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Archive for the ‘Benzinga’ Category

Valero Energy Partners To Acquire Certain Valero Terminaling Businesses for $671 Million

Courtesy of Benzinga.

Related VLP
UPDATE: Valero Energy Partners LP To Acquire Certain Valero Terminaling Businesses for $671M
Company News for November 13, 2014 – Corporate Summary
Valero Energy Partners acquire terminals from Valero in $671M deal (Seeking Alpha)

Valero Energy Partners LP (NYSE: VLP) announced Friday that it will purchase certain businesses from subsidiaries of Valero Energy Corporation (NYSE: VLO).

According to a press release, the Partnership will purchase the outstanding membership interests in Valero Partners Houston, LLC and Valero Partners Louisiana, LLC for total consideration of about $671 million. The assets purchased consist of a combined 13.6 million barrels of storage capacity.

Joe Gorder, chairman, president and CEO at the Partnership said, "this acquisition is our largest yet and is consistent with our previously communicated accelerated growth strategy."

Upon closing of the deal, the Partnership plans to enter into 10-year terminaling agreements with both Valero Energy subsidiaries. Moreover, it expects the acquired businesses to contribute approximately $75 million of EBITDA in their first full year of operation.

According to the press release, the Partnership expects to finance the purchase with $211 million of cash, $200 million of borrowings under its revolving credit facility, $160 million in borrowings under a five-year subordinated loan agreement with Valero Energy, "and the issuance of 1,908,100 common units, representing limited partner interests, and 38,941 general partner units to a subsidiary of Valero Energy valued, collectively, at $100 million. The newly issued VLP units will be allocated between common units and general partner units in a proportion allowing the general partner to maintain its 2 percent general partner interest."

Posted-In: Valero Partners Houston Valero Partners Louisiana Valero TerminalingNews M&A

Shutterstock Is 'Empowering' Customers, Cantor Reiterates Buy

Courtesy of Benzinga.

5 Internet Stocks 1 Top Analyst Is Talking About
Shutterstock Is A 'High Quality Business With A Large Opportunity Ahead'

Cantor Fitzgerald reiterated its Buy rating on Shutterstock Inc (NYSE: SSTK) Friday and maintained a $100 price target following an "upbeat analyst day" while praising the company for "empowering the world's storytellers."

Analysts led by Youssef Squali noted that "management not only highlighted the significantly expanded addressable opportunity ahead, but also laid down a path to $1B+ in revenue, with meaningful margin expansion at scale."

Squali felt that the continued "secular shift to digital content and workflow, a differentiated offering, a large addressable market, and a favorable competitive environment" where among the most positive factors for the company.

Discussing the addressable market, the company's expansion into video, music, editorial and digital asset management "doubled its TAM from ~$4 billion to ~$8 billion, arguably laying out a longer runway for top-line growth," according to the analysts.

With a larger market, the company was also able to detail its path towards achieving $1 billion in revenue. Squali noted four growth vectors:

  • 1. "Leading the market through product innovation and rapidly growing selection."
  • 2. "Robust growth in Enterprise revenue," which was expected to grow from 20 percent to 40 percent of revenues over time.
  • 3. "Growth in video, music, and editorial" could add $50-$100 million in revenue.
  • 4. "Providing tools and workflow solutions to customers" could add over $100 million in revenue.

Management believed that, at scale, EBITDA margins should increase by 300-700bps to 28-32 percent, compared to 25 percent in Q4 2014.

Squali felt that the impact from the acquisition of Fotolia by Adobe Systems Incorporated (NASDAQ: ADBE) would be limited and that Shutterstock "has since 2003 proven an ability to compete effectively against larger players, with a superior offering, a larger portfolio, and better search."

Shutterstock recently traded at $57.12, down 0.70 percent.

