Mike Khouw Sees Unusual Options Activity In The Goodyear Tire & Rubber Company

Related GT Benzinga's M&A Chatter for Tuesday October 28, 2014 Deutsche Bank Assumes Cautious Tone Over Auto Sector Heading Into Earnings Auto Parts Makers Drive Higher (Fox Business)

CNBC Options Action's Mike Khouw said on the show that he noticed unusually high call options trading volume in The Goodyear Tire & Rubber Company (NASDAQ: GT) on Tuesday. More than 6 times daily average call options volume was traded and the options market is implying a 7 percent move on earnings.

Traders were buying heavily the January 23 call options for $1, which sets the breakeven for this trade at $24. The Goodyear Tire & Rubber Company closed the session at $21.91 with an increase in price of 6.31 percent and for the trade to be profitable the stock has to jump additional 9.5 percent.

Khouw added that crude oil makes around two-thirds of the company's raw materials so lower oil prices could be a big positive for The Goodyear Tire & Rubber Company.

Posted-In: Mike Khouw Options ActionCNBC Options Markets Media

© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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How Much Social Security Benefits Will Rise in 2015

Are Social Security benefits going up next year?

Yes, slightly. Social Security beneficiaries will receive a 1.7% cost-of-living increase in 2015, boosting the average monthly benefit for retired workers from $1,306 to $1,328. The maximum Social Security benefit for a worker retiring at full retirement age is increasing from $2,642 per month in 2014 to $2,663 per month in 2015. Full retirement age is 66 if you were born from 1943 to 1954 and gradually rises to 67 if you were born after that (see Social Security's Full Retirement Age chart).

SEE ALSO: 10 Things You Must Know About Social Security

If you elected to take Social Security before reaching full retirement age and you're still working, you can earn a bit more in 2015 before your benefits are affected -- the limit rises from $15,480 per year in 2014 to $15,720 in 2015. If you earn more than that, one dollar in benefits will be withheld for every $2 in earnings above the limit. If you reach full retirement age in 2015, you can earn up to $41,880 (up from $41,400 in 2014) before your benefits are affected. One dollar in benefits will be withheld for every $3 in earnings above that amount. But that limit applies only until the month you reach full retirement age. See The Social Security Catch-22 for more information about this calculation and how the law is designed to compensate you for the reduction by paying you higher benefits later.

Despite the hike in Social Security benefits, Medicare Part B premiums are not rising. See What You'll Pay for Medicare in 2015 for more information about Medicare premiums. For workers of any age, the maximum taxable earnings subject to Social Security taxes rises from $117,000 to $118,500 in 2015 (there's no limit on the amount of income subject to Medicare taxes).

Got a question? Ask Kim at askkim@kiplinger.com.

5 Money Moves to Make by Year's End

Source: Flickr user Alexander Boden.

Deadlines get a bad rap. People dread them, shirk them, and skirt them. But deadlines can also be your friend, prompting you to get things done so you can later kick your feet up with a clear conscience.

You know all about the obvious financial deadlines -- pay this bill by the end of the month, file your taxes by April 15, and so on. But there are some less obvious financial tasks that merit a deadline, and the end of the year is a logical focus for some of these tasks.

Here are five things to make sure you do before the end of this year.

1. Eliminate checking account fees
According to the latest MoneyRates.com Bank Fees Survey, 2014 saw a continued disappearance of free checking accounts. Consider them an endangered species -- but not yet an extinct one. Finding one of these rare creatures can save you over $150 a year, so if you're paying checking account fees, start searching for a free checking account now.

2. Boost your retirement fund contributions
If you contribute to an employer-sponsored plan, you have two reasons for boosting contributions before year-end. One is to boost your tax deduction for 2014, and the reason is that annual contributions to these plans are capped. If you have been meaning to ramp up your contributions, there is still time to get a higher amount in for 2014 and then continue these higher contributions in 2015. Plus, if you are over age 50, you can make an additional "catch-up" contributions in 2014.

3. Run some numbers on a refinancing
The economy seems to be at a crossover point: Growth has improved enough for housing values to rise, while current mortgage rates are still relatively low. That has created new refinancing opportunities for previously underwater home owners -- but do not expect that combination of factors to last.

