Posts Tagged ‘IR’

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

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

 

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

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

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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Zero Hedge

Manchester Innocence Lost - "Torture One Day, Passports The Next"

Courtesy of ZeroHedge. View original post here.

Authored by Raul Ilargi Meijer via The Automatic Earth blog,

There are times when you have to talk about things when it appears most inopportune to do so, because they’re the only times people might listen. Times when people will argue that ‘this is not the right moment’, while in reality it’s the only moment.

A solid 99% of people will have been filled, and rightly so of course, with a mixture of disgust, disbelief and infinite sadness ...



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While Wall Street bank revenues appeared to bounce back in the first quarter of 2017, with banks posting strong results in fixed income trading in particular, industry-wide revenues were still down on the same period from 2012 to 2015. 

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Vietnamese Prime Minister Nguyen Xuan Phuc said he is confident economic growth this year will meet a goal of 6.7 percent without adding ...



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ValueWalk

Jesse Livermore - 21 Investing Rules That Have Stood The Test Of Time For 77 Years

By The Acquirer's Multiple. Originally published at ValueWalk.

Before the modern day tweeter @Jesse_Livermore, there was a famous investing legend also called Jesse Livermore. The original Livermore was born in 1877 and died in 1940. Livermore was famous for making and losing several multimillion-dollar fortunes and short selling during the stock market crashes in 1907 and 1929. Livermore was an investing genius who unfortunately could not stick to his own rules – Which is why one of his rules – “The human side of every person is the greatest enemy of the average investor or speculator”, is so relevant to every investor.

]]> Get The Full Ray Dalio Series in PDF

Get the entire 10-part series on Ray Dalio in ...



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Chart School

Weekly Market Recap May 28, 2017

Courtesy of Blain.

Another winning week for the bulls, in a year full of them!  Things kicked off with a bang with a gap up Monday as the after shocks of the Comey removal – the one thing that seemed to shake this market for 24 hours – passed in the night.   Wednesday, minutes of the Federal Reserve’s latest policy meeting showed broad agreement on plans to begin shrinking the central bank’s balance sheet and also pointed to a likely rate increase next month, as widely expected.   Another gap up to start the day Thursday and serenity was found for the week.  Every day was up for the S&P 500 to book a weekly finished of +1.4% while the NASDAQ raced ahead +2.1%.

The minutes of the early May meeting showed that members were ...



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Digital Currencies

Visualizing The Expanding Universe Of Cryptocurrencies

Courtesy of Zero Hedge

Bitcoin is the original cryptocurrency, and its meteoric rise has made it a mainstay of conversation for investors, media, and technologists alike.

In fact, as Visual Capitalist's Jeff Desjardins details, the innovation of the blockchain is changing entire markets, while causing ripples with central banks and the financial industry. At time of publication, the bitcoin price now hovers near US$2,200, a massive increase from this time last year.

But the true impact of Bitcoin is actually far more reaching than this – it’s a...



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Market News

Market Moving News

 

Financial Markets and Economy

Hedge Fund Billionaire Paul Singer: If Trump Agenda Fails, a Recession Could Follow (Fortune)

Market watchers who thought the stock market would drop if Donald Trump were elected were burned following his win: markets rose to new highs instead.

U.S. inflation path since 2012 is worrisome, policymaker says (Reuters)

The current level of U.S. prices is noticeably lower than what it would be if the Federal Reserve had delivered on its 2-percent inflation target, St. Louis Federal Reserve President James Bullard said, calling the trend "worrisome."

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Members' Corner

Robert Sapolsky: The biology of our best and worst selves

Interesting discussion of what affects our behavior. 

Description: "How can humans be so compassionate and altruistic — and also so brutal and violent? To understand why we do what we do, neuroscientist Robert Sapolsky looks at extreme context, examining actions on timescales from seconds to millions of years before they occurred. In this fascinating talk, he shares his cutting edge research into the biology that drives our worst and best behaviors."

Robert Sapolsky: The biology of our best and worst selves

Filmed April 2017 at TED 2017

 

p.s. Roger (on Facebook) saw this talk and recommends the book ...



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OpTrader

Swing trading portfolio - week of May 22nd, 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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Biotech

Beyond just promise, CRISPR is delivering in the lab today

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

Beyond just promise, CRISPR is delivering in the lab today

Courtesy of Ian HaydonUniversity of Washington

Precision editing DNA allows for some amazing applications. Ian Haydon, CC BY-ND

There’s a revolution happening in biology, and its name is CRISPR.

CRISPR (pronounced “crisper”) is a powerful technique for editing DNA. It has received an enormous amount of attention in the scientific and popular press, largely based on the promise of what this powerful gene e...



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Kimble Charting Solutions

Brazil; Waterfall in prices starting? Impact U.S.?

Courtesy of Chris Kimble.

Below looks at the Brazil ETF (EWZ) over the last decade. The rally over the past year has it facing a critical level, from a Power of the Pattern perspective.

CLICK ON CHART TO ENLARGE

EWZ is facing dual resistance at (1), while in a 9-year down trend of lower highs and lower lows. The counter trend rally over the past 17-months has it testing key falling resistance. Did the counter trend reflation rally just end at dual resistance???

If EWZ b...



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Mapping The Market

Bombing - Right or Wrong?

Courtesy of Jean-Luc

I am telling you Angel – makes no sense… BTW:

Republicans Love Bombing, But Only When a Republican Does It

By Kevin Drum, Mother Jones

A few days ago I noted that Republican views of the economy changed dramatically when Donald Trump was elected, but Democratic views stayed pretty stable. Apparently Republicans view the economy through a partisan lens but Democrats don't.

Are there other examples of this? Yes indeed. Jeff Stein points to polling data about air strikes against Syria:

Democr...



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Phil has a chapter in a newly-released eBook that we think you’ll enjoy.

In My Top Strategies for 2017, Phil's chapter is Secret Santa’s Inflation Hedges for 2017.

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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.




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