Guest View
User: Pass: | become a member
Posts Tagged ‘DFS’

Pfizer Calls Look For Shares To Extend Rally

www.interactivebrokers.com

 

Today’s tickers: PFE, DFS & TSL

PFE - Pfizer, Inc. – Shares in the world’s largest drug maker are up sharply on Tuesday, trading 3% higher on the session at $27.65 as of 11:10 a.m. ET, the highest level in more than five years. Pfizer’s shares are rallying after the company posted better-than-expected fourth-quarter earnings ahead of the opening bell and forecast2013 earnings above analyst estimates. The stock has gained more than 17.5% since mid-November. Heavy trading traffic in Pfizer call options this morning suggests traders are positioning for shares in the name to extend gains during the next couple of months. February expiry calls are changing hands at a clip, with notable volume exceeding open interest at the Feb. $28 strike price. Most of the Feb. $28 calls in play appear to have been purchased for an average premium of $0.08 each. Meanwhile, the single-largest print in PFE call options, a block of 24,500 contracts, traded at the Mar. $28 striking price. It looks like one strategist purchased the call options at a premium of $0.17 each during the first 20 minutes of the trading day. Overall call volume at the Mar. $28 strike exceeds 28,500 contracts as of 11:30 a.m. ET, trumping open interest of 9,870 contracts. Traders long the upside calls stand ready to profit at March expiration should Pfizer’s shares increase another 2.0% to surpass the breakeven point at $28.17.

DFS - Discover Financial Services, Inc. – Bearish options on credit card issuer and electronic payment services provider, Discover Financial Services, are active this morning with shares in the name trading 0.5% lower on the session at $37.87 as of 11:35 a.m. ET. March expiry put options are the most actively traded contracts on Discover today, with upwards of 9,400 lots in play at the $37 strike versus open interest of just 33 contracts. It looks like one or more traders purchased the bulk of the volume for an average premium of $0.91 each. Put buyers may profit at expiration in six weeks in the event that shares in DFS slump nearly…
continue reading


Tags: , ,




Bulls Find Lululemon Call Options Irresistible as Shares Soar

www.interactivebrokers.com

Today’s tickers: LULU, IRM, GAP, SNDK, STI & DFS

LULU - Lululemon Athletica, Inc. – Shares of the yoga clothing and accessories maker stretched and lengthened up to new all-time highs yet again today, attracting bullish options players more than willing to flex their call-buying muscles in the December and January 2011 contracts. LULU’s shares jumped more than 8.95% to secure an intraday- and new all-time high of $69.25 in the final thirty minutes of the trading week. The Canadian company’s shares have been unstoppable, rallying an incredible 167.5% to today’s high from a 52-week low of $25.75 on February 5, 2010. Shares are up 1,490.8% since March 6, 2009, when the stock touched down at an all time low of $4.33 a share at around the same time the S&P 500 Index hit rock-bottom in the most recent economic recession. Investors unwilling to stand in the way of such a driving force picked up call options on Lululemon to position for additional share price gains going forward. Traders purchased some 1,100 in-the-money calls at the December $65 strike for an average premium of $2.67 each. Call buyers at this strike profit if LULU’s shares exceed the average breakeven price of $67.67 through December expiration. Other bullish players sold roughly 1,650 puts at the December $65 strike to pocket premium of $1.08 per contract. Put sellers keep the full premium received on the transaction as long as shares trade above $65.00 through expiration in one week. Investors short the puts are happy to have shares of the underlying stock put to them at an average price of $63.92 a share in the event that the puts land in-the-money at expiration. Bullish players skipped to the January 2011 contract to purchase out-of-the-money calls, as well. Investors bought more than 1,000 January 2011 $70 strike calls for an average premium of $2.21 each. Uber-bullish players picked up another 2,000 calls at the higher January 2011 $75 strike at an average premium of $1.19 a-pop. Call…
continue reading


