Posts Tagged ‘F’

Weekly Puts Change Hands On Ford

Shares in Ford Motor Co. (Ticker: F) are in negative territory on Tuesday afternoon, though off the lowest level of the session, following the release of June sales data. The stock is roughly unchanged on the day at $17.20 as of 1:40 pm ET, recovering from an earlier intraday low of $17.07. Trading in weekly options contracts expiring 11Jul’14 on the automaker this morning suggests one or more traders are bracing for shares to potentially extend losses during the next seven sessions.
The most traded contracts expiring 11Jul’14 are the 17.0 strike puts, with volume exceeding 11,000 contracts versus open interest of around 1,400 contracts. It looks like most of the volume was purchased within 15 minutes of the opening bell today at a premium of $0.11 each. The put options may be profitable at expiration next week if shares in Ford drop 1.8% from the current price of $17.20 to trade below the effective breakeven point at $16.89.


Tags:




Ford Calls In Focus As Shares Hit Fresh 52-Week High

F – Ford Motor Corp – Shares in the automaker rallied to a new 52-week high on Thursday, trading up as much as 2.8% to $18.01 in the early going after the company reported third-quarter earnings that beat analyst estimates and raised its guidance for the full year.

Some options traders appear to be positioning for shares in Ford Motor Co. to extend gains in the near term, snapping up cheap out of the money call options expiring one week from tomorrow. Upwards of 2,900 of the Nov 01 ’13 $18.5 strike calls changed hands during the first hour of the trading session against open interest of 966 contracts. Time and sales data suggests most of the volume was purchased at a premium of $0.05 each. Call buyers stand ready to profit at expiration next week in the event that Ford’s shares rally 3.0% over the morning’s fresh 52-week high of $18.01 to exceed the effective breakeven point at $18.55.

Overall options volume on Ford is running above average today, with roughly 104,000 contracts traded so far today as compared to the stock’s average daily options volume of around 71,500 contracts as of 11:10 a.m. ET. 


Tags:




Astex Options Volume Spikes

ASTX – Astex Pharmaceuticals Inc. – Options volume on Astex Pharmaceuticals is soaring on Wednesday afternoon following a story in the Nikkei newspaper that said Otsuka Holdings Co., Ltd. has agreed to acquire Astex for JPY 90 billion. Shares in ASTX rallied as much as 40% this afternoon to a multi-year high of $9.39 and sent options volume on the name up above 23,000 contracts by 3:10 p.m. ET versus the stock’s average daily volume of around 3,600 contracts. Options volume is most heavily concentrated in the September expiry contracts. Buyers appear to be stepping in to buy both the Sep $8.0 strike call and put options, which have traded roughly 2,300 and 4,000 times each, respectively, as of the time of this writing. Substantial volume is also building in the $9.0 strike calls expiring in September and October, with volumes topping 3,400 and 2,400 contracts in each case. Shares in ASTX are currently off the highest levels of the day, up 24% at $8.29. 

TPX – Tempur Sealy International Inc. – Trading traffic in options on mattress maker Tempur Sealy International suggests options players are looking for the price of the underlying to edge higher during the next couple of weeks. Shares in the name are up 4.6% right now to stand at $41.58, and earlier traded up to $42.57, the highest level since July 25th. The most traded contracts on TPX today are the Sep $43 strike calls, with more than 2,900 contracts exchanged versus open interest of 375 contracts. Time and sales data suggests most of the call options were purchased for an average premium of $0.97 each, though the bulk of the volume – close to 2,000 lots – were picked up by one market participant at a premium of $1.00 apiece. Sep $43 strike calls purchased at $1.00 per contract may be profitable at expiration if shares in Tempur Sealy rally 5.8% over the current price of $41.58 to top the breakeven point at $44.00. 


continue reading


Tags: , , , ,




Options Combo Trade On Genworth Sees Further Upside In Shares

 

Today’s tickers: GNW, EZCH & F

GNW - Genworth Financial, Inc. – Shares in Genworth Financial increased as much as 11.2% in the early going on Monday, touching a fresh 52-week high of $10.94 on the back of an upgrade to ‘sector outperform’ at Scotia Capital. The insurer’s shares have increased more than 30% since the beginning of March as investors position for the provider of mortgage guaranties to benefit from strengthening in the U.S. housing market. One options combination strategy initiated on Genworth this morning looks for shares in the name to potentially rise another 35% by September expiration. The trader appears to have sold roughly 5,400 put options at the Sep. $9.0 strike in order to offset the cost of purchasing a 5,400-lot Sep. $12/$15 strike call spread. Net premium required to initiate the bullish play netted out to zero, thus positioning the strategist to profit in the event of a near 10% upside move off today’s high of $10.94 to exceed $12.00. Maximum potential profits of $3.00 per contract are available on the position should GNW shares surge 37% to $15.00 by September expiration.

