Posts Tagged ‘facebook’

Facebook Shares Are What’s Up On Agreement To Buy WhatsApp

Shares in Facebook Inc. (Ticker: FB), which fell during aftermarket trading on Wednesday following an announcement by the company that it has agreed to buy mobile-messaging startup WhatsApp Inc. for $4 billion in cash, $12 billion in stock and $3 billion in restricted shares, staged a midday comeback on Thursday. The turn around in the price of the underlying appears to have sent options traders scrambling and volume in FB options to roughly 200% of the stock’s average daily reading before 3:00 p.m. EST. Shares in Facebook declined as much as 3.4% during morning trading to touch down at an intraday low of $65.72 just after 10:00 a.m. EST, bounced off that level and haven’t looked back. The shares are up nearly 2.0% at $69.40 as of the time of this writing. Based upon the turnaround in the price of the underlying, one might expect less volatility to accompany the relief rally in Facebook’s shares, but the opposite appears to be happening. The closing reading of options implied volatility midweek of 34.8% has jumped to 38.3% today (+10%) despite the near 2% gain for the stock.

Average daily options volume on Facebook is an impressive 344,000 contracts, but overall volume in call and put options on the social media giant today has topped 675,000 contracts with roughly seventy minutes until the closing bell sounds. The most traded contracts on FB by volume are the regular March $75 and $85 strike calls, with upwards of 60,000 options changing hands at each and well in excess of open interest. The Mar $75 calls traded for an average of $0.84 each today while the Mar $85 strike calls traded at an average premium of $0.23 per contract. The sharp rally in the price of Facebook’s shares since the bulk of the volume printed has driven premiums on these call options up to $1.15 and $0.29 each, respectively as of 2:50 p.m. EST. Much of the volume at both strikes appears to have been purchased earlier in the day at premiums below current levels; as such, it seems likely that some traders positioning for further upside in the stock price by March expiration are generating quicker than anticipated gains on this view.

Chart – Facebook shares rebound to hit fresh highs


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Friday Finale – This is the End – But for Who?

SPY DAILYA day late and a point short on the S&P.  

Our senior index finished the day at 1,358.04, just 0.96 under our 10% line at 1,359.  Oddly enough, it never actually crossed the line that we had predicted would be the top of this run in April of 2009.  It's a simple 2% overshoot of the 100% run from the S&P bottom at 666.  

If the S&P can get over the line and hold it – we will be THRILLED to finally redraw our Big Chart but, if not, then this is just the blow-off top of the range, reeling in the suckers ahead of the big reversal that no one could have possibly seen coming (except this guy but he's like 100 and just got divorced, so he's bound to be in a bad mood).  

Is there anyone who was born SINCE radio who is willing to still be bearish?  As you can see from David Fry's chart, since December 19th, other than a few red days out of over 40 – it's been tough to be a bear.  This is what it was like in 1999, when the experienced market players would be well-hedged and missing the rally while some kid who works for him quits because he bet his student loan money on Yahoo and now drives a Porsche.   

Sure 9 months later the Porsche was repossessed and the kid was flipping burgers but WE WANT TO BE THAT KID – IT'S FUN TO BE THAT KID – until it isn't again.  The funny thing is, we only gave those dot com companies Millions when they IPO'd – now we give out Billions because, of course, this time is different, it's a new paradigm, this changes everything, you have to understand the new metrics, sock puppets rule….  

