’s rank: 12)
12. Caterpillar Inc. (CAT) (Friday’s rank: 11)
13. Intel (INTC) (Friday’s rank: N/A)

Dropping off the list: Pfizer (PFE)

Friday’s Notable Option Activity

Bank of America (BAC):

Stock rose 1.87% to $17.46. Options rolled up and out on Expiration Friday, as investors likely moved their August 17 calls to the September 18 call series. Open interest on the newly front-month, out-of-the-money call rose from 72,132 to 84,744.

American International Group (AIG):

Stock rose 1.7% to $32.85. AIG continued to see notable option volume on Friday, as investors focused on the November 22 put. Open interest rose from just 409 contracts to 4,767. In the September series, call open interest is significant at the 35 strike and 40 strike, which are home to 16,000 and 11,600 open contracts, respectively.

Microsoft Corporation (MSFT):

Stock closed 3.1% higher at $24.41. Active on Expiration Friday were the August 24 and September 24 calls. The newly front-month September position, near-the-money, is home to about 33,000 open contracts.

The markets are continuing to experience renewed optimism after last week’s rebound. Federal Reserve Chairman Ben Bernanke also helped restore market confidence, but we’ll get a true taste of how consumers feel with the consumer confidence report tomorrow and consumer sentiment figures Friday. Stay tuned to www.onn.tv for more updates on pre-market trading.

The Dow Jones Industrial Average (DJIA – 9,505.73) rose by 155.68 points and gained 1.9% for the week. The S&P 500 Index (SPX – 1026.13) moved 2.2% higher this week and rose 18.76 points today, and the Nasdaq Composite (COMP – 2,020.9) tacked on 31.68 points today and 1.8% for the week. Advancers led decliners by a margin of 39 to 10 on the NYSE and 71 to 25 on the NASDAQ.

Meanwhile, crude oil futures jumped above $74 a barrel in intraday trading, hitting their highest year-to-date level. They ended the session 98 cents higher at $73.89. Gold was 1.5% higher to $956 an ounce, meanwhile, and September copper rose 11 cents, or 4%, to $2.85 a pound.

Existing home sales in the U.S. were higher for the fourth consecutive month, rising 7.2% in July to a seasonally adjusted annual rate of 5.24 million. This was the highest level since August 2007 and topped analysts’ expectations for a rise of 2.2%. The median sales price for existing homes, however, has fallen 15.1% during the past year to $178,400.

When we return from the weekend on Monday, we’ll hear the Empire Manufacturing results. Earnings will be relatively light all week, save a few retailing names.

At 10:00 a.m. ET, we will hear existing home sales data. This figure is expected to rise for the fourth consecutive month; analysts are expecting a jump of 2.2% to 5 mililon homes.

Meanwhile, J.M Smucker (SJM) said first-quarter earnings rose to 83 cents per share as sales surged 58% to $1.05 billion. Analysts were expecting per-share results of 80 cents and revenue of $1.04 billion. And Ann Taylor Stores (ANN) reported a second-quarter loss of 32 cents per share. Excluding items, ANN would have booked a profit of six cents per share, exceeding analysts’ expectations for a five-cent loss. SJM is up 3% in pre-market activity while ANN has dropped 5%.

Helping drive this upside is continued positive news out of China; the Shanghai Composite Index climbed another straight day after dropping 5% earlier this week. Watch ONN.tv’s Options Cocktail today at 12:30 p.m. CT for interesting insight on what movement in the Asian markets really means for U.S. markets.

Stay tuned to www.ONN.tv for updates on pre-market trading.