EZCH - EZchip Semiconductor Ltd. – Put options on the maker of Ethernet network processors are active this morning after Kerrisdale Capital announced a short position in the stock, sending shares in EZchip Semiconductor down more than 8.0% in the early going to an intraday low of $21.80. The shares have since rebounded sharply to trade up 0.50% on the session at $23.90 as of 12:35 p.m. ET. The most actively traded contracts on EZchip today are the Mar. $22 strike puts, with upwards of 6,200 lots in play versus open interest of 211 contracts. Time and sales data suggests most of the volume was purchased at an average premium of $0.38 apiece. The intraday recovery in shares of EZchip has not been kind to buyers of the $22 strike puts, with premium on the contracts roughly halving to $0.20 each by 12:45 p.m. ET. Traders long the $22 strike put…
continue reading


Tags: , ,




Sizable Ratio Call Spread Drives Up Volume In Ford Options

 

Today’s tickers: F, YMI & WMT

F - Ford Motor Co. – What appears to be a large one-by-three ratio call spread on Ford suggests one options market participant is looking for sizable, albeit limited, gains in the price of the automaker’s shares during the next five weeks. Ford Motor Co. shares are currently up 0.45% at $11.54 as of 12:55 p.m. ET. It looks like the options player purchased 25,000 calls at the Jan. 2013 $12.5 strike for a premium of $0.12 apiece, and sold 75,000 calls up at the $14 strike at a premium of $0.02 each. Net premium paid to establish the position amounts to $0.06 per contract and may be profitable in the event that Ford’s shares rally 9% off the current price to exceed the effective breakeven point at $12.56. Maximum potential profits of $1.44 per contract are available on the spread should shares in Ford jump more than 20% to settle at $14.00 at expiration next year. Shares in Ford last traded above $14.00 back in July 2011.

YMI - YM Biosciences, Inc. – Shares in the drug development company are up nearly 80% today at $2.89 after Gilead Sciences, Inc. agreed to purchase the Canadian biotechnology company in an all-cash deal valued at $510 million or $2.95 a share. Traders who purchased upside calls on YM Biosciences ahead of the deal saw the value of their contracts rise sharply along with the price of the underlying shares this morning. YMI call selling in the early going may be the work of traders taking substantial profits off the table. Time and sales data for transactions in the Dec. $2.5 strike calls back in November suggests traders purchased most of the 2,043 open contracts for an average premium of $0.05 apiece last month. The sale of at least 1,600 now in-the-money Dec. $2.5 strike calls this morning for an average premium of $0.40 each may mean traders are banking hefty gains that amount to eight times the original investment. Open interest in YMI options is largest in the Jan. 2013 $2.5…
continue reading


Tags: , ,




Bull Call Spread On LVS Looks For Q3 Earnings To Impress

 

Today’s tickers: LVS, CROX & F

LVS - Las Vegas Sands Corp. – Casino stocks are popping today in sympathy with Wynn Resorts Ltd. after that company posted better-than-expected third-quarter earnings, announced plans to double its regular quarterly dividend and declared a $7.50 a-share special cash dividend. Las Vegas Sands Corp., which is scheduled to release third-quarter results tomorrow, rallied as much as 4.5% on Thursday morning to hit $46.30 in the early going. One options player appears to be positioning for further near-term upside with the purchase of a bull call spread in the newly issued weekly options that expire one week from tomorrow. It looks like the trader purchased a 400-lot Nov. 02 ’12 $47.5/$50 call spread for a net premium of $0.54 per contract. The strategy makes money if shares in LVS increase 5% from the current level of $45.70 to top the effective breakeven point at $48.04, with maximum potential profits of $1.96 per contract available on the position should shares surge 9.4% to hit $50.00 by expiration next week.

