Posts Tagged ‘DLB’

Call Spreader Targets Ancestry.com, Inc. as Shares Soar to All-Time High

Today’s tickers: ACOM, DLB, S, FSIN, XLF, PDE, MED, KO & THC

ACOM – Ancestry.com, Inc. – Shares of the online family history resource surged 8.380% in afternoon trading to reach an all-time high of $22.76. The rally in Ancestry’s shares inspired one bullish options investor to purchase a plain-vanilla call spread in the February 2011 contract. It looks like the trader picked up 1,050 now in-the-money calls at the February 2011 $22.5 strike for an average premium of $2.82 each, and sold the same number of calls at the higher February 2011 $30 strike at an average premium of $0.55 a-pop. Net premium paid to establish the bullish spread amounts to $2.27 per contract. Thus, the trader is poised to profit should ACOM’s shares jump 8.8% over today’s high of $22.76 to surpass the average breakeven price of $24.77 by expiration day in February. Maximum potential profits of $5.23 per contract are available to the call-spreader if ACOM’s shares rally 31.8% to exceed $30.00 by February expiration.

DLB – Dolby Laboratories, Inc. – A short strangle on the provider of products and technologies created to enhance various aspects of entertainment media indicates one options investor expects Dolby’s shares to trade within a specified range through expiration in March 2011. Shares surged 6.3% to reach an intraday high of $59.46 by 2:30 pm ET after the stock was upgraded to ‘market outperform’ from ‘market perform’ with a 12-month target share price of $69.00 at Avondale Partners LLC. It looks like the strangle-seller sold roughly 3,000 puts at the March 2011 $50 strike at a premium of $2.46 each, and shed about the same number of calls at the higher March 2011 $65 strike for a premium of $2.80 apiece. Gross premium pocketed on the transaction amounts to $5.26 per contract. The investor responsible for the trade keeps the full premium received as long as Dolby’s shares trade within the boundaries of the strike prices described through expiration day next year. The premium received acts as a limited buffer against losses in the event that, at expiration, shares fail to trade within the specified price range. However, losses start to accumulate if DLB’s shares rally above the upper breakeven price of $70.26, or if shares nosedive to trade below the lower breakeven point at $44.74, ahead of expiration day in March. The increase in demand for options on the stock coupled…
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Strangle Strategist Sees Sharp Shifts in Johnson Controls Shares

Today’s tickers: JCI, LEA, X, LFT, TS, MU, LULU, DLB & RRC

JCI – Johnson Controls, Inc. – A long strangle enacted on the maker of batteries for automobiles and hybrid electric vehicles this afternoon implies the firm’s share price could swing dramatically ahead of May expiration. Johnson’s shares gained 0.72% in late afternoon trading to stand at $33.35. Earlier in the session shares of the underlying stock reached a new 52-week high of $33.60. The investor responsible for the long strangle play is expecting to profit if JCI’s shares trade outside of a specified range ahead of expiration day. The volatility player purchased roughly 10,000 puts at the May $32 strike for an average premium of $0.89 apiece and picked up 10,000 calls at the higher May $34 strike for $1.14 each. The net cost of the strangle amounts to $2.03 per contract. Shares must trade above the upper breakeven price of $36.03, or trade beneath the lower breakeven point at $29.97, in order for the strangler to amass profits ahead of May expiration.

LEA – Lear Corp. – Bullish options activity on the manufacturer of automotive seat systems suggests at least one investor is preparing for shares to trade at a significantly higher price by expiration in September. Lear’s shares increased 0.85% to $80.37during the current session to trade just $0.53 below the current 52-week high on the stock of $80.90. The optimistic options strategist initiated a debit call spread by purchasing 2,500 calls at the September $85 strike for a premium of $5.40 apiece, and by selling the same number of calls at the higher September $95 strike for $2.10 each. Net premium paid for the transaction amounts to $3.30 per contract. Thus, the trader stands ready to accrue maximum potential profits of $6.70 per contract if Lear’s shares surge 18.20% from the current price to $95.00 by expiration day in September.

X – United States Steel Corp. – Bullish options trading on U.S. Steel Corp. today follows news reports that steelmakers are set to hike prices globally as the economic recovery drains inventory levels and boosts demand and prices for raw materials. The price of steel, according to a Bloomberg News article, increased 9.1% in the U.S. during the month of February. U.S. Steel’s shares rallied 2% during the first half of the trading session to stand at $64.77, and earlier this morning traded up to…
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Zero Hedge

Japan Crash Continues, European Banks Soar On Speculation ECB May Monetize Bank Shares

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

While algos patiently await the only thing that matters for US stocks today which is Janet Yellen's testimony before Congress. expected to be released at 8:30 am (and previewed here), the rest of the world this morning is a hot mess of schizophrenic highs and lows.

One look at Asia this morning and it was more of the same: another deja vu session for Japan where the relentless surge in the Yen pressured the Nikkei lower by another 2.3%, pushing it down to 15713, to the lowest close since October 2014. The MSCI Asia index was likewise down 1.4% with all 10 sectors...



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Phil's Favorites

Fiscal Policy Has Failed the US Economy

Time to embrace a larger budget deficit, or should we continue to do more of the same that doesn't work? 