The ONN Thirteen:

1. Citigroup Inc. (C) (Yesterday’s rank: 1)
2. Bank of America Corporation (BAC) (Yesterday’s rank: 2)
3. General Electric Company (GE) (Yesterday’s rank: 3)
4. Apple Inc. (AAPL) (Yesterday’s rank: 4)
5. Wells Fargo & Company (WFC) (Yesterday’s rank: 5)
6. Microsoft Corporation (MSFT) (Yesterday’s rank: 6)
7. Ford Motor Company (F) (Yesterday’s rank: 7)
8. Yahoo! Inc. (YHOO) (Yesterday’s rank:
9. JPMorgan Chase & Co. (JPM) (Yesterday’s rank: 9)
10. American International Group, Inc. (AIG) (Yesterday’s rank: 10)
11. Caterpillar Inc. (CAT) (Yesterday’s rank: 11)
12. Cisco Systems, Inc. (CSCO) (Yesterday’s rank: 12)
13. Pfizer (PFE) (Yesterday’s rank: N/A)

Bank of America (BAC):

Stock rose 2.33% to $17.14. The January 2011 30-35 call spread was active, as investors were buying this spread for about 53 cents each. By the close, nearly 12,000 contracts had traded on both strikes.

American International Group (AIG):

Stock rose 21.25% to $32.30. The AIG options pits were notably active yesterday after company CEO Robert Benmosche said he believed the company would in fact be able to repay government bailout money. More than 400,000 contracts traded across all strikes in Thursday’s session, with investors trading both calls and puts. Especially active were the August 31 and 32 puts, along with the August 35 call, where 46,000 contracts traded versus open interest of 13,364. Implied volatility surged in the process, approaching 200% for front-month, near-the-money options. Additionally, the at-the-money straddle is trading at 28.7% over strike, up from 25.1% on Wednesday. AIG has rallied about 150% since the end of July and it is evident that many option players are beginning to keep an eye on it. This will likely make a move higher on the Lucky 13 on Monday.

General Electric (GE):

Stock closed 2.1% higher at $13.81. The December 14 and August 14 calls were active, with the front-month seeing nearly 31,000 contracts trade for about seven cents each while the December call traded near the ask price of $1.22. This may have been a roll out of existing calls to a later-dated series. December open interest rose from 50,353 to 72,800 while August open interest dropped slightly.

Stock futures continue to edge up this morning on continued positive news out of China that the Shanghai Composite Index climbed another straight day after dropping 5% earlier this week. Watch ONN.tv’s Options Cocktail today at 12:30 p.m. CT for interesting insight on what movement in the Asian markets really means for U.S. markets. Stay tuned to www.onn.tv for updates on pre-market trading.

The economic picture painted a mixed picture Thursday morning. On one hand, U.S. jobless claims rose by 15,000 last week, topping expectations. But on the other, the Philly Fed Index, which measures business activity in the region, improved to its highest level since late 2007. And topping it off, the index of leading economic indicators rose 0.6% in July, enjoying its fourth consecutive monthly gain but falling slightly short of analysts’ expectations.

American International Group (AIG) was in focus today as the company’s CEO expressed hope that AIG will be able to repay government bailout money. He also asserted that the firm will only sell some of its assets "only at the right time, at the right price."

In earnings news, Sears Holdings (SHLD) and GameStop (GME) disappointed the Street and moved dramatically lower in response. After the close, Gap (GPS) reported second-quarter income of 33 cents, a penny better than year-ago earnings as well as analysts’ expectations. Same-store sales dropped 8% during the period.

Tomorrow, we wrap up the week with earnings from AnnTaylor (ANN) and J.M. Smucker (SJM) and existing home sales at 10:00 a.m. ET.

Weekly initial jobless claims reached 576,000 above consensus estimates for 550,000. The prior number was revised modestly higher to 561,000 from 558,000. Finally, continuing claims rose slightly higher to 6.24 million. Both numbers were at their highest point since July 25.

Stock futures continue to edge up this morning on better news out of China after the market dropped 5% at the beginning of the week. But before the market open, Sears Holding Corp. (SHLD) announced an earnings per share loss of 79 cents, compared to earnings per share of 50 cents last quarter. The company’s revenue dropped $1.26 billion to $10.55 billion, missing analyst expectations of $10.73 billion. SHLD shares are currently trading down 65 cents to $73.76.

Elsewhere, H.J. Heinz Co. (HNZ) said it earned 67 cents per share in the first quarter as sales dropped 4.5% to $2.47 billion.  This was a nickel better than analysts were expecting and a slight positive surprise in terms of revenue.  

