Frederic Ruffy Quotations

Shares of Network Appliance are off to a good start in 2006, up nearly 25 percent since December 30.

Some might wonder, is the Internet search business booming enough to justify the lofty stock price--which includes a price-to-earnings ratio 175 percent greater than its peers and a total market value 20 times greater than its annual revenues.

It appears that options traders are bracing for volatility in Heinz and the increase in call volume suggests that many are positioning for a move higher. This might be due to the acquisition talks, but also an earnings report due out before the opening bell on February 28.

It is a sign that the world's largest retailer is taking steps to expand into the fast growing region and is looking for ways to sustain growth over the coming years.

The pattern has given rise to the adage, 'Sell in May and go away' with respect to stocks.

The speculative activity in short-term calls might reflect the recent talk about an alliance with Microsoft.

There might be some disappointment related to the latest trade volume data, especially the Chicago Board of Trade, where volume rose only 4 percent over year ago levels.

The large skew indicates that the market is bracing for short-term volatility in Harley Davidson ahead of its earnings report, and the defensive put activity seems to suggest that some traders are concerned that the volatile move might be to the downside.

The company delivered a profit report that surpassed even the most optimistic expectations.