Posts Tagged ‘AOL’

Options Gear Up For Intel Rally

 

Today’s tickers: INTC, AOL & TAP

INTC - Intel Corp. – Shares in Intel kicked off the trading session in negative territory on Wednesday morning, declining as much as 1.1% versus a 0.65% decline in the S&P 500 Index in the early going. U.S. stocks have since halved earlier losses and Intel’s shares are moving higher, up 0.65% on the session at $21.90 as of 10:50 a.m. ET. Heavy trading traffic in June expiry calls near the start of the trading day suggests one strategist is positioning for shares in Intel Corp. to rally during the next few months. Upwards of 27,000 calls have changed hands at the Jun. $23 strike versus open interest of 10,898 contracts. It looks like most of the volume was purchased at an average premium of $0.26 apiece, including the single-largest print of 15,988 calls traded. The bullish bet on INTC is working this morning, with premium required to purchase the Jun. $23 strike calls up more than 30% over the $0.26 in premium paid this morning to stand at $0.35 each as of 11:00 a.m. in New York. Profits are available on the strategy at June expiration in the event that Intel’s shares rise 6.0% over the current price of $21.90 to surpass the average breakeven point at $23.26. Intel’s first-quarter earnings report is less than three weeks away, scheduled for release after the closing bell on April 16th.

AOL - AOL, Inc. – Options are changing hands at a clip on the online content, products and services provider this morning, with shares in AOL rising sharply following an upgrade to ‘Overweight’ from ‘Equal Weight’ with a target price increase to $44.00 from $38.00 at Barclays. Shares in AOL rallied as much as 9.5% during the first half of the session to $39.62. Traders anticipating additional near-term gains in the price of the underlying shares purchased front month call options on the stock this morning. It looks like buyers stepped in to buy contracts across the April $37, $38, $39, $40 and…
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AOL Calls In Demand After Earnings Beat Sends Shares Higher

 

Today’s tickers: AOL, THC & AAP

AOL - AOL, Inc. – Shares in online media company, AOL, Inc., jumped more than 16% today to a record high of $41.80 after the company posted third-quarter earnings and sales that beat analyst forecasts and said advertising revenue increased 7% in the quarter, the most in years. Options traders appear to be buying into the rally, snapping up front-month call options to position for continued gains in the price of the underlying in the near term. Bulls picked up nearly 5,000 of the deep in-the-money Nov. $39 strike calls for an average premium of $1.22 apiece this morning, and stand ready to profit at expiration as long as AOL’s shares top the average breakeven price of $40.22. Upside calls are also active at the higher Nov. $40 striking price, where upwards of 5,500 in-the-money calls changed hands against open interest of 1,239 contracts. Time and sales data suggests most of the $40 calls were purchased in the first half of the session at an average premium of $0.82 a-pop. Call buyers make money if shares in the Internet media company extend gains to settle above $40.82 at expiration next week.

THC - Tenet Healthcare Corp. – Health care services company, Tenet Healthcare Corp., is selling off ahead of its third-quarter earnings report tomorrow morning, with shares in the name down nearly 5% as of 1:30 p.m. ET to stand at $24.65. At least one options trader is preparing for the price of the underlying to extend losses in the near term, buying a 5,000-lot Nov. $21/$24 bear put spread at a net premium of $0.67 per contract. The put spread starts making money if shares in Tenet Healthcare slip 5.4% to breach the effective breakeven price of $23.33 by November expiration. Maximum potential profits of $2.33 per contract are available to the downside should shares plunge 15% to $21.00 by expiration next week.…
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Large Put Purchase At AOL; Express Calls Look For Retailer To Rebound

Options brief will resume October 15, 2012.

Today’s tickers: AOL, EXPR & XLF

AOL - AOL, Inc. – Put activity on AOL this morning may be the work of one strategist locking in gains on the high-flying stock. Shares in AOL, up roughly 175% since October 2011, are currently down 1.8% on the day to stand at $35.92 as of 11:20 a.m. ET. The largest trade in AOL options this morning was the purchase of 4,500 of the Nov. $34 strike put for a premium of $0.80 per contract. The options trade does not appear to have been tied to stock, although the put buyer may be establishing downside protection to hedge an existing long position in the shares. Alternatively, the sizable transaction could be an outright bearish bet that shares will decline in the near term, perhaps in the aftermath of the company’s third-quarter earnings report on October 31st. The position makes money if shares in AOL drop 7.5% from the current level to breach the effective breakeven price of $33.20 by November expiration.

