Business

Stocks discussed on Jim Cramer's Stop Trading! TV Segment, Friday November 20.

Apple (AAPL), Dell (DELL), Hewlett-Packard (HPQ), Warner Chilcott (WCRX), Procter&Gamble (PG), J.M Smucker (SJM), Sonoma (WSM), Tiffany (TIF), Ralph Lauren (RL)

Weston, Nov 20 (FlowTrades.com) – The majority of stocks fell for the week, with only the Dow posting a gain after surging to new highs on better than expected economic news overseas and a pledge by the APEC to maintain economic stimulus measures. The Dollar rebounded from a 15-month low against the euro, sending . Read More --

Dell chief Michael Dell is projecting a Windows 7 upgrade cycle that could put PC growth “well into the teens.” What’s unclear is whether Dell will be able to grab a bigger share of the revenue pie or be outmaneuvered by rivals like HP (HPQ) and Acer.

Following the company’s disappointing quarter, Dell executives said the timing of the Windows 7 launch hurt revenue and earnings. That’s why Dell’s third quarter results fell short of expectations.

D.R. Horton (NYSE: DHI) had a really bad trading session today in which it lost 15.35%. The home builder's foundations were shaken after it posted bad earnings report. It had a huge volume of $35.88M in comparison to its average volume of $8.37M.

Seahawk Drilling, Inc. (NASDAQ:HAWK) declined 14.35% to $22.57. It had a volume of $1.21M.

Novavax, Inc. (NASDAQ: NVAX) fell 13% at $3.28 after announcement that a price for its public offering of 6.8 million common shares is $3.30 each.

After moving sideways for a while Ruth's Hospitality Group, Inc. (NASDAQ: RUTH) dropped 12.04% to $2.41. RUTH had a volume of $2.23M and its market capitalization is $58.26.

Investors reacted badly on the ADC Telecommunications' (NASDAQ: ADCT) earnings report. ADC Telecommunications (ADCT) posted a loss of 20 cents per share and its stock fell 10.99% to $5.91.

Dell Inc. (NASDAQ: DELL) posted disappointing results and dropped 9.96%. DELL also dragged down other stocks in the tech sector.

Brian Stutland of Stutland Equities said on CNBC's Fast Money that investors should look at Microsoft (NASDAQ: MSFT), Oracle (NASDAQ: ORCL) and Yahoo! (NASDAQ: YHOO), the companies that were sold on Dell's (NASDAQ: DELL) weakness.

Stutland believes that these stocks were oversold and sees the opportunity to pick them up, but only at the short term. He sees Microsoft (MSFT) at $30, Oracle (ORCL) at $23 and Yahoo! (YHOO) at $16.

MSFT closed at $29.62 and ORCL finished at $22.34. YHOO dropped 1.57% today at $15.38.

The OptionMonster.com co-founder Jon Najarian said on CNBC's Fast Money that Hewlett-Packard (NYSE: HPQ) is going up. He mentioned Dell's (NASDAQ: DELL) impact on the tech sector today, and reminded investors that what is bad for Dell (DELL) is good for Hewlett-Packard (HPQ).

Hewlett-Packard (HPQ) gained 0.44% today, while DELL dropped 9.96%.

Today’s tickers: WFC, IYT, RYL, YHOO, XLE, MU, ADCT, KBH, DELL, NE & GPS

WFC - Wells Fargo & Co. – Shares of the financial holding company surrendered 1.5% today to stand at $27.88. One investor initiated a sold straddle on WFC in the April 2010 contract. The trader sold 10,000 calls at the April 32 strike for 1.59 apiece in conjunction with the sale of 10,000 now in-the-money puts at the same strike for 5.81 each. The gross premium on the transaction amounts to 7.40 per contract. The investor will retain the full premium if shares settle at $32.00 by expiration. The premium received acts as a buffer against losses in the event that shares swing in either direction away from the $32.00-level. However, the trader will accumulate losses if shares breach the upper breakeven price of $39.40, or if shares decline beneath the lower breakeven point at $24.60, by expiration in April.

IYT - iShares Dow Jones Transportation Average Index ETF – The exchange-traded fund, which measures the performance of the transportation sector of the U.S. equity market, appeared on our ‘hot by options volume’ market scanner this afternoon after one investor initiated a bearish put play. Shares of the fund moved 0.5% lower to $70.53 during the session. The trader established a put spread by purchasing 5,000 puts at the December 70 strike for 1.80 each, and by selling the same number of puts at the lower December 65 strike for 40 cents apiece. The net cost of the trade amounts to 1.40 per contract and provides downside protection beneath the breakeven price of $68.60 down to $65.00 through December’s expiration.

RYL - The Ryland Group, Inc. – Shares of homebuilder and mortgage-finance company, Ryland Group, declined nearly 4% this afternoon to stand at $18.86. Investors exchanging options on the stock today spread pessimistic sentiment through to expiration December. Traders sold 10,000 calls at the December 19 strike for an average premium of 1.10 apiece. The full 1.10 premium pocketed by investors is retained in full as long as shares of RYL remain below $19.00 through expiration day. Call-sellers do not seem to expect that shares of Ryland will recover before the start of 2010.

YHOO - Yahoo!, Inc. – We observed two different option strategies in play on Yahoo this afternoon. A large-volume sold strangle in the January 2011 contract suggests shares are likely to remain stagnant through expiration. The transaction involved the sale…

4:08 PM, Nov 20, 2009 --

• DJIA down 14.28 (0.14%) to 10,318.16.
• S&P 500 down 3.52 (0.32%) to 1,091.38.
• Nasdaq down 10.78 (0.50%) to 2,146.04.

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