Fiscal Policy Has Failed the US Economy

Courtesy of Cullen Roche of Pragmatic Capitalism

The story of the post-crisis economic period is simple:

  • The housing boom left the household sector mired in a deep debt hole.
  • This was further exacerbated by the leverage Wall Street added on top of the household sector’s debt.
  • This left the banks and household sector needing a great deal of support.
  • Since 2008 we’ve seen huge amounts of stimulus from the Federal Reserve and global Central Banks, but we’ve had t...


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Market News

News You Can Use From Phil's Stock World

 

Financial Markets and Economy

Deutsche Bank Said in Early Stages of Mulling Bond Buyback (Bloomberg)

Deutsche Bank AG is considering buying back some of its bonds, potentially countering this month’s selloff over concern that Germany’s biggest bank will struggle to make payments on its riskiest debt.

World's Negative-Yielding Bond Pile Tops $7 Trillion: Chart (Bloomberg)

More than $7 trillion of government bonds offered yields below zero globally as of Monday, making up about 29 percent of the Bloomberg Global Developed Sovereign Bond...



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Chart School

Honors Even

Courtesy of Declan.

The gap down had set up for a big bearish move lower, but the collapse never appeared. Instead, lows held as support. On the flip side, an attempt at a rally couldn't get off the ground, but markets were able to do enough to register a close above the open.

The S&P closed with a spinning top below support. Watch for a strong 'sell' signal in the MACD as other technicals remain bearish.  The only positive is the strong relative performance against the Russell 2000.


The Nasdaq experienced a big gap down yesterday, and today offered a brief move to test the gap. Bulls need a gap higher to leave what could be a very good bullish ...

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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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Kimble Charting Solutions

Nasdaq to follow Silver and decline 30%+?

Courtesy of Chris Kimble.

CLICK ON CHART TO ENLARGE

When assets reach prior highs, its time to pay attention from a Risk On & Risk Off basis.

The chart on the left is Silver, going back to the mid 1970’s. As you can see it reached $50 in the early 1980’s and then quickly reversed, losing over 90% of its value in the next 14-years. Then it embarked on a rally, starting in the early 1990’s. This rally took Silver back to the $50 level in 2011, which ended up being a “Double Top” nearly 30-years later. After hitting the $50 level again, buyers disappeared and sellers stepped forward....



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OpTrader

Swing trading portfolio - week of February 8th, 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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ValueWalk

Why Most Investors Fail in the Stock Market

 

Why Most Investors Fail in the Stock Market

Courtesy of ValueWalk, by  

Throughout the past 30 days of wild volatility, here’s what I didn’t do.

Panic. Worry. Sell.

In fact, the best I did was add to a couple of positions yesterday. The world was already in an uncertain state for the past 3+ years. It’s just that with the market rising, we pushed the issue to the back of our  mind and ignored it.

If you read Howard Marks latest memo, ...



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Digital Currencies

2016 Theme #3: The Rise Of Independent (Non-State) Crypto-Currencies

Courtesy of Charles Hugh-Smith at Of Two Minds

A number of systemic, structural forces are intersecting in 2016. One is the rise of non-state, non-central-bank-issued crypto-currencies.

We all know money is created and distributed by governments and central banks. The reason is simple: control the money and you control everything.

The invention of the blockchain and crypto-currencies such as Bitcoin have opened the door to non-state, non-central-bank currencies--money that is global and independent of any state or central bank, or indeed, any bank, as crypto-currencies are structurally peer-to-peer, meaning they don't require a bank to function: people can exchange crypto-currencies to pay for goods and services without a bank acting as a clearinghouse for all these transactions.

This doesn't just open t...



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Sabrient

Sector Detector: New Year brings new hope after bulls lose traction to close 2015

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

Chart via Finviz

Courtesy of Sabrient Systems and Gradient Analytics

Last year, the S&P 500 large caps closed 2015 essentially flat on a total return basis, while the NASDAQ 100 showed a little better performance at +8.3% and the Russell 2000 small caps fell -5.9%. Overall, stocks disappointed even in the face of modest expectations, especially the small caps as market leadership was mostly limited to a handful of large and mega-cap darlings.

Notably, the full year chart for the S&P 500 looks very much like 2011. It got off to a good start, drifted sideways for...



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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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Pharmboy

Baxter's Spinoff

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

Baxter Int. (BAX) is splitting off its BioSciences division into a new company called Baxalta. Shares of Baxalta will be given as a tax-free dividend, in the ratio of one to one, to BAX holders on record on June 17, 2015. That means, if you want to receive the Baxalta dividend, you need to buy the stock this week (on or before June 12).

The Baxalta Spinoff

By Ilene with Trevor of Lowenthal Capital Partners and Paul Price

In its recent filing with the SEC, Baxter provides:

“This information statement is being ...



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Mapping The Market

An update on oil proxies

Courtesy of Jean-Luc Saillard

Back in December, I wrote a post on my blog where I compared the performances of various ETFs related to the oil industry. I was looking for the best possible proxy to match the moves of oil prices if you didn't want to play with futures. At the time, I concluded that for medium term trades, USO and the leveraged ETFs UCO and SCO were the most promising. Longer term, broader ETFs like OIH and XLE might make better investment if oil prices do recover to more profitable prices since ETF linked to futures like USO, UCO and SCO do suffer from decay. It also seemed that DIG and DUG could be promising if OIH could recover as it should with the price of oil, but that they don't make a good proxy for the price of oil itself. 

Since...



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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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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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