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Posts Tagged ‘HLF’

Pre-Earnings Bullish Bets On Saks Pay Off As Retailer Rallies

www.interactivebrokers.com

 

Today’s tickers: SKS, HLF & ABFS

SKS - Saks, Inc. – High-end retailer, Saks, Inc., popped up on our ‘hot by options volume’ market scanner this morning on heavier than usual trading traffic in upside calls. Shares in Saks are up 10% on Tuesday morning at a new 52-week high of $13.54 after the company posted first-quarter earnings in line with analyst expectations on higher-than-expected quarterly revenue. Shares in Saks are up more than 30% since this time last year. Bullish positions initiated in SKS options ahead of the earnings release yesterday are seeing sizable overnight gains today as shares push to the highest levels since June of 2008. Traders yesterday picked up around 500 out-of-the-money calls at the Jun $13 strike for an average premium of $0.22 per contract. Today, the $13 calls are in the money and changing hands at $0.65 each, a near three-fold increase compared to the premium paid yesterday, as of 11:50 a.m. ET. Traders appear to be buying up the $13 calls against today, with more than 1,500 lots in play versus open interest of 887 contracts. Overall options volume on Saks is nearing 9,000 contracts as of the time of this writing, which is roughly four times the stock’s average daily level of around 1,900 contracts.

HLF - Herbalife, Ltd. – Shares in Herbalife have resumed trading this afternoon, currently up 3.0% at $50.69 as of 12:20 p.m. ET, after earlier being halted with news pending. The company announced today it has hired PricewaterhouseCoopers as its independent public accountant to replace KPMG. The stock was moving higher ahead of the halt in HLF shares today, rising as much as 7.0% in the early going to $52.84. Traders looking for the stock to potentially rise to fresh 52-week highs during the next few trading sessions purchased weekly calls on the stock, buying around 1,100 lots at the May $57.5 strike for an average premium of $0.77 each. Traders long the contracts stand ready to profit at expiration this week should shares in…
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Traders Beef Up On Herbalife Options As Shares Extend Losses

www.interactivebrokers.com

 

Today’s tickers: HLF, ILMN & WSM

HLF - Herbalife, Ltd. – Options on Herbalife continue to change hands at a clip on Thursday, one day after Pershing Square Capital Management founder, Bill Ackman, announced a short position in the stock that sent shares in the marketer of weight management products down as much as 15% during trading on Wednesday. The stock extended losses today, sliding 8% in the early going to $34.33, the lowest level since February 2011. Upwards of 71,000 put and call options have changed hands on Herbalife as of 12:55 p.m. ET, with around 1.5 puts changing hands on the stock for each single call option in play. Some traders appear to be positioning for shares in the name to hit lower lows by the end of this week, while others establish contrarian bets on the name that benefit from a pop in the price of the underlying during the next 24 hours. Bears anticipating a sharp drop in shares of Herbalife in the very near term appear to be buying out-of-the-money puts across several strike prices in the December expiry. Meanwhile, call buying at the Dec. $35, $37.5 and $40 strikes looks for the stock to rebound substantially by expiration.

ILMN - Illumina, Inc. – Shares in biotechnology company, Illumina, Inc., jumped 9.25% this morning to a new 52-week high of $57.00 on unconfirmed reports that Swiss drug maker, Roche Holding AG, may be in talks to purchase Illumina at a substantially sweetened price of $66.00 a share or $8.1 billion. San Diego, California-based Illumina’s shares have rallied more than 80% since the start of the year on speculation the provider of DNA sequencing technology may be acquired. Options volume on Illumina is up sharply on the session, with some 14,000 contracts in play on the stock as of midday in New York, versus average daily options volume of around 2,200 lots. A number of strategists appear to be buying upside calls on the takeover chatter, snapping up in- and out-of-the-money calls in the December and January expiries. The Dec. $55 and…
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Macy’s Call Options On Trend As Shares Extend Rally

