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Posts Tagged ‘JBLU’

SAP Puts Active As Shares Stumble

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Today’s tickers: SAP, CTRP & JBLU

SAP - SAP AG – Put options on SAP are active on Friday, with shares in the software company down more than 4.0% in the early going at $72.42. SAP’s shares are declining in sympathy with Accenture, the world’s second-largest technology-consulting company, after that company posted lower-than-expected third-quarter revenue after the closing bell on Thursday. Traders positioning for shares in SAP to potentially extend declines during the next few weeks picked up roughly 2,000 puts at the Jul $72.5 strike for an average premium of $1.97 each. The bearish strategy makes money at expiration in the event that SAP’s shares slide 2.6% from today’s low of $72.42 to breach the average breakeven point on the downside at $70.53. Shares in the name, down nearly 12% since the start of 2013, last traded below $70.53 back in November of 2012. SAP is scheduled to report second-quarter earnings ahead of the open on July 18th.

CTRP - Ctrip.com International, Ltd. – Upside call options on Ctrip.com are active this morning, with shares in the online provider of travel services in China rising 2.0% to $33.38 during morning trading. The most heavily traded contracts as measured by volume thus far in the session are the Aug $34 strike calls, with roughly 2,500 lots in play versus open interest of 12 contracts. Time and sales data suggests most of the calls were purchased within a few minutes of the opening bell at an average premium of $2.03 apiece. Call buyers stand ready to profit at expiration in August should shares in CTRP rally another 10% over the current price of $32.87 to exceed the average breakeven point at $36.03. Ctrip.com’s shares are up better than than 90% since this time last year.

JBLU - JetBlue Airways Corp – Takeover chatter sparked heavier than usual trading traffic in out-of-the-money call options on air carrier, JetBlue, Inc., this morning. Shares in the…
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Which Way Wednesday – $3.5Tn Not Enough to Prop up Markets?

SPY WEEKLYUh-oh!

Wasn't it just 2 days ago that the EU was all set to pop the ESM to $1.25Tn and the IMF was going to add another Trillion and the Fed was talking about more QE in the $1.25Tn range, which plunged the Dollar to multi-week lows?  Shouldn't adding 6% of the entire planet's GDP in additional stimulus give us more than a one-day pop in the markets? 

As I pointed out in Monday's Morning Alert to Members – these are all just RUMORS and my conclusion in the Alert was: 

Despite the bullish turn of events (which we anticipated last week) we're more inclined to cash out our bullish trades into the excitement and press our bear bets and TOMORROW, if we're still over our levels – THEN we will scramble to add some aggressive bullish trades to our virtual portfolios.  Again, I cannot stress enough that CASH is my preferred position because this market is tough to call and you need to be very flexible and very nimble to trade it.

SPY 5 MINUTEWe proceeded as planned and, so far, we haven't had any reason to capitulate and get more bullish and that is both surprising and disappointing as this is the end of the first quarter of 2012 – if not now – when?  As David Fry notes

Monday’s rally was typical as we head toward the end of the quarter. Hedge fund performance fees are on the line and any way to boost these profits is job one. Top holdings for hedge funds include the usual suspects: AAPL, IBM, INTC, BAC, DIS, HD etc.

With little volume it’s easy for algos and hedge funds to prop stocks on little hard news. Tuesday we briefly saw more of this. Just as markets were weakening a story appeared using the Fed’s favorite oracle, the WSJ, as Fed governor Rosengren stated, “more stimulus is on the table”. Immediately HFT algos jumped and markets rose if only briefly. 

It's very exciting for us as PLCN (see Thursday's notes) went all the way up to $736 on Monday and sold off on some pretty heavy trading yesterday.  Slowly but surely, our negative premise is beginning to take shape as Piper Jaffray is finally catching up with us and noting "a sharp decline in unique visitors to Priceline's booking.com" from growth of 61 percent during the…
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Weekly Put Buyers Eye Further Downside In Caterpillar

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Today’s tickers: CAT, KKD & JBLU

CAT - Caterpillar, Inc. – Shares in Caterpillar are down for the third straight day, trading 2.1% lower on Thursday afternoon at $106.68 as of 12:50 p.m. in New York following the release of weaker manufacturing data from Germany and China. Activity in the newly issued weekly options on the machinery maker suggests some traders anticipate the downside move in the shares will continue in the near term. Bearish positions were initiated at the Mar. ’30 $100 strike, where more than 1,000 puts were purchased for an average premium of $0.35 apiece. Traders long the $100 puts profit at expiration next week in the event that CAT’s shares decline another 6.6% to breach the average breakeven price of $99.65. Shares in Caterpillar last traded below $99.65 in mid-January.