CROX - Crocs, Inc. – Shares in plastic-clog maker, Crocs, Inc., are getting slammed today after the company’s fourth-quarter top and bottom line estimates came in lower than analysts expected. The stock is down more than 20% at $12.89 as of 12:05 p.m. in New York. Crocs reported better-than-expected third-quarter profits after the final bell on Wednesday, but missed expectations for revenue in the quarter. Front month put activity on CROX this morning suggests one or more traders are holding out hope for a mild recovery in the shares in the near term. The sale of around 1,800 puts at the Nov. $13 strike provides an average premium of $0.32 per contract to sellers, who keep the full amount of premium as long as shares in the shoe maker exceed $13.00 at expiration next month. The puts were sold within the first couple of minutes of the opening bell this morning…
continue reading


Tags: , ,




Sizable Put Spread Cautious On P&G Through Year End

 

Today’s tickers: PG, F & LL

PG - Procter & Gamble Co. – Consumer products giant, Procter & Gamble, is trading higher today in advance of the company’s first-quarter earnings report ahead of the opening bell on Thursday. Shares in P&G are currently up 1.25% to stand at $68.28 as of midday in New York. A sizable ratio put spread initiated on the stock this morning indicates one strategist is prepared for limited bearish movement in the price of the underlying through year end. It looks like the trader purchased 2,000 puts at the Dec. $67.5 strike for a premium of $1.22 apiece and sold 4,000 puts at the lower Dec. $65 strike at a premium of $0.56 each. Net premium paid to establish the position amounts to $0.10 per contract and provides downside protection – or profits – beneath a breakeven share price of $67.40 through December expiration. Maximum potential profits of $2.40 per contract are available on the ratio spread should P&G’s shares slide 4.8% from the current level to settle at $65.00 at expiration. Shares in Procter & Gamble last traded at $65.00 in the first week of August.

F - Ford Motor Co. – Shares in the automaker tacked on 1% this morning to stand at $10.10 by 10:50 a.m. ET on reports the company plans to close its last remaining vehicle-making plant in the United Kingdom. Near-term bullish positioning in Ford options straight out of the gate this morning suggests some traders anticipate further gains in the price of the underlying during the next couple of trading sessions. The most heavily trafficked of the Oct. 26 ’12 options contracts are the $10 strike calls, which changed hands more than 7,800 times against open interest of 2,843 lots. It looks like most of the in-the-money calls were purchased in the first 10 minutes of the trading session at an average premium of $0.17 apiece, thus preparing buyers to profit at expiration…
continue reading


Tags: , ,




Which Way Wednesday – 50 DMAs Face Tough Tests

Saved by the 50 DMA's!

Who said investing is hard?  4 of our 5 major indexes fall in synch and stop dead at the 50 day moving average that we've been watching on our Big Chart for over two months now as bullish support.  Yawn… 

Of course, if you think this can possibly be result of individual decisions made by millions of global investors than it's you that need to wake up.  This is a completely machine-driven market and that's a GOOD thing if you follow our charts, as they give you very clear indications of all the major inflection points.

I'm not at all a TA guy – I merely accept the fact that the markets are fixed and the moves are coordinated and we set our points accordingly according to our 5% Rule, which works best in Bot-driven markets.  Since we only adjust our Big Chart once a year or less – it lets us dispense with all that TA BS in less than two minutes a day and move on to more important things like – FUNDAMENTALS! 

SPY DAILYWhat we can do, however, is combine our view of the Big Chart with some fundamentals to figure out what the market will do at serious inflection points.  Note on Dave Fry's SPY chart, we get a good view of the weak 50 dma. 

Before we despair, however, look at that upwardly jammin' 200 dma – that sucker is going to pop the index like it was hit with a tennis racket at right about 1,320 in about 2 weeks so we have a jittery sell-off in a choppy early earnings season to look forward to and then something good happening at the end of the month to spark a rally

Oh sorry, I planned to conclude with that but it's so freakin' obvious – why waste time with exposition? 

