ERTS - Electronic Arts, Inc. – Shares in the video game developer may rally to their highest in more than two years by January 2013 expiration according to three-legged bullish plays initiated in Electronic Arts options this morning. Earlier this week the company announced an agreement to acquire PopCap Games, which makes games for mobile phones, tablets, PCs and social networking sites, in a cash and stock deal valued at up to $1.3 billion. Shares in Electronic Arts are currently up 0.50% to arrive at $23.63 as of 11:30 am ET. Long-term bullish investors eyeing fresh multi-year highs by Jan. 2013 expiration appear to have sold put options on the stock in order to partially offset the cost of debit call spreads. Traders sold around 5,000 puts at the Jan. 2013 $17.5 strike at an average premium of $1.42 each, purchased around the same number of calls up at the Jan. 2013 $25 strike for an average premium of $3.67 per contract, and sold some 5,000 calls at the Jan. 2013 $30 strike at an average premium of $1.97 a-pop. Average net premium paid to initiate the three-way trade amounts to just $0.28 per contract. Investors employing the strategy profit if shares in Electronic Arts rally 7.0% to exceed the average breakeven price of $25.28 by expiration day in more than one year. Maximum potential profits of $4.72 per contract are available on the spread in the event that shares in the interactive entertainment provider jump 27.0% to trade above $30.00 at expiration in January 2013. The company’s first-quarter earnings report is expected to hit the stands after the final bell on August 2.
SNE - Sony Corp. – Call activity on the designer and manufacturer of electronic equipment and devices suggests some strategists are positioning for shares in the Tokyo, Japan-based company to rally substantially by October expiration. Sony’s shares suffered following the March 11 earthquake and tsunami in its home country. A number of…
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Is it important what one sixth of the world's population does? I believe its worth paying attention too for sure! The Shanghai index has had a rough go of it since the highs of 2009, losing over half its value. So far this large decline HAS NOT seemed to impact the majority of stock indexes in the States and Europe, as most are at or near all-time highs.
The Shanghai index looks to be creating a multi-year descending triangle pattern, which is bearish the majority of the time. This pattern suggests that if sellers break support line (A), the decline is the size of the height of the triangle (B) in the chart below. If this would come t...
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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.
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The global macro picture is bad enough in and of itself. Simmering feuds between rival nations certainly do not help the picture. Here are a few recent stories that caught my eye.
China has No Room For Compromise with Japan
The New York Times reports China has No Room For Compromise with Japan. March 8, 2014 The Chinese foreign minister took a strong stand Saturday on China’s growing territorial disputes with neighboring nations, saying that “there is no room for compromise” with Japan and that China would “never accept unreasonable demands from smaller countries,” an apparent reference to Southeast Asian nations.
In the East China Sea, China refuses to accept Japan’s administration of...
After a requisite knee-jerk selloff, stock market bulls shook off Russia’s military action in Ukraine and Crimea as just another buying opportunity. Even adding the Russian Bear to their arsenal couldn’t give bears the upper hand for long. The S&P 500 large cap index set yet another all-time intraday high and closed at a new record high on Friday. Also, the Russell 2000 small cap index set new record intraday and closing highs last week north of 1200. However, the technical condition is getting overbought, and Sabrient’s SectorCast rankings have moved from bullish to a more neutral bias.
The eagerly-awaited jobs report on Friday showed greater jobs creation than expected in February, and January's figure was revised higher, as well. Friday was the S&P 500's fifth record closing high i...
The Global X Social Media Index ETF (Ticker: SOCL) touched fresh record highs on Thursday morning, surprising no one given the top three holdings of the Fund are Hong Kong-based Tencent Holdings (12.678%), Facebook Inc. (12.506%) and LinkedIn Corp. (8.166%), which are up 130%, 160% and 22%, respectively, since this time last year. The SOCL reflects the performance of companies involved in the social media industry, including companies that provide social networking, file sharing and other web-based media applications. Shares in the ETF rose 1.3% today to a new high of $23.00, and have soared approximately 65% since this time last year.
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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...
Welcome to the fouth update of the IRA Virtual Portfolio. First I am going to summarize the current state of the Portfolio then I will get into all the activity we had during September expiration.
Profit and Loss – Net of closed positions the portfolio is up a total of $769
Market Commentary – Last expiration I said, "I would like to put a total of $20,000 to work by the end of SEP expiration. If the VIX pops up to around 20 I plan to put about $50,000 total to work." The market didn't quite reach the goal but I did manage to deploy $15,000 of buying power. I still feel the market is too high and expect a correction during October. If the vix pops up to around 20 I still plan to put about $50,000 to work. If a correction doesn't happen I still plan to have a total of $25,000 in buying power put to work by October expiration. Now on to the act...
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