4. Opt out of overdraft protection
It's a ruthless dynamic: As more and more customers opt out of overdraft protection, banks keep raising overdraft fees to make up for the lost revenue. Therefore the longer you stay in overdraft protection, the more this burden will fall on your shoulders.

5. Shop for savings account rates
Interest rates on savings accounts have yet to improve, but Federal Reserve policy is going through a transition that could eventually lead to higher rates. Banks that have established themselves as rate leaders now are likely to lead the movement of rates upward, so why not get at the head of the parade?

Don't let important financial decisions become New Year's resolutions. Instead, get a jump on your financial obligations by taking care of them before the end of this year.

This article originally appeared on MoneyRates.com.

Bank of America + Apple? This device makes it possible.
Apple recently recruited a secret-development "dream team" to guarantee its newest smart device was kept hidden from the public for as long as possible. But the secret is out, and some early viewers are claiming its destined to change everything from banking to health care. In fact, ABI Research predicts 485 million of this type of device will be sold per year. But one small company makes Apple's gadget possible. And its stock price has nearly unlimited room to run for early in-the-know investors. To be one of them and see Apple's newest smart gizmo, just click here! 

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NYMEX Trader Says Oil Prices Could Fall to $76 a Barrel on Glut

 

NEW YORK (TheStreet) -- West Texas Intermediate crude oil popped $2 per barrel in early Thursday trading, as investors grew optimistic that Saudi Arabia shipped less oil supply in the month of September. 

But the rally seems likely to be short-lived, according to Spartan Commodity Partners' Alan Harry. 

Must Read: Warren Buffett's Top 10 Dividend Stocks He explained to TheStreet's Jill Malandrino that as long as WTI crude oil stays below $82.50 per barrel, he remains a seller of the commodity. So far, the main issue -- which is oversupply -- is still present in the oil market.  It doesn't help that the global economy, and in particular the European economy, isn't strong, and therefore, oil demand is lower.  With the additional oil production coming from North America and OPEC's -- the Organization of the Petroleum Exporting Countries -- refusal to slow oil output, the market's supply is simply overwhelming demand, he explained. 
Energy Select Sector SPDR XLE data by YCharts

WTI crude oil traded up to $93.82 at the beginning of the month, but plummeted to $79.10 in just two weeks. It has since rebounded somewhat, but the Energy Select Sector SPDR ETF (XLE) has still suffered as a result, falling more than 15% since its June highs.   If some of the oil producing countries were to curb production or if the global economy were to pick up steam, then maybe a bull case could be made for crude, he said.  "But too much supply is the overlying issue," Harry concluded, adding that WTI crude oil seems likely to decline to $76 per barrel.  Must Read: 12 Stocks Warren Buffett Loves in 2014 -- Written by Bret Kenwell  Follow @BretKenwell  

How Will ACE (ACE) Stock React to Its Earnings Beat in After-Hours Trading Today?

NEW YORK (TheStreet) -- ACE  (ACE) reported third quarter earnings and revenue ahead of analysts expectations after the closing bell on Tuesday.

The Swiss global insurance company reported third quarter earnings of $785 million, or $2.64 on an adjusted per diluted share basis, a 6% increase over the same period last year, and well ahead of analysts $2.36 per diluted share forecast.

Must Read: Warren Buffett's 25 Favorite Stocks

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

The company also posted revenue of $5.35 billion, ahead of analysts $4.3 billion estimates, with after-tax operating income of $891 million.

The company's shares have risen 3% since the beginning of the year but are down 0.66% to $105.51 in after-hours trading today. TheStreet Ratings team rates ACE LTD as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation: "We rate ACE LTD (ACE) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income." Highlights from the analysis by TheStreet Ratings Team goes as follows: You can view the full analysis from the report here: ACE Ratings Report ACE data by YCharts

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Weak Sales Take a Toll on McDonald's Profit