Latest Ratings for SSTK

Date Firm Action From To
Feb 2015 Jefferies Maintains Buy
Feb 2015 Deutsche Bank Maintains Hold
Aug 2014 Jefferies Maintains Buy

View More Analyst Ratings for SSTK
View the Latest Analyst Ratings

Posted-In: Cantor Fitzgerald Youssef SqualiAnalyst Color Reiteration Analyst Ratings

Deutsche Bank Offers 3 Reasons To Consider Boeing

Courtesy of Benzinga.

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In a report published Friday, Deutsche Bank analyst Myles Walton offered three reasons why investors should consider buying shares of Boeing Co (NYSE: BA)

"The market remains divided on Boeing," Walton wrote. "There is supporting evidence for both sides, but we squarely fall into the bullish category and think some of the data in the most recent filing further bolster the case for the stock to remain a relative outperformer in 2015."

Walton noted:

  1. Both the 787 and 747 cost allocation to the end of the accounting quantity has declined for the first time.
  2. The implied cash margins on the 787 in 2020 are close to 30 percent and even if that's 50 percent wrong, the market doesn't seem to want to give credit.
  3. The decision to exclude the 777X from the current 777 accounting is "relatively bullish" to 2015 and 2016.

Walton expanded and stated that using Boeing's disclosures in its 10K filings, each 787 aircraft in 2020 will generate a cash profit of $40 million per aircraft or a $13 billion pre-tax swing versus 2014. The analyst added that in the near-term cash will be a "significant driver" to the stock and the company is on a path to achieve $14 per share in free cash flow in 2016 despite 777 production cuts.

Shares remain Buy rated with a $175 price target.

Latest Ratings for BA

Date Firm Action From To
Feb 2015 Goldman Sachs Downgrades Neutral Sell
Feb 2015 Stifel Nicolaus Maintains Buy
Jan 2015 JP Morgan Maintains Overweight

View More Analyst Ratings for BA
View the Latest Analyst Ratings

Posted-In: 747 777 787 aircraft Deutsche Bank Myles WaltonAnalyst Color Analyst Ratings

Why Churchill Downs Is A Good Bet Ahead Of The Kentucky Derby

Courtesy of Benzinga.

Why Churchill Downs Is A Good Bet Ahead Of The Kentucky Derby
Related CHDN
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Churchill Downs Incorporated Completes Acquisition of Big Fish Games
iRobot (IRBT) Sustains Growth, Runs Risks from Headwinds – Analyst Blog (Zacks)

Shares of Churchill Downs, Inc. (NASDAQ: CHDN) have been off and running so far in 2015, and now they are getting a boost from Wells Fargo's latest note.

On February 27, Wells Fargo released a research note, "Healthy Q4 Results – Strong Trends Ahead of Derby," maintaining its Outperform rating while revising its 2015 earnings estimate up to reflect the healthy environment for future growth.

WFC increased its "2015/2016 EPS estimates from $3.95/$4.69 to $4.00/$4.71" and maintained its "valuation range at $120-125."

Wells valuation range "is based on a blended 9.6-10.0x 2016E Net EBITDA, less net debt." Risk factors include "a soft U.S. macro environment, and new casino supply."

Wells Fargo – Rationale

Churchill Downs remains a top Gaming idea for 2015 at Wells. Positive catalysts include:

  • "…additional asset purchases or deployment of cash, legalization of gaming in KY, (gaming expansion in IL, and continued growth in the Kentucky Derby asset."
  • CHDN reported "healthy Q4 results driven by strong Gaming profitability and impressive initial results from its recently closed Big Fish acquisition."
  • Wells remains a buyer, citing CHDN's: "(1) strong FCF growth; (2) compelling valuation, supported by iconic, high ROIC assets; and (3) several layers of attractive growth options."

Q4 Gaming/Online Results

  • "CHDN reported Q4 Adjusted EBITDA of $24.7MM (ex-Big Fish), 13% above [WFC] estimate of $21.8MM."
  • "Net/net, combined Gaming/Online EBITDA was 7% better than [WFC] estimate. Notably, "2015/2016E EBITDA estimates remain relatively unchanged."
  • Racing: Strong early trends for Derby "Management noted that its Racing segment ex-Derby continues to be challenging. It does not see trends changing in 2015, and will continue to focus on improving cost structure going forward."
  • However, CHDN "indicated that key metrics for this year's Derby are tracking ahead of prior year, and its construction project

continue reading

Gulfport Energy Remains A 'Best Idea' For Wunderlich

Courtesy of Benzinga.