www.interactivebrokers.com

Today’s tickers: M, HLF, CSC & WSM

M - Macy’s, Inc. – The department store operator’s shares are on a tear following better-than-expected retail sales data out earlier in the week. Macy’s, Inc. shares tacked on another 2.6% today to secure a four-year high of $34.80. Trading in call options on the retailer is outpacing that of puts roughly 2.5 contracts to one, with overall volume up at 18,000 lots as of 12:45 PM in New York. Investors snapped up out-of-the-money calls in the front month, suggesting the stock may have more room to run in the near term. Call buyers looked to the Jan. $35 strike, picking up around 1,400 contracts for an average premium of $0.58 a-pop. Volume was heaviest up at the Jan. $36 strike where more than 4,200 calls traded against open interest of 1,463 contracts. Trading traffic in the calls was mixed, with buyers and sellers facing an average premium of $0.26 apiece. Finally, far out-of-the-money call options with a low probability of landing in-the-money at expiration attracted traders willing to pay an average premium of $0.09 apiece for roughly 2,000 contracts at the Jan. $38 strike. Investors long the $38 strike calls profit at expiration if shares in Macy’s jump 9.5% to top $38.09.

HLF - Herbalife, Ltd. – Shares in the provider of weight management products rallied 1.6% to $52.04 this morning, but the stock has underperformed some competitors since the start of the New Year. Weight Watchers shares are currently up 17.8% year-to-date, while Herbalife’s shares have lost 1.2% of their value in the same period. Though the stock is presently in the red for the new calendar year, activity in HLF call options suggests some traders are positioning for substantial gains in the name ahead of February expiration. Investors traded more than 2,000 calls at the…
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Concrete-Makers 52-Week Low Provokes Contrarian Options Play

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     Today’s tickers: CX, HTS & HLF

CX - Cemex Inc. ADR – A lousy U.S. GDP report did little to arouse hopes that the consumer was overcoming the economic malaise, let alone lending a hand to the homebuilding sector. Shares in Cemex, the leading maker of cement across all of the Americas, have been struggling under the burden of a rising debt burden for two-years in hopes of a hint of strengthening revenues resulting from the U.S. market. Understandably the shares responded today by reaching a fresh 52-week low. Put activity was active on Cemex options but it appears that one investor continues to expect that the share price is approaching a floor at around $7.00. While shares reached as low as $6.58 one options writer sold another basket of 10,000 put options at the $7.00 strike indicating he’d be happy to take delivery at that price come expiration in September. The fair price of 44 cents per contract reflects the risk of doing so. Options positions built at the strike yesterday and appeared to be the work of similar selling. September calls at the same strike were also bought 2,500 times at an average price of 39 cents. Option implied volatility, which reached its highest peak in four months on Thursday started to decline as the shares recovered towards $7.00 on Friday.

HTS - Hatteras Financial Corp. – Fears very much in the foreground for the treasury market continued to weigh on REITs on Friday. Hatteras Financial was one of several companies whose share price slid over fears that disruption to the government bond market might be magnified in the repo-market for government sponsored entities, where such companies find day-to-day funding. The recent rise in the cost of borrowing in the repo-market merely reflects elevated investor concerns but according to executives within the industry, has nothing to do with day-to-day business. Efforts to soothe investors nerves fell by the wayside as shares in Hatteras broke violently from a narrow range typical of an income-generating…
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Herbalife Optimist Secures Insurance Policy Ahead of Earnings

www.interactivebrokers.com

Today’s tickers: HLF, REE, XLB, BIDU, DAL, RSH & MOT

HLF - Herbalife, Ltd. – It looks like one cautiously optimistic options trader initiated a delta neutral hedge on the maker of weight management, nutritional supplement and personal care products this afternoon ahead of the firm’s third-quarter earnings announcement scheduled for release after the close on November 1, 2010. Herbalife’s shares are currently down 1.25% to stand at $63.20 as of 3:45 p.m. in New York trading. The investor appears to have picked up 58,000 Herbalife shares at a price of $63.76 each as well as 2,000 calls on a 0.29 delta for a premium of $1.45 per contract. The long stance taken in HLF shares suggests the trader is bullish on the stock and expecting shares to climb higher. But, the put options serve as downside protection in case the investor’s inclinations fail to align with the performance of the stock going forward. The put options will be well worth the added premium if earnings are disappointing and shares head lower ahead of November expiration day.