David Paul Morris/Bloomberg via Getty Images NEW YORK -- McDonald's said that its profit slipped in the first quarter as global sales remained weak for the world's biggest hamburger chain. The Oak Brook, Ill.-based company said global sales edged up 0.5 percent at established restaurants. In the flagship U.S. market, the figure fell 1.7 percent as customer traffic declined. The company cited "challenging industry dynamics and severe winter weather." It said global sales for April are expected to be modestly positive. April would reflect the first full month that Taco Bell has offered its national breakfast menu, which it has pitched a challenge to McDonald's dominance in the morning hours. The decline in sales and customer traffic in the U.S. reflects the struggles McDonald's (MCD) is facing as eating habits change and competition intensifies. After a decade of growth, annual sales at established U.S. locations fell for the first time last year. The continued decline in the U.S. in the first quarter of 2014 is in stark contrast to Chipotle Mexican Grill (CMG), which last week said sales at established locations rose 13.4 percent. McDonald's CEO Don Thompson has noted in the past there seemed to be a split in the fast-food industry, with people who have more spending money heading off the chains that charge more. He said McDonald's will focus on underscoring value for its more cash-strapped customers, but the chain is also offering more premium offerings such as its new Bacon Clubhouse Burger. In a statement Tuesday, Thompson said McDonald's is focusing "creating the best overall experience for our customers." To adapt to shifting trends, for instance, the chain has been rolling out new prep tables in its U.S. kitchens that can hold more sauces and toppings. The idea is to eventually offer greater customization on its menu while keeping orders easy to assemble for workers. Speed and accuracy have been an issue for McDonald's as it stepped up the pace of new menu items in the past year. In Europe, McDonald's said sales rose 1.4 percent at established locations in the latest quarter. The figure rose 0.8 percent in the unit that encompasses Asia, the Middle East and Africa, despite a decline in traffic. For the quarter ended March 31, net income fell to $1.2 billion, or $1.21 a share. Analysts expected $1.24 a share. A year ago, the company earned $1.27 billion, or $1.26 a share. McDonald's noted that the year-ago results were boosted by income tax benefits. Revenue edged up to $6.7 billion, but was shy of the $6.71 billion Wall Street expected.

A Good Off-the-Radar Ebola Bet (LAKE, TKMR, PSID)

Did you miss the initial Ebola rally, led by Tekmira Pharmaceuticals Corporation (NASDAQ:TKMR) and Lakeland Industries, Inc. (NASDAQ:LAKE)? Don't sweat it - you're not alone. And if you were thinking about diving into either of those names now, forget about it. Both LAKE and TKMR are overbought, and are guaranteed to be volatile (read "unpredictable") in the future. It's not too late to get in on Ebola-mania, however.

Ever heard of PositiveID Corp. (OTCMKTS:PSID)? Most people haven't, so don't worry if it's an unfamiliar name. What's surprising is that PSID is still a little unfamiliar to the masses at this stage of the Ebola game. It's not just a worry that we only have to worry about domestically. It's now spreading within the United States, which is a whole different ball game than preventing it from getting to the United States. This presents a real risk of pandemic spreading within our borders. PositiveID can help.

As for what PositiveID Corp. does, it's not even comparable to Tekmira Pharmaceuticals or Lakeland Industries. LAKE makes surgical masks and gowns worn by those treating at-risk patients, while TKMR makes drugs, and holds the honor of being the first to produce a pharmacological treatment that successfully treated someone who had contracted Ebola this particular time around. PSID manufactures handheld equipment that can detect the presence of several viruses, including Ebola.

The need for such a device was clear before October, when the contagion quickened. It just wasn't appreciated. Almost needless to say now, a handheld Ebola detector is worth its weight in gold to the workers who may be exposed to it in a field setting. Although PositiveID Corp. hasn't even hinted at increased interest in its wares, one has to assume interest is growing, and funding is being secured.

Be that as it may, the real story here - right now - isn't the underlying technology. It's the stock, and more specifically, the shape of the PSID chart. It suggests a long-brewing breakout is being unleashed.

The underlying theme here is, "second wind." PositiveID shares started a breakout a week ago with a thrust above all of its key moving averages and above a long-standing resistance line. That effort faded about as quickly as it started, however, and sent shares almost back to where they started. The bulls weren't done with PSID yet, though, and pushed up and off a couple of key short-term moving average lines to renew the effort. And this time, the pace seems to be more sustainable.