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Gulfport Energy's (GPOR) CEO Michael Moore on Q4 2014 Results – Earnings Call Transcript (Seeking Alpha)

In a report published Friday, Wunderlich Securities analyst Jason Wangler reaffirmed Gulfport Energy Corporation (NASDAQ: GPOR) as a "Best Idea" as a strong 2014 "sets up big things for 2015."

Wangler wrote that Gulfport Energy's fourth-quarter results were "impressive" but even more so were the company's guidance that calls for another 80 percent to 100 percent growth in production on significantly lower spending as the Utica and Gulfport assets "begins to flex its muscle."

Wangler stated that the company's production "continues to move briskly higher" as it generated over 50 percent sequential production growth and averaged 381.9 mmcfe/day in the fourth quarter, nearly 300 percent higher compared to the fourth quarter 2013 as its Utica operations "begun hitting on all cylinders."

The analyst also added that activity should remain "solid" despite the commodity downturn even as production downshifted from eight rigs to three.

"Even current [commodity] prices can drive strong economics and allow the company to continue moving forward with development of the Utica," Wangler wrote. "While the company has slowed spending essentially every where else, we think this makes sense given the strong Utica potential."

Bottom line, the company's solid fourth quarter performance, improvements in execution and 2015 guidance gives the analyst confidence the company is in "as good of a position as ever" to drive solid growth.

Shares remain Buy rated with a price target raised to $60 from a previous $50.

Latest Ratings for GPOR

Date Firm Action From To
Feb 2015 Johnson Rice Upgrades Hold Buy
Feb 2015 Deutsche Bank Maintains Buy
Jan 2015 Deutsche Bank Maintains Buy

View More Analyst Ratings for GPOR
View the Latest Analyst Ratings

Posted-In: Commodity Prices Gulfport Jason Wangler Utica Wunderlich SecuritiesAnalyst Color Price Target Analyst Ratings

Wunderlich Securities Sees Solid 4Q14 Results For Halcon Resources

Courtesy of Benzinga.

Related HK
Wunderlich Securities Sees Multiple Positive Factors For Halcon Resources
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Halcon Resources reiterated with a Buy at MLV as concerns overdone (Seeking Alpha)

In a report published Friday, Wunderlich Securities analyst Jason A. Wangler reiterated a Buy rating and $3.00 price target on Halcon Resources Corp. (NYSE: HK).

In the report, Wunderlich Securities noted, “Halcon Resources (HK) reported a solid 4Q14 as EPS of $0.05 were nicely ahead of our -$0.05 figure and the Street’s $0.00 forecast due to a production beat and cost controls. Halcon had pre-announced much of its information already, so the CapEx plans, reserves, and its liquidity position were known, but the company was able to provide additional color around these numbers as well as commentary on its focus going forward. As expected, there was a significant focus on the financial position of Halcon as it goes through the current downturn, and we continue to believe that Halcon has the ability to see this through to the other side. As such, we reiterate our Buy rating and $3 price target as we feel the company has an asset base and management team that can survive today and excel tomorrow.”

Halcon Resources closed on Thursday at $1.97.

Latest Ratings for HK

Date Firm Action From To
Jan 2015 SunTrust Robinson Humphrey Downgrades Buy Neutral
Jan 2015 Barclays Downgrades Equal-weight Underweight
Jan 2015 Raymond James Downgrades Outperform Underperform

View More Analyst Ratings for HK
View the Latest Analyst Ratings

Posted-In: Jason A. Wangler Wunderlich SecuritiesAnalyst Color Reiteration Analyst Ratings

JP Morgan Upgrades UIL Holdings To Neutral

Courtesy of Benzinga.

