CNBC's Fast Money Crew

With optionMonster / CNBC Fast Money crew at the ILAM Dallas event on Sept 10-11

Options Tactician

Hello folks -


I am pleased to announce that I have joined forces with optionMONSTER to start a new service called "Options Tactician." Please follow this Link to start a free 14-day trial period. 


The service will provide option trading ideas for traders looking to capitalize on event or catalyst driven opportunities as well as volatility mis-pricing in the marketplace. Those who are familiar with my trading style will quickly notice that I comprehensively review and discuss the following before committing capital in a trade: 


- Under the radar, improving or deteriorating fundamentals
- Detail technical check on charts
- Collective wisdom (or foolishness) of analysts community
- Institutional interest from options order flow to gauge the sentiment


I will run the service as I manage my own personal portfolio. There will be an active live option model portfolio for all subscribers to see how positions are performing at any given time. As I have repeatedly said in the past, capital preservation always trumps aggression for profits. When I find a story that makes sense, my primary focus is on designing a strategy that provides the best risk/reward balance. Control your risk first. With proper homework, profits will come over time. 


I make a lot of directional and range-bound bets, but more importantly I pay very close attention to changes in implied volatilities and option Greeks, which are key ingredients necessary to understand movements in options pricing relative to the underlying. 


I am looking forward to having you join my subscription and working together to make money.


Fahad Khalid

optionMONSTER Event on June 25/26

Hello folks.  Quick note: I have been invited to attend optionMONSTER Invest Like a Monster Conference in Chicago on June 25 and 26.  I plan on attending full session on both days, including Friday evening reception.  


Please join in by registering on the following site: OM ILAM Registration.  I hope to meet and chat with many of you there.  

Analysts' Upgrades/Downgrades 5-12-10

 Anadarko Petroleum downgraded at Oppenheimer
APC was downgraded from Outperform to Perform, Oppenheimer said. Company has potential financial liabilities to the oil spill.

 Walt Disney upgraded at Citigroup
DIS was upgraded from Sell to Hold, Citigroup said. $37 price target. Valuation call, following the strong quarter, driven by Studio results.

 Huntington Bancshares upgraded at Morgan Stanley
HBAN was upgraded from Equal-weight to Overweight, Morgan Stanley said. Company is highly leveraged to improving credit trends. $8.50 price target.

 Harmonic resumed at BofA/Merrill
HLIT coverage resumed with a Neutral rating and $7 price target. HLIT announced Omneon deal in 1Q10, now focus on integration, Bank of America/Merrill Lynch said. 

 McKesson upgraded at Goldman
MCK was upgraded from Neutral to Buy, Goldman Sachs. Stock was also added to the Conviction List. Company has tailwinds, without significant exposure to Europe.

 Marshall & Ilsley upgraded at Morgan Stanley
MI was upgraded from Equal-weight to Overweight, Morgan Stanley said. $12 price target. Company has leverage to the credit market.

 NewAlliance Bancshares downgraded at Morgan Stanley
NAL was downgraded from Equal-weight to Underweight, Morgan Stanley said. Company has less leverage to improving credit trends.

 Nalco upgraded at JP Morgan
NLC upgraded at JP Morgan. Rating raised to $30 from $25. Maintains 2010 EPS estimates of $1.22.

 Ruby Tuesday upgraded at Credit Suisse
RT upgraded to Outperform from Neutral as top-line trends continue to improve, Credit Suisse said. Price target increased a dollar to $14. 

 SVB Financial downgraded at Morgan Stanley
SIVB was downgraded from Overweight to Equal-weight, Morgan Stanley said. $57 price target. Company has less exposure to the improving credit environment.

 Constellation Brands upgraded at Deutsche
STZ was upgraded from Hold to Buy, Deutsche Bank said. $23 price target. Domestic wine and beer business appears to be improving.

 Tellabs upgraded at BofA/Merrill
TLAB upgraded to Neutral from Underperform on strong 1Q10 results, Bank of America/Merrill Lynch said. Price target lifted from $7.15 to $10. 

