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…
Outside the California Republican Party 'lunch banquet' in Burlingame at which Donald Trump is set to speak this afternoon, Anti-Trump protesters have swelled in numbers and turned violent. Having breached barricades, riot police have begun to move in and are arresting some of the group...
With the release of today's report on March Personal Incomes and Outlays we can now take a closer look at "Real" Disposable Personal Income Per Capita.
The first chart shows both the nominal per capita disposable income and the real (inflation-adjusted) equivalent since 2000. This indicator was significantly disrupted by the bizarre but predictable oscillation caused by 2012 year-end tax strategies in expectation of tax hikes in 2013.
At two decimal places, the nominal 0.31% month-over-month increase in disposable income comes in at 0.26% when we adjust for inflation. The year-over-year metrics are 3.20% nominal and 2.35% real.
As everyone here knows, we love Zero Hedge and love being able to get a quick take on the news before all the paint jobs. Who the Tyler Durdens are has always been a mystery that we haven't felt a need to solve. In the end we choose what to read and should evaluate it ourselves anyway. (Reading only what you already agree with is a good way to never learn anything; the Internet makes that very easy.)
William Banzai's description (below his picture) of the some of the contributors is pretty accurate, but there's no doubt that ZH is a uniquely provocative website with exceptional content from the Tyler Durdens. And if you're a fanatical gold-lover, conspiracy theorist, internet troll, completely mindless bigot and/or counting days till the end of the world, head to the comments...
Starting in 2014, the US Dollar experienced one of its strongest 12-month rallies in its history. That strong rally pushed it up to the top of a trading channel and drove monthly momentum to the highest levels in the past 15-years.
Over the past 12-months, the US$ has pretty much just traded sideways.
Joe Friday Just The Facts; US Dollar could close out the month at “new monthly closing lows” when looking back over the past 15-months, as momentu...
Reminder: Pharmboy and Ilene are available to chat with Members, comments are found below each post.
Remember this? It was Monday. PRGO is down from around $130 to under $100 since I started following it LAST WEEK. That's down almost 25% in a week, and almost 50% in the last year. So I wrote,
"Perrigo CEO Joseph Papa leaves Perrigo (PRGO) to lead Valeant (VRX) while PRGO issues a warning about missing earnings expectations. Not surprisingly, PRGO stock plummeted today.
Robert Ingram, Chairman of the [Valeant] Board, stated, "The Board has conducted a thorough search process and believes that Joe is the ideal leader for Valeant at this time. He has a strong shareholder orientation,...
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.
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Back on September 2, 2015 when bitcoin was trading at $230, we laid out the simplest and most fundamental reason why, irrelevant of one's ideological persuasion with "alternative" or digital currency - bitcoin would soar.
it was earlier this summer when the digital currency, which can bypass capital controls and national borders with the click of a button, surged on Grexit concerns and fears a Drachma return would crush the savings of an entire nation. Since then, BTC has dropped (in no small part as a result of the ...
Although we try to stay focused on finding and managing promising trade ideas, the comments in the comment section sometimes take a political turn (for access, try PSW — click here!). So today, Jean Luc writes,
The GOP debate last night was just unreal – are these people running to be president of the US or to lead a college fraternity! Comparing tool size? The only guy that looks semi-sane is Kasich. The other guys are just like 3 jackals right now.
And something else – if Trump is the candidate, that little Romney speech yesterday is probably already being made into a commercial. And all these little snippets from the debate will also make some nice ads! If you are a conservative, you have to be scared now.
Phil writes back,
I was expecting them to start throwing poop at each other &n...
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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