Tuesday, May 22, 2007

Freemont (FMT) Surges 40% and a Quick Observation

Fremont soars on stake, loan unit sales

I've been watching Medtronic call options activity (I am long in this name) and more than 13,000 June 52.5 calls have traded today vs open interest of 9,500. More than 10,000 out of the money June 55 have traded as well, though volume has not exceeded open interest. So there appears to be a very confident call options crowd ahead of earnings tonight.

This morning Lazard said the company will like beat when it releases earnings this evening. However, yesterday Cowen alerted that MDT might lower '08 guidance. I've got 3 more hours to decided if I remain long.

Edit; OptionMonster reporting on their site, almost all the action in the 52.5 calls has been buys. ANother options pro in NY I talked mentioned takeover speculation and that bull spreads are being initiated. Interesting stuff. I;ve got to run out to Trader Joes... back later.

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