REE - Rare Element Resources, Ltd. – The Canada-based company that was the target of bullish options trading just 24 hours ago has transformed into a hub of bearish activity. Shares in Rare Element Resources, which own the Bear Lodge mine in Wyoming, fell as much as 27.05% from yesterday’s high of $13.71 to an intraday low of $10.00. Despite the substantial decline today the current price of the stock is still up roughly 260% since August 20, 2010, when shares were around $2.80 each. Pessimistic players took to the options field on REE to place bearish bets on the stock. Investors expecting shares to continue lower picked up put options and sold call options in the November and December contracts. Traders picked up…
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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!

 
 

Phil's Favorites

M.A.D. Sanctions; Two Games at Once

Courtesy of Mish.

M.A.D. Sanctions

Sanctions are a lose-lose-lose game. Consumers lose, businesses loses, countries lose. And the hypocrisy alone is appalling.

The EU wants sanctions to hurt Russia "more" than the EU. Thus the EU let a French military sale to Russia go through, while blocking transactions and travel of Russians who had virtually nothing to do with this mess.

Knockout Blow?

For all their efforts will the US or EU accomplish anything with the sanctions on Russia?

Financial Times writer Christopher Granville has the answer in his take EU’s Sanctions on Russia Will Fail to be a Knockout Blow.
The main burden of the EU sanctions mooted by the commission would appear...



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Insider Scoop

Orbitz Worldwide Annouces Large Stakeholder Will Sell Shares In Public Offering

Courtesy of Benzinga.

Related OWW Morning Market Losers UPDATE: Oppenheimer Initiates Coverage On Orbitz Powerful Proxy Adviser Blasts Target Board Over Breach (Fox Business)

In a press release Wednesday, Orbitz Worldwide (NYSE: OWW) announced its largest stakeholder will sell 20 million shares of the company.

Orbitz released a separate press release stating mostly ...



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Zero Hedge

Former Aide To Bill Clinton Speaks - "My Party Has Lost Its Soul"

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

Submitted by Mike Krieger of Liberty Blitzkrieg blog,

One reason we know voters will embrace populism is that they already have. It’s what they thought they were getting with Obama. In 2008 Obama said he’d bail out homeowners, not just banks. He vowed to fight for a public option, raise the minimum wage and clean up Washington. He called whistle-blowers heroes and said he’d bar lobbyists from his staff. He was critical of drones and wary of the use of force to advance American interests. He spoke eloquently of the thr...



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Chart School

The End of QE: Some Common Misunderstandings

Courtesy of Doug Short.

Advisor Perspectives welcomes guest contributions. The views presented here do not necessarily represent those of Advisor Perspectives.

I have discussed for some time that there are a couple of inherent misunderstandings about the Federal Reserve's ending of the current large-scale asset purchase program (LSAP), or more affectionately known as Quantitative Easing (QE). The first is "tapering is not tightening" and the second is "interest rates will rise." Let me explain.

The Federal Reserve has been running extremely "accommodative" monetary policies since the end 2008. The two primary goals of the Federal Reserve have been to artificially suppress interest rates and boost asset prices in "hopes" that an organic economic recovery would take root. As I quoted in "How E...



