Posts Tagged ‘CAG’

Hertz Investors Hurting As Stock Tumbles On Revised Annual Forecast

HTZ – Hertz Global Holdings Inc. – Investors in car rental company Hertz Global Holdings Inc. are taking it on the chin today, with shares in the name sliding as much as 13% in the early going to a three-month low of $22.47. Shares fell after Hertz lowered its full year 2013 earnings and revenue guidance, primarily due to weaker than expected U.S. airport car rentals, according to a press release issued by the company.  

October expiry put options changing hands on the stock this morning indicates one or more traders are bracing for shares in the name to weaken further in the near term. Around 2,000 of the Oct $23 strike puts appear to have been purchased, most of the contracts at a premium of $1.00 each. Put buyers make money at expiration next month if shares in HTZ decline 2.0% from today’s low of $22.47 to breach the breakeven point on the downside at $22.00. Shares in Hertz last traded below $22.00 in April. 

CAG – ConAgra Foods, Inc. – Shares in the provider of Chef Boyardee, Hunt’s and other branded consumer food products are in negative territory on Thursday morning, off 0.25% at $30.37 as of 10:45 a.m. ET. The stock has been hit hard in recent weeks, currently down more than 18% from a multi-year high of $37.28 reached at the beginning of August.

Trading in ConAgra call options this morning, however, suggests some strategists may be positioning for the price of the underlying to rebound during the final months of 2013. The most traded options contracts on CAG thus far in the session are the Dec $32 strike calls, with volume topping 5,500 contracts versus open interest of 1,615 contracts. Time and sales data suggests most of the volume was purchased within 15 minutes of the opening bell at a premium of $0.55 each. Call buyers may profit at December expiration in the event that ConAgra’s shares rally 7.0% over the current price of $30.28 to exceed the breakeven point at $32.55. 


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ConAgra Call Options Active As Shares Soar To Multi-Year Highs

 

Today’s tickers: CAG, NSC & JEF

CAG - ConAgra Foods, Inc. – Options on food products company, ConAgra Foods, Inc., are more active than usual this morning after the provider of Snack Packs, Slim Jims and Hebrew National hot dogs boosted its quarterly dividend and raised its full-year earnings forecast. Shares in CAG rallied more than 8% this morning to a multi-year high of $27.75. Traders positioning for shares in the name to extend gains in the near term snapped up call options in the September and October expiries. Overall volume in ConAgra options today is above 12,400 contracts as of 12:00 p.m. ET; heavy activity for the name, which typically sees average daily options volume of 598 contracts. Upside call buying in contracts with just one full trading day remaining to expiration indicate some strategists anticipate a strong end to the week for ConAgra shares. Traders appear to be buying most of the volume in the Sep. $27 and $28 strikes this morning at average premiums of $0.27 and $0.05 apiece. Thus far in the session, these contracts have traded more than 1,600 times each. Fresh interest in the Oct. $28 strike call, where 1,400 contracts changed this morning versus zero open positions, appears to have been largely initiated by buyers paying an average premium of $0.20 per contract. Traders long the calls profit at expiration next month as long as shares in ConAgra rally another 3% over the current price of $27.35 to top the average breakeven point at $28.20.

NSC - Norfolk Southern Corp.– Rail transportation services provider, Norfolk Southern Corp., said Wednesday third-quarter earnings are likely to trail analyst estimates, sending the price of its shares down nearly 10% this morning to $65.58. At least one options trader is positioned for the shares to come off further. It looks like the strategist purchased a 2,000-lot Oct. $60/$65 bear put spread at an average net premium outlay of $0.65 per contract. The…
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Dell Options In Demand

