Posts Tagged ‘HLF’

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

 

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

 

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

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

     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

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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Zero Hedge

Priebus: Take Trump Seriously When He Calls The Press "The Enemy"

Courtesy of ZeroHedge. View original post here.

Reince Priebus, the White House chief of staff, doubled down on Trump's vocal warnings to the press and advised Americans to take President Trump’s attacks on the media “seriously,” following the president’s denunciations of the press as the “enemy.”

“There’s been a debate about when to take the president seriously,” ...



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Phil's Favorites

News You Can Use From Phil's Stock World

 

Financial Markets and Economy

Managers at a $1 trillion asset manager say investors are dangerously underplaying 3 things (Business Insider)

2016 was not a great year for forecasting. 

The UK's decision to leave the European Union, and President Donald Trump's win despite what the polls showed, humbled many people who were sure that the opposite outcomes would happen.

China Suspends All Coal Imports From North Korea (NY Times)

...



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ValueWalk

Secret Memos Dramatically Expand Deportation of Illegal Aliens

By JOHN F. BANZHAF. Originally published at ValueWalk.

Illegal Aliens – Innocent Children Targeted; Policies to Be Challenged But Likely Legal
WASHINGTON, D.C. (February 18, 2017): John Kelly, Secretary of Homeland Security, has apparently issued on Friday two still-secret orders, styled as memos, which dramatically expand the number of illegal aliens who can be both detained and deported, including thousands of innocent children who entered as “unaccompanied minors” and were previously protected from deportation.

Illegal Aliens

MichaelGaida / Pixabay

Although it is quite likely that these orders will be attacked in many court proceedings, they may well be harsh but l...



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Market News

News You Can Use From Phil's Stock World

 

Financial Markets and Economy

Scoring the Fed's Decision: Will It Be Wise to Tighten in March? (Bloomberg)

Yellen said the U.S. economy is close to a level consistent with full employment -- part of the Fed’s dual mandate -- but a number of labor-market indicators have taken a step back recently.

British spending still hasn't recovered from levels seen before the 2008 financial crisis (Business Insider)

UK household spending remained level at an average of £528.90 a week in the financial year ending 2016, ...



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Digital Currencies

How to Use, Trade, Store and Invest in Bitcoin Digital Assets - Step by Step, Part 1

By Reggie Middleton

(Originally published on Zero Hedge)

I will teach novices and experts alike how to fit Bitcoin into an investment portfolio safely and with the optimum risk-adjusted potential - along with step-by-step guides, instructions and tutorials.

This first part of the series starts with the basics, obtaining and managing your bitcoin.

What is Bitcoin?

First off, we need to know what Bitcoin is since most media pundits and even experienced financial types truly do not know. Bitcoin (capital "B") is a protocol driven network (very similar to that other popular protocol-based network, the Internet). This network is a blank tapestry upon which smart and creative actors can paint a cornucopia of applications (just like applicat...



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Kimble Charting Solutions

Fear Indicator; Hitting highest levels in history, says Joe Friday

Courtesy of Chris Kimble.

Markets have been on a steady rise and the same can be said for Inverse Fear ETF (XIV). Below looks at Inverse Fear ETF (XIV) since the lows in 2011.

CLICK ON CHART TO ENLARGE

What a difference a year can make! One year ago this week, XIV was testing rising channel support, as relative momentum was hitting levels last seen at the 2011 lows.

...



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Members' Corner

Save Your Relationship?

Courtesy of Nattering Naybob.

Once again it's "in the Toilet Thursday" or "Thursday's in the Loo".

Our last episode How to Poop At Work? answered the question, what to do when your at a big fancy pants meeting, when out of nowhere, you need to download a brown load?

This week's installment, Save Your Relationship, demonstrates that people will do just about anything to save their relationshits...

...

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Mapping The Market

NSA May Be Withholding Intel from President Trump

By Jean Luc

These GOP guys were so worried about Hillary's email server and now we find out that we had something close to a Russian mole in the White House. In the meantime, Trump keeps on using his unsecured phone, had high level conversation in his resort in front of dinner guests! It's getting so bad that rumors are now circulating that the NSA is not sharing information with the WH:

NSA May Be Withholding Intel from President Trump

By 

….Our spies have had enough of these shady Russian connections—and they are starting to push back….In light of this, and out of worries about the White House’s ability to keep secrets, some of our spy agencies have begun withholding intelligence fro...



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OpTrader

Swing trading portfolio - week of February 13th, 2017

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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Chart School

Weekly Market Recap Feb 12, 2017

Courtesy of Blain.

The week that was…

The quite long in the tooth rally continues as we had 3 days of minor loses to begin the week; ending with 2 days of moderate gains.  We are in a bit of a quiet zone as most S&P 500 companies have now reported earnings, the Federal Reserve is not a “worry” for about a month and a half, and the major economic news of the month hit the prior week.  So the gnashing of teeth (or not) about government policy seems to be the main driver right now- late in the week it was announced some major new tax initiatives would be coming down the pike soon which the market liked.

President Donald Trump said Thursday that an announcement concerning taxes is on tap for the coming weeks, which his press secretary later said would involve an outline of a comprehensive tax plan. “...



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Promotions

Phil's Stock World's Las Vegas Conference!

Learn option strategies and how to be the house and not the gambler. That's especially apropos since we'll be in Vegas....

Join us for the Phil's Stock World's Conference in Las Vegas!

Date:  Sunday, Feb 12, 2017 and Monday Feb 13, 2017            

Beginning Time:  9:30 to 10:00 am Sunday morning

Location: Caesars Palace in Las Vegas

Notes

Caesars has offered us rooms for $189 on Saturday night and $129 for Sunday night but rooms are limited at that price.

So, if you are planning on being in Vegas (Highly Recommended!), please sign up as soon as possible by sending...



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Biotech

The Medicines Company: Insider Buying

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

I'm seeing huge insider buying in the biotech company The Medicines Company (MDCO). The price has already moved up around 7%, but these buys are significant, in the millions of dollars range. ~ Ilene

 

 

 

Insider transaction table and buying vs. selling graphic above from insidercow.com.

Chart below from Yahoo.com

...

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All About Trends

Mid-Day Update

Reminder: Harlan 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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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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