Posts Tagged ‘ELY’

Zynga Weekly Calls Active

ZNGA – Zynga Inc. – A narrower than expected third-quarter loss on higher than expected revenue reported by the social game developer on Thursday lifted shares in Zynga on Friday, with shares in the name rallying as much as 14% to a new 52-week high of $4.04.

Trading traffic in weekly calls on the maker of Farmville and other games suggests some options players are positioning for the price of the underling to extend gains next week. More than 9,000 calls have changed hands at the Nov 01 ’13 $4.0 strike as of 11:30 a.m. ET against open interest of 1,926 contracts, with much of the volume purchased in the early going at a premium of $0.19 each. Buyers of the $4.0 weekly call options on ZNGA stand ready to profit at expiration should shares in the San Francisco, California-based company rally another 3.7% to exceed the breakeven price of $4.19.

Overall options volume on the stock is well above average today, with roughly 72,500 contracts in play versus Zynga’s average daily options volume of around 29,000 contracts. 

ELY – Callaway Golf Co. – Shares in the maker of golf equipment and apparel are soaring on Friday, up better than 14% to hit a new 52-week high of $8.32 after the company reported third-quarter results after the close on Thursday and raised its full-year revenue guidance. Callaway was raised to ‘Buy’ from ‘Neutral’ with a 12-month target share price of $11.00 at DA Davidson following the quarterly earnings report.

Options traders who purchased upside calls on the stock prior to the company’s earnings release are enjoying sizable gains in the value of bullish positions. Yesterday, one or more traders snapped up more than 800 of the Nov $8.0 strike calls at premiums of $0.10 and $0.15 each. The sharp move in the price of the underlying today now finds the $8.0 strike calls trading at $0.40 each as of the time of this writing.

Today, it looks like traders are purchasing in-the-money call options on Callaway, buying roughly 760 of the Nov $7.0 strike calls at an average premium of $1.23 apiece during morning trading. Options players long the $7.0 strike calls stand ready to profit at expiration next month should shares in ELY settle above the average breakeven price of $8.23. 


Tags: ,




Frightening Friday – Halloween Edition!

Wheee what a day! 

Who said we placed a spread bet on the Dow moving 200 points one way or another in yesterday's morning post?  Me, that's who.  And how much did the Dow move yesterday?  199.89 points.  OK, so I was wrong by .11 but our plays worked out just fine and we flipped bearish again as we flew up and we'll see if my streak continues this week.  We would have gone more aggressivley bearish but we were worried about end of the month (and end of the year for many hedge funds) window dressing that would keep things going for one more day.

Everything went according to plan and we got the bounces we were looking for but the RUT failed to retake 589, which was our canary in the coal mine's breakdown level from last week.  As I alerted members at 12:15, that and the Qs failing to hold 42 into the close, which failed to confirm the Nas move over our 2,088 watch level.  We have our DIA puts, we have our SRS longs, we have our DXD longs (which are half price as our DDMs paid off yesterday) and we shorted SPG into the close as Cap noted they had a ridiculous run-up ahead of today's earnings. 

As I said to members in the afternoon, my gut said to go more bearish but we allowed ourselves to be spooked by Mr Stick in the afternoon and ended up about 55% bearish with a 1/2 cover of our long DIA puts but we already made a quick 20% on the sale of short puts in the morning so it's a position we had a little slack in going into the close.  Our logic is, even if we have another up day today, we're still going to want some pretty serious coverage into the weekend unless the Russell and the Qs can confirm this move up today. 

Bulls should be spooked by the fact that a blow-out GDP report, showing an economy with a HUGE turnaround and the President crowing on TV about how great things are going could ONLY erase 1/2 the losses we suffered since last week.  Another market move I hit on the head yesterday was my prediction that, after 3 consecutive 1.8% down days in a row, the Hang Seng would jump
continue reading


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




Long Shots

Every once in a while, it's fun to take a chance.

Today we made a play on YRCW where we sell the 2011 $2.50 puts for $1.75 and sell the 2011 $5 calls for .75, which net's us $2.50 on the $2 stock.  We like YRCW and think they are undervalued here but that's no reason to actually buy them in an uncertain market.  The nice thing about selling the 2 naked leaps is that we have collected $2.50 and our worst-case outcome to the downside is that the stock goes bankrupt and we owe the put holder $2.50 back – making this a null trade

Our real risk (our only risk) is to the upside.  Our strategy for managing that risk is to put a buy on YRCW at $2.50 and a sell on YRCW at $2.50.  In other words, we will buy it when it's breaking over and sell it when it's breaking under.   Each time we do this, we may lose a few pennies here and there but, if YRCW finishes over $2.50 by 2011, we will own the stock for free (we collected $2.50 and paid $2.50 for the stock) and will be called away at $5 – a VERY nice profit over 18 months.

