Guest View
User: Pass: | become a member
Author Archive for Option Review

Casino Stocks LVS, WYNN On The Run Ahead of Earnings

www.interactivebrokers.com

Shares in Las Vegas Sands Corp. (Ticker: LVS) are up sharply today, gaining as much as 5.7% to touch $80.12 and the highest level since April 4th, mirroring gains in shares of resort casino operator Wynn Resorts Ltd. (Ticker: WYNN). The move in Wynn shares appears, at least in part, to follow a big increase in target price from analysts at CLSA who upped their target on the ‘buy’ rated stock to $350 from $250 a share. CLSA also has a ‘buy’ rating on Las Vegas Sands with a $100 price target according to a note from reporter, Janet Freund, on Bloomberg. Both companies are scheduled to report first-quarter earnings after the closing bell on Thursday.

A block of call options traded on LVS during the first hour of the session suggests one options market participant may be positioning for the price of the underlying to extend gains during the next couple of months. It looks like 5,535 of the 20Jun’14 calls were purchased at a premium of $1.70 each. The position makes money at expiration in June if shares in LVS rally 9.0% over the current price of $79.82 to exceed the effective breakeven point at $86.70. Shares in LVS earlier this year traded up to a six-year high of $88.28. Shares in WYNN for its part are currently trading up 5.5% on the session at $215.71.


Tags: ,




Wild Ride For Chipotle

www.interactivebrokers.com

Shares in Chipotle Mexican Grill Inc. (Ticker: CMG) opened higher on Thursday morning, rising more than 6.0% to $589.00, after the restaurant operator reported better than expected first-quarter sales ahead of the opening bell. But, the stock began to falter just before lunchtime on concerns the burrito-maker will increase menu prices for the first time in three years. The price of Chipotle’s shares have since fallen into negative territory and currently trade down 3.5% on the session at $532.89 as of 1:50 p.m. ET.

Chart – Shares in Chipotle cool by lunchtime


Tags:




Short Term Bearish Options Trade On Las Vegas Sands

www.interactivebrokers.com

A roughly quarter of a million dollar play in the 17Apr’14 expiry $74 strike put options on Las Vegas Sands Corp (Ticker: LVS) caught our eye this morning, as just one full trading session remains in the life of these contracts in this holiday-shortened week. Shares in LVS are up more than 2.0% on the session at $74.90 just before 11:30 am ET and off an earlier session high of $75.44. Like many of the relative outperformers of 2014, shares in LVS have declined substantially since the beginning of March, down around 15% at its current level from a high of $88.28. Recent sessions have been volatile in this and other high-beta names, and perhaps this environment is just what the morning’s put trader is looking for ahead of expiration.

The prior two trading sessions this week saw shares in LVS trade up initially only to get slammed midday. Perhaps the aim of the very short-term trade in the $74 puts this morning was for this pattern to persist. It looks like around 4,000 of the 17Apr’14 $74 puts were purchased at an average premium of $0.62 each in the early going, versus open interest of just 264 contracts. Thus far in the session, premium on the $74 puts has eroded amid gains in the price of the underlying. But, if the shares suffer a midday slump as they have in recent sessions, premium on these contracts would move inversely. For example, on Tuesday, the stock opened at $74.73, but by 1:00 pm ET had dropped about 5.0% down to its intraday low of $71.09, ultimately ending the session down just 2.0% to close at $73.19.


Tags:




Bearish Prints In DDD Put Options

www.interactivebrokers.com

3D Systems shares had been in positive territory earlier in the session, up as much as 4.2% to touch an intraday high of $50.85. The stock bounced off a low of $47.17 in the early going, a new six-month low for the share price and a more than 50% drop from DDD’s record high of $97.28 reached back on January 3rd. Shares managed to stay in the green for much of the session before succumbing to selling pressure this afternoon. Options expiring next week suggests at least one trader is positioning for further weakness in the near term.

The 17Apr’14 $47 puts traded more than 2,000 times this morning against previously existing open interest of just 94 contracts. Time and sales data indicates most of the puts were purchased at a premium of $1.45 each. The puts may be profitable at expiration in the holiday-shortened week to come, in the event that DDD shares drop more than 5.0% from the current price of $48.13 to trade below the breakeven point at $45.55. Shares in the 3D printing company last traded below $45.55 in August 2013. 