The ONN Thirteen:

1. Citigroup Inc. (C) (Yesterday’s rank: 1)
2. Bank of America Corporation (BAC) (Yesterday’s rank: 2)
3. General Electric Company (GE) (Yesterday’s rank: 3)
4. Apple Inc. (AAPL) (Yesterday’s rank: 4)
5. Wells Fargo & Company (WFC) (Yesterday’s rank: 5)
6. Microsoft Corporation (MSFT) (Yesterday’s rank: 7)
7. Ford Motor Company (F) (Yesterday’s rank:
8. Yahoo! Inc. (YHOO) (Yesterday’s rank: 7)
9. JPMorgan Chase & Co. (JPM) (Yesterday’s rank: 9)
10. American International Group, Inc. (AIG) (Yesterday’s rank: 10)
11. Caterpillar Inc. (CAT) (Yesterday’s rank: 11)
12. Cisco Systems, Inc. (CSCO) (Yesterday’s rank: 12)
13. Pfizer (PFE) (Yesterday’s rank: N/A)

Dropping off the list: Intel Corp. (INTC)

Pfizer (PFE):

Stock closed up 2.4% at $16.37. The drug sector was cheered in Wednesday’s trading as Merck (MRK) won a patent infringement lawsuit. We had a new member of the Lucky 13 on Wednesday, as Pfizer bumped Intel (INTC) from the bottom slot. Volume was notable at the August and September 16 calls; this may have been a simple roll out of positions ahead of Friday’s expiration. The September 17 call was also active and saw a modest increase in open interest.

Wells Fargo (WFC):

Stock finished 1% higher at $26.61. Action was notable in the October 26 puts and 27 calls, with about 9,000 contracts trading at both strikes. The majority of this volume translated into new open interest. This may have been a risk reversal strategy as the stock has more than tripled in value since early March. Essentially, this means the investor was selling the call and buying the put, generally at equal premiums. This guards against price moves below $26 but surrenders any upside above $27.

American International Group (AIG):

Stock rose 8.5% to $26.65. Notably active today was the November 2.5 call, which saw more than 5,300 contracts trade near the bid price as these calls were likely sold. This may be a roundabout (and potentially dubious) way of shorting AIG stock, which is currently impossible to borrow. Call sellers hope to get assigned, creating a short-stock position. Investors who want to go long on AIG could consider selling puts and buying calls simultaneously. Currently, the near-the-money (26-strike) January 2010 put is bid at $7.40 and the same strike call is offered at $6.65. An investor could sell the put and buy the call, booking a net credit of 75 cents. That equates to a stock price of $25.25, which is a 5.2% discount in the stock if assigned. Something to think about.

General Electric (GE):

Stock closed down 0.44% at $13.53. The in-the-money March 11 calls were active today, with volume of 5,000 versus open interest of 558. These went off at or near the bid price, meaning they were likely sold to open. Open interest at this strike heading into today’s trading is 5,178.

Stock futures continue to edge up this morning on better news out of China after the market dropped 5% at the beginning of the week. But before the market open, Sears Holding Corp. (SHLD) announced an earnings per share loss of 79 cents, compared to earnings per share of 50 cents last quarter. The company’s revenue dropped $1.26 billion to $10.55 billion, missing analyst expectations of $10.73 billion. SHLD shares are currently trading down 65 cents to $73.76. Stay tuned to ONN.tv for updates on the jobless claims report at 8:30 a.m EDT. p>

Commodities moved higher as well, with oil climbing above $71 a barrel. This morning, the Energy Department reported that crude supplies declined by 8.4 million barrels last week, flying in the face of the 1.1 million build expected by analysts. Gold headed higher as well to rise along with stocks.

Deere & Co. (DE) was active today after reporting third-quarter profit of 99 cents per share, easily topping analysts’ consensus view of 56 cents. The rub? The company’s full-year forecast implied a lackluster fourth quarter. The shares lost nearly 3% in today’s trading. Elsewhere, Merck & Co. (MRK) gained 2.5% after a judge upheld the company’s patent on asthma medication Singulair. Teva Pharmaceutical (TEVA) had been seeking the rights to make a generic version of the drug. TEVA still managed a 1.3% move higher in Wednesday’s trading.