Tags: , , , , ,




Bullish Smoke Signals Detected at Human Genome Sciences

www.interactivebrokers.com

Today’s tickers: HGSI, BSX, DFS, CSCO, LVLT, AMGN & IBB

HGSI - Human Genome Sciences, Inc. – Shares in Human Genome Sciences are up 8.9% to trade around $26.49 in the final hour of the trading session on speculation the firm could become an attractive takeover target if its lupus drug treatment, Benlysta, wins approval next month. Options traders sent up a number of bullish signals using January 2011 contract call and put options. Earlier this morning, one optimistic investor initiated a debit call spread, buying 3,000 calls at the January 2011 $27 strike for a premium of $3.90 each, and selling the same number of calls at the higher January 2011 $40 strike at a premium of $0.375 apiece. The net cost of putting on the spread amounts to $3.525 per contract. The investor makes money on the spread if Human Genome’s shares surge 15.2% over the current price of $26.49 to exceed the effective breakeven point at $30.525 by January expiration. The call spreader could end up taking home maximum potential profits of $9.475 per contract if the price of the underlying stock jumps 51.0% to trade above $40.00 by expiration day next year. The trader is well positioned to benefit from the rally in HGSI shares that would accompany Benlysta’s approval and/or continued takeover chatter. Another bullish sign that appeared in the same expiry involved put options. It looks like another investor unraveled a previously established bear put spread, selling 2,750 puts at the Jan. 2011 $20 strike and buying the same number of puts at the lower Jan. 2011 $15 strike, to take in a net premium of $1.25 per contract. It is possible the transaction is an opening credit put spread rather than a closing sale, but open interest levels at both strikes are more than sufficient to cover today’s volume. Either way, the trade is another sign of optimism on the biotechnology company ahead of the key drug approval decision. Options implied volatility on the stock is…
continue reading


Tags: , , , , , ,




Bullish Players Frequent Las Vegas Sands as Shares Continue to Hit New 52-Week Highs

www.interactivebrokers.com

 Today’s tickers: LVS, INTC, DFS, BIG, SWN, MRVL, XRT & FTNT

LVS - Las Vegas Sands Corp. – Shares of the casino resort operator rallied as much as 3.5% during the trading session to hit an intraday- and new 52-week high of $47.48 on news Macau casino revenue, bolstered by China’s Golden Week holiday, jumped 50% to a record in October. Analysts at Morgan Stanley raised their target price on LVS to $50.00 from $36.00, maintained an ‘overweight’ rating on the stock, upped their EPS estimate on the company for fiscal 2010 to $0.96 a share from $0.69 a share, and increased their EPS forecast for 2011 for LVS to $1.85 per share from $1.19 per share. Options traders are initiating bullish positions on the casino operator today and are currently trading more than 2.2 calls on the stock for each single put option changing hands. Near-term November contract calls and puts are the most popular with less than 30 minutes remaining before the final bell. Bulls sold more than 1,000 puts at the November $45 and $47 strikes to pocket an average premium of $1.23 and $2.10, respectively. Investors short the puts keep the premium received as long as shares exceed the strike prices described by November expiration. Meanwhile, call buyers scooped up 1,600 in-the-money contracts at the November $46 strike for an average premium of $2.63 each. Another 1,100 calls were purchased at the higher November $47 strike for an average premium of $2.14 a-pop. Investors hoping to see LVS shares increase significantly before the year ends purchased some 1,800 calls up at the December $50 strike for an average premium of $2.24 per contract. Traders holding these contracts profit if Las Vegas Sands’ shares surge 10.00% over today’s high of $47.48 to trade above the effective breakeven price of $52.24 by expiration day next month. Options implied volatility on LVS is up 5.7% to arrive at 50.30% as of 3:40 pm in New York trading.