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JP Morgan upgraded UIL Holdings Corporation (NYSE: UIL) from Underweight to Neutral.

The price target for UIL Holdings has been raised from $43.00 to $52.00.

UIL Holdings shares have climbed 34.48% over the past 52 weeks, while the S&P 500 index has surged 13.51% in the same period.

UIL Holdings’ shares declined 3.03% to $50.49 in pre-market trading.

Latest Ratings for UIL

Date Firm Action From To
Feb 2015 JP Morgan Upgrades Underweight Neutral
Dec 2014 Deutsche Bank Maintains Hold
Dec 2014 Deutsche Bank Maintains Hold

View More Analyst Ratings for UIL
View the Latest Analyst Ratings

Posted-In: JP MorganUpgrades Analyst Ratings

Benzinga's Top #PreMarket Losers

Courtesy of Benzinga.

Must Watch Stocks for February 27, 2015
TubeMogul Beats Q4 Expectations But Misses On Outlook; Shares Down 27% After-Hours
TubeMogul's (TUBE) CEO Brett Wilson on Q4 2014 Results – Earnings Call Transcript (Seeking Alpha)

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UPDATE: J.C. Penney Shares Slide After Downbeat Q4 Earnings
Wall Street Breakfast: Greek Bailout Extension Clears German Hurdle (Seeking Alpha)

TubeMogul, Inc. (NASDAQ: TUBE) shares dropped 21.96% to $14.00 in pre-market after the company reported stronger-than-expected financial results for its fourth quarter, but issued a downbeat revenue outlook for 2015.

J. C. Penney Company, Inc. (NYSE: JCP) fell 10.96% to $8.12 in pre-market trading. J.C. Penney reported a quarterly loss of $59 million, or $0.19 per share, versus a year-ago profit of $35 million, or $0.11 per share. Excluding certain items, the company broke even during the quarter. However, analysts were expecting a profit of $0.11 per share.

Del Frisco’s Restaurant Group, Inc. (NASDAQ: DFRG) shares declined 5.81% to $18.00 in pre-market trading after the company reported weaker-than-expected results for the fourth quarter.

Potbelly Corporation (NASDAQ: PBPB) shares dropped 5.38% to $13.90 in pre-market trading after the company announced the resignation of CFO Charles Talbot.

Goodrich Petroleum Corp. (NYSE: GDP) shares fell 3.30% to $4.10 in pre-market trading after the company reported a wider –than-expected loss for the fourth quarter.

Posted-In: PreMarket LosersNews Movers & Shakers Pre-Market Outlook Markets

Benzinga's Top #PreMarket Gainers

Courtesy of Benzinga.

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Clean Energy Fuels Corp.(NASDAQ: CLNE) shares rose 15.87% to $5.84 in pre-market trading after the company reported upbeat Q4 results.

Monster Beverage Corporation (NASDAQ: MNST) shares surged 10.07% to $137.30 in pre-market trading after the company beat fourth-quarter expectations and said its partnership deal with The Coca-Cola Co (NYSE: KO) will close in the second quarter.

Splunk, Inc. (NASDAQ: SPLK) shares gained 6.44% to $74.05 in the pre-market trading session after the company reported better-than-expected results for the fourth quarter.

Horizon Pharma plc (NASDAQ: HZNP) gained 6.03% to $20.22 in pre-market trading after the company reported better-than-expected Q4 results and lifted its FY15 revenue and EBITDA outlook.

Ross Stores Inc. (NASDAQ: ROST) shares climbed 3.87% to $102.88 in pre-market trading after the company reported better-than-expected results for the first quarter and announced a $1.4 billion stock repurchase program.

Posted-In: PreMarket GainersNews Pre-Market Outlook Markets Movers

4 Reasons Why Deutsche Bank Upgraded American Express

Courtesy of Benzinga.

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Benzinga's Top Upgrades
American Express up 1% as Deutsche buys the dip (Seeking Alpha)

In a report published Wednesday, Deutsche Bank analyst David Ho listed four reasons why he upgraded shares of American Express Company (NYSE: AXP) to Buy from Hold with a price target raised to $90 from a previous $80.