McDonald's was founded in 1940 by two brothers actually named McDonald.  Ray Krok bought the chain from them and created the World's greatest franchise which now has over 26,000 franchise operations and over 6,000 company stores employing about 1.7M people worldwide selling $24Bn worth of food a year with a $5Bn net profit.  Facebook has 3,200 people but they generate $1.2M in revenues per employee ($3.8Bn) and drops $1Bn to the bottom line.  Facebook's assets are mainly IP and those are about as valuable as MySpace's assets now
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The Relief of Distance

TED believes facebook and other modes of internet people connecting will change the form and nature of human interaction, and I agree, the changes are underway. Will it effect human nature or is it just a mechanism for revealing it in new ways? – Ilene 

The Relief of Distance

Courtesy of The Epicurean Dealmaker 

relief of distance

After all, Facebook, like Zuckerberg, is a paradox: a Web site that celebrates the aura of intimacy while providing the relief of distance, substituting bodiless sharing and the thrills of self-created celebrityhood for close encounters of the first kind. …

[Zuckerberg]’s a revolutionary because he broods on his personal grievances and, as insensitive as he is, reaches the aggrieved element in everyone, the human desire for response.

— David Denby, "Influencing People"

Part of the power and attraction of social media, in my opinion, is that it encourages and enables the creation of acquaintance, friendship, and even intimacy among individuals who would otherwise never be able to create or even desire such relationships in the real world. Culture, geography, distance, and existing socioeconomic ties are not insurmountable or even apparent obstacles to people commencing interaction and communication over the internet. This broadens the scope for both connection and misunderstanding to a far greater degree than has been possible to date in our local, non-virtual, geography- and time-constrained world. The potential degrees of freedom of human interaction have materially increased. While this has opened intoxicating vistas of personal possibility for millions, you can also imagine it is not always a good thing.

The other significant change embedded in these new interactions is that people can cultivate relationships over virtual social networks for months and even years without ever meeting in the flesh. Stable, long-lasting, and—it is not irresponsible to imagine it—even durable relationships of the deepest kind can be established and maintained between characters or personae that individuals adopt and present to each other. Is this wise? Is it responsible? Is it fair?

Does it matter?

Probably not, for we have already shipped ourselves out to a brave new world. An entire generation is constructing online identities—smarter, wittier, braver, and prettier than we are in the real world—and sending them out to interact and form relationships with similarly artificial simulacra. We are no longer Pygmalion in his studio, sculpting an image of female perfection according to our own desires


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The Borowitz Report

Here are headlines/links to Andy Borowitz’s recent satirical articles finding humor in current events. Funny, though potentially offensive. (So don’t blame me for not warning you – Palin fans, Tiger Woods fans, BP execs.)  - Ilene 

The Borowitz Report 

BP Says It Has Successfully Controlled Flow of Information on Spill

Tiger: At Least I Didn’t F%*k The Entire Gulf Of Mexico
Golf Legend Seizes PR Opportunity

Bin Laden Says He’s ‘Professionally Envious’ Of BP
‘I’ve Got To Step Up My Game,’ Says Madman

Experts Propose Plugging Oil Leak With BP Executives
Submerging Execs Could Be ‘Win-Win

Poll: Rand Paul Surges Ahead Of Palin Among Voters Who Describe Themselves As Morons
Key Constituency For Two Hopefuls

China To Stop Spying On Its People; Will Use Facebook Instead
Social Network To Replace Listening Devices, Spy Satellites

Greece Offers To Repay Loans With Giant Horse
Steed Wheeled Into Brussels At Night


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Dissonance Overload, Needs and “Innovation”

Dissonance Overload, Needs and "Innovation" 

Courtesy of Charles Hugh Smith Of Two Minds 

Are "businesses" which aggregate user-provided content in order to serve adverts to those users "innovative?" Are they serving a "need" or attempting to contrive a new "need"? 

While I usually present a specific thesis here, today’s topic is more a "work in progress" as I think through the paradoxes and connections between "needs" and contrived needs.

The two beginning data points are the South Pacific island nation of Vanuatu, formerly the New Hebrides, and an article from BusinessWeek on the dozens of Silicon Valley startups founded or funded by Google alumni: And Google Begat…The search giant’s former employees are seeding tech startups— and shaping another wave of innovation.

A friend’s son recently served a Peace Corps stint in a remote Vanuatu village. There is no electricity--illumination is provided by candles--and fresh potable water is a 2 kilometer walk away. The village pursues a generally traditional lifestyle apparently by choice; if you want to own a car and drive around in Western-style petroleum-based affluence, you can do so in the nation’s capital.