KKD - Krispy Kreme Doughnut, Inc. – Options on Krispy Kreme are more active than usual today, with shares in the doughnut retailer down 6.6% at $7.25 this afternoon. More than three times as many call options are changing hands on KKD as put options, but most of the volume appears to be bearish. Front month $7.5 strike calls traded around 1,200 times so far today against open interest of 415 positions. It looks like most of the call options were sold this morning for $0.25 to $0.30 per contract. Perhaps call sellers are throwing in the towel on the possibility for a near-term rebound in shares of the doughnut maker. Alternatively, some of the volume today may be the work of traders cutting their losses on bullish positions initiated yesterday afternoon. Open interest in the April $7.5 strike calls suggests buyers shelled out $0.65 per contract for a couple hundred contracts on Wednesday. These positions more than halved in value overnight.…
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Bearish Spread On DuPont Suggests Shares On The Decline In 2012

www.interactivebrokers.com

Today’s tickers: DD, BCSI, JBLU & FCS

DD - EI du Pont de Nemours & Co. – Shares in the U.S. chemical maker dropped on Friday after the company lowered full-year earnings guidance by $0.10 a share to a range of $3.87 to $3.95 a share. The stock is off its lowest point of the session to stand 4.75% lower on the day at $44.31 just before 12:00 PM ET. Activity in DuPont put options expiring in January 2012 indicate some traders are positioning for the price of the underlying to extend losses in the near term. It appears one strategist initiated a ratio put spread, buying 2,250 puts at the Jan. 2012 $41 strike for a premium of $0.94 each, and selling 4,500 puts at the lower Jan. 2012 $38 strike at a premium of $0.48 apiece. The spread yields a net credit of $0.02 per contract and positions the trader add to profits in the event that shares drop 7.5% from the current price of $44.31 to breach the effective breakeven point on the downside at $41.00 by expiration. Maximum potential profits of $3.02 per contract are available to the investor should DuPont’s shares plunge 14.2% to settle at $38.00 at expiration day in January. The chemical company is scheduled to report fourth-quarter earnings ahead of the opening bell on January 25, after the Jan. 2012 expiry puts will have expired.

BCSI - Blue Coat Systems, Inc. – Investors that bought December expiry call options in the latter half of November saw the value of their positions sky-rocket overnight on news Blue Coat Systems, Inc. agreed to be purchased by an investor group for a reported $1.3 billion. Shares in the provider of Internet-security software jumped 44.5% to $25.27 in the first half of the trading session. Call open interest in the front…
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Options Activity Suggests Tough Week For Halliburton, Clear Skies For JetBlue

www.interactivebrokers.com

Today’s tickers: HAL, JBLU, DELL & HL

HAL - Halliburton Co. – Shares in the Houston, Texas-based oilfield services provider dropped as much as 5.8% to $34.86 today on reports BP is accusing a unit of the Halliburton Co. of destroying evidence that could have shown the company is also at fault for the deadly explosion in the Gulf of Mexico last year. Options traders expecting the stock to remain under pressure this week placed short-term bearish bets on the stock. Weekly puts that expire at the end of the trading week attracted heavier-than-usual volume, with the Dec. ’09 $35 strike put trading more than 4,400 times against open interest of just 444 contracts. It looks like investor purchased the majority of the $35 strike weekly puts for an average premium of $0.53 each. In-the-money put buyers at this strike stand prepared to profit should the price of the underlying fall another 1.1% to breach the average breakeven point on the downside at $34.47 at expiration. Bears picked up put options at the lower Dec. ’09 $ 34 strike for an average premium of $0.31 each, as well. Approximately 2,700 puts have changed hands at the $34 strike as of 12:30 PM ET. Options implied volatility on Halliburton is up 5.7% at 50.55% in early-afternoon trade.

JBLU - JetBlue Airways Corp. – Investors initiating near-term bullish positions in JetBlue Airways this morning appear to have shown up relatively late to the party, however, late could be better than never as long as the price of the underlying stock continues to rise in the next couple of weeks. Shares in JetBlue Airways Corp. are up 1.7% today to stand at $4.78 as of 11:20 AM ET. The stock has rallied roughly 30.0% since AMR Corp. filed for bankruptcy on November 29. Some traders jumped into JBLU…
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Options Strategist Harvests Gains on EQIX Call Butterfly Spread