"Growth expectations for American Express have been reset lower after the loss of Costco/JetBlue and the negative Department of Justice ruling," Ho wrote. "However, we believe the company will be able to restore its earnings power sooner than expected."

Ho offered four reasons to support his bullish thesis:

  • 1. American Express could mitigate the $0.75 earnings per share drag from Costco by up to approximately $0.47, implying 8 percent earnings per share upside to consensus 2016 estimates.
  • 2. Management has "breathing room" to manage earnings per share expectations in 2015 given a "minimal" revenue drag (estimated at $150 million) from Costco in 2015 and efficiency gains coming online in the second half of 2015 from prior restructuring initiatives.
  • 3. American Express has the largest amount of excess capital among consumer finance stocks under Ho's coverage and the company can deploy the capital towards new partnerships, acquisitions, and eventually higher dividend payments and increased share buyback programs.
  • 4. Shares of American Express are trading at 13.7x multiple to 2016 estimates, implying the network is being valued at a 30 percent to 35 percent discount to Visa and MasterCard.

Latest Ratings for AXP

Date Firm Action From To
Feb 2015 Deutsche Bank Upgrades Hold Buy
Feb 2015 Jefferies Maintains Hold
Feb 2015 Bank of America Downgrades Buy Underperform

View More Analyst Ratings for AXP
View the Latest Analyst Ratings

Posted-In: Costco credit cards David Ho Deutsche BankAnalyst Color Upgrades Price Target Analyst Ratings


Zero Hedge

China Cuts Interest Rates, Takes Number Of Central Banks Easing In 2015 To 21

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

And then there were 21.

Hours ago on Saturday, the country whose currency is largely pegged to the dollar which itself is now anticipating a rate hike in the coming months, surprised the world by confirming its economic slowdown yet again following a recent rate cut just this past November when it lowered its benchmark rate by 40 bps, after it again cut benchmark lending and deposit rates by 25 bps starting on March 1. Specifically, the PBOC will lower the one-year lending rate to 5.35% from 5.6% and its one-year deposit rate to 2.5% from 2.75%. It also said it would raise the maximum interest rate on bank deposits to 130% of the benchmark rate from 120%.

From the ...

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Chart School

Moving Averages: Month-End Update

Courtesy of Doug Short.

Valid until the market close on March 31, 2015

The S&P 500 closed February with a monthly gain of 5.49%, the largest one-month gain in 40 months. All three S&P 500 MAs and four of the five the Ivy Portfolio ETF MAs are signaling "Invested". In the table below, monthly closes that are within 2% of a signal are highlighted in yellow.

The Ivy Portfolio

The table below shows the current 10-month simple moving average (SMA) signal for each of the five ETFs featured in The Ivy Portfolio. I've also included a table of 12-month SMAs for the same ETFs for this popular alternative strategy.

For a facinating analysis of the Ivy Portfolio strategy, see this article by Adam Butler, Mike Philbrick a...

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Phil's Favorites

Panic in Ukraine Over Food, Empty Stores and Protests; Strategic Food Reserve Empty

Courtesy of Mish.

Here's a brief update from "Ellen" who lives in Lviv, a city in Western Ukraine.
Hello Mish

We have quite a panic over the collapse of currency. People buy any food product that can be stored. Everyone wants to rid of Hryvnia. We haven't seen anything like this since 1991 when the Soviet Union collapsed. Stores are empty.

It is hard to say what exchange rate this days, somewhere between 34 and 42

There were riots in downtown today. A group of protesters was beaten up by police. They marched through downtown and gave a last warning to government officials. Next time they said they will shoot some officials.

Ukraine is on a brink, but the West is not in a hurry to give us money. Perhaps they want something.  Maybe they know the money will end up with corrupt officials who will steal it.


more from Ilene

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...