 Assured Guarantee numbers cut at UBS

Shares of AGO now seen reaching $27, UBS said. Estimates also lowered, given lower production rates and tighter credit spreads. Buy rating.

 Church & Dwight price target boosted at Barclays
CHD price target increased to $69 from $65. CHD gaining market share just as consumer demand begins to recover, Barclays said. Equal Weight rating. 

 Church & Dwight estimates, target cut at Goldman
Shares of CHD now seen reaching $70, according to Goldman Sachs. Estimates also lowered, given higher expected promotional spending. Neutral rating.

 Cinemark estimates, target boosted at Morgan Stanley
Shares of CNK now seen reaching $15, according to Morgan Stanley. Estimates also upped, following the company's positive first-quarter results. Underweight rating.

 Dicks Sporting Goods price target raised at Barclays
DKS price target jumped to $32 from $28. The supply and demand landscape is supporting near and long term growth, Barclays said. Overweight rating. 

 Electronic Arts estimates lowered at UBS
ERTS estimates were cut through 2012, UBS said. Compnay is seeing weaker demand for packaged goods in Europe. Buy rating and $23 price target.

 Express Scripts target upped at Goldman
Shares of ESRX now seen reaching $124, Goldman Sachs said. Company can deliver superior earnings growth over the next couple of years. Buy rating.

 Gamestop estimates reduced at Goldman
GME estimates were lowered through 2011, according to Goldman Sachs. Company will be hurt by recent currency changes. Neutral rating.

 Home Depot target, estimates boosted at Barclays
HD price target increased to $39 from $34 ahead of 1Q10 results next Tuesday, Barclays said. 2011 and 2012 EPS estimates lifted to $1.83 and $2.24, respectively. Overweight rating. 

 Lowe's target, estimates raised at Barclays
LOW price target increased to $30 from $25 as Barclays expects good 1Q10 results next Monday. 2011 and 2012 EPS estimates set at $1.46 and $1.73, respectively. 

 Mattel estimates reduced at UBS
MAT estimates were lowered through 2011, according to UBS. Company is facing higher input costs and currency pressure. Buy rating and $30 price target.

 Office Depot estimates reduced at Goldman
ODP estimates were cut through 2012, Goldman Sachs said. Company will be hurt by currency moves. Neutral rating.

 ON Semiconductor estimates upped at Morgan Stanley
ONNN estimates were boosted through 2012, Morgan Stanley said. Company facing lower interest costs, after paying down debt. Underweight rating.

 Pepsi added to Conviction Buy List at Goldman
PEP was added to the Conviction Buy list, Goldman Sachs said. Earnings growth should reaccelerate, even though the company faces currency pressure. Buy rating and $76 price target.

 Progress Energy numbers raised at Morgan Stanley
Shares of PGN now seen reaching $42, according to Morgan Stanley. Estimates also increased, following a positive rate case in Florida. Equal-weight rating.

 Philip Morris cut from Conviction Buy List at Goldman
PM was removed from the Conviction Buy list, Goldman Sachs said. Estimates also lowered, given recent currency moves. $59 price target.

 Sunpower estimates, target cut at UBS
SPWRA estimates were reduced through 2011, according to UBS. Company guided to lower solar roof top sales. Neutral rating and new $17 price target.

 TW Telecom estimates increased at Morgan Stanley
TWTC estimates were raised through 2012, Morgan Stanley said. Company posted record-low churn for the quarter and is seeing robust bookings activity. Equal-weight rating.

Housekeeping: Apple (AAPL)

During that big whoosh down on Thursday, we took advantage of panic sell-off and bought May/July $260 call calendar for $8.50.  With stock trading at $259 as of this writing.  I am placing the following conditional order:


Buy to close May $260 calls and sell to open June $260 calls for 5 cents above the mark if and when the bid on AAPL stock is above $260 before May expiration during the normal market hours.  If this order executes, I will communicate about the net credit received for doing this roll within the comment section below.


Good luck!

Market Digest Live 5-11-10

Analysts Upgrades/Downgrades 5-11-10

 Baxter downgraded at Argus
BAX was downgraded from Buy to Hold, Argus Research said. Company is seeing lower sales in the BioScience segment.