EXPR - Express, Inc. – Options in play on Express this morning suggests shares in the apparel retailer, hard hit in recent months and sitting at all-time lows, may stage a significant turn-around in the next six months. Express shares, down nearly 60% from a March 2012 peak of $26.27, fell 2.35% in the first half of the trading session to $11.23 by 11:35 a.m. in New York. Upside call buying at the April 2013 $15 strike, where some 2,300 contracts were picked up for an average premium of $0.73 apiece, suggests at least one trader is positioning for EXPR shares to potentially increase sharply by expiration next year. The calls may be profitable at April expiration in the event that Express, Inc. shares jump 40% to exceed the average breakeven price of $15.73. The specialty retailer reports third-quarter earnings ahead of the opening bell on November 28th.…
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AOL Options Volume Spikes On Patent Deal

 

Today’s tickers: AOL, JCP & RIMM

AOL - AOL, Inc. – Options volume on AOL is up sharply today on news the web services company agreed to sell and license patents to Microsoft in a deal valued at more than $1 billion. The deal drove shares in AOL, Inc. up as much as 46.6% to an intraday- and new 52-week high of $27.00. More than 28,000 options have changed hands on AOL as of 1:00 p.m. in New York, which is roughly 22 times the stock’s 90-day average volume of 1,276 contracts. Options traders positioning for shares in AOL to extend gains in the near term snapped up calls in the front month. Fresh interest building in the April $26, $27 and $28 strikes was largely initiated by buyers. Volume is substantial at the $27 strike, where around 2,250 calls changed hands against 2 open positions. It looks like traders paid an average premium of $0.53 apiece for the options, which may be profitable at expiration as long as shares in AOL rally another 2.0% to surpass the average breakeven price of $27.53 at expiration. Bullish bets initiated back in March certainly seem to be paying off handsomely for some strategists in the aftermath of the run-up in shares. Open interest in the April $19 strike call suggests 200 contracts were purchased for a premium of $0.40 each on March 16th, while another 200 lots were picked up on March 22nd at a premium of $0.25 apiece. These calls currently tout a last-traded price of $7.85, a roughly 20-fold increase over premiums required to purchase the options just a few weeks ago.

JCP - J.C. Penney, Inc. – A long-term bullish options play on retailer, J.C. Penney, Inc., looks for shares in the name to tack on substantial…
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Options Strategist Sees Halliburton Rebound On The Horizon

Today’s tickers: HAL, AOL, CQB & XRT

HAL - Halliburton Co. – Options activity on Halliburton suggests one strategist seized the opportunity to take a bullish stance on the provider of oil equipment and services this morning on the heels of a 27.5% dip in the price of the underlying during the past three weeks. Shares in Houston, TX-based Halliburton recovered 4.8% of their value thus far in the session to trade at $44.46 as of 11:45 am ET. It looks like the options player is positioned for limited, albeit potentially substantial, bullish movement in the price of the underlying through September expiration. The investor initiated a ratio call spread, buying 5,000 calls at the September $50 strike for a premium of $1.21 each, and selling 10,000 calls up at the September $55 strike at a premium of $0.425 apiece. Net premium paid to initiate the spread amounts to $0.36 per contract, thus preparing the trader to profit should shares in HAL rally another 13.3% over the current price of $44.46 to surpass the effective breakeven price of $50.36 by expiration next month. Maximum potential profits of $4.46 per contract pad the investor’s wallet in the event that Halliburton’s shares surge 23.7% to settle at $55.00 at September expiration. HAL’s shares reached a 52-week high of $57.77 on July 25 before the market meltdown pulled the price of oil and oil and gas companies down with it.