Gap (GPS) is on the earnings calendar for tomorrow afternoon, along with Aeropostale (ARO) and Intuit (INTU). Before the open, we’ll hear from HJ Heinz (HNZ), Sears Holdings (SHLD), and Children’s Place (PLCE), to name a few. Initial jobless claims are due at 8:30 ET and leading indicators for July will hit the Street at 10:00, along with the Philadelphia Fed Index.

China’s market dropped 5% yesterday, sending international markets south, with Hong Kong down 1.8% and Europe down close to 1% (and falling). It looks like investors have turned pessimistic on reports that China’s government credit policy to support the economy will not fuel a sustainable recovery there.

In stock news, Hewlett-Packard (HPQ) is down 2.6% in pre-market trading after reporting third-quarter earnings after last night’s close. The company earned 91 cents, a penny above analysts’ expectations but a 19% drop in profit from the year-earlier period.

Stay tuned to ONN.tv for updates on the EIA Petroleum Status report at 9:30 a.m CST. p>

China’s market dropped 5% yesterday, sending international markets south, with Hong Kong down 1.8% and Europe down 0.5%. It looks like investors have turned pessimistic on reports that China’s government credit policy to support the economy will not fuel a sustainable recovery there. Stay tuned to ONN.tv for updates on the EIA Petroleum Status report at 9:30 a.m CST. p>

The ONN Thirteen:

1. Citigroup Inc. (C) (Yesterday’s rank: 1)
2. Bank of America Corporation (BAC) (Yesterday’s rank: 2)
3. General Electric Company (GE) (Yesterday’s rank: 3)
4. Apple Inc. (AAPL) (Yesterday’s rank: 4)
5. Wells Fargo & Company (WFC) (Yesterday’s rank: 5)
6. Microsoft Corporation (MSFT) (Yesterday’s rank: 7)
7. Yahoo! Inc. (YHOO) (Yesterday’s rank: 6)
8. Ford Motor Company (F) (Yesterday’s rank: 11)
9. JPMorgan Chase & Co. (JPM) (Yesterday’s rank:
10. American International Group, Inc. (AIG) (Yesterday’s rank: 9)
11. Caterpillar Inc. (CAT) (Yesterday’s rank: 12)
12. Cisco Systems, Inc. (CSCO) (Yesterday’s rank: 10)
13. Intel (INTC) (Yesterday’s rank: 13)

Bank of America (BAC):

Stock closed up 2.1% at $16.90. The front-month saw some activity on the financial heavyweight on Tuesday, as the August 17 calls had more than 42,000 contracts cross the tape, while the August 16 puts saw volume of about 36,000. The former traded near the bid while the put option traded near the ask. Open interest expanded slightly at both strikes.

General Electric (GE):

Stock finished 1.7% higher at $13.59. Investors were looking long-term on General Electric, trading more than 15,000 contracts on the out-of-the-money March 17.50 call at or near the bid price of 54 cents each. The majority of these were likely sold to open, as open interest at this strike price was 1,814 heading into yesterday’s session and now stands at 11,354. Also active was the September 14 call, which saw volume of more than 10,000 versus open interest of nearly 140,000. Finally, implied volatility is dropping on GE, as the at-the-money straddle moved to 10.2% over strike from 11.1% on Monday.

Apple (AAPL):

Stock rose 2.7% to $164.00. The August 160 put and August 165 call were active yesterday, seeing volume of 28,000 and 26,000, respectively. Open interest expanded slightly on both of these strikes.

Wells Fargo (WFC):

Stock was virtually unchanged yesterday at $26.34. The October 32 calls were active, seeing volume of more than 5,000 on open interest of 3,352. These were likely bought to open as they traded nearly the ask price; open interest expanded to 8,400 contracts today.

Meanwhile, housing starts were virtually flat in July, losing 1% to a seasonally adjusted annual rate of 581,000. Economists were expecting an increase to 596,000. In other economic news, the PPI dropped 0.9% in July, thanks to notable declines in energy and food prices. The core index edged 0.1% lower last month.

