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Posts Tagged ‘IR’

Traders Nibble At Diamond Foods Call And Put Options As Shares Sell Off

www.interactivebrokers.com

Options brief will resume December 12, 2012.

Today’s tickers: DMND, IR & SCHW

DMND - Diamond Foods, Inc. – Shares in Diamond Foods fell more than 11% on Monday morning to an intraday low of $13.12 following the company’s fourth-quarter earnings release after the closing bell on Friday. The stock last month slipped to $12.85, the lowest level since the company revealed it must restate two years of earnings, lost its bid to purchase the Pringles brand, and replaced top executives. Options on the maker of Emerald nuts and other consumer food products are far more active than usual today, with some positions looking for shares in the name to slump to fresh lows and others preparing for a near-term rebound in the price of the underlying. The put-to-call volume is hovering around 2-to-1 just after midday in New York, and the bulk of trading traffic is in the weekly contracts. Traders exchanged more than 3,350 of the Dec. 14 ’12 $13.5 strike puts this morning, buying most of the contracts for an average premium of $0.58 apiece. The $13 strike weekly put options attracted heavy volume as well, with some 1,700 lots in play versus zero open positions. Traders buying the $13 strike contracts paid an average premium of $0.34 per contract in the early going, and stand ready to profit at expiration in the event that Diamond’s shares decline 6% from the current price of $13.48, to trade below the breakeven point at $12.66. Meanwhile, fresh interest in the Dec. 14 ’12 $13.5 strike calls today indicates some traders may profit from a near-term pop in the share price. Upwards of 3,900 of the $13.5 strike calls have changed hands as of 12:30 p.m. ET, and it appears much of the volume was purchased for an average premium of $0.40 apiece. Call buyers make money if shares in Diamond Foods settle above the average breakeven price of $13.40 at expiration.

IR - Ingersoll-Rand PLC – Options volume on industrial machinery maker, Ingersoll-Rand, rose well above the stock’s daily average this morning due to heavy trading…
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EBay Options Volume Up Ahead Of Earnings

www.interactivebrokers.com

 

Today’s tickers: EBAY, IR & PLD

EBAY - eBay, Inc. – Options on eBay, Inc. are active today as traders await the Company’s first-quarter earnings report due out after final bell. Shares in the provider of secure online payment services and online marketplaces are off slightly, trading 0.15% lower on the session at $36.03, as of 12:20 p.m. in New York. Signs some traders are prepping for a potential post-earnings report pullback in the price of eBay’s shares cropped up roughly 15 minutes into the trading day. Put volume at the May $34 strike exceeds 8,000 contracts versus just 322 previously existing positions, with most of the puts having been purchased this morning for an average premium of $0.78 apiece. Put buyers may be taking an outright bearish stance on the stock, or could be hedging long positions in the shares prior to the earnings release. Traders buying put options outright profit at expiration if EBAY shares drop 7.8% to breach the average breakeven price of $33.22. Overall options volume on the stock is approaching 45,000 contracts in early-afternoon trade, which is roughly 2.5 times EBAY’s 90-day average options volume read at 17,320. Call options are more active than puts at present, with around 1.25 call options trading for each single put option in play.

IR - Ingersoll-Rand PLC – Options volume on the provider of industrial and security technologies and products is up sharply today, with some 9,500 contracts in play this afternoon versus the stock’s 90 day average volume of 958 contracts. The bulk of the trading traffic is in the front month calls ahead of the Company’s first-quarter earnings report on Friday morning. Shares in Ingersoll-Rand are currently up 0.60% at $40.31 as of 12:45 p.m. ET. April $41 strike calls are seeing the heaviest…
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FedEx Corp. Options Point To Near-Term Share Price Pullback

www.interactivebrokers.com

Today’s tickers: FDX, IR, XLK & CSTR

FDX - FedEx Corp. – Bearish activity cropped up in FedEx Corp. call and put options within minutes of the opening bell this morning. Shares in the provider of transportation, e-commerce and business services are down 1.9% to stand at $75.59 as of 11:40 am ET, with less than one week to go before the Memphis, Tennessee-based company is scheduled to report first-quarter earnings. Yesterday, FedEx rival, UPS, reaffirmed its full year earnings guidance, but warned of difficult economic conditions and anemic growth. Traders positioning for shares in FedEx to extend losses, and possibly dip to new 52-week lows ahead of October expiration, initiated a few different bearish strategies in the first half of the session. Plain-vanilla put buying ensued at the Oct. $77.5 strike, where roughly 1,900 in-the-money puts were purchased for an average premium of $4.07 apiece. Investors long the puts profit at expiration next month if shares in FDX slide 2.85% from the current price of $75.59 to breach the effective breakeven point on the downside at $73.43.