Tags:




Bearish Trade In Small-Cap ETF Options

www.interactivebrokers.com

A big early print in the iShares Russell 2000 ETF (Ticker: IWM) on Thursday may be a short-term hedge to protect against further market losses during the next five weeks. The options market participant appears to have purchased the regular May $107/$113 bear put spread 40,000 times for a net premium of $1.33 per contract. The trade starts making money if shares in the small-cap ETF decline 2.7% from the current price of $114.78 to trade below the effective breakeven point at $111.67. Maximum potential profits of $4.67 per contract are available on the spread should shares in the IWM drop 6.8% to $107.00 by expiration next month.

Note: At the end of the day, IWM was at 111.96, down 3.29(2.86%). ~ Ilene 


Tags:




Large Trade In FXI Options

www.interactivebrokers.com

Big prints in FXI call options caught our eye on Tuesday morning amid a positive start to trading for shares in the iShares China Large-cap ETF. A review of the trade this morning as well as a look at changes in open interest in the relevant strike prices, suggests the options market participant likely closed out a large bull call spread initiated back on March 18th that resulted in substantial gains in just two weeks.

It looks like the trader originally purchased a 30,000-lot 16May’14 $34/$35.5 call spread at a net premium of $0.56 when shares in the ETF were trading around $33.66. The rally in the price of FXI shares, which are up roughly 6.0% since March 18th, allowed the options player to reap much of the profits available by holding the long call spread. The trader appears to have sold the 30,000 lot $34/$35.5 call spread this morning at a net $1.00 per contract. Not bad for a two-week turnaround. Shares in FXI are currently up 0.30% on the day to stand at $35.88 as of 2:25 p.m. ET.


Tags:




Bearish Options Trade On EEM

www.interactivebrokers.com

A synthetic put trade initiated on the iShares Emerging Markets ETF on Monday morning suggests one large options market participant is positioning to benefit from a pullback in the price of the underlying shares by regular May expiration. Shares in the EEM are today trading up 1.0% at $41.17 as of 11:15 a.m. ET.

The purchase of approximately 80,600 of the May $41.5 strike calls at a premium of $1.05 per contract was tied to the sale of EEM stock at $41.22. Shares in the ETF have rallied 11% in the past two months since touching down at a six-month low of $37.05 at the beginning of February. The synthetic put established with EEM stock and options today benefits if the ETF reverses those gains during the next two months.


Tags:




Constellation Brands Put Options In Play Ahead Of Q4 Earnings

www.interactivebrokers.com

Put options are changing hands on the wine, beer and spirits company today, perhaps as traders look ahead to the release of fourth-quarter earnings from Constellation Brands on April 9th prior to the opening bell. Shares in the name are today trading higher by 1.25% to stand at $83.10 just before 3:00 p.m. ET.

The most traded contracts on STZ as of the time of this writing are the April $77.5 and $80 strike puts, with more than 1,300 options in play at each striking price. It looks like one or more traders purchased most of the contracts, paying an average premium of $0.885 per contract for the $77.5 strike puts, and shelling out an average premium of $1.39 each for the higher $80 strike put options. Put buyers may profit at expiration next month in the event that shares in Constellation Brands slide roughly 8.0% and 5.0% from the current level to breach the average breakeven prices of $76.615 and $78.61, respectively.


Tags:




Call Butterfly Spread Looks For Run In Sprint Shares To Continue

www.interactivebrokers.com

Options volume on Sprint jumped a little less than one hour into the trading session on Thursday after a large three-legged strategy was initiated in the May expiry calls. The call butterfly spread purchased on the wireless carrier this morning looks for shares in Sprint to rise substantially from the current level by expiration in seven weeks. Shares in the name are up 4.5% at $9.37 as of 11:00 a.m. ET.

It looks like one strategist purchased 20,000 calls at both the May $10 and $12 strikes for a combined premium of $0.60 per contract and sold 40,000 of the May $11 strike calls at a premium of $0.24 apiece, effectively reducing the net cost of the spread to $0.12 per contract. The sizable bullish trade reaps maximum potential gains of $0.88 per contract in the event that shares in Sprint rally 17% over the current price of $9.37 to settle at $11.00 at May expiration. The breakeven points of $10.12 and $11.88 indicate the position is profitable within those bounds, while outside of those levels losses on the position are capped at $0.12 per contract, or the premium paid to initiate the butterfly spread. Shares in Sprint last traded around $11.00 at the end of December when the stock hit $11.48, the highest since SoftBank Corp.’s takeover of the wireless carrier last summer.


Tags: ,




USG Corp. Options Active

www.interactivebrokers.com

Shares in USG Corp. fell nearly 5.0% on Wednesday to $31.35 and the lowest level since February 6th, but trading in call options on the maker of wallboard this morning suggests one or more traders may be positioning for the price of the underlying to bounce back in the next couple of months. The stock is off its lows as of 12:30 p.m. ET, trading down a lesser 3.3% on the session at $31.87.