Going back to the Big Chart, you can see on the S&P (and the others) that we still have a constructively bullish "M" pattern where the lows are lining up in an up-trend that mirrors the rising 200 dma.  Obviously, if we fail to hold these 50 dmas – the next stop is that 200 DMA, which is generally intersecting the 2.5% lines on each index but forget those – it's all about the NYSE, which is our broadest index and is already testing its 200 dma AND…
continue reading


Tags: , ,




Monday Monetary Madness – This is what the Yield’s Like when Fed Doves Cry

 

 

 

Why do we scream at each other
This is what it sounds like
When doves cry – Prince

It's no coincidence that this week we will be hearing from Fed Governors Kocherllakota (1pm Tues), Hoenig (12:30 Weds), Plosser (1:30 Weds), and Bullard (9:15 Thurs) ahead of our 2-Year Note Auction (1pm Tues), 5-Year Note Auction (1pm Weds) and 7-Year Note Auction (1pm Thursday) as the Fed needs to bring out 4 of it's 5 most hawkish members to talk up the Dollar (by talking down QE3) to keep those rates paid as low as possible for Treasury

Once the Hawks drive the rates down and the notes are sold, the Doves will once again be released to talk them back up by extolling the glories of QE3 – completely reversing whatever was said before just as the Hawks will once again be called upon to reverse what the Doves say at a later date – when they need rates to come back down.  The joke of it all is that traders will react to each statement, every time, as if it's a "game changer" and adjust their positions to reflect the new reality of the moment.  It reminds me of a quote from Orwell's 1984:

As soon as all the corrections which happened to be necessary in any particular number of The Times had been assembled and collated, that number would be reprinted, the original copy destroyed, and the corrected copy placed on the files in its stead. This process of continuous alteration was applied not only to newspapers, but to books, periodicals, pamphlets, posters, leaflets, films, sound-tracks, cartoons, photographs – to every kind of literature or documentation which might conceivably hold any political or ideological significance.

Day by day and almost minute by minute the past was brought up to date. In this way every prediction made by the Party could be shown by documentary evidence to have been correct, nor was any item of news,


continue reading


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




Wednesday Worries – Yentervention, Euro Style

78.50 on the Dollar!

The Yen finally got back to 77 and EUR/CHF back to 1.21 so my theory that the BOJ has given up on the Dollar and moved to boosting the Euro is playing out nicely.

This does not make me more bullish (expecting falling Dollar to boost the markets) because, in the grand scheme of things, this is kind of like now there are two kids building a sand wall on the beach instead of one – sure it will last longer than the wall just one kid was building but, eventually, the tide will get it anyway or, as Jimi Hendrix said more poetically: "Castles made of sand, fall in the sea, eventually." 

Once you start messing around with Forex markets, you are messing with major macro forces that are hard to control.  Japanese banks have $7.5Tn of Japanese bonds at 1% – what happens to the value of those bonds if the BOJ does push the Yen down 10%?  Who takes that $750Bn hit?  What if rates go up to 2% – what's the value of the bonds then?  Who will bail out the Japanese Banks when they have a multi-Trillion Dollar (several hundred Trillion Yen) hole in their balance sheets?  Do Japanese spreadsheets even have room for Quadrillions?  They are going to need it!  

Then there's this Bloomberg article on the Central Banks, who have doubled their balance sheets since 2006 to $13.2Tn but, magically, have caused no inflation (according to Ben Bernanke – not according to people who actually buy food and stuff).   China is now sitting on $4.5Tn of other people's TBills (mostly ours) and that's up $1.5Tn in a year.  The ECB is right behind them with $3.6Tn and another $1Tn supposedly coming in the next EFSF round and the Fed has $2.9Tn plus whatever nonsense they are running off book.   

So, how is it that WE are the bad currency here?  If the Dollar is a problem, then China, who's GDP is only about $8Tn (optimistically, possibly $5.5Tn depending on who's measuring) is almost as insane as Japanese bankers and maybe more so as they are betting on our country's ability to pay and maintain the value of the Dollar (already a fail, right?).  I suppose no one can ever recognize losses and just carry more and more junk…
continue reading


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




 
 
 

ValueWalk

Gold Was Chemically Destined To Be Cash

By Frank Holmes. Originally published at ValueWalk.

I think most of you reading this right now are aware that gold is unlike any other metal, certainly any other element. It doesn’t play by the same rules as iron or tin or aluminum, and its value has nothing to do with its utility—or lack thereof. People valued the yellow metal for its beauty and malleability eons before they knew of its usefulness in conducting electricity or its chemical inertness.

]]> 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.