Most of the volume in FedEx options was generated by one strategist, who initiated a three-legged bearish spread straight out of the gate this morning. It looks like the investor sold 2,500 calls at the Oct. $85 strike in order to purchase the 2,500-lot Oct. $67.5/$75 put spread. The transaction cost the trader a net premium of $0.90 per contract. The investor may be employing the three-way spread to take finance an outright bearish view on the stock, or could be using the trade to hedge a long position in the underlying shares. Profits are available to the trader should shares in FDX drop 2.0% to breach the effective breakeven price of $74.10 by expiration day. The investor may walk away…
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Bulls Head For Developed Markets ETF

www.interactivebrokers.com

Today’s tickers: EFA, HAL, VIAB, IR, EXPD, GE, CCL, V, & XRX

EFA – The exchange-traded fund representing stocks from Europe, Australasia, and the Far East attracted more than passing glances by bullish option traders today. The fund is currently higher by 1.5% to stand at $44.75. One optimistic individual appears to have sold 10,000 calls at the near-term July 46 strike price for 12 cents apiece in order to purchase 10,000 calls at the August 48 strike for 40 cents each. Rolling up to a higher strike cost the investor a net 28 cents per contract. Shares of EFA must rally through the breakeven point at $48.28 before the trader can reel in profits on the transaction. Bullish sentiment spread to the September contract where it appears that one trader initiated a covered call. The investor looks to have bought shares of the fund and concurrently shed 2,000 calls at the September 49 strike price for 58 cents per contract. The premium received for writing the calls reduced the price of getting long the stock to about $44.09 (assuming shares were trading at $44.67 at the time of execution). The short call position provides an effective exit strategy for the investor who will have shares of the fund called away from him in the event that the September 49 calls land in-the-money by expiration. Should this occur, the trader will have enjoyed gains of 11% on the rise in the price of the ETF. – iShares MSCI EAFE Index ETF

HAL – The oil and gas company jumped onto our ‘most active by options volume’ market scanner after a large chunk of puts were purchased in the January 2010 contract. Shares of the Houston, Texas-based firm are higher by 2% today to $19.29. Approximately 35,000 in-the-money put options were scooped up at the January 22 strike price for an average premium of 4.45 apiece. Perhaps the investor responsible for the transaction is long the stock and is looking to protect his position from potential downward movement in HAL through expiration in January. In this case the trader is hoping for the value of the stock to appreciate and would be considered bullish. On the other hand, the transaction could represent bearish speculation by an investor aiming to amass profits beneath the breakeven point to the downside at $17.55 by the start of 2010. – Halliburton Company

VIA B
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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!

 
 

Zero Hedge

Ebola Fears Take Shine Off Panic-Buying Surge In Stocks

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

Buyback-manipulated earnings produced the low-volume opening face-ripper everyone wanted and stocks took off, recovering yesterday's late losses and not looking back.Trannies were the big winners, led by a resurgence in Airlines (as Ebola in US is fixed) and, despite drastically lower than average volume, stocks kept lifting after EU close on a bed of AUDJPY and USDJPY... until 1450ET (when NYC Ebola headlines hit). Airlines were hit hard, S&P futures dumped back to VWAP, VIX was whacked back above 17, and the exuberant day transformed into merely a great day for stocks. Weakness in Treasuries and the HY bond ETF (despite notable compression in HY spreads) had the sm...



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Phil's Favorites

French Private Sector Output Falls at Sharpest Rate in Eight Months; Tale of Two Europes

Courtesy of Mish.

France

Looking for growth in Europe? You won't find it in France, but for now you can still find it in Germany (for now).

The Markit Flash France PMI shows French private sector output falls at sharpest rate in eight months.
Key Points

  • Flash France Composite Output Index falls to 48.0 (48.4 in September), 8-month low
  • Flash France Services Activity Index falls to 48.1 (48.4 in September ), 8-month low
  • Flash France Manufacturing Output Index falls to 47.6 (48.4 in September ), 2-month low
  • Flash France Manufacturing PMI falls to 47.3 (48.8 in September), 2-month low

Summary

The latest flash PMI data signalled a deepenin...