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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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Option Review

Kellogg Call Options Active Ahead Of Earnings

Shares in packaged foods producer Kellogg Co. (Ticker: K) are in positive territory on Monday afternoon, trading up by roughly 0.20% at $65.48 as of 2:20 p.m. ET. Options volume on the stock is well above average levels today, with around 12,500 contracts traded on the name versus an average daily reading of around 1,700 contracts. Most of the volume is concentrated in September expiry calls, perhaps ahead of the company’s second-quarter earnings report set for release ahead of the opening bell on Thursday. Time and sales data suggests traders are snapping up calls at the Sep 67.5, 70.0 and 72.5 strikes. Volume is heaviest in the Sep 72.5 strike calls, with around 4,600 contracts traded against sizable open interest of approximately 11,800 contracts. It looks like traders paid an average premium of $0.37 per contrac...



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Sabrient

Sector Detector: Bold bulls dare meek bears to take another crack

Courtesy of Sabrient Systems and Gradient Analytics

Once again, stocks have shown some inkling of weakness. But every other time for almost three years running, the bears have failed to pile on and get a real correction in gear. Will this time be different? Bulls are almost daring them to try it, putting forth their best Dirty Harry impression: “Go ahead, make my day.” Despite weak or neutral charts and moderately bullish (at best) sector rankings, the trend is definitely on the side of the bulls, not to mention the bears’ neurotic skittishness about emerging into the sunlight.

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, incl...



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OpTrader

Swing trading portfolio - week of July 28th, 2014

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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Stock World Weekly

Stock World Weekly

Newsletter writers are available to chat with Members regarding topics presented in SWW in the comments below each post. 

Our weekly newsletter Stock World Weekly is ready for your enjoyment.

Read about the week ahead, trade ideas from Phil, and more. Please click here and sign in with your PSW user name and password. Or take a free trial.

We appreciate your feedback--please let us know what you think in the comment section below.  

...

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Digital Currencies

BitLicense Part 1 - Can Poorly Thought Out Regulation Drive the US Economy Back into the Dark Ages?

Courtesy of Reggie Middleton.

An Op-Ed piece penned by Veritaseum Chief Contracts Officer, Matt Bogosian

This past weekend (despite American Airlines' best efforts), Reggie and I made it to the Second Annual North American Bitcoin Conference in Chicago. While there were some very creative (and very ambitious) ideas on how to try to realize the disruptive Bitcoin protocol, one of the predominant topics of discussion was New York Superintendent of Financial Services Benjamin Lawsky's proposed Bitcoin regulations (the BitLicense proposal) - percieved by many participants at the event as an apparent ...



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Market Shadows

Danger: Falling Prices

Danger: Falling Prices

By Dr. Paul Price of Market Shadows

 

We tried holding up stock prices but couldn’t get the job done. Market Shadows’ Virtual Value Portfolio dipped by 2% during the week but still holds on to a market-beating 8.45% gain YTD. There was no escaping the downdraft after a major Portuguese bank failed. Of all the triggers for a large selloff, I’d guess the Portuguese bank failure was pretty far down most people's list of "things to worry about." 

All three major indices gave up some ground with the Nasdaq composite taking the hardest hi...



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Pharmboy

Biotechs & Bubbles

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

Well PSW Subscribers....I am still here, barely.  From my last post a few months ago to now, nothing has changed much, but there are a few bargins out there that as investors, should be put on the watch list (again) and if so desired....buy a small amount.

First, the media is on a tear against biotechs/pharma, ripping companies for their drug prices.  Gilead's HepC drug, Sovaldi, is priced at $84K for the 12-week treatment.  Pundits were screaming bloody murder that it was a total rip off, but when one investigates the other drugs out there, and the consequences of not taking Sovaldi vs. another drug combinations, then things become clearer.  For instance, Olysio (JNJ) is about $66,000 for a 12-week treatment, but is approved for fewer types of patients AND...



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Promotions

See Live Demo Of This Google-Like Trade Algorithm

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.

Follow this link to register for their training webinar where they’ll demonstrate the tested and proven Algorithm powered by the same technological principles that have made GOOGLE the #1 search engine on the planet!

And get this…had you done nothing b...



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