In the village, the women reportedly do most of the heavy lifting (agriculture, childcare, etc.) while the men have sufficient free time to brew up some hootch (kava) to enjoy in afternoon conviviality.

This "subsistance" is not poverty in the sense that people have enough to eat, shelter, some basic education, relative security from the predations of the State and/or external marauders (in our era, global Neoliberal Capitalism of the predatory/cartel variety).

This lifestyle is, with modest variations such as kerosene lamps or limited electricity, still lived by hundreds of millions of human beings. It is not to be romanticized or distorted by global-market, post-industrial definitions of "poverty." There are all sorts of poverty once you have enough to eat, a community and shelter, and definitions of a "good life" and a "better life" have to be carefully parsed.

We, on the other hand, are embedded in advanced, post-industrial Neoliberal Capitalism-- post-industrial in the sense that most of the nasty bits are performed elsewhere, so "we" get to live with high standards of environmental control, and Neoliberal in the sense that the Savior State is an active partner with global predatory finance Capitalism to exploit both foreign markets and domestic populations.

By the standards of our status quo, residents of Vanuatu are living at…
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Phil's Favorites

It's 1929 for Goldbugs

Courtesy of Joshua M. Brown

The Wall Street Journal documents some very dire facts about the utter capitulation and panic among gold “investors” we’re witnessing.

The last time gold hit a record, after controlling for inflation, was 1980. It has never been back in inflation-adjusted terms and, at Friday’s close, was 57% below its 1980 peak. The Dow Jones Industrial Average, also adjusted for inflation, last hit a record on May 19. At Friday’s close it was 3.7% off that level.

Gold-mining companies have suffered more. The NYSE Arca Gold Bugs Index, which contains big gold producers, finished Friday down 82% from its 2011 high, near a 13-y...



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Zero Hedge

Washington's "Fifth Columns" Inside Russia And China

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

Submitted by Paul Craig Roberts,

It took two decades for Russia and China to understand that “pro-democracy” and “human rights” organizations operating within their countries were subversive organizations funded by the US Department of State and a collection of private American foundations organized by Washington. The real purpose of these non-governmental organizations (NGOs) is to advance Washington’s hegemony by destabilizing the two countries capable of resisting US hegemony.

Washington’s Fifth Columns pulled off &ld...



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ValueWalk

Fannie Mae Discovery Materials "Completely Discredit Government's Defense"

By valueplays. Originally published at ValueWalk.

Fannie Mae Discovery Materials “Completely Discredit Government’s Defense”

From the filing:

Materials produced in discovery in this case and included in the attached appendix undermine, and in some instances completely discredit, important components of the central narrative on which the Government’s defense in the D.C. Circuit action was based, and Plaintiffs should be accorded the opportunity to fully apprise the D.C. Circuit of that reality while briefing is still ongoing.

Plaintiffs will not recount here the relevance of every item in the appendix to the issues in dispute in the D.C. Circuit action, but the deposition transcript of former Fannie Mae / Federal National Mortgage Assctn Fnni Me (...



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Market News

News You Can Use From Phil's Stock World

 

Financial Markets and Economy

Greece's Stocks Tumble in First Day of Trading After Shutdown (Bloomberg)

Lenders led a record plunge in Greek equities as the Athens Stock Exchange reopened after a five-week shutdown, with restrictions in place due to capital controls.

China and Asia are on shaky ground (Business Insider)

Headwinds for the world's second-biggest economy intensified at the start of the third quarter, with manufacturing conditions in China deteriorating to their worst in two years in July and triggering ...



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All About Trends

Mid-Day Update

Reminder: David 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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OpTrader

Swing trading portfolio - week of August 3rd, 2015

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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Kimble Charting Solutions

Consumption and Yields suggesting lower interest rates ahead!

Courtesy of Chris Kimble.