At the close, the Dow Jones Industrial Average (DJIA – 9,217) tacked on 82 points, the S&P 500 Index (SPX – 989.67) closed up 9.9 points, or 1%, and the Nasdaq Composite (COMP – 1,956) was the big winner, easing 1.3% higher. As the market shook off Monday’s drubbing – the worst single-day performance in six weeks – some analysts blamed the price action on oversold conditions. Commodities followed suit, with oil futures surging 3.6% and gold edging modestly higher.

Elsewhere, a top economist with the International Monetary Fund stirred the markets by stating the global recession is "over," putting the world’s markets in so-called recovery mode. The clinical definition of recovery is an economy which has begun to grow but may not have returned to previous levels of wealth, employment, or other factors.

After the close, Hewlett-Packard (HPQ) reported third-quarter earnings of 91 cents per share (excluding items), compared to analysts’ expectations of 90 cents. Profit dropped 19% during the quarter while revenue slipped 1.8%. The PC manufacturer also projected fourth-quarter earnings of $1.12 per share. Wednesday will be free from economic announcements (aside from weekly crude inventories), but earnings will be rolling in from Deere &Co. (DE) and BJ’s Wholesale (BJS) ahead of the open.

International markets, however, have collectively moved higher.  The Nikkei closed modestly higher, the Hong Kong Hang Seng gained 0.8%, and European markets are in the green despite giving back much of their  earlier gains. 

The Producer Price Index (PPI) dropped 0.9% in July on a month-over-month basis, a wider decline than the 0.3% drop economists were expecting. Year-over-year, the figure slid 6.8% lower. The core index, which excludes food and energy, lost 0.1% month-over-month and gained 2.6% year-over-year.

In other economic news, housing starts reached 581,000 in July, missing the 599,000 expected on Wall Street. Building permits totaled 560,000 versus consensus expectations of 577,000.

Tune into Options News on ONN.tv at 9:30 EDT for the latest updates.

U.S. stocks are poised to participate in the worldwide rebound after the market tanked to its lowest point since July 2. Looking at international markets, Hong Kong and Europe are up approximately 0.8%.

The Producer Price Index (PPI) dropped 0.9% in July on a month-over-month basis, a wider decline than the 0.3% drop economists were expecting. Year-over-year, the figure slid 6.8% lower. The core index, which excludes food and energy, lost 0.1% month-over-month and gained 2.6% year-over-year.

In other economic news, housing starts reached 581,000 in July, missing the 599,000 expected on Wall Street. Building permits totaled 560,000 versus consensus expectations of 577,000.

Tune into Options News on ONN.tv at 9:30 EDT for the latest updates.

The ONN Thirteen:

• Citigroup Inc. (C)
• Bank of America Corporation (BAC)
• General Electric Company (GE)
• Apple Inc. (AAPL)
• Wells Fargo & Company (WFC)
• Yahoo! Inc. (YHOO)
• Microsoft Corporation (MSFT)
• JP Morgan Chase & Co. (JPM)
• American International Group, Inc. (AIG)
• Cisco Systems, Inc. (CSCO)
• Ford Motor Company (F)
• Caterpillar Inc. (CAT)
• Intel (INTC)

Bank of America (BAC):

Stock closed down 4.8% at $16.53. Nearly 11,500 September 21 calls traded yesterday versus open interest of 2,547. These calls are out-of-the-money by 25% and expire one month from today. Open interest on this call is now 11,109.

Yahoo! (YHOO):

Stock closed down 3.2% at $14.56. September 14 calls were active, as some investors appear to be trading a buy write (buying the stock and selling the upside call). Almost 19,000 total calls changed hands at this back-month strike, going off around $1.04 per contract. Open interest was 19,825 heading into yesterday’s session and is now 32,374, meaning much of yesterday’s volume translated as new positions. The September at-the-money straddle was at $1.50, or 10.3% over strike, up from $1.46, or 9.7% over strike at Friday’s close.

