VZ - Verizon Communications, Inc. – Upside call options are in play on Verizon this morning, with shares in the wireless carrier up better than 2.1% on the session at $44.53 on an upgrade to ‘Overweight’ from ‘Neutral’ with a 12-month target price of $50.00 at Piper Jaffray. Traders positioning for shares in Verizon to rise to their highest level since October 2012 picked up roughly 1,700 calls at the May $46 strike for an average premium of $0.64 apiece. Call buyers stand ready to profit at May expiration should shares in VZ rally another 4.7% to top the average breakeven price of $46.64. Nearer-term bullish activity is notable in the Feb. $44 strike calls, where upwards of 3,400 in-the-money options changed hands in the early going. It looks like most of these calls were purchased at an average premium of 0.82 each. Traders long the $44 strike call options make money if shares in Verizon top $44.82 by expiration in two weeks.
FINL - Finish Line, Inc. – Shares in the specialty retailer of athletic footwear and accessories are trading modestly higher on Friday, up 0.20% at $18.68 on a strong up-day for U.S. stocks. Trading traffic in Finish Line options this morning suggests one or more traders are preparing for shares in the name to slip to a new 52-week low during the next few months. Investors in the retailer have had a rough six months, with the price of the underlying declining more than 30% off a six-month high of $24.90 in September, down to a 52-week low of $16.87 on January 8th. Options traders positioning for Finish Line’s shares to pullback purchased roughly 675 puts at the May $17.5 strike for an average premium of $0.98 apiece this morning. Put buyers may profit if shares in FINL drop 11.5% from the current price of $18.68 to trade below the breakeven point at $16.52. Indianapolis-based Finish Line reports fourth-quarter earnings at the end of March.…
XLK - Technology Select Sector SPDR ETF – A sizable short straddle on the Technology SPDR ETF comprises nearly all of the day’s options volume generated on the fund as of 1:00pm in New York. It looks like the investor responsible for the transaction is hoping to see the price of the underlying settle as close to $26.00 as possible by expiration day next month. Shares in the XLK, an exchange-traded fund that corresponds to the price and yield performance of the Technology Select Sector of the S&P 500 Index, increased as much as 1.0% during the session to secure an intraday high of $25.94. The straddle-strategist appears to have sold 15,000 calls and 15,000 in-the-money puts at the May $26 strike to pocket gross premium of around $1.08 per contract. The investor keeps the full amount of premium received on the trade if shares in the XLK settle at $26.00 at expiration. The trader may walk away with some portion of the total premium as long as the ETF’s shares trade within the range of $27.08 to the upside, and $24.92 on the downside, through expiration in May. The short-straddle player will also benefit from declines in options implied volatility and the passage of time, as both factors erode premium on the options and cheapen the cost of buying back the straddle, should he choose to do so, at some future date.
FCS - Fairchild Semiconductor International – May contract call activity on the semiconductor maker appears to be the work of an options player taking a bullish stance on Fairchild ahead the company’s Thursday morning first-quarter earnings report. Shares in the San Jose, CA-based company are currently down 1.2% to stand at $19.00 in early-afternoon trade. The options strategist initiated a debit call spread, buying roughly 2,200 calls at the May $21 strike for an average premium of $0.60 each, and selling the same number of calls up at the May $23 strike at an average premium…
DISH – DISH Network Corp. – The implementation of a ratio put spread on the U.S. provider of direct broadcast satellite subscription television service this afternoon was perhaps put on by an investor looking to lock in recent share price gains. DISH shares, which are currently up 2.4% on the day to arrive at $20.77 by 3:40 pm ET, have rebounded nearly 17.5% since touching down to $17.75 on July 1, 2010. It looks like one trader purchased 3,000 puts at the December $20 strike for an average premium of $1.58 each, and sold 6,000 puts at the lower December $18 strike for an average premium of $0.83 a-pop. The investor responsible for the transaction receives a net credit of $0.08 per contract, and keeps the full amount at long as DISH’s shares exceed $20.00 through December expiration. The trader is perhaps utilizing the spread to protect the value of a position in the underlying shares. If this is the case, downside protection kicks in should shares reverse course to trade below $20.00 by expiration day. The decision to employ a ratio spread rather than a 1-by-1 spread or a plain-vanilla long put stance suggests this investor does not expect DISH shares to collapse ahead of expiration at the end of 2010. The firm is scheduled to report second-quarter earnings ahead of the opening bell on August 9, 2010.
