OptionsNews reports on Better Than Expected Earnings for Dell Inc.

OptionsNews on ONN.tv for May 30, 2008

OptionsNews, the daily news program on www.onn.tv, today reported on the following companies:

Thursday’s option volume for indexes and single stocks registered just over 12 million contracts, lower than the year to date average of 14 million contracts and much higher than Wednesday’s volume of over 10 million contracts. The CBOE volatility index, also known as the VIX, ended the day at 18.14, down nearly 5% from Wednesday’s close of 19.07.

Markets look to open higher today after Dell reported much better than expected earnings after the close yesterday. Dell’s stock jumped nearly 10 percent in late trading after the market. Strong sales of notebook computers and growth in their Asia markets are credited for much of the good news. Shipments of notebooks were up 43 percent last quarter from a year ago, and sales in Asia were up 19% from the same period last year. These factors helped offset weaker US sales and boosted revenues to 38 cents a share. Analysts were looking for 34 cents a share. The stock was trading at $21.81 at the close of regular trading yesterday, but jumped to $23.97 in late trading. When we went home last night, the Dell June 22 straddle closed at $1.69, so the move in the stock so far in the pre-market is already 20 to 30 cents more than expected.

Lions Gate Entertainment, the studio that brought you “Dirty Dancing,” “Reservoir Dogs” and the “Saw” franchise, is posting earnings after the close today. Expectations seem high with consensus estimates at 39 cents a share, which would be a vast improvement from last year’s 19 cents a share in the same quarter. The stock closed yesterday at $9.85. Historically, the stock doesn’t move more than 4% on earnings. The June 10 straddle closed today at 56 cents, which shows that traders expect the stock to trade in a range of $9.44 and $10.56 between now and expiration on June 20.

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Ed McDaries, 312-362-2548
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