CLICK ON CHART TO ENLARGE

This chart looks at the yield on the 30-year bond. Yields rallied strongly from the first of February to the first of July (up 30%). This strong rally in yields hit dual resistance at (1) above, which was the 38% retracement level and the bottom of a rising channel, which both came into play as resistance. Once yields hit resistance a month ago, yields have been falling and bond prices moving higher.

Now yields are attempting to break steep rising support at (2) above.

Below is a very cool chart of the Personal Consumption Expenditure index on a year over year basis, shared by ...



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Chart School

Three RTT Indicators

Courtesy of Read the Ticker.

readtheticker.com is primarily a Richard Wyckoff logic site, however through our research into Wyckoff logic the three indicators below make us very lazy in applying Richard Wyckoff logic.Why? Because if these indicators look handsome together then it most likely the Wyckoff logic is working very well.

These three indicators are NOT a trading system, but they do help with finding excellent well support accumulated stocks that show Mr Market is supporting them. Of course when indicators look ugly they will show stocks in a breakdown, thus less support by Mr Market.

RTT Steps

If the large market plays are accumulating the stock then they will control the range of BID and ASK and not let th...

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Sabrient

Sector Detector: Lackluster earnings reports put eager bulls back into waiting mode

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

Courtesy of Sabrient Systems and Gradient Analytics

In this weekly update, I give my view of the current market environment, offer a technical analysis of the S&P 500 chart, review our weekly fundamentals-based SectorCast rankings of the ten U.S. business sectors, and then offer up some actionable trading ideas, including a sector rotation strategy using ETFs and an enhanced version using top-ranked stocks from the top-ranked sectors.

Corporate earnings reports have been mixed at best, interspersed with the occasional spectacular report -- primarily from mega-caps like Google (GOOGL), Facebook (FB), or Amazon (AMZN). Some of the bul...



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Digital Currencies

Gold Spikes Back Above $1100, Bitcoin Jumps

Courtesy of ZeroHedge. View original post here.

Gold is jumping after the overnight double flash-crash...testing back towards $1100...

Bitcoin is back up to pre-"Greece is Fixed" levels...

Charts: Bloomberg and Bitcoinwisdom

...

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Pharmboy

Baxter's Spinoff

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

Baxter Int. (BAX) is splitting off its BioSciences division into a new company called Baxalta. Shares of Baxalta will be given as a tax-free dividend, in the ratio of one to one, to BAX holders on record on June 17, 2015. That means, if you want to receive the Baxalta dividend, you need to buy the stock this week (on or before June 12).

The Baxalta Spinoff

By Ilene with Trevor of Lowenthal Capital Partners and Paul Price

In its recent filing with the SEC, Baxter provides:

“This information statement is being ...



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Mapping The Market

An update on oil proxies

Courtesy of Jean-Luc Saillard

Back in December, I wrote a post on my blog where I compared the performances of various ETFs related to the oil industry. I was looking for the best possible proxy to match the moves of oil prices if you didn't want to play with futures. At the time, I concluded that for medium term trades, USO and the leveraged ETFs UCO and SCO were the most promising. Longer term, broader ETFs like OIH and XLE might make better investment if oil prices do recover to more profitable prices since ETF linked to futures like USO, UCO and SCO do suffer from decay. It also seemed that DIG and DUG could be promising if OIH could recover as it should with the price of oil, but that they don't make a good proxy for the price of oil itself. 

Since...



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Promotions

Watch the Phil Davis Special on Money Talk on BNN TV!

Kim Parlee interviews Phil on Money Talk. Be sure to watch the replays if you missed the show live on Wednesday night (it was recorded on Monday). As usual, Phil provides an excellent program packed with macro analysis, important lessons and trading ideas. ~ Ilene

 

The replay is now available on BNN's website. For the three part series, click on the links below. 

Part 1 is here (discussing the macro outlook for the markets) Part 2 is here. (discussing our main trading strategies) Part 3 is here. (reviewing our pick of th...

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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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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...

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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.

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