Posts Tagged ‘DRIV’

Options Traders Storm Knight Capital Group As Shares Nosedive

Options brief will resume August 6, 2012.

Today’s tickers: KCG, CDZI & DRIV

KCG - Knight Capital Group, Inc. – Options activity on Knight Capital Group spiked this morning after the brokerage firm and market maker was linked to unusual trades at the open on NYSE that sparked extreme price volatility in some stocks and triggered circuit breakers that halted trading in several others. Investor concern over the firm’s ties to the trades was quickly reflected in the price of Knight’s shares, which fell more than 25% to $7.60 in the first half of the session. Options volume is currently more than three times the size of overall open interest of 10,969 contracts on the stock, with most of the action in puts as evidenced by the put-to-call ratio of 4.5. Traders scrambled to get long downside puts as the stock spiraled lower this morning, with notable fresh interest building across all available expirations. Front month put volume is heaviest with upwards of 7,000 lots changing hands at each of the Aug. $7.5 and $10 strike prices. Early birds snapping up more than 4,000 of the Aug. $10 strike put this morning at an average premium of $0.68 apiece saw the value of their contracts increase three-fold intraday as premium on the contracts soared to a high of $2.50 prior to midday in New York. Trading traffic in the $7.5 strike puts set to expire in September, October and January ’13 is also noteworthy today as investors await further details and clarity on the morning’s volatility.

CDZI - Cadiz, Inc. – The more than 50% rally in shares of land and water resource management company, Cadiz, Inc., to a near 52-week high of $11.00 today appears to have caught a number of call sellers off guard. Recent selling in front month calls suggests some options traders were not anticipating the pop in Cadiz shares sparked by positive news regarding a project to provide a reliable water…
continue reading


Tags: , ,




Contrarian Player Plants Bull Call Spread on Seed Maker Monsanto Co.

 Today’s tickers: MON, EWZ, XLB, HPQ, V, BCSI & SLB

MON - Monsanto Co. – Shares of the maker of genetically modified seeds seemed to be recovering at the start of the current session following Tuesday’s horrendous performance wherein the stock fell as much as 9.80% from an intraday high of $52.64 to a low of $47.50. MON’s shares managed to rebound 4.50% off Tuesday’s low of $47.50 to briefly touch an intraday high of $49.62, although the rally proved to be short-lived and shares are down 1.00% at $48.25 as of 3:15 pm ET. Though MON was unable to keep hold of earlier gains, one contrarian player is optimistic that Monsanto’s shares will reverse course and head back up by November expiration. The investor purchased a call spread, buying 5,000 calls at the November $55 strike at a premium of $0.85 each, and selling the same number of calls at the higher November $60 strike for a premium of $0.27 apiece. Net premium paid to establish the transaction amounts to $0.58 per contract. Thus, the investor is ready to make money should Monsanto’s shares surge 15.20% over the current price of $48.25 to surpass the effective breakeven point on the spread at $55.58 by November expiration. Maximum potential profits of $4.42 per contract are available to the bullish player if MON’s shares jump 24.35% to trade above $60.00 by expiration day.

EWZ - iShares MSCI Brazil Index ETF – Investors are placing near-term bearish bets on the Brazil fund this afternoon by selling calls to finance the purchase of put spreads in the October contract. The large pessimistic plays could be the work of traders hedging long positions or the mark of outright bearish bettors expecting the price of the underlying fund to slip lower ahead of expiration next month. Shares of the EWZ, an exchange-traded fund designed to replicate the price and yield performance of publicly traded securities in the aggregate in the Brazilian market – as measured by the MSCI Brazil Index, rallied…
continue reading


Tags: , , , , , , , , , , , , ,




CVS’s Sympathy Rally Inspires Bullish Options Activity

 Today’s tickers: CVS, DRIV, AVP, WAG, ADBE, PHM & COP

CVS - CVS Caremark Corp. – The better-than-expected fourth-quarter earnings report from Walgreen Co. this morning helped CVS’s shares higher during the trading session. Shares rallied as much as 3.365% to rein in an intraday high of $31.64. The increase in the price of the underlying stock inspired one options player to extend bullish sentiment on the stock by initiating a calendar roll. It looks like the investor purchased 10,000 calls at the November $30 strike at a premium of $1.11 each back on September 17, 2010, when shares were trading around $29.72 each. The surge in shares since the purchase bumped up premium on those now in-the-money calls, which the investor sold today for a premium of $2.09 apiece. Net profits on the sale amount to $0.98 per contract. Next the investor renewed optimism on CVS by purchasing a fresh batch of 10,000 calls at the higher January 2011 $32 strike at a premium of $1.64 a-pop. Profits on the new position are available to the trader if CVS’s shares jump 6.3% to surpass the effective breakeven price of $33.64 by expiration day in January.

DRIV - Digital River, Inc. – It looks like an investor expecting Digital River’s shares to remain range-bound through November expiration sold a strangle in the second half of the trading session. Shares of the provider of a variety of marketing solutions and services increased more than 5.50% this afternoon to touch an intraday high of $33.34. The strangle-strategist appears to have sold 2,500 calls at the November $35 strike for a premium of $1.35 each, and sold the same number of puts at the lower November $28 strike at a premium of $0.525 apiece. Gross premium pocketed on the transaction amounts to $1.875 per contract. The trader keeps the full amount of premium received on the strangle play if DRIV’s shares trade within the boundaries of the strike prices described through expiration day. The short positions in both call…
continue reading


Tags: , , , , , ,




 
 
 

Phil's Favorites

Facebook cuts back on news to give you more time with advertisers

 

Facebook cuts back on news to give you more time with advertisers

Courtesy of Tom Felle, City, University of London

Dear friends, it’s not us, it’s you. You are the problem. You’ve stopped sharing every intimate detail of your lives and we can’t monetise you as well as we’d like. So we’re changing our relationship to convince you to share more, so we can show you more ads.