Today’s tickers: DELL, CAG, GPS & XLNX

DELL - Dell, Inc. – Strategists populating Dell options today are sending mixed signals on the PC maker ahead of the company’s first-quarter earnings report on May 17. Call buyers in the June contract appear to be gearing up for a rally in the price of the underlying shares, while ratio put spreaders are taking a more cautious stance on the stock. Shares in Dell are currently up 0.25% to stand at $15.84 as of 12:15pm. Options traders exchanged more than 9,800 calls at the June $16 strike on open interest of 3,774 contracts. It looks like nearly all of the contracts were purchased for an average premium of $0.63 a-pop. Investors long the calls profit if DELL’s shares rally 5.0% over the current price of $15.84 to exceed the average breakeven price of $16.63 by expiration day next month. Meanwhile, one or more put players initiated ratio spreads. Approximately 3,500 in-the-money puts at the June $16 strike were purchased for an average premium of $0.81 each, while 7,000 puts at the lower June $15 strike sold for an average premium of $0.37 apiece. Investors employing the spreads paid a net premium of $0.07 per contract, on average. The sale of twice as many of the lower-strike put options substantially reduced the cost of positioning for a pullback in Dell’s shares through expiration day next month. Traders may be using the put-play to hedge a long position in the stock, or may be positioning for shares to decline rather than rally as call buyers’ actions suggest. The parameters of the put spread, for outright bearish players, indicate maximum potential profits of $0.93 per contract if shares in DELL settle at $15.00 at expiration. But, if the position turns out to be not quite bearish enough, investors start losing money beneath a breakeven share price of $14.07.…
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Motorola-Bull Cleans Up

Today’s tickers: MOT, RIMM, WMB, CAG, PFCB & SAI

MOT – Motorola, Inc. – Shares of the maker of the Droid smartphone fell in morning trading but recovered during the session to add as much as 3 pennies or 0.35% to arrive at an intraday-high of $8.39 this afternoon. Motorola appeared on our ‘most active by options volume’ market scanner today after one options player appears to have booked profits on a previously established bullish position. It looks like the investor originally purchased roughly 28,000 calls at the September $7.0 strike for an average premium of $0.70 each back on August 19, 2010, when MOT shares were trading at a volume-weighted average price of $7.55. The appreciation in the price of the underling since the calls were purchased lifted premium on the September $7.0 strike calls, allowing the trader to sell the contracts for $1.35 in premium apiece today. Net profits on the transaction amount to $0.65 per contract. Next, it looks like the bullish player re-opened, or rolled, the position to the higher October $8.0 strike where approximately 28,000 calls were picked up at an average premium of $0.10 a-pop. The investor starts to make money on the fresh batch of calls if Motorola’s shares surge 8.5% over the current price of $8.39 to surpass the effective breakeven price of $9.10 by expiration. We note that the investor may walk away with profits on the new long call position before October expiration if circumstances going forward lift the premium on those calls and the trader opts to sell the position at an advantageous price.

RIMM – Research in Motion Ltd. – Options on the Blackberry maker are a hot ticket item today ahead of the firm’s second-quarter earnings report scheduled for release after the closing bell this afternoon. Frenzied trading ensued right out of the gate this morning with investors heavily trafficking in September and October contract call and put options. Shares are currently up 1.1% at $46.02 as of 1:45 pm ET, but earlier rallied as much as 2.3% to reign in an intraday high of $46.58. The overall reading of options implied volatility on the stock increased 5.1% in the first half of the session to top out at 58.22%, but has come off to stand just 2.6% higher on the day at 56.82%. Although more than 1.7 call options changed hands for each single put on…
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Blackberry Bull Banks Profits as RIMM Shares Rebound

Today’s tickers: RIMM, BAC, VZ, CAG, NYB, RMBS, TEVA, DIS & NVDA

RIMM – Research in Motion Limited – Blackberry maker, Research in Motion, revealed a distribution deal with Digital China – a unit of Legend Holdings – aimed at expanding its business in China. Shares stood 2.5% higher to $60.22 thirty minutes before the closing bell. One option investor banked profits on a previously established call position in the January 2010 contract today. It appears the trader originally purchased 25,000 calls at the January 80 strike for 30 cents apiece on December 4, 2009. Today the investor shed all 25,000 lots for 43 cents each. Net profits on the closing sale amount to 13 cents per contract for total gains of $325,000. Option implied volatility on the stock is up slightly on the day to 59.91%.

