Jim Cramer's Mad Money Review

Here are 7 options to watch for today. This list comes directly from the TradingMarkets Options Indicators page. The list is created using OptionVue options analysis software.
Most Underpriced Calls: These are the most under priced calls of all stocks in our database. While the Equities Explosion List finds groups of calls for individual equities that are under priced, this list finds the most under priced individual calls. Thus, the options listed here will tend to be more severely under priced.
Google June 510 Calls (NasdaqGS:GOOG - News). GOOG's PowerRating is 5.
Most Underpriced Puts: These are the most under priced puts of all stocks in our database. While the Equities Explosion List finds groups of puts for individual equities that are under priced, this list finds the most under priced individual puts. Thus, the options listed here will tend to be more severely under priced.
InterContinental Exchange June 130 Puts (NYSE:ICE - News). ICE's PowerRating is 6.
Most Overpriced Calls: These are the most overpriced calls of all stocks in our database. While the Equities Implosion List finds groups of calls for individual equities that are overpriced, this list finds the most overpriced individual calls. Thus, the options listed here will tend to be more severely overpriced.
Apple Inc. July 120 Calls (NasdaqGS:AAPL - News). AAPL's PowerRating is 6.
Most Overpriced Puts: These are the most overpriced puts of all stocks in our database. While the Equities Implosion List finds groups of puts for individual equities that are overpriced, this list finds the most overpriced individual puts. Thus, the options listed here will tend to be more severely overpriced.
Oil Services HOLDR July 150 Puts (AMEX:OIH - News). OIH's PowerRating is 6.
Stocks with Abnormal Call Volume: These are stocks which showed unusual call option volume not easily explained by arbitrage operations. The appearance of a stock on the Call Volume Alerts list suggests a possible takeover, extraordinarily good earnings report, or other news which may favorably affect the stock.
Nasdaq Stock Market (NasdaqGS:NDAQ - News). NDAQ's PowerRating is 3.
Micron Technology (NYSE:MU - News). MU's PowerRating is 4.
Stocks with Abnormal Put Volume: These are stocks which showed unusual put option volume not easily explained by arbitrage operations. The appearance of a stock on the Put Volume Alerts list suggests an extraordinarily negative earnings report, or other news which may negatively affect the stock.
None today
Abnormal Put/Call $ Volume: These stocks have the highest dollar put volume in relation to their call volume. These high ratios are indicative of extreme bearish sentiment in the underlying stock.
Lexmark International (NYSE:LXK - News). LXK's PowerRating is 5.
PowerRatings are courtesy of TradingMarkets.com

Labels: AAPL, GOOG, ICE, LXK, MU, NDAQ, OIH, Stock Options

Most Underpriced Calls: These are the most under priced calls of all stocks in our database. While the Equities Explosion List finds groups of calls for individual equities that are under priced, this list finds the most under priced individual calls. Thus, the options listed here will tend to be more severely under priced.
Google Inc. June 530 Calls (NasdaqGS:GOOG - News). GOOG's PowerRating is 5.
Most Underpriced Puts: These are the most under priced puts of all stocks in our database. While the Equities Explosion List finds groups of puts for individual equities that are under priced, this list finds the most under priced individual puts. Thus, the options listed here will tend to be more severely under priced.
Baidu.com June 80 Puts (NasdaqGM:BIDU - News). BIDU's PowerRating is 4.
Most Overpriced Calls: These are the most overpriced calls of all stocks in our database. While the Equities Implosion List finds groups of calls for individual equities that are overpriced, this list finds the most overpriced individual calls. Thus, the options listed here will tend to be more severely overpriced.
Dendreon May 15 Calls (NasdaqGM:DNDN - News). DNDN's PowerRating is 10.
Most Overpriced Puts: These are the most overpriced puts of all stocks in our database. While the Equities Implosion List finds groups of puts for individual equities that are overpriced, this list finds the most overpriced individual puts. Thus, the options listed here will tend to be more severely overpriced.
Oil Services HOLDRs May 145 Puts (AMEX:OIH - News). OIH's PowerRating is 5.
CBOT Holdings June 170 Puts (NYSE:BOT - News). BOT's PowerRating is 4.
Stocks with Abnormal Call Volume: These are stocks which showed unusual call option volume not easily explained by arbitrage operations. The appearance of a stock on the Call Volume Alerts list suggests a possible takeover, extraordinarily good earnings report, or other news which may favorably affect the stock.
Marsh & Mclennan Companies (NYSE:MMC - News). MMC's PowerRating is 5.
Stocks with Abnormal Put Volume: These are stocks which showed unusual put option volume not easily explained by arbitrage operations. The appearance of a stock on the Put Volume Alerts list suggests an extraordinarily negative earnings report, or other news which may negatively affect the stock.
None Today
Abnormal Put/Call $ Volume: These stocks have the highest dollar put volume in relation to their call volume. These high ratios are indicative of extreme bearish sentiment in the underlying stock.
Weyerhauser Co. (NYSE:WY - News). WY's PowerRating is 5.
PowerRatings are courtesy of TradingMarkets.com