www.interactivebrokers.com

Today’s tickers: EQIX, OMX, TER & JBLU

EQIX - Equinix, Inc. – In the final trading week of 2010 we reported seeing one options strategist purchase a sizable bullish call butterfly spread on Equinix. It has been nearly four months to the day since the investor paid a net premium of $3.10 per contract for the June $85/$100/$115 call ‘fly, and it looks like the trader is reeling in substantial profits today by unraveling the position. Shares in the provider of global data center services are currently up 3.8% to stand at $100.30 as of 11:20am in New York. The company reported first-quarter earnings of $0.53 a share on Wednesday, which beat average analyst expectations of $0.30 a share in net income for the quarter. The trader responsible for the bullish spread nearly hit the nail on the head. On December 29, 2010, shares in Equinox closed the session at $81.20. Since then, the stock has climbed roughly 23.5% to today’s price. While the upward move in the price of the underlying happened a bit more quickly than estimated, the trader’s predictions for the magnitude of the move were pretty much spot on. It appears the investor closed out the spread this morning, selling 15,000 calls at the now deep in-the-money June $85 strike for a hefty premium of $16.20 each, bought back the 30,000 short calls at the June $100 strike for a premium of $4.70 each, and sold 15,000 of the June $115 strike call options at a premium of $0.30 a-pop. The trader takes in net premium of $7.10 per contract by closing out the spread, and therefore realizes net profits of $4.00 per contract, or around $6 million in total, after accounting for the initial cost of buying the spread at $3.10 apiece. Had Equinix’s shares risen more slowly, hitting $100.00 at expiration in June, the investor could have realized maximum potential profits of $11.90 per contract. But, in the end the investor’s predictions for EQIX’s performance and the…
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Savient-Bull Buys Ratio Call Spread

www.interactivebrokers.com

Today’s tickers: SVNT, JBLU, ROST, RVSN, MRVL, RYL, ARIA, WLP, S, BCR & ORCL

SVNT – Savient Pharmaceuticals, Inc. – A ratio call spread implemented on biopharmaceutical company, Savient Pharmaceuticals, this afternoon indicates shares may shift higher by expiration in January 2010. SVNT’s shares increased 1% during the session to stand at $12.80. The spread involved the purchase of 2,400 calls at the in-the-money January 12.5 strike for an average premium of 1.34 apiece, marked against the sale of 4,800 calls at the higher January 14 strike for 62 pennies each. The net cost of the trade amounts to just 10 cents per contract. The investor responsible for the bullish play stands ready to accrue maximum potential profits of 1.40 per contract if the stock jumps to $14.00 by expiration. The increase in demand for option contracts on the stock boosted Savient’s option implied volatility reading 15% during the trading day from an opening reading of 75.22% to an intraday high of 86.56%.

JBLU – JetBlue Airways Corp. – Investors initiated bullish stances on JetBlue this afternoon despite the 2% decline in value of the underlying shares during the trading session to $5.48. Fresh call positions were taken in the March and June contracts by traders preparing for a JBLU-rally. A chunk of 5,000 calls were purchased at the March 6.0 strike for a premium of 40 cents per contract. The investor responsible for the transaction breaks even if shares of the airline increase 17% over the current price to $6.40 by March’s expiration. Option traders purchased at least 1,700 calls at the June 6.0 strike for 65 cents premium apiece. Profits accumulate if and when JBLU’s shares rise 21.5% to surpass the breakeven point at $6.65. The increase in investor demand for option contracts on the stock lifted option implied volatility 13.57% to an intraday high of 55.55%.

ROST – Ross Stores, Inc. – The second-largest off-price retailer of brand-name apparel and home accessories in the U.S. appeared on our ‘hot by options volume’ market scanner in late-afternoon trading. One investor established a ratio put spread on the stock in the February 2010 contract. Shares are down 1% to $43.88 with approximately one hour remaining in the trading session. The option trader purchased 2,000 puts at the in-the-money February 45 strike for 2.60 apiece, and sold 4,000 puts at the lower February 42.5 strike for 1.40 each. The investor…
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Phil's Favorites

Gold Doomed or Resting? Gold vs. Major Currencies; Goldman Sachs and Morgan Stanley Reiterate Sell Signal

Courtesy of Mish.

Here are some interesting charts from my friend Nick at Sharelynx Gold. (Login Required)

Gold vs. US Dollars



Gold vs. Euros



Gold vs. Ukraine Hyyvnia



It took about 4,000 Hyyvnia to buy an ounce of gold at the end of 2008. It takes 17,444 now....



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Chart School

Two Measures of Inflation and Fed Policy

Courtesy of Doug Short.

Note from dshort: I've updated the accompanying charts with yesterday's Consumer Price Index data from the Bureau of Labor Statistics. The annualized rate of change is calculated to two decimal places for more precision in the side-by-side comparison with the PCE Price Index.

The BLS's Consumer Price Index for March shows core inflation below the Federal Reserve's 2% long-term target range at 1.66%. The Core PCE price index at the end of the February (the most recent data), is significantly lower at 1.10%. The Fed is on record as preferring Core PCE as its inflation gauge.