Anything under $2.50 and we keep the net between $0 and the final price, giving the rest back to the put-holder.  This is not the kind of position we worry over, this is simply a play to collect $2.50 and, hopefully, never give it back!  Of course there are margin issues depending on your account situation that need to be considered.  This is a variation of the Buy/Write strategy we love to use, only without the buy.  If you did buy YRCW at $2 and sold the 2011 $5 calls and 2011 $2.50 puts for $2.50 then you would be in the trade for a credit of .50.  In the bankruptcy scenario there, you would have another round put to you at $2.50 and your average entry would be $1 – substantially more potential downside loss than selling naked.  On the upside, you are in better shape as your basis of -0.50 would net you a $5.50 profit if YRCW closes over $5 and you don't have to worry about getting blown out by a buyout of YRCW.

These kinds of plays are always
continue reading


Tags: , , , , ,




 
 
 

Zero Hedge

Only 73% OF Americans Are "Likely To Adhere To The Law"

Courtesy of ZeroHedge. View original post here.

Many factors influence how effectively a government is able to uphold the rule of law and some of them include access to courts, lack of corruption, effective policing and institutional competence.

While some governments are able to combine these efficiently, resulting in strong adherence to the law, Statista's Niall McCarthy notes that others tend to struggle...



more from Tyler

Chart School

Rallies Slow As Semiconductors Tag Resistance

Courtesy of Declan.

Friday saw the indices close near the lows of the day as Semiconductors tagged resistance and its 20-day MA. Supporting technicals offered a mix of bullish and bearish markets but shorts have their opportunity with a stop above 1,334.


The S&P edged a close above the bullish mid-line in stochastics along with a 'buy' in On-Balance-Volume. However, the index also experienced a relative loss against Small Caps as it struggles to attract new buyers.

...

more from Chart School

ValueWalk

Columbia MBA- Greenwald Class: Li Lu (2006)

By Jacob Wolinsky. Originally published at ValueWalk.

Columbia MBA- Greenwald Class: Li Lu (2006)

]]> Get The Full Henry Singleton Series in PDF

Get the entire 4-part series on Henry Singleton in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues

unfortunately what I'm doing today19:17you know I no longer talk about what we19:21own so I pick up a couple of examples of19:23what I owned in the past you know I19:25started this business in late 97 and you19:30know along the...



more from ValueWalk

Phil's Favorites

The Great Bear Market Of 2018

Courtesy of Lance Roberts, RealInvestmentAdvice.com

The Bear Market Of 2018

Let’s start with where we left off last weekend:

“Currently, we do not know whether the current corrective action is JUST a normal, healthy correction, or the beginning of something bigger.

BUT – this is the expected correction we have been discussing over the last several weeks. It is also something we had planned for by reducing overweight positions and adding a short-hedge to portfolios. 

With the markets on a short-term sell signal (noted by black vertical dashed lines in the chart above,) the current correctional process is underway. But, with the market now oversold on a...



more from Ilene

Digital Currencies

As Bitcoin Nears $11,000, Here's A History Of Its Biggest Ups And Downs

Courtesy of ZeroHedge. View original post here.

The cryptocurrency rebound off Feb 5th's bloodbath lows (below $6,000 for Bitcoin) has been impressive, as a 'mysterious' massive buyer 'bought the dip' and momentum took care of the rest.

With Bitcoin now nearing $11,000 (almost a double off the lows), ...



more from Bitcoin

Insider Scoop

Walmart, Target Are Susquehanna's Top Picks Ahead Of Retail Earnings Season

Courtesy of Benzinga.

Related WMT Upcoming Earnings: Hurricane Effects Still Trickling Through For Home Depot? Did Walmart Meet It...

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

Biotech

What is 'right to try,' and could it help?

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

 

What is 'right to try,' and could it help?

In this March 18, 2011 photo, Cassidy Hempel waved at hospital staff as she was being treated for a rare disorder. Her mother Chris, left, fought to gain permission for an experimental drug. AP Photo/Marcio Jose Sanchez

Morten Wendelbo, Texas A&M University and Timothy Callaghan, ...



more from Biotech

Mapping The Market

The tricks propagandists use to beat science

Via Jean-Luc

How propagandist beat science – they did it for the tobacco industry and now it's in favor of the energy companies:

The tricks propagandists use to beat science

The original tobacco strategy involved several lines of attack. One of these was to fund research that supported the industry and then publish only the results that fit the required narrative. “For instance, in 1954 the TIRC distributed a pamphlet entitled ‘A Scientific Perspective on the Cigarette Controversy’ to nearly 200,000 doctors, journalists, and policy-makers, in which they emphasized favorable research and questioned results supporting the contrary view,” say Weatherall and co, who call this approach biased production.

A second approach promoted independent research that happened to support ...



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





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 >>