INTC - Intel Corp. – One big options…
continue reading


Tags: , , , , , , ,




Investors HOG-Wild for Harley-Davidson, Inc. Options

www.interactivebrokers.com

Today’s tickers: HOG, SKS, MDRX, DFS, NFLX, IGT & DOW

HOG – Harley-Davidson, Inc. – Motorcycle maker, Harley-Davidson, Inc., attracted hoards of options investors during the session with its shares rallying as much as 5.85% in morning trading to secure an intraday high of $27.71. Harley’s shares are currently up a more modest 1.80% to $26.65 just before 12:40 pm (ET). Bullish tactics dominated activity in the June contract, with optimistic traders picking up some 4,300 calls at the June $28 strike for an average premium of $0.52 apiece. Call buyers at this strike price make money only if Harley-Davidson’s shares exceed $28.52 ahead of June expiration. Optimism spread to the higher June $30 strike where 1,100 calls were purchased at an average premium of $0.15 each. The calls are not a profitable acquisition for traders unless Harley’s shares jump more than 13.1% over the current price of $26.65 to exceed the average breakeven price of $30.15 by June expiration day. Investor sentiment is mixed in the July contract. While bulls purchased call options at the July $30 strike for an average premium of $0.82 apiece, bearish traders employed different strategies. It looks like some pessimistic investors essentially opted to sell call options in order to finance the purchase of debit put spreads. These traders appear to have purchased roughly 4,000 puts at the July $25 strike for an average premium of $1.23 each, and sold about the same number of puts at the lower July $20 strike for $0.23 apiece. Additional financing for the bearish spread was provided by the sale of approximately 4,000 calls at the July $30 strike for an average premium of $0.82 each. Thus, the average net cost of the combination play amounts to $0.18 per contract. Investors employing this strategy are prepared to profit should HOG’s shares decline 6.9% to breach the effective breakeven price to the downside at $24.82 by July expiration. Maximum available profits of $4.82 per contract accumulate for bearish individuals if shares of the underlying stock plummet 24.95% from the current price of $26.65 to break through $20.00 by expiration day.

SKS – Saks, Inc. – Some investors made bullish moves on Saks, Inc. today with shares of the underlying stock up as much as 5.2% in the first half of the trading session to an intraday high of $8.50. The luxury retailer’s share price rose on optimism consumer spending…
continue reading


Tags: , , , , , ,




MetroPCS Options Calendar Spread at Play as Shares Rally

www.interactivebrokers.com

Today’s tickers: PCS, EEM, GIGM, AIG, DFS, GE, PBR & HGSI

PCS – The wireless communications provider has experienced a more than 4.5% rally in shares today, attracting bullish option traders to the field. One trade in particular caught our eye as an investor looking for significant gains in the price of the stock took action. The purchase of 3,600 calls at the nearly in-the-money August 12.5 strike price for 1.05 was the first leg of the optimistic trade. The call options in the August contract were spread against the sale of another 3,600 calls at the higher 17.5 strike price in the February 2010 contract for 55 cents apiece. The net cost of the calendar spread amounts to 50 cents. If the nearer-term calls land in-the-money, the investor can exercise his right to take delivery of the underlying shares at an effective cost of $13.00 each. Once he is long the stock, the investor is hoping to see shares rise to $17.50 by expiration in February. If shares can rally through the 17.5 strike price, the trader will make his exit by having the underlying stock called away from him, exiting the pitch with gains of 35% in total. – MetroPCS Communications, Inc.

EEM – Options action on the emerging markets fund today suggests mixed opinions by traders populating the nearer-term contracts. Shares of EEM have slipped 1% to stand at $31.55. One bearish investor looked to the August 30 strike price to initiate a sold straddle. Such positioning indicates that the trader expects shares to continue downward and settle at $30.00 by expiration. The straddle was enacted through the sale of 7,500 puts and an equal number of calls for a gross premium of 3.93 per contract. The full premium will remain pocketed by the investor responsible for the trade if the price of the underlying gravitates to $30.00. The short call and put positions leaves this individual exposed to losses beneath the breakeven point to the downside at $26.07 and vulnerable to unlimited losses above the breakeven point to the upside at $33.93. Another investor has lessened his bearish outlook on the EEM by initiating a calendar spread. It appears that this trader sold 20,000 puts at the August 27 strike price for 52 cents apiece to fund the purchase of 20,000 puts at the much lower September 22 strike for 26 cents per contract.
continue reading