Labels: BIDU, BOT, DNDN, GOOG, MMC, OIH, Stock Options, WY

Most Under Priced Calls: These are the most under priced calls of all stocks in our database. While the Equities Explosion List finds groups of calls for individual equities that are under priced, this list finds the most under priced individual calls. Thus, the options listed here will tend to be more severely under priced.
None Today
Most Under Priced Puts: These are the most under priced puts of all stocks in our database. While the Equities Explosion List finds groups of puts for individual equities that are under priced, this list finds the most under priced individual puts. Thus, the options listed here will tend to be more severely under priced.
Whole Foods Market Inc. Apr 45 Puts (NasdaqGS:WFMI - News). WFMI's PowerRating is 4.
Most Overpriced Calls: These are the most overpriced calls of all stocks in our database. While the Equities Implosion List finds groups of calls for individual equities that are overpriced, this list finds the most overpriced individual calls. Thus, the options listed here will tend to be more severely overpriced.
Apple Inc. May 95 Calls (NasdaqGS:AAPL - News). AAPL's PowerRating is 4.
Baidu.com May 115 Calls (NasdaqGM:BIDU - News). BIDU's PowerRating is 2.
Most Overpriced Puts: These are the most overpriced puts of all stocks in our database. While the Equities Implosion List finds groups of puts for individual equities that are overpriced, this list finds the most overpriced individual puts. Thus, the options listed here will tend to be more severely overpriced.
Oil Services HOLDRs May 135 Puts (AMEX:OIH - News). GOOG's PowerRating is 5.
Stocks with Abnormal Call Volume: These are stocks which showed unusual call option volume not easily explained by arbitrage operations. The appearance of a stock on the Call Volume Alerts list suggests a possible takeover, extraordinarily good earnings report, or other news which may favorably affect the stock.
American Electric Power Co. (NYSE:AEP - News). AEPs PowerRating is 5.
Stocks with Abnormal Put Volume:These are stocks which showed unusual put option volume not easily explained by arbitrage operations. The appearance of a stock on the Put Volume Alerts list suggests an extraordinarily negative earnings report, or other news which may negatively affect the stock.
None Today
Abnormal Put/Call $ Volume: These stocks have the highest dollar put volume in relation to their call volume. These high ratios are indicative of extreme bearish sentiment in the underlying stock.
Lennar Inc. (NYSE:LEN - News). LEN's PowerRating is 5.
Network Appliance Inc. (NasdaqGS:NTAP - News). NTAP's PowerRating is 5.
PowerRatings are courtesy of TradingMarkets.com

Labels: AAPL, AEP, BIDU, Hot Options, LEN, NTAP, OIH, WFMI

Schlumberger (NYSE: SLB - News), GlobalSantaFe (NYSE: GSF - News) and Transocean (NYSE: RIG - News), Exxon (NYSE: XOM - News), Halliburton (NYSE: HAL - News), Southern Copper (NYSE: PCU - News), KBRUniversal Compression (NYSE: UCO - News), Oil Service Holdrs (AMEX: OIH - News)
Energy prices are going to keep going higher, and Cramer suggests taking a look at SLB, GSF and RIG which "have a great book of business" although they haven't had top notch performance. He adds that only deep water reserves are doing well, and oil is higher because it is hard to reach these sources. Cramer says that Exxon is cashing in on oil found when prices were lower, but not for much longer. Cramer's long-term view of natural gas and oil is that it is "inaccessible" and is becoming too expensive to find. "You can't expect oil to go back to $30, $40; and on the demand side you can't expect China and India to use less," Cramer said. "You have this great combination that's going to keep the equilibrium higher than it used to be." When Aaron Task mentioned that Exxon has forecasts for drilling in the $30 to $40 range, Cramer points out that this was the result of XOM's contract with Venezuelan President Hugo Chavez, and he added that if the company felt oil was coming down, it would not have negotiated "unfavorable contracts with dictators." Cramer discussed the fact that natural gas has never been "well stored" in the U.S. and is low when its warm and expensive when its cold. He adds that the reason Canada doesn't drill more is because of the "moronic approach" of the government which aims to protect a select companies. Cramer believes that natural gas is not finished and notes the good numbers from UCO and HAL. However, HAL's numbers will not help it, because many analysts are bullish on OIH and bearish on companies like HAL which are not takeover targets. While HAL has been shorted heavily, Cramer predicts that if the oil company makes an acquisition or improves its distribution through its spin-off,KBR "the shorts will then have huge, huge problems." Cramer suggests buying PCU, because hybrid batteries in cars use a "gigantic amount" of copper, and the metal will be in short supply for the long run. He adds that he likes PCU's yield.
Published by SeekingAlpha

