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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ValueWalk

The Weighted Average Cost Of Capital - When it goes up, prices go down. It's going up...

By PeakProsperity. Originally published at ValueWalk.

When I was fresh out of college in the mid-90s, I landed a job at Merrill Lynch. I was an “investment banking analyst”, which meant I had no life outside of the office and hardly ever slept. I pretty much spoke, thought, and dreamed in Excel during those years. Much of my time there was spent building valuation models. These complicated spreadsheets were used to provide an air of quantitative validation to the answers the senior bankers otherwise pulled out of their derrieres to questions like: Is the market under- or over-valuing this company? Can we defend the acquisition price we’re recommending for this M&A deal? What should we price this IPO at?

Back then, Wall Street still (mostly) believed that fundamentals mattered. And one of the most widely-accepted methods for fundamentally valu...



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Zero Hedge

Ford CEO Expresses Interest In Working With Trump; Says Less Regulation Is Key To Saving U.S. Jobs

Courtesy of ZeroHedge. View original post here.

With Carrier setting the precedent for what future negotiations with the Trump administration may look like, Ford CEO Mark Fields has come forward to layout potential policy changes that would be important to preserving auto jobs in the United States.  Not surprisingly, per an interview with Bloomberg, Fields' opening "ask" focused on less restrictive fuel economy standards, new currency-manipulation rules to promote free and fair trade and corporate tax reform.

Ford Motor Co. was a target of Donald Trump’s criticism on the campai...



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Phil's Favorites

Pirate Party Given Chance to Form Government in Iceland: Best Wishes to Birgitta Jónsdóttir

Courtesy of Mish.

Iceland has been without a ruling government since snap elections on October 29. None of the seven parties or alliances could could form a majority.

The conservative Independence party had first shot and failed. The Left-Green Movement had second chance and failed.

Now it’s the Pirate Party’s chance, led by Birgitta Jónsdóttir.

The Guardian reports Iceland’s Pirate Party Invited to Form Government.

Iceland’s president has invited the anti-establishment Pirate p...



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Kimble Charting Solutions

Stock/Bond Ratio back at 2007 highs, different results this time?

Courtesy of Chris Kimble.

Below looks at the S&P 500/Govt Bond (TLT) Ratio over the past 12-years

CLICK ON CHART TO ENLARGE

The S&P 500/TLT ratio is now back at 2007 levels. Double Top or Breakout Time.

Do find this interesting at this time, bullish sentiment on $TLT now stand around the 10% level, which happens to be the same level it was in mid 2007!

Different this time???  Always fun friends!!!

...

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Market News

Breaking News And Best Of The Web

Courtesy of John Rubino at Dollar Collapse

OPEC agrees to cut output. Oil jumps, stocks rise, gold falls. The political focus shifts to upcoming Italian, French and Austrian elections, all of which could go against the establishment. India’s war on cash may turn into war on gold. Political class still searching for an explanation (see “Best of the Web”). Trump’s cabinet takes shape, with mostly old and a few new faces.  

Best Of The Web

A new look – NYSE margin debt and the market – Financial Sense

The guys from ‘Government ...



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Chart School

Semiconductors Hit Hard

Courtesy of Declan.

Internet troubles have limited me tonight, but the one chart I want to show is the near 5% loss in the Semiconductor Index.  Having escaped relatively unscathed from recent day's selling it was a whirlwind of action for the index today.


This had obvious consequences on the Nasdaq. The Nasdaq did relatively well to suffer just over a 1% loss.  However, there were 'sell' triggers for On-Balance-Volume and Directional Index. There was also an acceleration in the relative underperformance of the index to the S&P. ...

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Members' Corner

Second Hand Stink?

Courtesy of Nattering Naybob.

In what seems to be a recurring scatological humor theme, aka our "Toilet Thursday's" or "Thursday's in the Loo" of the past few weeks, we follow up on The Story of Poo-Pourri.

In Second Hand Stink?, men are not so subtlety reminded that an odiferous fog wafting from the bedroom loo, can indeed kill the moment. 

...

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OpTrader

Swing trading portfolio - week of November 28th, 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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Digital Currencies

Largest US Bitcoin Exchange Is "Extremely Concerned" With IRS Crackdown Targeting Its Users

Courtesy of ZeroHedge. View original post here.

Last Thursday we reported that in a startling development seeking to breach the privacy veil of users of America's largest bitcoin exchange, the IRS filed court papers seeking a judicial order to serve a so-called “John Doe” summons on the San Francisco-based Bitcoin platform Coinbase.

The government’s request is part of a bitcoin tax-evasion probe, and se...



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Mapping The Market

The Most Overlooked Trait of Investing Success

Via Jean-Luc

Good article on investing success:

The Most Overlooked Trait of Investing Success

By Morgan Housel

There is a reason no Berkshire Hathaway investor chides Buffett when the company has a bad quarter. It’s because Buffett has so thoroughly convinced his investors that it’s pointless to try to navigate around 90-day intervals. He’s done that by writing incredibly lucid letters to investors for the last 50 years, communicating in easy-to-understand language at annual meetings, and speaking on TV in ways that someone with no investing experience can grasp.

Yes, Buffett runs an amazing investment company. But he also runs an amazing investor company. One of the most underappreciated part of his s...



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Biotech

Epizyme - A Waiting Game

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

Epizyme was founded in 2007, and trying to create drugs to treat patient's cancer by focusing on genetically-linked differences between normal and cancer cells. Cancer areas of focus include leukemia, Non-Hodgkin's lymphoma and breast cancer.  One of the Epizme cofounders, H. Robert Horvitz, won the Nobel Prize in Medicine in 2002 for "discoveries concerning genetic regulation of organ development and programmed cell death."

Before discussing the drug targets of Epizyme, understanding epigenetics is crucial to comprehend the company's goals.  

Genetic components are the DNA sequences that are 'inherited.'  Some of these genes are stronger than others in their expression (e.g., eye color).  Yet, some genes turn on or off due to external factors (environmental), and it is und...



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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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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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