 Berry Petroleum initiated at JP Morgan
BRY initiated at JP Morgan. Initiated with an Overweight rating and $40.50 price target. Introduces 2010 EPS estimates of $4.96.

 Cheesecake Factory upgraded at Baird
CAKE was upgraded from Neutral to Outperform, Robert Baird said. $32 price target. Company is seeing better sales and traffic trends.

 Clearn Channel Outdoor upgraded at Piper Jaffray
CCO upgraded at Piper Jaffray. Rating raised to Neutral from Underweight. Price target raised to $12 from $6. 2010 EPS estimates lowered to -$0.11 from -$0.04.

 Dean Foods downgraded at UBS
DF was downgraded from Buy to Neutral, UBS said. $11 price target. Estimates also lowered, given pricing pressures in the milk market.

 Electronic Arts upgraded at MKM
ERTS was upgraded from Sell to Neutral, MKM Partners said. Company is turning the business around and seeing better sales from ints new titles.

 Legg Mason upgraded at BofA/Merrill
LM upgraded to Neutral from Underperform on cost savings, large buyback and better flows, Bank of America/Merrill Lynch said. Price target maintained at $31. 

 Nektar Therapeutics downgraded at Barclays
NKTR downgraded to Equal Weight from Overweight on valuation, Barclays said. Maintain $14 price target. 

 MetroPCS upgraded at Deutsche
PCS was upgraded from Hold to Buy, Deutsche Bank said. $14 price target. New plans should drive subscriber growth.

 Petsmart rated new Buy at Jefferies
PETM was initiated with a Buy rating, Jefferies said. $39 price target. Company should benefit from a resurgence in discretionary spending.

 Primerica rated new Neutral at UBS
PRI was initiated with a Neutral rating, UBS said. $27 price target. Company can deliver double-digit earnings growth by 2012, but faces compliance issues.

 Red Hat upgraded at Jefferies
RHT was upgraded from Hold to Buy, Jefferies said. $35 price target. Company is seeing a rebound in server shipments and better pricing.

 SS&C Technologies rated new Buy at Deutsche
SSNC was initiated with a Buy rating, Deutsche Bank said. $19 price target. Industry trends are improving and organic growth could accelerate.

 St Jude Medical upgraded at Piper Jaffray
STJ upgraded at Piper Jaffray. Rating raised to Overweight from Neutral. Maintains $44 price target and 2010 EPS estimates of $2.84.

 Talbots initiated at Barclays
TLB initiated with an Overweight rating and $23 price target. Sales are recovering broadly and the TLB story is just getting started, Barclays said. 

 Tyson Foods estimates increased at Morgan Stanley
TSN estimates were raised through 2011, Morgan Stanley said. Protein market is improving and the company is seeing better operating efficiency. Equal-weight rating.

 Tyson Foods downgraded at Credit Suisse
TSN downgraded to Neutral from Outperform. Valuation call. Price target lowered to $21 from $23. 

 Apple estimates, target raised at Kaufman

Shares of AAPL now seen reaching $320, according to Kaufman Bros. Estimates also increased, given higher expected Mac and iPad sales. Buy rating.

 Arena Resources estimates raised at UBS
ARNA estimates were increased through 2011, UBS said. Company is seeing an improvement in production. Buy rating and $40 price target.

 BioMed Realty numbers boosted at Credit Suisse
BMR price target lifted by a dollar to $17 on solid 1Q10 earnings, Credit Suisse said. Estimates raised through 2012. Maintain Neutral rating. 

 Boyd Gaming estimates, target raised at Goldman
Shares of BYD now seen reaching $12, according to Goldman Sachs said. Estimates also increased, as the company is seeing better results in Las Vegas. Neutral rating.

 Chesapeake Energy estimates lowered at Goldman
CHK estimates were cut through 2012, Goldman Sachs said. Asset sales and higher share count will hurt profits. Neutral rating and $30 price target.

 Coach estimates lowered at Goldman
COH estimates were cut through 2012, Goldman Sachs said. Company has exposure to the lower Yen. Neutral rating.