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Market Shadows

Kimble Charts: Coal

Kimble Charts: Coal

By Ilene 

Chris Kimble's chart for KOL shows a recently beaten down ETF struggling to pull itself up from the ashes. As the chart shows, KOL has recently drifted down to levels not seen since the financial crisis of 2008-9.

Bouncing or recovering with energy in general, coal prices appear to have stabilized in the short-term. Reflecting coal prices, KOL has traded between $13.45 and $19.75 during the past year. Bouncing from lows, KOL traded around 2% higher yesterday from $14.26 to $14.48 on high volume. It traded another 3.6% higher in after hours to $15, possibly related to ...

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Swing trading portfolio - week of February 23rd, 2015

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 ...

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Sector Detector: Sector rankings stay neutral with few bullish catalysts on horizon

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

Courtesy of Sabrient Systems and Gradient Analytics

Stocks are hitting new highs across the board, even though earnings reports have been somewhat disappointing. Actually, to be more precise, Q4 results have been pretty good, but it is forward guidance that has been cautious and/or cloudy as sales into overseas markets are expected to suffer due to strength in the US dollar. Healthcare and Telecom have put in the best results overall, while of course Energy has been the weakling. Still, overall year-over-year earnings growth for the S&P 500 during 2015 is expected to be about +8%.

In this weekly update, I give my view of the current market environment, offer a technical analysis of the S&P 500 cha...

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Digital Currencies

MyCoin Exchange Disappears with Up To $387 Million, Reports Claim

Follow up from yesterday's Just the latest Bitcoin scam.

Hong Kong's MyCoin Disappears With Up To $387 Million, Reports Claim By  

Reports are emerging from Hong Kong that local bitcoin exchange MyCoin has shut its doors, taking with it possibly as much as HK$3bn ($386.9m) in investor funds.

If true, the supposed losses are a staggering amount, although this estimate is based on the company's own earlier claims that it served 3,000 clients who had invested HK$1m ($129,000) each.


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2015 - Biotech Fever

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

PSW Members - well, what a year for biotechs!   The Biotech Index (IBB) is up a whopping 40%, beating the S&P hands down!  The healthcare sector has had a number of high flying IPOs, and beat the Tech Sector in total nubmer of IPOs in the past 12 months.  What could go wrong?

Phil has given his Secret Santa Inflation Hedges for 2015, and since I have been trying to keep my head above water between work, PSW, and baseball with my is time that something is put together for PSW on biotechs in 2015.

Cancer and fibrosis remain two of the hottest areas for VC backed biotechs to invest their monies.  A number of companies have gone IPO which have drugs/technologies that fight cancer, includin...

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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 user name and password. 



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Option Review

SPX Call Spread Eyes Fresh Record Highs By Year End

Stocks got off to a rocky start on the first trading day in December, with the S&P 500 Index slipping just below 2050 on Monday. Based on one large bullish SPX options trade executed on Wednesday, however, such price action is not likely to break the trend of strong gains observed in the benchmark index since mid-October. It looks like one options market participant purchased 25,000 of the 31Dec’14 2105/2115 call spreads at a net premium of $2.70 each. The trade cost $6.75mm to put on, and represents the maximum potential loss on the position should the 2105 calls expire worthless at the end of December. The call spread could reap profits of as much as $7.30 per spread, or $18.25mm, in the event that the SPX ends the year above 2115. The index would need to rally 2.0% over the current level...

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Help One Of Our Own PSW Members

"Hello PSW Members –

This is a non-trading topic, but I wanted to post it during trading hours so as many eyes can see it as possible.  Feel free to contact me directly at with any questions.

Last fall there was some discussion on the PSW board regarding setting up a YouCaring donation page for a PSW member, Shadowfax. Since then, we have been looking into ways to help get him additional medical services and to pay down his medical debts.  After following those leads, we are ready to move ahead with the YouCaring site. (Link is posted below.)  Any help you can give will be greatly appreciated; not only to help aid in his medical bill debt, but to also show what a great community this group is.

Thank you for you time!

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 >>

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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 >>