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TiVo (NASDAQ: TIVO - option chain) stock is falling today after the U.S. Court of Appeals granted the request of EchoStar (NASDAQ: SATS) to stay the contempt order imposed by the U.S. District Court pending the outcome of SATS's appeal. TIVO says it is confident that it will win the appeal.. If you think this stock won't be rising too far in the coming months, then it could be a good time to look at a bearish hedged play on TIVO.

This morning, TIVO opened at $9.13. So far today the stock has hit a low of $9.05 and a high of $9.79. As of 11:45, TIVO is trading at $9.22, down $1.55 (-14.4%). The chart for TIVO looks neutral and S&P gives TIVO a neutral 3 STARS (out of 5) hold ranking.

Sepracor (NASDAQ: SEPR) is recently down $2.89 to $15 in pre-open trading. SEPR announced that SEP-225289 failed to meet its primary endpoint in a pivotal Phase 2 trial in patients with major depressive disorder. SEPR also announced the FDA has put two Lunesta pediatric studies on hold due to concerns about non-clinical data that could be relevant to the use of Lunesta in children. SEPR over all option implied volatility of 48 is below its 26-week average of 57, according to Track Data, suggesting decreasing price movement.

NASDAQ 100 - QQQQ overall implied volatility at 26; 26-week average is 33.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

Constellation Brands (NYSE: STZ - option chain) shares are trading higher today after the company posted a first-quarter profit of 33 cents per share, topping analysts' forecasts of 32 cents per share. If you think that the stock won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on STZ.

STZ opened this morning at $13.18. So far today the stock has hit a low of $13.02 and a high of $14.19. As of 12:20, STZ is trading at $13.84 up $1.16 (9.2%). The chart for STZ looks bullish and S&P gives STZ a positive 4 STARS (out of 5) buy ranking.

In April, I did a series of posts on Williams Companies (NYSE: WMB) starting with Chasing Value: Williams has the pipes and it's not blowing smoke.

I have also been writing about my investments in naked puts.

Now, I want to share one of the things I have done this year that has helped me obtain over a 100% return for 2009 at one point last month, which has since fallen back to 82%. This is not something I could have predicted, but I am not complaining.

American International Group (NYSE: AIG) has pulled itself out of penny-stock territory after its shareholders approved a 1-for-20 reverse stock split on Tuesday. However, the shares are swallowing some losses today nonetheless, as investors reshuffle their portfolios following the adjustment. AIG opened today at $19.65 after falling as low as $13 in premarket action.

CEO Edward Liddy reassured shareholders at the company's annual meeting that he's confident a new CEO and chairman will be named shortly. The bailed-out insurance issue also named some new directors to its board, at least seven of whom were recommended and approved by the U.S. Treasury Department or its trustees.

Euro Currency Trust (NYSE: FXE) closed at 140.33. The FXE reflects the price of the Euro plus accrued interest, less the expense of the Trust's operations. FXE overall option implied volatility of 13 is below its 26-week average of 18, according to Track Data, suggesting decreasing price movement.

Financial Select Sector - XLF overall volatility at 44; 26-week average is 64.

ISE Sentiment Index-ISEE closed at 116 on 6/30/09. ISEE 10-day moving average is 111.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

Schnitzer Steel (NASDAQ: SCHN - option chain) stock is falling today after the company reported a third-quarter loss this morning of $1.53 million, or 5 cents per share. Analysts had expected the company to report a profit of 16 cents per share. If you think this stock won't be rising too far in the coming months, then it could be a good time to look at a bearish hedged play on SCNH.

This morning, SCHN opened at $56.99. So far today the stock has hit a low of $52.40 and a high of $57.00. As of 12:00, SCHN is trading at $52.88, down $7.33 (-12.2%). The chart for SCHN looks bullish.

This is a continuation of a theme I have been writing about this year involving stock options referred to as naked puts.

This allows investors to take a position in a stock, most often below its current price, but depending on market sentiment. That sentiment remains relatively negative so the spreads are attractive.

I have been following BHP Billiton Ltd ADR (NYSE: BHP) the largest mining company in the world, with headquarters in Australia, for a while but I do not own the stock today. I view all mining companies as an opportunity because I think the diversified raw materials they control are the best hedge against inflation. I do not think inflation is imminent, but with the extreme increases in money supply and debt being created I do not think it will be avoidable a few years out.