Labels: GSF, HAL, Jim Cramer, OIH, PCU, RIG, SLB, UCO, XOM

Foreign Exchange: Companhia Vale do Rio Doce (NYSE: RIO - News), BHP Billiton (NYSE: BHP - News), Rio Tinto (NYSE: RTP - News)
Cramer sees solid growth potential in foreign stocks, especially since they free the investor from Fed obsession. He says that foreign stocks can safely comprise up to 20% of a porfolio, and that while emerging markets may be a rough ride, there is no reason to be afraid of them. Cramer likes Brazilian companies RIO, BHP and RTP with RIO heading the list because of its acquisition of Canadian-based Inco, giving RIO a "hammerlock" on the metal. Nickle is going up while most other commodities are sluggish, and Cramer says that RIO is an exception to his rule about Latin American companies and can be a keeper rather than merely a trade. He adds that RIO is "dirt cheap," and he sees "endless upgrades" on RIO's horizon.
Oil Services Holdrs (AMEX: OIH - News), Schlumberger (NYSE: SLB - News)
A fall in oil prices caused a decline for OIH along with the entire sector until SLB reported a "ridiculously good" quarter, raised its dividend by 40% and revived oil, even through prices kept going down, observed Cramer. SLB was able to "turn bears into buyers" by stating in its conference call that the need for oil service stock is strong in spite of the fall in oil prices, which will not return to the $30s and $40s. SLB added that it expects to see " consistent high growth through the end of the decade." Cramer declared that oil stocks are a buy on weakness, particularly foreign companies because he is concerned about domestic drilling.
Capital One Finance (NYSE: COF - News)
In spite of its worse-than-expected earnings guidance on Thurday, COF jumped from $73 to $79 on Friday, mainly because the number of delinquencies decreased, a factor which raised COF's multiple. Since delinquencies have been reduced, Cramer trusts COF's earnings, comments that the stock is cheapnow and is going to $100, and calls it a triple buy.
CEO Interview: Joel Moskowitz, Ceradyne (NASDAQ: CRDN - News)
Cramer asked Joel Moskowitz about the recent Friedman Billings' report that there would be a decreased demand for body armor. Moskowitz responded "We have more orders for armor going into 2007 than we've had in the history of the company." In addition, he expects additional orders for 2007 and 08 because of "extended conversations" with the US government. Cramer commented that he is adhering to his bull stance on CRDN which is a "moneymaker."
Published by SeekingAlpha

Labels: BHP, COF, CRDN, Jim Cramer, Mad Money, OIH, RIO, RTP, SLB

Rackable Systems (NASDAQ: RACK - News), Intel (NASDAQ: INTC - News), Hewlett-Packard (NYSE: HPQ - News), Microsoft (NASDAQ: MSFT - News), Cisco (NASDAQ: CSCO - News), Apple (NASDAQ: AAPL - News)
Cramer says that investors should be selling tech because seasonality is working against the sector, and that RACK's problem has more to do with the time of year than its component shortage and competition. Concerning Intel, Cramer explains its new chip will not reach a 90% to 95% acceptance rate this year, and since gross margins will not rise until then, Intel "cannot be owned" right now. However, the problems with RACK and Intel do not alter Cramer's prediction that tech will outperform in 2007. Cramer would buy HPQ because it will benefit from Microsoft's Vista. Cramer would also pick up Cisco down at $26 or $25 because of the incredible ramp in cable; "If you have a product cycle, I think you can ride out the seasonable weakness," Cramer said. Apple transcends seasonality because it is a "secular growth story and and a product cycle story." He would take advantage of any decline to buy Apple.
JP Morgan (NYSE: JPM - News), Capital One Financial (NYSE: COF - News)
Cramer is bullish on JP Morgan because of its credit card growth and added that COF is one of the most hated stocks, noting that there is a tremendous January $75 put to buy COF. If the company reports a lackluster quarter, the puts will act as a trampoline. Cramer says that it is worth investing in airlines again, and would take profits and buy them again.
UPS (NYSE: UPS - News), Procter & Gamble (NYSE: PG - News), Colgate (NYSE: CL - News), Kellogg (NYSE: K - News), General Mills (NYSE: GIS - News), Oil Service HOLDRs (AMEX: OIH - News), Caremark (NYSE: CMX - News), Rite Aid (NYSE: RAD - News), Comcast (NASDAQ: CMCSA - News), Time Warner (NYSE: TWX - News)
Cramer is bullish on UPS and likes rails, which are a buy on any decline because the trucking sector is suffering. He added that Goldman Sach's upgrade of PG was worth noting and, if it weren't for a strike, the stock could reach $67 or $69. He attributes the success of PG and CL to investor's desire to look for other soft goods that are not dependent on corn prices. However, since cereal is only 3% to 4% corn, Cramer thinks selling Kellogg and General Mills is premature. Concerning oil, Cramer thinks that OIH has been a reliable barometer for oil prices and is heading toward a bottom, but he hesitates to recommend it because it is an "easily manipulated index." Cramer would ring the register on Caremark, and of all the drugstores, he would own only RAD. Finally, Cramer predicted that Comcast is "headed dramatically higher" and said that, at $22, Time Warner is undervalued.
Published by SeekingAlpha

Labels: AAPL, CL, CMCSA, CMX, COF, CSCO, GIS, HPQ, INTC, Jim Cramer, JPM, K, MSFT, OIH, PG, RACK, RAD, TWX, UPS