The most traded options on USG so far today are the 16May’14 $30 strike calls, with around 2,800 contracts in play against open interest of 301 positions. It looks like most of these in-the-money calls were purchased in the early going at an average premium of $2.98 each. The calls may be profitable at expiration in the event that USG shares rally 3.5% over the current price of $31.87 to exceed the breakeven price of $32.98. The stock closed out Tuesday’s session at $32.98. USG Corp. is scheduled to report first-quarter earnings on April 24th.


Tags: ,




 
 
 

Insider Scoop

Delhaize Group Announces Sale of Bosnian & Herzegovinian Stores

Courtesy of Benzinga.

Related DEG Why Companhia Brasileira de Distribuicao (CBD) Has A Bright Short-Term Future? - Tale of the Tape The Fresh Market (TFM) in Focus: Stock Moves 6.7% Higher - Tale of the Tape

Delhaize Group (Euronext Brussels: DELB, NYSE: DEG), the Belgian international food retailer, announces that it has signed an agreement with Tropic Group B.V. on the sale of its Bosnian & Herzegovinian stores.

Delhaize Group has signed an agreement with Tropic Group B.V., to divest all of its 39 Bo...



http://www.insidercow.com/ more from Insider

Phil's Favorites

Groupthink Or Black Swan Rising? Not A Single 'Economist' Expects An Economic Downturn

Courtesy of Pater Tenebrarum of Acting-Man

A 100% Consensus

This doesn't happen very often. Marketwatch reports that Jim Bianco points out in a recent market comment that the 67 economists taking part in a regular Bloomberg survey have a unanimous forecast regarding treasury bond yields: they will be higher 6 months from now. This is a truly striking result, and given the well-known propensity of mainstream economists to guess wrong (their forecasts largely consist of extrapolating the most recent short term trend), it may provide us with a few insights.

In fact, considering that there have been only a handful of instances since 2009 when a majority of the economists surveyed predicted a decline in yields, we can already state that their forecasts regarding tre...



more from Ilene

Zero Hedge

#MyNYPD...

Courtesy of ZeroHedge. View original post here.

Submitted by williambanzai7.

.

Actually, it is their NYPD, not ours.

...

more from Tyler

Chart School

STTG Market Recap April 23, 2014

Courtesy of Blain.

Indexes took a little rest today, which as we said yesterday was probably needed.   There was actually some bad economic news in housing and the market didn't react much at all which is something bulls will like.  After the close was a surprise stock split by Apple (AAPL) which will help the indexes tomorrow as the stock is up strongly in after hours.  The S&p 500 fell 0.22% and the NASDAQ 0.83%.  The Commerce Department reported new home sales fell 14.5 percent in March, the worst sales month since July.  Again it is not the news that matters to markets, but the reaction to the news and the market didn't really care.

Here are longer term charts of the two indexes. The S&P 500 hit the top trendline which connected the lows of summer 2012 yesterday and fell back after a furious week long rally.

...

more from Chart School

All About Trends

Mid-Day Update

Reminder: David is available to chat with Members, comments are found below each post.

Click here for the full report.




To learn more, sign up for David's free newsletter and receive the free report from All About Trends - "How To Outperform 90% Of Wall Street With Just $500 A Week." Tell David PSW sent you. - Ilene...

more from David

Market Shadows

Soy Numero Uno

Soy Numero Uno

By Paul Price of Market Shadows

Bunge Limited (BG) is the world’s largest processor of soybeans. It is also a major producer of vegetable oils, fertilizer, sugar and bioenergy.

When commodities got hot in 2007-08, Bunge’s EPS shot up and the stock followed, rising 185% in 19 months.

The Great Recession took its toll on operations, dropping EPS to a low of $2.22 in 2009.  Since then profits have recovered.  They ranged from $4.62 - $5.90 in the latest three years. 2014 appears poised for a large increase. Consensus views from multiple sources see BG earning $7.04 - $7.10 this year and then $7.83 - $7.94 in 2015.

...



more from Paul

Option Review

Casino Stocks LVS, WYNN On The Run Ahead of Earnings

Shares in Las Vegas Sands Corp. (Ticker: LVS) are up sharply today, gaining as much as 5.7% to touch $80.12 and the highest level since April 4th, mirroring gains in shares of resort casino operator Wynn Resorts Ltd. (Ticker: WYNN). The move in Wynn shares appears, at least in part, to follow a big increase in target price from analysts at CLSA who upped their target on the ‘buy’ rated stock to $350 from $250 a share. CLSA also has a ‘buy’ rating on Las Vegas Sands with a $100 price target according to a note from reporter, Janet Freund, on Bloomberg. Both companies are scheduled to report first-quarter earnings after the closing bell on Thursday.