Not an exact quote from Mark Zuckerberg, of course, but a rough translation. In a statement released on January 12, the company’s founder announced new changes to the platform’s news feed that would prioritise posts from friends and family over content posted by news organisat...



more from Ilene

Zero Hedge

SEC Cracks Down On "Overnight Blockchain" Companies

 

SEC Cracks Down On "Overnight Blockchain" Companies

Courtesy of Zero Hedge

One month after the addition of "blockchain" to a company's name - or business model - became a joke  in financial circles, not to mention a shortcut to soaring market cap for countless micro-cap companies, the SEC is finally getting involved.

As Reuters reports, the SEC is scrutinizing public...



more from Tyler

Chart School

Nasdaq Hits 15% Historic Price Action Highs as S&P Enters 10% Extreme Zone

Courtesy of Declan.

The Nasdaq joined the S&P at historic highs as it hit the 15% zone of historic price extremes (relative to its 200-day MA). The S&P went a step higher as it touched the 10% zone of historic highs; i.e. it trades at levels above 90% of historic price action dating back to 1950 - a sign there isn't much left to this rally. If it makes it to 2,874 it will be in the 5% zone, a zone last seen in February 2011.


The Nasdaq continued to accelerate past its most recent upside channel on higher volume accumulatio...

more from Chart School

ValueWalk

Bill Miller On Amazon, Google, Facebook And Bitcoin

By VW Staff. Originally published at ValueWalk.

Miller Value Partners’ Bill Miller holds the record for being the only mutual fund manager to beat the market for 15 years in a row. One way he did it is by investing in new technologies that the Wall Street establishment thought were crazy at the time – Amazon, Google, and Facebook among them. His latest “crazy” idea: Bitcoin.

]]> Get The Timeless Reading eBook in PDF

Get the entire 10-part series on Timeless Reading in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues.

Listen to the audio only version here:

...



more from ValueWalk

Digital Currencies

Cryptos Are Crashing Again...

 

Cryptos Are Crashing Again...

Courtesy of Zero Hedge

From South Korean bank blocks to Bulgarian ponzi scheme shutdowns and a Bali bitcoin crackdown, you can take your pick as to what is driving the sudden plunge in cryptocurrencies this morning. Ethereum is back below $1000, Bitcoin is back to a $10k handle, and Ripple is down 30% from the weekend's highs.

Weakness began around 6amET but really accelerated at around 8am ET...

With Bitcoin and Ethereum breaking key support levels..

The catalyst for the move is uncertain at best with numerous headlines over the weekend:

OneCoin offices ...



more from Bitcoin

Insider Scoop

34 Biggest Movers From Friday

Courtesy of Benzinga.

Gainers
  • Forward Industries, Inc. (NASDAQ: FORD) shares surged 137.9 percent to close at $2.95 on Friday after the company reported the acquisition of Intelligent Product Solutions.
  • NuCana PLC (ADR) (NASDAQ: NCNA) shares climbed 41.55 percent to close at $20.51 as the company announced plans to initiate a Phase 3 study of Acelarin in front-line advanced biliary tract cancer.
  • New Age Beverages Corporation (NASDAQ: NBEV) shares jumped 22.5 percent to close at $3.92 on Friday.
  • ...


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

Biotech

How Alzheimer's disease spreads throughout the brain - new study

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

 

How Alzheimer's disease spreads throughout the brain – new study

Courtesy of Thomas E CopeUniversity of Cambridge

Harmful tau protein spreads through networks. Author provided

Alzheimer’s disease is a devastating brain illness that affects an estimated 47m people worldwide. It is the most common cause of dementia in the Western world. Despite this, there are currently no treatments that are effective in curing Alzheimer’s disease or preventing its relentless progressio...



more from Biotech

Mapping The Market

Trump Admin Bans CDC From Using Words Like 'Science-Based,' 'Diversity'

By Jean-Luc

These are the policies of a theocracy, not a modern democracy:

Trump Admin Bans CDC From Using Words Like ‘Science-Based,’ ‘Diversity’

The Trump administration has prohibited the Centers for Disease Control and Prevention (CDC) from using words like “science-based,” “diversity,” and “transgender” in their official documents for next year’s budget, according to the Washington Post.

Senior CDC budget leader Alison Kelly met with the agency’s policy analysts on Thursday to announce ...



more from M.T.M.

Members' Corner

An Interview with David Brin

Our guest David Brin is an astrophysicist, technology consultant, and best-selling author who speaks, writes, and advises on a range of topics including national defense, creativity, and space exploration. He is also a well-known and influential futurist (one of four “World's Best Futurists,” according to The Urban Developer), and it is his ideas on the future, specifically the future of civilization, that I hope to learn about here.   

Ilene: David, you base many of your predictions of the future on a theory of historica...



more from Our Members

OpTrader

Swing trading portfolio - week of September 11th, 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 ...



more from OpTrader

Promotions

NewsWare: Watch Today's Webinar!

 

We have a great guest at today's webinar!

Bill Olsen from NewsWare will be giving us a fun and lively demonstration of the advantages that real-time news provides. NewsWare is a market intelligence tool for news. In today's data driven markets, it is truly beneficial to have a tool that delivers access to the professional sources where you can obtain the facts in real time.

Join our webinar, free, it's open to all. 

Just click here at 1 pm est and join in!

[For more information on NewsWare, click here. For a list of prices: NewsWar...



more from Promotions

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...



more from Kimble C.S.

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...

more from David



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 >>