We respect your email privacy

  • ...


more from ValueWalk

Chart School

Volatility on the Rise

Courtesy of Declan.

Today's losses look big on current charts but in a historic context, they weren't too severe. However, big red bars are not to be ignored and 'market leading' Small Caps have felt the full brunt of the selling from July which is bad news for the broader market.  Today's losses in the Russell 2000 undercut the 200-day MA leaving 1,345 as next support (of which I would not be too confident of it holding).


If the Russell 2000 gives up 1,350s then a drop to 1,150s could be on the cards. Things could get ugly if this scenario pl...

more from Chart School

Zero Hedge

Fed's Kaplan Admits Stock Valuations Are Elevated, But He's Not Worried For One Reason

Courtesy of ZeroHedge. View original post here.

There were two explicit warnings about stock market valuations in the latest Fed Minutes: first, the Fed warned that "vulnerabilities associated with asset valuation pressures had edged up from notable to elevated, as asset prices remained high or climbed further, risk spreads narrowed, and expected and actual volatility remained muted in a range of financial markets." Then, in an odd admission, the Fed said that "recent rises i...



more from Tyler

Phil's Favorites

Unexpectedly Weak Industrial Production Report Released Unexpectedly Early

Courtesy of Mish.

The Fed accidentally released its Industrial Production report a half hour early today.

IP was 0.2% with an Econoday consensus o 0.3. Manufacturing was a disaster, down 0.1% vs an Econoday consensus of +0.2%.

The Federal Reserve inadvertently released what is a weak July industrial production report about a 1/2 hour early this morning. Headline production rose 0.2 percent vs expectations for 0.3 percent with manufacturing output showing outright contraction, at minus 0.1 percent vs Ec...



more from Ilene

Insider Scoop

10 Stocks To Watch For August 17, 2017

Courtesy of Benzinga.

Related SMRT Earnings Scheduled For August 16, 2017 The Factors That Could Be Moving Short- And Long-Term Buyers ...

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

Digital Currencies

Ukrainian Lawmakers Disclose $45 Million In Bitcoin Holdings

Courtesy of ZeroHedge. View original post here.

As Ukraine's crackdown on corruption continues, three lawmakers from Ukraine’s ruling party revealed this week that they own a combined $45 million in bitcoin, according to a report by RIA Novosti, a Russian foreign news service.

Their holdings came to light during mandatory financial disclosures by members of the Ukrainian parliament, part of an IMF-approved strategy to tamp down corruption in Ukraine. The country's democratic institutions, which were never very robust to begin with, have been further destabilized by...



more from Bitcoin

OpTrader

Swing trading portfolio - week of August 14th, 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

Biotech

Editing human embryos with CRISPR is moving ahead - now's the time to work out the ethics

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

Editing human embryos with CRISPR is moving ahead – now's the time to work out the ethics

Courtesy of Jessica BergCase Western Reserve University

There’s still a way to go from editing single-cell embryos to a full-term ‘designer baby.’ ZEISS Microscopy, CC BY-SA

The announcement by researchers in Portland, Oregon that they’ve successfully modified the genetic m...



more from Biotech

Members' Corner

Why we need to act on climate change now

 

Why we need to act on climate change now

Interview with Jan Dash PhD, by Ilene Carrie, Editor at Phil’s Stock World

Jan Dash PhD is a physicist, an expert at quantitative finance and risk management, and a consultant at Bloomberg LP. In his thought-provoking book, Quantitative Finance and Risk Management, A Physicist's Approach, Jan devotes a chapter to climate change and its long-term systemic risk. In this article, Ilene interviews Jan regarding his thoughts on climate change and the way it can affect our futu...



more from Our Members

Mapping The Market

The App Economy Will Be Worth $6 Trillion in Five Years

Courtesy of Jean-Luc

This would be excellent news for AAPL and GOOG to a lesser extent although not inconsequential:

The App Economy Will Be Worth $6 Trillion in Five Years 

In five years, the app economy will be worth $6.3 trillion, up from $1.3 trillion last year, according to a report released today by app measurement company App Annie. What explains the growth? More people are spending more time and -- crucially -- more money in apps. While on average people aren't downloading many more apps, App Annie expects global app usership to nearly double to 6.3 billion people in the next five years while the time spent in apps will more than double. And, it expects the...



more from M.T.M.

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 >>