For those of you who are able to trade options, I have been writing more and more about naked puts, "selling to open" stock options that I have been doing all year with great returns due to an overabundance of fear.

Yesterday I reviewed one example in Chasing Value: GE -- maybe not eating out of trash cans after all, and today I review some of my favorite ways to make money and improve my portfolio.

Let me start with United Parcel Service Inc. (NYSE: UPS), a company with a great balance sheet, strong management, and trading 29% off its 52-week high, about where I sold it last year. I bought it earlier this year at the bargain basement price of $44, and now wished I had bought more.

Suncor Energy (NYSE: SU) is expected to close on its purchase of Petro-Canada (NYSE: PCZ) in Q3 pending regulatory approvals. PCZ will receive 1.28 shares in the new company for each of their shares while SU holders will receive one share.

SU closed at $30.60. PCZ closed at $38.83. WTI Crude oil is recently down 0.21% to $71.34 according to Bloomberg. SU August option implied volatility of 53 is below its 26-week average of 60, according to Track Data, suggesting decreasing price movement.

Petro-Canada August option implied volatility is at 54, below its 26-week average of 59, according to Track Data, suggesting decreasing price movement.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

This week I closed out an option on General Electric (NYSE: GE) I had discussed four months ago regarding the absolute fear in the market place that I felt had driven investors off a cliff (see Chasing Value: Will we be eating out of trash cans?).

At the time I had noticed that GE naked puts, a "sell to open" put option, would pay me, on the spot, 52 cents a share if I would commit to buying the shares if they dropped below $2.50 by January 2011. This meant that my break-even position was $1.98 a share when GE was selling for five times that.

Elan Corp (NYSE: ELN - option chain) stock is falling today after Biogen (NASDAQ: BIIB) reported another serious brain infection in a patient being treated with Tysabri. Tysabri is a MS drug whose revenues are shared by BIIB and ELN. If you think this stock won't be rising too far in the coming months, then it could be a good time to look at a bearish hedged play on ELN.

This morning, ELN opened at $7.37. So far today the stock has hit a low of $6.87 and a high of $7.49. As of 11:15, ELN is trading at $6.88, down 48 cents (-6.5%). The chart for ELN looks neutral and S&P gives ELN a neutral 3 STARS (out of 5) hold ranking.

State Street Corp. (NYSE: STT) said today that its State Street Bank & Trust Co. unit received a Wells Notice from the Securities and Exchange Commission (SEC). The notice, which indicates that civil charges may be brought against the company, relates to disclosures and management of certain fixed-income strategies during 2007 and previous periods.

Some investors have accused State Street of misleading them about the risks involved in mortgage-related investments. A legal reserve fund worth $625 million was established in 2007 to cover investor claims, and $418 million has already been paid out. The firm says it is currently cooperating with the SEC, as well as state and other regulators.

Oracle (NASDAQ: ORCL) announced in April the acquisition of Sun Microsystems (NASDAQ: JAVA) for $9.50. Sun Microsystems closed at $9.01. Oracle issued the following statement, attributable to Dan Wall, counsel to Oracle. "We've had a very good dialogue with the Department of Justice and we were almost able to resolve everything before the Second Request deadline. All that's left is one narrow issue about the way rights to Java are licensed that is never going to get in the way of the deal. I full expect that the investigation will end soon and not delay the closing of the deal this summer." JAVA August option implied volatility of 22 is near its 13-week average, according to Track Data, suggesting non-directional price movement.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

Potash Corp. of Saskatchewan (NYSE: POT) is under fire today after the firm lowered its second-quarter earnings outlook. Late Thursday, POT said it now expects earnings per share of 70 cents, compared to its prior outlook of $1.10 to $1.50 per share.

The company chalked up its slashed guidance to "substantially lower than forecasted potash sales volumes due to deferral of purchases by customers around the world and lower realized prices for phosphate fertilizers."

POT's full second-quarter results will be reported on July 23. Analysts surveyed by Thomson Reuters are looking for a profit of 81 cents per share, on average.