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…
There are many creative ways to screw up your retirement. Let me show you how it’s done.
Supporting adult children. My wife Jo and I have friends with an unmarried, unemployed daughter who had a child. Our friends adopted their grandchild and are now in their late sixties raising a kid in grade school. The same daughter had a second child, and they adopted that one too. When she announced she was pregnant a third time, they finally said, “Enough! It’s time for a third-party adoption.”
Last time I spoke with them, their unemployed daughter and her boyfriend were living in their basement, neither contributing financially nor lifting a finger around the house. What began as a temp...
In the days before the Geneva "de-escalation" conference (and coincidentally, days after the secret visit of CIA director Brennan to Kiev), the top story across western media was the "undisputed" proof that east-Ukraine, populated by "terrorist separatists", is preparing to unleash a neo-nazi wave against local jews, when a leaflet was unveiled, beckoning the Jewish population to register and declare their assets.
This one matters a lot. Abenomics was predicated on a lunatic notion—namely, that the economic ills from Japan’s massive debt overhang could be cured by a central bank bond buying spree that was designed to be nearly 3X larger relative to its GDP than that of the Fed. Yet anyone with a modicum of common sense and market...
Shares in Chipotle Mexican Grill Inc. (Ticker: CMG) opened higher on Thursday morning, rising more than 6.0% to $589.00, after the restaurant operator reported better than expected first-quarter sales ahead of the opening bell. But, the stock began to falter just before lunchtime on concerns the burrito-maker will increase menu prices for the first time in three years. The price of Chipotle’s shares have since fallen into negative territory and currently trade down 3.5% on the session at $532.89 as of 1:50 p.m. ET.
Last week’s market performance was nasty again, especially for the Small-cap Growth style/cap, down 4%. Large-caps faired the best, losing only 2.7%. That’s ugly and today’s market seemed likely to be uglier today with escalating tensions over the weekend in Ukraine.
But once again, positive economic trumped the beating of the war drums. Retail Sales jumped up 1.1% over a projected 0.8% and last month’s tepid 0.3%, which was revised up to 0.7%. While autos led, sales were up solidly overall. Business inventories were about as expected with a positive tone. Citigroup (C) handily beat estimates to add to the morning’s surprises. As a result, the market was positive through most of the day, led by the DJI, up 0.91%, and the S&P 500, up 0.82%. NASDAQ had a less...
[Facebook] The social network is only weeks away from obtaining regulatory approval in Ireland for a service that would allow its users to store money on Facebook and use it to pay and exchange money with others, according to several people involved in the process.
The authorisation from Ireland’s central bank to become an “e-money” institution would allow ...
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I just wanted to be sure you saw this. There’s a ‘live’ training webinar this Thursday, March 27th at Noon or 9:00 pm ET.
If GOOGLE, the NSA, and Steve Jobs all got together in a room with the task of building a tremendously accurate trading algorithm… it wouldn’t just be any ordinary system… it’d be the greatest trading algorithm in the world.
Well, I hate to break it to you though… they never got around to building it, but my friends at Market Tamer did.
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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...
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