AOL - AOL, Inc. – U.S. stocks are rallying ahead of the FOMC statement this afternoon, recovering somewhat from Monday’s harrowing selloff, but investors in global web services provider AOL suffered more pain today as shares in the name failed to join in the broad market gain. AOL’s shares plunged 22.0% today to $11.75, the lowest traded price since the company’s 2009 spinoff from…
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Bulls Snap Up Tractor Supply Co. Call Options

Today’s tickers: TSCO, INFY, AOL & HBI

TSCO - Tractor Supply Co. – Bullish players paid Tractor Supply Co. options a visit at the start of the U.S. trading week with shares in the operator of retail farm and ranch stores increasing as much as 2.4% to a new all-time high of $69.45. Investors expecting shares in the specialty retailer to extend gains in the near term exchanged more than 1,400 calls at the July $70 strike against previously existing open interest of 265 contracts. It looks like most of the calls were purchased for an average premium of $0.77 apiece. Call buyers make money if shares in Tractor Supply rally another 1.9% over today’s high of $69.45 to surpass the average breakeven price of $70.77 by July expiration. Put options in the front month attracted some attention, as well. Investors betting shares in TSCO are likely to exceed $60.00 through expiration day sold 267 puts at the July $60 strike for an average premium of $0.09 each. Meanwhile, some 300 puts were purchased for an average premium of $0.40 up at the July $65 strike. The rise in demand for options on the stock helped lift options implied volatility on the stock 7.2% to 31.84% by 11:30 am ET. July contract call and put options expire ahead of Tractor Supply Co.’s second-quarter earnings report after the final bell on July 20.

INFY - Infosys Technologies Ltd. – Shares in Infosys have been in recovery-mode since touching down at a 6-month low of $60.30 two weeks prior. The stock gained 9.7% to trade as high as $66.14 this morning, but options activity on the stock today suggests one strategist is poised to benefit from a pull back in the price of the underlying. The provider of IT services and solutions is…
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Phil's Favorites

Vanguard Gives "Hot Money" the Heisman

 

Vanguard Gives “Hot Money” the Heisman

Courtesy of 

At a certain point, a fund’s size becomes negatively correlated with returns. Too much money can kill any strategy.

I have so much respect for what Vanguard just did with their Dividend Growth Fund. Flows have been incredible for their low-cost, actively managed flagship fund (Wellington is the sub-advisor) and market appreciation has been powerful. So they shut it down to new investors. This is the kind of unselfish thing a conscientious manager does so that future performance doesn’t get swampe...



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Chart School

S&P 500 Snapshot: A Fractional Gain Continues the Sideways Trend

Courtesy of Doug Short's Advisor Perspectives.

Our benchmark S&P 500 continued in its range-bound sideways trend, posting a fractional gain of 0.16% that essentially split the different between the intraday high and low. The small gain extended the fractional up-down pattern of daily closes to eleven sessions. Meanwhile, West Texas Intermediate Crude fell 1.86% today and is now in bear territory, down 20.16% from its interim high 36 sessions ago on June 8th.

The yield on the 10-year remined unchanged at 1.52%.

Here is a snapshot of past five sessions in the S&P 500.

Here is a daily chart of the index. We've highlighted the unusually narrow pattern over the past eleven sessions, both in closes and intraday trading ranges. To repeat again the pervading question: Wil...



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Zero Hedge

DNC Grand Finale: Ladies Night, Hillary Unleashed (And Katy Perry!) - Live Feed

Courtesy of ZeroHedge. View original post here.

It's the day everyone has been waiting for - Ladies' night. The grand finale of four days of Democratic dreamery as Kary Perry takes the stage (after Barbara Mikulski - the first woman elected to the Senate). The night will be capped off by Chelsea Clinton introducing her mother - the first female nominee for President from a major party (Victoria Woodhill was first female nominee in 1872).

Dont know if the Equal Rights party was considered a major political party back then. If it was than HRC not the 1st ...



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Market News

News You Can Use From Phil's Stock World

 

Financial Markets and Economy

Buy stocks now, and leave ‘totally lost’ investors in the dust (Market Watch)

Dow futures are stuck in a holding pattern this morning, after the blue-chip gauge closed basically unchanged yesterday. So no uplift or crash from Yellen & Co.’s slightly hawkish release.

Fed caution hits dollar as Japan anticipation builds (Reuters)

The dollar took ...