BAC – Bank of America Corp. – A bearish risk reversal on Bank of America this afternoon suggests one investor expects shares to suffer significant declines by expiration in May 2010. BAC’s shares slipped 2% to $15.98 in late-day trading. It appears the pessimistic player shed 7,500 calls at the May 22 strike for 36 cents apiece in order to partially offset the cost of buying the same number of put options at the lower May 13 strike for 70 cents premium each. The net cost of the transaction amounts to 34 cents per contract. The effective breakeven point on the put options of $12.66 is 20.77% lower than the current price per BAC share. The investor responsible for the reversal could be taking an extremely bearish bet on Bank of America. If this is the case, the investor expects shares to nosedive down to lows experienced at the end of July 2009. Alternatively, the trader could be long the stock, and financing cheap downside protection by selling covered call options. The long puts serve as protection in case the stock tumbles, whereas the short calls suggest the investor is happy to have the underlying stock position called from him at $22.00 each. Shares of BAC would need to rally 38% from the current price in order for the March 22 strike calls to land in-the-money.

VZ – Verizon Communications, Inc. – Option traders displayed mixed near-term sentiment on the communications company this afternoon. Shares edged 2% higher to a new 52-week high of $33.36 with less than one hour remaining in the…
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ValueWalk

Louis Gave: In Three Years, China Won't Have Capital Controls Anymore

By Mauldin Economics. Originally published at ValueWalk.

Louis Gave, co-founder and CEO at Gavekal, is unequivocally bullish on China.

Speaking at the Strategic Investment Conference in Orlando, Florida, he stated his firm belief that China will soon open up its economic restrictions and become more accessible to investors worldwide.

Unsplash / PixabayReasons Behind China Capital Outflows

Asked about rumors of capital flight out of China into Western assets like Vancouver and Toronto real estate, Gave—who lives in Hong Kong—pointed out that there are several different reasons....



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Zero Hedge

Bitcoin Is Crashing

Courtesy of ZeroHedge. View original post here.

What goes up exponentially, falls vertically... or something like that...

Bitcoin has plunged 13% in the last few minutes... no catalyst evident for now...

However, in context, it's a fleshwound...

...

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Phil's Favorites

Fed Eyes Second Quarter Recovery, Expects Trump Fiscal Policy Will Expand Economy

Courtesy of Mish.

Data supporting the second quarter recovery thesis is nonexistent. Four out of four of the recent hard data economic reports have been negative.

Soft data diffusion indexes do not look so hot either.

Earlier today the Census Bureau reported the trade deficit widened. The same report shows retail and wholesale inventories declined by 0.3% each.

Advance Wholesale Inventories

Wholesale inventories for April, adjusted for seasonal variations but not for price changes, were estimated at an end-of-month level of $592.0 billion, down 0.3 percent (±0.4 percent)* from March 2017, and were up 1.8 perce...



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Market News

News You Can Use From Phil's Stock World

 

Financial Markets and Economy

OPEC Boss Embraces Shift to Top Diplomat (The Wall Street Journal)

During a turbulent year for oil prices, the Organization of the Petroleum Exporting Countries’ top official, Mohammad Barkindo, has embraced a role as the global energy industry’s chief diplomat.

Eurozone ‘still fragile’ despite growth spurt, warns European Central Bank (The Telegraph)

Europe’s sovereign debt crisis might seem like a distant memory as the eurozone economy ...



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Chart School

Gold supply and demand battle near resolution

Courtesy of Read the Ticker.