To really appreciate how well this chart broke out of a bearish groove and moves into a bullish groove, though, one has to take a step back and look at the weekly chart. It's in this timeframe we can see how big of a deal the break past a major resistance line is; there's nothing else to get in its way from here.

None of this is to say Tekmira Pharmaceuticals Corporation or Lakeland Industries, Inc. would be poor trades from here. It's just to say that, from where all three stocks sit, TKMR and LAKE are coin tosses. PSID at least has a calculable, compelling risk/reward ratio. 

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Housing Construction Increases In September

Housing starts rose 6.3% last month, primarily due to construction of multi-family units, according to this morning's update from the US Census Bureau. The single-family slice of starts, by contrast, rose just 1.1% last month vs. August. The multi-family growth bias looks set to persist, based on the September data for newly issued housing permits. New permits overall rose a tepid 1.7% last month as single-family permits retreated 0.5%; fresh authorization to build multi units of five or more, however, jumped 7.0% in September vs. August. It's fair to say that the housing market's growth rate has slowed in general and that's not likely to change anytime soon. But the key point in today's report remains upbeat, albeit moderately so via a gentle tailwind that's blowing in residential construction activity.

[Related -A Pair Of Bullish Surprises: Jobless Claims & Industrial Production]

The trend doesn't look impressive, at least not by recent standards. But it's clear that the bias for expansion remains intact. The year-over-year pace for housing starts accelerated last month to 17.8%–more than double the annual rate of increase through August. But the yearly gain for permits decelerated to a sluggish 2.5% rise, which suggests that the growth in starts will moderate in the months ahead.

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The fact that housing is still expanding is the main takeaway in today's release. It's been clear for some time that the recovery in this crucial corner of the economy has been trending lower. The latest numbers suggest a degree of resiliency, however. The upbeat trend is even more encouraging in the wake of yesterday's surprisingly strong numbers for initial jobless claims and industrial production.

"The trend in starts continues to be up," the chief economist at Nationwide Insurance tells Bloomberg. "As the job market's gotten better, as the mortgage rates have remained low and in the last week gone even lower, the underlying demand for single-family homes has improved," according to David Berson.

It remains to be seen if the ill winds blowing in from Europe will take a sizable bite out of the US expansion in the weeks and months ahead. But based on this the latest numbers, it's clear that the American economy remains in a moderate growth mode. As a result, it's still reasonable to argue that business cycle risk for the US remains low.

$55 billion pharma merger could fall victim to new Obama tax rules

  Are tax inversions 'unpatriotic?' HONG KONG (CNNMoney) American drug company AbbVie's $55 billion merger with U.K. rival Shire may be the first casualty of the Obama Administration's crackdown on inversions used to reduce the tax bills of U.S. firms.

Chicago-based AbbVie said Tuesday that its board of directors is reconsidering its recommendation that shareholders adopt the merger with Shire.

The company's board will meet Oct. 20 to examine the potential financial impact of new regulations announced last month by the U.S. Treasury.

In response, Shire issued a statement that encouraged AbbVie to proceed with the merger, and noted that the drugmaker is required to pay Shire more than $1.6 billion if the deal falls apart. Shire shares plummeted 28% at the start of London trading.

The merger agreement, announced in July, would have seen AbbVie cut its effective tax rate to about 13% in 2016 from 26%.

U.S. companies can't simply relocate to nations with lower tax rates to avoid U.S. corporate taxes. To get the lower foreign tax rate, they must use a process known as "inversion," in which a merger leads to a foreign partner owning more than 20% of the stock in the combined company.

Inversions have been all the rage lately, with companies including Burger King (BKW) seeking to execute the maneuver.

The Treasury's "first, targeted steps" are designed to make inversions less attractive. The rules target loopholes, including one tactic to move U.S. earnings abroad by making a loan to its foreign parent company in efforts to avoid taxes. Under the new regulations, those loans will be treated as U.S. property and will be taxable in many instances.

Critics say the real problem is the corporate tax code, which hasn't kept pace with the transformation of global business over the past few decades.