Apple (AAPL):

Stock dropped 4.3% at $159.59. Implied volatility is inching higher for AAPL options as the September at-the-money straddle was 7.87% over strike, up from 7.35% on Friday. Elsewhere, the August 165 calls were a popular choice among investors on Monday, who moved more than 37,000 calls across the tape. This compares to open interest of 23,646, which increased to 26,646 this morning. They are trading close to the bid price, meaning some of these could be sold to close ahead of expiration Friday. The August 160 puts were active as well, seeing volume of nearly 27,500 versus open interest of 19,000.

General Electric (GE):

Stock traded off 4% to $13.36. The August 13 puts and August 14 calls each saw more than 25,000 calls change hands on Monday, trading, respectively, around 16 cents and nine cents per contract. Open interest was sizable at both of these front-month strikes heading into the session.

U.S. stocks are poised to participate in the worldwide rebound after the market tanked to its lowest point since July 2. Looking at international markets, Hong Kong and Europe are up approximately 0.8%.

Ahead of the bell, analysts expect a slower rise in the Producer Price index due to lower energy prices and motor vehicle prices possibly back down. We could see a 0.3% drop in PPI this month. In the housing sector, consensus estimates show a slight rise in housing starts, or the number of new residential building construction projects registered over the month. The Street expects a 4% increase in housing starts, compared to June’s 3.6% rise. Tune into Options News on ONN.tv at 9:30 EDT for the latest updates.

At the close, the Dow Jones Industrial Average (DJIA – 9,135.34) was down 186 points, the S&P 500 Index (SPX – 979.73) dropped 24 points, and the Nasdaq Composite (COMP – 1,930.84) lost 55 points on the day. Meanwhile, the CBOE SPX Volatility Index (VIX) jumped more than 16% as option traders swooped in to bid up straddles and attempt to hedge their bullish positions.

Decliners trounced advancers on the NYSE, 3,250 to 500, while the ratio on the Nasdaq was 2,200 to 500. New highs and new lows were close to parity.

There was no "flight to safety" where commodities were concerned, either, as gold- and oil-related ETFs were among the worst performers of the day. Crude futures closed off 3.7% in Monday’s trading, while gold and silver both suffered modest declines.

Tomorrow morning ahead of the open, we’ll get housing starts numbers for July, along with the Producer Price Index (PPI), which economists are expecting to show a decline of 0.3%. Hitting the earnings confessional will be Home Depot (HD), Saks (SKS), and Hewlett-Packard (HPQ) after the close.

The worse-than-expected consumer sentiment report released Friday could be taking a toll on wary investors at the beginning of this week, suggesting recovery is farther away than many analysts in the market claim.

Overseas markets were notably weak overnight, with the Shanghai Index losing about 6% and the Nikkei shedding 3.1%. In Europe, the FTSE 100 is currenly down 1.5% while the German DAX is off 1.9%.

Ahead of the bell, Lowe’s Cos. (LOW) announced a 19% drop in sales during the second quarter, and earnings per share of 51 cents. The home-improvement retailer missed analysts’ EPS estimates by three cents. LOW shares are currently down $2.37 in pre-market trading to $20.46. Later this week, we’ll hear earnings reports from LOW rival Home Depot (HD).

Meanwhile, MGM Mirage (MGM) and Las Vegas Sands (LVS) are posting steep losses in pre-market activity, down 7.5% and 7%, respectively.

Tune into Options News on www.ONN.tv at 9:30 EDT for the latest updates from the stock and option markets.

The worse-than-expected consumer sentiment report released Friday could be taking a toll on wary investors at the beginning of this week, suggesting recovery is farther away than many analysts in the market claim.

Ahead of the bell, Lowe’s Cos. (LOW) announced a 19% drop in sales during the second quarter, and earnings per share of 51 cents. The home-improvement retailer missed analysts’ EPS estimates by three cents. LOW shares are currently down $2.37 in pre-market trading to $20.46.

Meanwhile, MGM Mirage (MGM) and Las Vegas Sands (LVS) are posting steep losses in pre-market activity, down 7.5% and 7%, respectively.

Tune into Options News on www.ONN.tv at 9:30 EDT for the latest updates from the stock and option markets.