The inflation rate over the longer run is primarily determined by monetary poli...



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Insider Scoop

UPDATE: BlackBerry Will Sell the Majority of Its Real Estate Holdings in Canada

Courtesy of Benzinga.

Related BBRY Market Wrap For April 15: Who Doesn't Love A Turnaround? Sirius XM Up on Channel Launch - Analyst Blog The Secret to Social Media Marketing (Fox Business)

BlackBerry(R) Limited (NASDAQ: BBRY), a world leader in mobile communications, today announced that it has entered into an agreement pursuant to which it will sell the majority of its real e...



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Zero Hedge

Guest Post: The Slow Death Of The Old Global Order

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

Submitted by Robert Merry via The National Interest,

In the spring of 2012, The National Interest produced a special issue under the rubric of “The Crisis of the Old Order: The Crumbling Status Quo at Home and Abroad.” The thesis was that the old era of relative global stability, forged through the crucibles of the Great Depression and World War II, was coming unglued. In introducing the broad topic to readers, TNI editors wrote, “Only through a historical perspective can we fully understand the profound developments of our time and glean,...



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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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Sabrient

What the Market Wants: Positive News and Stocks at Bargain Prices

Courtesy of David Brown, Sabrient Systems and Gradient Analytics

Last week’s market performance was nasty again, especially for the Small-cap Growth style/cap, down 4%.  Large-caps faired the best, losing only 2.7%.  That’s ugly and today’s market seemed likely to be uglier today with escalating tensions over the weekend in Ukraine. 

But once again, positive economic trumped the beating of the war drums. Retail Sales jumped up 1.1% over a projected 0.8% and last month’s tepid 0.3%, which was revised up to 0.7%.  While autos led, sales were up solidly overall.  Business inventories were about as expected with a positive tone.  Citigroup (C) handily beat estimates to add to the morning’s surprises.  As a result, the market was positive through most of the day, led by the DJI, up 0.91%, and the S&P 500, up 0.82%.  NASDAQ had a less...



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Digital Currencies

Facebook Takes Life Seriously and Moves To Create Its Own Virtual Currency, Increases UltraCoin Valuation Significantly

Courtesy of ZeroHedge. View original post here.

Submitted by Reggie Middleton.

The Financial Times reports:

[Facebook] The social network is only weeks away from obtaining regulatory approval in Ireland for a service that would allow its users to store money on Facebook and use it to pay and exchange money with others, according to several people involved in the process. 

The authorisation from Ireland’s central bank to become an “e-money” institution would allow ...



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OpTrader

Swing trading portfolio - week of April 14th 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

Winning: Defined as Losing Less

By Paul Price of Market Shadows

Market Shadows Excelled – With a 1.36% Weekly Decline

In the land of the blind, the one-eyed man is King. Our Virtual Value Porfolio took on that role this week as we lost a modest 1.36% of our value while the DJIA, S&P 500 and Nasdaq Composite dropped from 2.35% - 3.10%.

We remain bullish despite the shaky end of week sentiment. Our original $100,000 now totals $145,058 including our 2.8% cash reserve.

 ...



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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 is the new Stock World Weekly. Please sign in with your user name and password, or sign up for a free trial to Stock World Weekly. Click here. 

Chart by Paul Price.

...

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Option Review

Bearish Prints In DDD Put Options

3D Systems shares had been in positive territory earlier in the session, up as much as 4.2% to touch an intraday high of $50.85. The stock bounced off a low of $47.17 in the early going, a new six-month low for the share price and a more than 50% drop from DDD’s record high of $97.28 reached back on January 3rd. Shares managed to stay in the green for much of the session before succumbing to selling pressure this afternoon. Options expiring next week suggests at least one trader is positioning for further weakness in the near term.

The 17Apr’14 $47 puts traded more than 2,000 times this morning against previously existing open interest o...



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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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Pharmboy

Here We Go Again - Pharma & Biotechs 2014

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

Ladies and Gentlemen, hobos and tramps,
Cross-eyed mosquitoes, and Bow-legged ants,
I come before you, To stand behind you,
To tell you something, I know nothing about.

And so the circus begins in Union Square, San Francisco for this weeks JP Morgan Healthcare Conference.  Will the momentum from 2013, which carried the S&P Spider Biotech ETF to all time highs, carry on in 2014?  The Biotech ETF beat the S&P by better than 3 points.

As I noted in my previous post, Biotechs Galore - IPOs and More, biotechs were rushing to IPOs so that venture capitalists could unwind their holdings (funds are usually 5-7 years), as well as take advantage of the opportune moment...



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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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