Marketers Are Using Your Online Photos to Figure You Out

Bill Smith/NHLI via Getty ImagesCute pic! (And now that you've uploaded it, a whole bunch of marketing firms know you're a hockey fan.) Ever taken a selfie? If so, chances are you expected to share it with an audience of friends on Facebook (FB) or Flickr (YHOO), or maybe a small cadre of followers on Twitter (TWTR). But if your images are public, companies are peering over your virtual shoulder, too, hoping to see what they can learn about your relationship to their products, according to the Wall Street Journal. Digital marketing companies have taken to scanning through massive numbers of images on social media sites, including photo-sharing services like Instagram and Flickr, where many users allow anyone to see what they post. They're looking for company logos, wherever they might find them. Such businesses scan those photos using software that identifies logos on a hat or jacket or can of soda, for example. If someone's holding a can of Coke in your picture, or wearing Philadelphia Eagles gear, that data becomes part of the profile they're building on you. Then, some sell the information they've gleaned to marketers who want to target advertising to people they think might be most receptive to it. Others keep copies of all the images they find and then sell broader data about trending interests.

FedEx: All Set for a Smooth Takeoff

While, e-commerce has sabotaged the high revenue times of the brick-and-mortar retailers and left them with squeezed margins, it has done well for another industry. I am talking about the supply chain and cargo industry, which has gained from this surge in e-commerce as it has expanded reach and brought affordability to many households. One of the companies in this industry that has benefitted by this trend and has been on the high horse since the beginning of the year, is FedEx (FDX). This betterment in operations and increasing confidence of investors is evidenced by the 30% surge in stock price over the last 12 months. The company, founded in 1971 and based in Memphis, Tennessee, had a great earnings report recently and, going into the Christmas season, would appear to be a nice play for investors.

Solid quarter

FedEx, in its last reported quarter, posted an increase in both sales and operating margins in all its three segments -- Express, Ground, and Freight. The company's Freight segment reported a notable growth with its revenue surging by 13% and income by 7%, as its average daily shipments in its "LTL," or "less-than-truckload" category, grew remarkably. FedEx's largest division, its Express segment, which contributes about two-fifths of the company's total revenue, grew moderately by 4% both in terms of revenue and earnings. On overall terms as well, the company put up a good show by reporting a reasonable increase of 6% y-o-y in revenue to $11.7 billion, which also beat Street estimate of $11.4 billion.

The Ground segment of the company has become an indispensable and high-growth area for the company in the past quarters as it has grown over 56% in the last four years. The Ground segment accounts for half of the Express segment's revenue, but it generates a reasonably high operating margin. In the last reported quarter, the Ground segment's revenue grew 8%, with its operating margins increasing to 18.4%. Due to overall network expansion costs, the rise in the Ground segment's operating margin was somewhat neutralized, but the company expects this division to grow on a sustainable basis. Undeniably, Ground division is one of the biggest opportunities for FedEx. The Ground division's growth should help FedEx boost its companywide profit margin over time by driving a mix shift toward the most profitable part of its business.

Smart cost-cutting initiatives

Adept cost management is one of the things that is hard to efficiently execute but once done, it gives optimum results in terms of margin expansion. The CEO of FedEx, Mr Fred Smith, had announced his intent to make all three of the above-mentioned divisions, operating at double-digit margins. Well, FedEx has already embarked on a multiyear cost-cutting plan that is aimed to achieve $1.7 billion in profit improvement, in the Express division. Besides shedding jobs and improving technology that will help the giant carrier in streamlining staff and operations, the top area to cut costs will be aircraft replacement. As per reports, FedEx will retire 40 outdated MD-10s and replace them with a similar number of new Boeing 767s in the next four years. Each replacement is expected to boost operating profit by $10 million, thanks to lower fuel and maintenance costs. This fleet renewal program will lead to hundreds of millions of dollars in annual cost savings just a few years from now, helping return the Express division to double-digit margin territory.

E-commerce is booming

At the onset, I mentioned about the phenomenal growth in e-commerce that has lent strength to FedEx's operations. According to a survey by Forrester Research, e-commerce is estimated to grow from $263 billion in 2013 to $414 billion in 2018 in the U.S. alone, which interestingly represents just 11% of the total U.S. retail sales thereby, providing many lucrative opportunities in the future. Certain analysts have expressed scepticism about the fact that growing e-commerce chains might soon