Today’s tickers: RIMM, ULBI, NABI & CX
Strong corporate earnings helped fuel the S&P 500 Index’s more than 30% rally since the end of last summer up to its highest point at 1370 at the start of May. A number of companies are scheduled to report earnings today, including beleaguered Blackberry maker Research In Motion Ltd. Will another spate of potentially strong corporate results inject renewed confidence into the market? Or, will earnings disappoint this quarter as companies struggle with higher energy and commodity prices? Even positive earnings surprises may not be enough to spur the return of risk appetite as less than palatable reports regarding the ongoing European debt crisis push global equities lower and leave investors with a sour taste in their mouths. Domestically, a gain in housing starts and building permits in May as well as a decline in jobless claims last week, give the market some good news to pocket today following Wednesday’s pullback.
RIMM – Research In Motion Ltd. – Options activity on the maker of Blackberry smartphones and PlayBook tablets suggests investors are harboring mixed opinions regarding the direction RIMM’s shares are likely to take following the company’s first-quarter earnings report after U.S. markets have closed for the day. Shares are off their highs of the day, but remain positive in early-afternoon trade. The stock currently trades 0.50% higher on the session at $35.35 just before 12:45pm on the East Coast. Options volume is pushing 110,000 contracts, with investors paying roughly equal attention to call and put options. Trading traffic is heaviest in options with only one trading day remaining to expiration. It looks like some investors are positioning for disappointment, with the majority of the June $32.5 strike puts trading purchased for an average premium of $0.54 apiece. June $30 strike puts…
