Stock futures are lower, indicating another down day as consolidation persists near the 2009 highs for the major averages. Wall Street is unable to extend Thursday's robust rally. Consumer spending fell as expected last month, a reaction to the expiration of the cash for clunkers program that had boosted sales earlier. Oil and gold are lower.[More...]

MGIC Investment Corporation (MTG) is expected to release third quarter results on Oct 15. The Zacks Consensus Estimate for the company is a loss of $1.64 per share. The company’s financial results have been adversely impacted by increased delinquencies, which are occurring due to a weakened economy, increased unemployment and lower home prices. I t is [...]

(MTG) MGIC Investment Corporation’s Earnings Preview

Last week, Genworth Financial Inc. (GNW) announced that it completed the sale of Genworth Seguros Mexico S.A. de C.V. to HDI-Gerling International Holding AG. Genworth now intends to focus more on its core Lifestyle Protection Insurance and Mortgage Insurance businesses in Mexico. The transaction, which was valued at approximately $45 million, included the sale of automobile, [...]

(GNW) Genworth Financial Sells Non-Core Unit

Today’s tickers: RF, GNW, EEM, RHT, MRVL, CMCSA & LEAP

RF - Banking services firm, Regions Financial, jumped onto our ‘most active by options volume’ market scanner this afternoon after one investor exchanged 120,000 option contracts on the stock. The investor made bullish moves on RF despite the more than 3.5% decline in shares to $5.97. It appears the trader sold puts short 40,000 times at the May 6.0 strike for an average premium of 1.30 apiece, in order to finance the purchase of a bull call spread. The investor constructed the spread by buying 40,000 calls at the January 6.0 strike for one dollar each and simultaneously selling 40,000 calls at the higher January 10 strike for 12 pennies apiece. The trader receives a net credit of 42 cents per contract on the three-legged strategy. He retains the full credit of $1,680,000 as long as shares remain higher than $6.00 through expiration in May of 2010. However, additional profits are available if shares of Regions Financial rally by expiration in January. Maximum potential profits on the call spread amount to 4.0 per contract – or a total of $16,000,000 – if shares of RF surge 68% from the current price to $10.00 before the calls expire in January. – Regions Financial Corp. –

GNW - The financial security company experienced a more than 5.5% decline in shares to arrive at the current price of $11.28. Bearish investors active on GNW today exchanged more than 3.5 put options to every single call option in play on the stock. One investor took a long-term pessimistic stance by initiating a ratio calendar spread. The transaction involved the purchase of 10,000 puts at the December 10 strike for an average premium of 1.22 per contract, spread against the sale of 15,000 puts at the lower January 2011 7.5 strike for 1.70 each. The investor takes a credit on the trade because he received richer option premium on the sale of a greater number of puts set to expire in January 2011. The placement of this trade suggests the investor is bracing for potential declines in GNW through expiration in December. – Genworth Financial, Inc. –

EEM - Shares of the emerging markets exchange-traded fund have dipped 2.5% lower to $37.90, prompting one trader to establish a bearish risk reversal in the January contract. The trader targeted the January 38 strike to sell 12,000 just out-of-the-money calls for 2.65…

Here is a look at the top scorchers of the third quarter; a period where the S&P 500 gained 15% - it's best return since we were building the last stock market bubble in 2008. Who says history does not repeat itself?[More...]