Tags: , , , , , , ,




Lights back on in Vegas

www.interactivebrokers.com

Today’s tickers: MGM, DFS, MOS, WFR, LVS, XHB, KFT & HNZ

MGM MGM Mirage, Inc. – Shares of the biggest casino owner on the Las Vegas Strip have skyrocketed by more than 42% to $13.41 amid reports from the company that occupancy has recovered and convention cancellations have lessened. More than 112,000 option contracts on the stock traded today with a number of bullish plays by investors looking for continued strength in its share price. The company also received an upgrade by – surprise, surprise – Bank of America/Merrill Lynch to ‘buy’ after also upgrading fellow casino giant, Las Vegas Sands Corp., as well. Early bird investors were able to buy call options that have since landed in-the-money during the rally at the May 12.5 strike price for an average premium of just 83 cents. Now (post 2pm EST) getting long of those same calls cost 1.75 apiece. More optimistic traders looked to the May 15 strike where more than 8,000 calls were traded. At least 3,000 of those calls were purchased for about 38 cents each earlier today. However, the premium has since increased to the current ask price of 65 cents. Option implied volatility on the stock is currently at 150% down from 200% recorded last Thursday.

DFS Discover Financial Services – The credit card issuer and electronic payment services firm is up by less than 1% to $9.02. Option investors were observed buying bullish call options on the stock despite concerns over weaker earnings for the first-quarter across the board for credit card issuers. At the May 10 strike price traders exchanged calls about 15,000 times with more than 8,300 contracts bought at an average premium of 24 cents each. Optimism spread to the June contract where about 3,400 puts were shed at the June 7.5 strike for a VWAP of 43 cents. The June 10 strike witnessed the purchase of 3,500 calls for about 72 cents apiece. The most bullish individuals discovered calls available for the taking at the July 12.5 strike price where some 1,100 were coveted for 33 cents per contract. The more than 29,900 contracts traded on the stock today represent 54% of the existing open interest on DFS of 55,244 lots.

MOS The Mosaic Company – The producer of potash and animal feed has experienced a rally in shares of more than 4% to $46.04 amid rumors reported by one news…
continue reading


Tags: , , , , , , ,




 
 
 

Zero Hedge

Thomas Piketty's "Sensational" New Book

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

Submitted by Hunter Lewis via The Mises Economic blog,

This 42 year economist from French academe has written a hot new book: Capital in the Twenty-First Century. The US edition has been published by Harvard University Press and, remarkably, is leading the best seller list, the first time that a Harvard book has done so. A recent review describes Piketty as the man “who exposed capitalism’s fatal flaw.”

So what is this flaw? Supposedly under capitalism the rich get steadily richer in relation to everyone else; inequality gets worse and worse. It is all baked into the cake, unavoid...



more from Tyler

Phil's Favorites

French Telecom Company Does Biggest Junk Bond Sale Ever; Bidding Wars for Junk; AOL Flashback

Courtesy of Mish.

With central bankers globally suppressing interest rates, the such for yield elsewhere is on. One of the places investors have turned is speculative junk bond offerings.

Please consider French Company Does Biggest Junk Bond Sale Ever.
Numericable (NUM), which provides cable and internet service in France and other European markets, sold a record amount of high-yield bonds Wednesday with some priced in dollars and others in euros.

It's sold $7.78 billion and €2.25 billion in notes that yield 5% or more, according to a statement from Altice, the multinational telecom group that owns Numericable. Altice issued $2.9 bill...



more from Ilene

Chart School

Get Ready for Europe to Print

Courtesy of Doug Short.

Summary:

  • Core Eurozone CPI inflation rate falls to 0.70%, a multi-decade low
  • This occurs at a time when the PIGS' average unemployment rate rests near 24%
  • Deflation threat in Europe real as GDP in Europe likely to peak this year
  • European hawks moving towards dovish side of the fence, opening door for more QE
  • Implications: stronger European stock market, stronger USD, weaker commodity prices, stronger global growth

Back in February I laid the groundwork for why we should expect to see the European Central Bank (ECB) massively expand its balance sheet (see article). The case for expecting to see the ECB print is only increasing as core Eurozone inflation is c...



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

Insider Scoop

Yum! Brands Conference Call Highlights; All About China

Courtesy of Benzinga.

Related YUM China Drives Yum! Brands Q1 Earnings - Analyst Blog Market Sentiment Flat Due To A Barrage Of Unimpressive Q1 Earnings Reports - Economic Highlights Rallying Ahead of Earnings (Fox Business)

Yum! Brands (NYSE: YUM) reported its first quarter earnings on April 23, 2014. Shares of the company are down 0.86 percent or $...



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

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 >>