...

more from Caitlin

Sabrient

What the Market Wants: Market Poised to Head Higher: 3 Stocks to Consider

Reminder: Sabrient is available to chat with Members, comments are found below each post.

Courtesy of David Brown, Sabrient Systems and Gradient Analytics

Yesterday, the market continued its winning ways for the fifth consecutive day.  The S&P 500 closed within 1% of its all-time high, and the DJI was even closer to its all-time high.  Healthcare, Energy and Technology led the sectors while Financials, Telecom, and Utilities finished slightly in the red.  All three sectors in the red are typically flight-to-safety stocks, so despite lower than average volume, the market appears poised to make new highs.

Mid-cap Growth led the style/caps last week, up 2.87%, and Small-cap Growth trailed, up 2.22%. This week will bring well over 100 S&P 500 stocks reporting their March quarter earn...



more from Sabrient

OpTrader

Swing trading portfolio - Week of April 21st, 2014

Reminder: OpTrader is available to chat with Members, comments are found below each post.

This post is for all our live virtual trade ideas and daily comments. Please click on "comments" below to follow our live discussion. All of our current  trades are listed in the spreadsheet below, with entry price (1/2 in and All in), and exit prices (1/3 out, 2/3 out, and All out).

We also indicate our stop, which is most of the time the "5 day moving average". All trades, unless indicated, are front-month ATM options. 

Please feel free to participate in the discussion and ask any questions you might have about this virtual portfolio, by clicking on the "comments" link right below.

To learn more about the swing trading virtual portfolio (strategy, performance, FAQ, etc.), please click here...



more from OpTrader

Stock World Weekly

Stock World Weekly

Newsletter writers are available to chat with Members regarding topics presented in SWW, comments are found below each post.

Here's this week's Stock World Weekly. Click here and sign in with your PSW user name and password, or sign up for a free trial.

...

more from SWW

Digital Currencies

Facebook Takes Life Seriously and Moves To Create Its Own Virtual Currency, Increases UltraCoin Valuation Significantly

Courtesy of ZeroHedge. View original post here.

Submitted by Reggie Middleton.

The Financial Times reports:

[Facebook] The social network is only weeks away from obtaining regulatory approval in Ireland for a service that would allow its users to store money on Facebook and use it to pay and exchange money with others, according to several people involved in the process. 

The authorisation from Ireland’s central bank to become an “e-money” institution would allow ...



more from Bitcoin

Promotions

See Live Demo Of This Google-Like Trade Algorithm

I just wanted to be sure you saw this.  There’s a ‘live’ training webinar this Thursday, March 27th at Noon or 9:00 pm ET.

If GOOGLE, the NSA, and Steve Jobs all got together in a room with the task of building a tremendously accurate trading algorithm… it wouldn’t just be any ordinary system… it’d be the greatest trading algorithm in the world.

Well, I hate to break it to you though… they never got around to building it, but my friends at Market Tamer did.

Follow this link to register for their training webinar where they’ll demonstrate the tested and proven Algorithm powered by the same technological principles that have made GOOGLE the #1 search engine on the planet!

And get this…had you done nothing b...



more from Promotions

Pharmboy

Here We Go Again - Pharma & Biotechs 2014

Reminder: Pharmboy is available to chat with Members, comments are found below each post.

Ladies and Gentlemen, hobos and tramps,
Cross-eyed mosquitoes, and Bow-legged ants,
I come before you, To stand behind you,
To tell you something, I know nothing about.

And so the circus begins in Union Square, San Francisco for this weeks JP Morgan Healthcare Conference.  Will the momentum from 2013, which carried the S&P Spider Biotech ETF to all time highs, carry on in 2014?  The Biotech ETF beat the S&P by better than 3 points.

As I noted in my previous post, Biotechs Galore - IPOs and More, biotechs were rushing to IPOs so that venture capitalists could unwind their holdings (funds are usually 5-7 years), as well as take advantage of the opportune moment...



more from Pharmboy



FeedTheBull - Top Stock market and Finance Sites



About Phil:

Philip R. Davis is a founder Phil's Stock World, a stock and options trading site that teaches the art of options trading to newcomers and devises advanced strategies for expert traders...

Learn more About Phil >>


As Seen On:




About Ilene:

Ilene is editor and affiliate program coordinator for PSW. She manages the site market shadows, archives, more. Contact Ilene to learn about our affiliate and content sharing programs.

Market Shadows >>