 Discovery Communications target upped at Morgan Stanley
DISCA target was boosted to $42, Morgan Stanley said. Company can deliver organic growth and is buying back stock. Equal-weight rating and $42 price target.

 Dish Network estimates boosted at Goldman
DISH estimates were upped through 2012, according to Goldman Sachs. Company is seeing higher subscriber growth. Sell rating and $18 price target.

 Fluor estimates reduced at UBS
FLR estimates were cut through 2011, UBS said. Company reported a lower backlog this quarter. Buy rating and $60 price target.

 Fluor target, estimates tweaked at Barclays
FLR price target lowered a dollar to $58 on mixed 1Q10 results, Barclays said. 2010 and 2011 EPS estimates trimmed to $2.85 and $3.20, respectively. 

 FMC estimates, target upped at UBS
FMC estimates were boosted through 2011, UBS said. Soda Ash market is gaining momentum. Buy rating and new $73 price target.

 Quicksilver Resources estimates increased at UBS
KWK estimates were raised through 2011, UBS said. Company is realizing higher prices and spending less on CapEx. Buy rating and $16 price target.

 Legg Mason target, estimates higher at Citi
LM price target increased to $33.50 from $29.50 to reflect cost-reductions and share repurchases, Citigroup said. Estimates lifted through 2012. Maintain Hold rating. 

 Legg Mason estimates increased at FBR
LM estimates were raised through 2012, FBR Capital Markets said. Buybacks should offset restructuring costs. Market Perform rating and $33 price target.

 K12 price target higher at Credit Suisse
LRN price target raised by a dollar to $21 on strong 3Q10 results, Credit Suisse said. Estimates increased through 2012. Maintain Neutral rating. 

 Marathon Oil estimate raised at Barclays
MRO 2010 EPS estimates jumped to $3.10, 2011 held at $4.30. Oil discovered in the Flying Dutchman area, Barclays said. Maintain Equal Weight rating and $34 price target. 

 Nuance Communications numbers boosted at FBR
Shares of NUAN now seen reaching $21, according to FBR Capital Markets. Estimates also upped, as the company is posting double-digit organic growth. Outperform rating.

 Priceline.com price target cut at BofA/Merrill
PCLN price target lowered to $270 from $300 on mixed 1Q10 results, Bank of America/Merrill Lynch said. Estimates lowered through 2011. Reiterate Buy rating. 

 Priceline.com numbers lowered at Goldman
Shares of PCLN now seen reaching $260, according to Goldman Sachs. Estimates also cut, given the weaker Euro and travel delays from the volcanic ash. Neutral rating.

 Philip Morris estimates lowered at Morgan Stanley
PM estimates were reduced through 2012, according to Morgan Stanley. Company has significant exposure to Europe. Overweight rating and $57 price target.

 Ralph Lauren numbers cut at Goldman
Shares of RL now seen reaching $101, according to Goldman Sachs. Estimates also reduced, given the company's currency exposure in Europe. Buy rating.

 Charles Schwab estimates reduced at Morgan Stanley
SCHW estimates were cut through 2011, Morgan Stanley said. Rate hikes will likely came later than expected. Overweight rating and $21 price target.

 Scripps Networks target raised at Morgan Stanley
Shares of SNI now seen reaching $52, according to Morgan Stanley. Company is seeing better rating and should benefit from an advertising recovery. Equal-weight rating.

 Tiffany estimates, target reduced at Goldman
TIF estimates were cut through 2012, Goldman Sachs said. Company has heavy exposure to Asia and Europe. Neutral rating and new $52 price target.

 TJX Companies estimates lowered at Goldman
TJX estimates were reduced through 2012, according to Goldman Sachs. Company is being hurt by the weaker Pound and Euro. Buy rating.

 Wal-Mart estimates cut at Goldman
WMT estimates were reduced through 2012, Goldman Sachs said. Company seeing impact from the weaker Pound and Yen. Buy rating.

 Watson Pharmaceuticals estimates boosted at UBS
WPI estimates were upped through 2011, according to UBS. Company has a strong pipeline on both sides of the business. Neutral rating and $43 price target.