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Chart School

A Long-Term Look at Inflation

Courtesy of Doug Short.

The Consumer Price Index for Urban Consumers (CPI-U) released this yesterday puts the September year-over-year inflation rate at 1.66%, off the May 19-month high of 2.13%. It is well below the 3.87% average since the end of the Second World War and 29 percent below its 10-year moving average.

For a comparison of headline inflation with core inflation, which is based on the CPI excluding food and energy, see this monthly feature.

For better understanding of how CPI is measured and how it impacts your household, see my Inside Look at CPI components.

For an even closer look at how the components are behaving, see this X-Ray View of the data for the past six months.

The Bureau of Labor Statistics (BLS) has compiled CPI...



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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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Insider Scoop

UPDATE: Credit Suisse Reiterates On FMC Technologies On Lowered EPS Estimates

Courtesy of Benzinga.

Related FTI Benzinga's Top Initiations Credit Suisse Initiates FMC Technologies At Neutral Energy Stocks Move Higher as Oil Spikes (Fox Business)

In a report published Thursday, Credit Suisse analyst James Wicklund reiterated a Neutral rating on FMC Technologies (NYSE: FTI), but lowered the price target from $72.00 to $6...



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Option Review

LUV Options Active Ahead Of Earnings

There is lots of action in Southwest Airlines Co. November expiry call options today ahead of the air carrier’s third-quarter earnings report prior to the opening bell on Thursday. Among the large block trades initiated throughout the trading session, there appears to be at least one options market participant establishing a call spread in far out of the money options. It looks like the trader purchased a 4,000-lot Nov 37/39 call spread at a net premium of $0.40 apiece. The trade makes money if shares in Southwest rally 9.0% over the current price of $34.32 to exceed the effective breakeven point at $37.40, with maximum potential profits of $1.60 per contract available in the event that shares jump more than 13% to $39.00 by expiration. In September, the stock tou...



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Sabrient

Sector Detector: Sharp selloff in stocks sets up long-awaiting buying opportunity

Courtesy of Sabrient Systems and Gradient Analytics

Last week brought even more stock market weakness and volatility as the selloff became self-perpetuating, with nobody mid-day on Wednesday wanting to be the last guy left holding equities. Hedge funds and other weak holders exacerbated the situation. But the extreme volatility and panic selling finally led some bulls (along with many corporate insiders) to summon a little backbone and buy into weakness, and the market finished the week on a high note, with continued momentum likely into the first part of this week.

Despite concerns about global economic growth and a persistent lack of inflation, especially given all the global quantitative easing, fundamentals for U.S. stocks still look good, and I believe this overdue correction ultimately will shape up to be a great buying opportunity -- i.e., th...



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Digital Currencies

Goodbye War On Drugs, Hello Libertarian Utopia. Dominic Frisby's Bitcoin: The Future of Money?

Courtesy of John Rubino.

Now that bitcoin has subsided from speculative bubble to functioning currency (see the price chart below), it’s safe for non-speculators to explore the whole “cryptocurrency” thing. So…is bitcoin or one of its growing list of competitors a useful addition to the average person’s array of bank accounts and credit cards — or is it a replacement for most of those things? And how does one make this transition?

With his usual excellent timing, London-based financial writer/actor/stand-up comic Dominic Frisby has just released Bitcoin: The Future of Money? in which he explains all this in terms most readers will have no tr...



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OpTrader

Swing trading portfolio - week of October 20th, 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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Market Shadows

Falling Energy Prices: Sober Look takes a Sober Look

Falling Energy Prices: Sober Look takes a Sober Look

What do falling energy prices mean for the US consumer? Sober Look writes a brief yet thorough overview of the consequences of the correction in the price of crude oil. There are good aspects, particularly for the consumer, bad aspects, and out-right ugly possibilities. For more on this subject, read James Hamilton's How will Saudi Arabia respond to lower oil prices?  In previous eras, Saudi Arabia would tighten the supply to help increase prices, but in this "game of chicken," the rules m...



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Stock World Weekly

Stock World Weekly

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

Here's this week's Stock World Weekly. Just sign in with your PSW user name and password. (Or take a free trial.)

#457319216 / gettyimages.com

 

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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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