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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ValueWalk

Billionaire Stephen Schwartzman How To Spot the Trends that Other Miss

By Jacob Wolinsky. Originally published at ValueWalk.

Billionaire Stephen Schwartzman How To Spot the Trends that Other Miss

Published on Mar 27, 2016

Billionaire Stephen Schwartzman How To Spot the Trends that Other Miss [HD]

Stephen Allen Schwarzman (born February 14, 1947) is an American business magnate and financier. He is the chairman and CEO of the Blackstone Group, a global private equity and financial advisory firm he established in 1985 with former US Secretary of Commerce Pete Peterson. His personal fortune is estimated at $12.9 billion, according to Forbes.As of 2015, Forbes ranked Schwarzman at 100th on its World’s Billionaires List.

The post ...



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Zero Hedge

China Warns The World: America Is The "Greatest Threat To Peace & Stability"

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

It is no secret that the relationship between the United States and China has been strained for quite some time. Earlier this month when the US sailed its guided missile destroyer the USS William P. Lawrence within 12 nautical miles of Chinese-occupied Fiery Cross Reef, it ended in China scrambling of two fighter jets and three warships to shadow the destroyer and convince it to leave the area.

...

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Phil's Favorites

Losers Average Losers

Is there a difference between adding to a losing position on the way to building a fortune and doubling down on a loser stock in a series of bad bets? Perhaps you see something the market has missed? Perhaps your timing is excellent (the second third fourth time)? Perhaps you're Warren Buffett? Or maybe the difference is just the odds, which are around 99% against you. 

Losers Average Losers

Courtesy of 

I’m not a huge fan of this quote from Paul Tudor Jones. Some of the best investors of all time have made a fortune adding to temporarily losing positions. And while this is true, it is equally true that the worst investments and the worst investors have added to losin...



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Chart School

Best Stock Market Indicator Update

Courtesy of Doug Short's Advisor Perspectives.

We continue to receive requests for updates to the "Best Stock Market Indicator", which used to be a regular guest post from John Carlucci. Here is an update of the "Carlucci" indicator along with a summary of John's explanation on how he uses it.

As John described it: "The $OEXA200R (the percentage of S&P 100 stocks above their 200 DMA) is a technical indicator available on StockCharts.com used to find the "sweet spot" time period in the market when you have the best chance of making money."

Latest Indicator Position

According to this system, the market ...



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Kimble Charting Solutions

Gold Mining Stocks- Most dangerous time to own them in years?

Courtesy of Chris Kimble.

CLICK ON CHART TO ENLARGE

The rally in mining stocks since the first of the year has been very impressive.

The rally has taken Gold Miners ETF GDX up to test the 23% retracement of the collapse over the past 5-years. At the same time it is hitting the 23% level, two other resistance lines are being put to a test, with momentum at the highest levels in the past 5-years.

Joe Friday Just The Facts...



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Market News

News You Can Use From Phil's Stock World

 

Financial Markets and Economy

Strategist Jim Paulsen makes case for why stocks are about to hit record highs (CNBC)

"There's still a lot of pessimism," Paulsen said. "We're an eyelash away from all-time highs and there's a lot of people still in the bear market camp." If too many people shift to the bull camp, he said he might get more cautious.

The US economy was better than we thought in the first quarter (Business Insider)

US economic growth was better than first estimated in the first quarter, according to the Commerce Department.

...



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Insider Scoop

Graham Media Group To Buy WCWJ, CW affiliate In Jacksonville, NBC Affiliate in Roanoke

Courtesy of Benzinga.

Graham Media Group, Inc., a Graham Holdings Company (NYSE: GHC) subsidiary, said it struck a deal with Nexstar Broadcasting Group, Inc. and Media General, Inc. to purchase WCWJ, a CW affiliate television station in Jacksonville, Florida and WSLS, an NBC affiliate television station in Roanoke, Virginia for $60 million in cash and the assumption of certain liabilities.

The agreement to acquire Nextar Broadcasting included pension obligations. Graham Media Group, Inc. would continue to operate both stations under their current network affiliations.

Graham Media said the acquisition is subject to approval by the FCC, other regulatory appr...



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OpTrader

Swing trading portfolio - week of May 23rd, 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

The Biggest Bitcoin Arbitrage Ever?

Courtesy of Chris at CapitalistExploits

Do you remember when you were growing up and all your friends were allowed Atari game consoles but you weren’t?

Well, I do and the things seemed as foreign to me as Venus. Mostly because the little time I managed to spend on the gaming consoles when my friends weren’t hogging them I found it all a bit silly. I never “got” computer games, and to this day still have poor comprehension of things like Angry Birds.

I suspect that many people around the world view Bitcoin in the same way as I view Angry Birds: with mild amusement and a general lack of understanding as to what the hell all the fuss is about.

I was thinking of this since a buddy of mine recently started ...



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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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Mapping The Market

About that debate last night

Although we try to stay focused on finding and managing promising trade ideas, the comments in the comment section sometimes take a political turn (for access, try PSW — click here!). So today, Jean Luc writes,

The GOP debate last night was just unreal – are these people running to be president of the US or to lead a college fraternity! Comparing tool size? The only guy that looks semi-sane is Kasich. The other guys are just like 3 jackals right now. 

And something else – if Trump is the candidate, that little Romney speech yesterday is probably already being made into a commercial. And all these little snippets from the debate will also make some nice ads! If you are a conservative, you have to be scared now. 

Phil writes back,

I was expecting them to start throwing poop at each other &n...



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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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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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