Energy builds up during a long slow sideways pattern which allow money managers to accumulate or distribute float, very soon either the demand or supply side is going to get knocked out. Soon we well have a winner! Both the moving averages and Gann angles show the tight APEX, a break out either way will happen. Our bias is to the upside.

If you review a hand full of gold stocks (say ABX, NEM, GG, HMY) you can see higher lows, and consolidations tightening after a period of volatility, this means those that wish to sell from the recent rally have done so, there done! Now the time for the next move is very near. The good news is that most big money managers missed the 2016 rally, and they are getting ready for the next move higher (we believe).

...

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Members' Corner

Robert Sapolsky: The biology of our best and worst selves

Interesting discussion of what affects our behavior. 

Description: "How can humans be so compassionate and altruistic — and also so brutal and violent? To understand why we do what we do, neuroscientist Robert Sapolsky looks at extreme context, examining actions on timescales from seconds to millions of years before they occurred. In this fascinating talk, he shares his cutting edge research into the biology that drives our worst and best behaviors."

Robert Sapolsky: The biology of our best and worst selves

Filmed April 2017 at TED 2017

 

p.s. Roger (on Facebook) saw this talk and recommends the book ...



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OpTrader

Swing trading portfolio - week of May 22nd, 2017

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

Bitcoin Soars Above $2000 For First Time Ever

Courtesy of Zero Hedge

Bitcoin is now up over 100% in 2017, amid global political uncertainty and increased interest in Asia, suddenly spiking above $2000 this afternoon for the first time ever...

That is a year-over-year gain of more than 350%. The move comes, as CoinDesk notes, amid a broader boost in the cryptocurrency market, which broke the $60bn barrier today. The increase has taken place amid strong surges from Ripple's XRP, which seeks to lower costs in enterprise cross-border payments, and ethereum's ether token, a cryptographic asse...



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Biotech

Beyond just promise, CRISPR is delivering in the lab today

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

Beyond just promise, CRISPR is delivering in the lab today

Courtesy of Ian HaydonUniversity of Washington

Precision editing DNA allows for some amazing applications. Ian Haydon, CC BY-ND

There’s a revolution happening in biology, and its name is CRISPR.

CRISPR (pronounced “crisper”) is a powerful technique for editing DNA. It has received an enormous amount of attention in the scientific and popular press, largely based on the promise of what this powerful gene e...



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Kimble Charting Solutions

Brazil; Waterfall in prices starting? Impact U.S.?

Courtesy of Chris Kimble.

Below looks at the Brazil ETF (EWZ) over the last decade. The rally over the past year has it facing a critical level, from a Power of the Pattern perspective.

CLICK ON CHART TO ENLARGE

EWZ is facing dual resistance at (1), while in a 9-year down trend of lower highs and lower lows. The counter trend rally over the past 17-months has it testing key falling resistance. Did the counter trend reflation rally just end at dual resistance???

If EWZ b...



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Mapping The Market

Bombing - Right or Wrong?

Courtesy of Jean-Luc

I am telling you Angel – makes no sense… BTW:

Republicans Love Bombing, But Only When a Republican Does It

By Kevin Drum, Mother Jones

A few days ago I noted that Republican views of the economy changed dramatically when Donald Trump was elected, but Democratic views stayed pretty stable. Apparently Republicans view the economy through a partisan lens but Democrats don't.

Are there other examples of this? Yes indeed. Jeff Stein points to polling data about air strikes against Syria:

Democr...



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Promotions

Free eBook - "My Top Strategies for 2017"

 

 

Here's a free ebook for you to check out! 

Phil has a chapter in a newly-released eBook that we think you’ll enjoy.

In My Top Strategies for 2017, Phil's chapter is Secret Santa’s Inflation Hedges for 2017.

This chapter isn’t about risk or leverage. Phil present a few smart, practical ideas you can use as a hedge against inflation as well as hedging strategies designed to assist you in staying ahead of the markets.

Some other great content in this free eBook includes:

 

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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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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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