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ValueWalk

NetSuite Inc Stock Soars On Oracle Corporation Bid

By Jacob Wolinsky. Originally published at ValueWalk.

NetSuite Inc (NYSE:N) is soaring this morning as Oracle Corporation (NASDAQ:ORCL) has made a bid to buy the company for $9.3 billion. This deal has been rumored for some time but obviously few expected such a large premium or did not think the bid was certaintly coming as the stock is up about 18 percent at the time of this writing which is a lot for a tech giant. Here is what the sell side is saying.

NetSuite – analysts react

Nomura

Should the transaction take place, Oracle would pay about 9x NTM EV / revenue (based on consensus estimates for NetSuite), above the average multiple paid in our precedent SaaS Software acquisitions analysis of 6.8x . Additionally, Oracl...



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Insider Scoop

Benzinga's M&A Chatter for Wednesday July 27, 2016

Courtesy of Benzinga.

The following are the M&A deals, rumors and chatter circulating on Wall Street for Wednesday July 27, 2016:

Sequenom Being Acquired by Lab Corp for $2.40/Share in Cash

The Deal:
Laboratory Corporation of America Holdings (NYSE: LH) and Sequenom, Inc. (NASDAQ: SQNM) announced Wednesday, that they have entered into a definitive agreement aunder which LabCorp would acquire all of the outstanding shares of Sequenom in a cash tender offer for $2.40 per share, for an equity value of $302 million.

The closing of the acquisition i...



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Mapping The Market

Illusion of Choice

From Jean-Luc:

Looks like we are down to about 10 companies for our consumer goods:

http://www.visualcapitalist.com/illusion-of-choice-consumer-brands/

Just like banks, airlines and cable companies! 

The Illusion of Choice in Consumer Brands

Explore the full-size version of the above graphic in all its glory.

If today’s infographic looks familiar, that’s because it originates from a well-circulated report that Oxfam International puts together to show consolidation i...



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Digital Currencies

Judge Rules Bitcoin Isn't Money Because It "Can't be Hidden Under A Mattress"

Courtesy of ZeroHedge. View original post here.

By Everett Numbers via TheAntiMedia.org

In a landmark decision, a Florida judge dismissed charges of money laundering against a Bitcoin seller on Monday following expert testimony showing state law did not apply to the cryptocurrency.

Michell Espinoza was charged with three felony charges related to money laundering i...



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Kimble Charting Solutions

Junk Bonds at important inflection point, should impact stocks!

Courtesy of Chris Kimble.

Junk bonds have been quality at sending Risk On and Risk Off message to the broad stock market. Below looks at Junk Bond ETF JNK over the past decade.

JNK finds itself at an important price point below and what it does in the upcoming couple of weeks could become a big influence on the Risk On/Risk Off trade.

CLICK ON CHART TO ENLARGE

...

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OpTrader

Swing trading portfolio - week of July 25th, 2016

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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All About Trends

Mid-Day Update

Reminder: Harlan 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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Biotech

This Is Why Biotech Stocks May Explode Again

Reminder: Pharmboy and Ilene are available to chat with Members.

Here's an interesting article from Investor's Business Daily arguing that biotech stocks are beginning to recover from their recent declines, notwithstanding current weakness.

This Is Why Biotech Stocks May Explode Again

By 

Excerpt:

After a three-year bull run that more than quadrupled its value by its peak last July, IBD’s Medical-Biomed/Biotech Industry Group plunged 50% by early February, hurt by backlashes against high drug prices and mergers that seek to lower corporate taxes.

...



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Promotions

PSW is more than just stock talk!

 

We know you love coming here for our Stocks & Options education, strategy and trade ideas, and for Phil's daily commentary which you can't live without, but there's more!

PhilStockWorld.com features the most important and most interesting news items from around the web, all day, every day!

News: If you missed it, you can probably find it in our Market News section. We sift through piles of news so you don't have to.   

If you are looking for non-mainstream, provocatively-narrated news and opinion pieces which promise to make you think -- we feature Zero Hedge, ...



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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 jennifersurovy@yahoo.com 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.

http://www.youcaring.com/medical-fundraiser/help-get-shadowfax-out-from-the-darkness-of-medical-bills-/126743

Thank you for you time!




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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...

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