LBTYA – Liberty Global, Inc. – It looks like one options strategist expects shares of the international producer of video, voice and broadband internet services to remain range-bound through October expiration. Liberty Global’s shares are currently down 0.20% to stand at $29.65 as of 3:05 pm ET. LBTYA reported an adjusted net loss of $2.42 a share for the second quarter of 2010 after the market closed on Tuesday. But, shares moved very little following earnings. Perhaps the lack of fluctuation in the price of the underlying shares during earnings season bolstered the strangle seller’s premonition that LBTYA’s shares are likely to trade within a specified range for the next couple of months. The investor appears to have sold roughly 10,000 puts at the October $27.5 strike for a premium of $0.70 each in combination with the sale of about the same number of calls at the October $32.5 strike for an average premium of $0.35 apiece. The trader pockets…
Over the course of the last four or so weeks, the media has paid quite a bit of attention to Islamic State’s lucrative trade in “stolen” crude.
On November 16, in a highly publicized effort, US warplanes destroyed 116 ISIS oil trucks in Syria. 45 minutes prior, leaflets were dropped advising drivers (who Washington is absolutely sure are not ISIS members themselves) to “get out of [their] trucks and run away.”
Retailers, especially big-box retailers will be blue if light shopping carries over for the rest of the season. The Wall Street Journal reports Thinner Crowds on Black Friday.
Millions of Americans left their Thanksgiving meals to hit stores across the country in an annual shopping ritual, but the crowds on early Black Friday morning were thinner than years past at some malls and shopping districts.
Thinner crowds could spell problems for retailers, some of whom entered the holidays warning of uneven consumer demand and elevated levels of inventory. But the smaller crowds could also reflect deeper changes in how Americans shop: Increasingly, they are spending more online and making fewer visits to stores.
We are entering one of the most bullish times of the year historically. As we mentioned last week, the final 30 trading days of the year have been higher each of the last 12 years.
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Getting to today, it is Black Friday – the official start to the holiday spending season. We’ve seen many stats that show this day isn’t quite as important as it once was. From many sales now starting on Thanksgiving, to Cyber Monday this coming Monday – there are other times people are looking for the best deals. None the less,...
UBS Group AG, the world’s largest private bank, is telling its wealthy clients that the U.S. dollar’s gains are set to be limited as the Federal Reserve will probably tighten policy gradually after liftoff next month.
Nope it is not interest rates, nope it is not Donald Trump, it is!
It is the CRUDE OIL crash, simple!
Jim Willie has good comments in the first 40 min of this pod cast.
Energy company ... - Debt is blowing up (See energy element of HYG). - Hedging at oil $100 is coming to an end. - Iran coming back to the market, more supply. - Saudi still providing massive supply. - Oil tankers holding oil parked in the ocean are coming in to harbor to unload - US dollar strength supports lower oil prices - World wide DEMAND slump for energy or deflation. - More oil being sold outside the US Dollar - The Oil futures can not be manipulated easily as folks actually ...
Some weeks when I write this article there is little new to talk about from the prior week. It’s always the Fed, global QE, China growth, election chatter, oil prices, etc. And then there are times like this in which there is so much happening that I don’t know where to start. Of course, the biggest market-moving news came the weekend before last when Paris was put face-to-face with the depths of human depravity and savagery. And yet the stock market responded with its best week of the year. As a result, the key issues dominating the front page and election chatter have moved from the economy and jobs to national security and a real war (rather than police ...
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I've decided to build our startup - Veritaseum, a peer-to-peer financial services platform, directly on top of the Bitcoin Blockchain. Many queried why I would voluntarily give up a lucrative advisory and consulting business to chase virtual coins in cyberspace. That's exactly why I decided to do it. That level of misunderstanding of what is essentially the second coming of the Internet gave me a fundamental advantage over those who had deeper connections, more capital and more firepower. I was the first mover advantage holder.
You see, Bitcoin is not about coins, currency or price pops. It is a massive computing net...
1) The shares of one of my largest short positions (~3%), Exact Sciences, crashed by more than 46% yesterday. Below is the article I published this morning on SeekingAlpha, explaining why I think it’s still a great short and thus shorted more yesterday. Here’s a summary:
The U.S. Preventative Services Task Force’s Colorectal Cancer Screening Draft Recommendation issued yesterday is devastating for Exact Sciences’ only product, Cologuard.
I think this is the beginning of the end for the company.
My price target for the stock a year from now is $3, so I shorted more yes...
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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).
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.
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 email@example.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.
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