Posts Tagged ‘KBE’

Time Warner Bull Channels Stock and Option Combo Play

 Today’s tickers: TWX, KBE, KMB & AET

TWX - Time Warner, Inc. – A massive transaction combining Time Warner stock and options suggests one strategist expects bullish movement in shares of the media and entertainment company ahead of February expiration. Time Warner’s shares are currently trading 0.40% higher on the session at $33.30 as of 1:25pm. The combo-player initiated a delta neutral trade, selling 1,400,000 shares of the underlying at $33.00 each, and buying 40,000 calls at the February $34 strike for a premium of $0.56 apiece, on a 0.35 delta. This is another one of those stock and option combinations in which the investor wants to have his cake and eat it too. The short stock leg of the trade works in the event Time Warner loses value, but should the shares jump, the value of the calls is intended to swell and outpace losses on the now losing stock price. As the share price increases the delta on the calls moves higher meaning that the value of the calls appreciate at a faster rate leaving the investor better placed as a bull. In other words, gains from the rising value of the call options, given share price appreciation, will eclipse losses that accumulate from the short stance in TWX shares. Time Warner’s shares last traded above $34.00 back on May 30, 2010.

KBE - SPDR KBW Bank ETF – Large prints in March contract call options on the SPDR KBW Bank ETF this morning appear to be the work of one strategist taking profits off the table and extending bullish sentiment on the fund through expiration in a few months time. Shares of the KBE, an exchange-traded fund that replicates the performance of the KBW Bank Index and invests in regional banks and other diversified financial services industries, are currently down 0.50% to stand at $26.68 as of 12:30pm in New York. It looks like the investor originally purchased a total of 27,100 calls at the March $26 strike, picking 20,000 lots for an…
continue reading


Tags: , , ,




Put Butterfly Spread on Financials ETF Points to Persisting Pessimism

Today’s tickers: XLF, CMCSA, IBB, IYR, KBE & RIG

XLF – Financial Select Sector SPDR ETF – Investors heavily favored put options over call options on the financial SPDR today despite the 4.4% rebound in the price of the underlying stock to $15.75. Earlier in the trading session shares of the XLF, an exchange-traded fund seeking investment results that correspond to the price and yield performance of the Financial Select Sector of the S&P 500 Index, increased 6.15% over Friday’s closing price of $15.09 to reach an intraday high of $16.02 in the first 30 minutes of the session. Options traders populating the fund today initiated decidedly bearish transactions signaling shares of the fund may be unable to retain the current rebound. Near-term pessimism took the form of a large-volume debit put spread in the May contract. It looks like one investor purchased 36,000 puts at the May $15 strike for a premium of $0.17 apiece, and sold the same number of puts at the lower May $14 strike for $0.07 each. The net cost of the trade amounts to $0.10 per contract, thus positioning the put player to pocket maximum potential profits of $0.90 per contract should shares decline 11.11% from the current price to breach the $14.00-level by expiration day. The trade is perhaps the work of an investor still smarting from last week’s market meltdown now taking advantage of relatively cheap downside protection today to hedge against similar catastrophic events. Bearishness spread to the June contract where another pessimistic individual enacted a put butterfly spread. The transaction involved the purchase of 10,000 now in-the-money puts at the June $16 strike for a premium of $0.67 each [wing 1] and the purchase of 10,000 puts at the lower June $14 strike for $0.23 apiece [wing 2]. The body of the butterfly, nestled between the two wings at the central June $15 strike, involved the sale of 20,000 puts for a premium of $0.41 each. The net cost of the butterfly spread amounts to just $0.08 per contract. The trade yields maximum potential profits of $0.92 per contract to the responsible party if shares of the XLF fall 4.75% from the current price to settle at $15.00 at June expiration. The investor starts to make money if shares of the financials ETF slip beneath the upper breakeven price of $15.92. Options traders exchanged more than 440,000 contracts on the…
continue reading


Tags: , , , , ,




Qualcomm Bull Itching for a Sharp Rally in Shares by July Expiration

Today’s tickers: QCOM, KBE, XRT, GE, BAC, F, UPS, UAUA & NTRI

QCOM – Qualcomm, Inc. – The manufacturer of digital wireless telecommunications products and services received a vote of confidence by one optimistic options investor who purchased a debit call spread in the July contract today. Qualcomm’s shares rallied 0.55% in late afternoon trading to stand at $42.84 as of 2:45 pm (ET). The trader initiated the call spread by purchasing 4,000 lots at the July $46 strike for a premium of $1.00 each, marked against the sale of 4,000 calls at the higher July $49 strike for $0.37 apiece. Net premium paid for the bullish play amounts to $0.63 per contract, thus positioning the investor to amass maximum potential profits of $2.37 per contract should Qualcomm’s shares rally 14.4% over the current value of the stock to $49.00 by expiration day in July. The parameters of the transaction suggest the responsible party hopes Qualcomm’s share price shifts toward the stock’s current 52-week high of $49.80, attained back on January 8, 2010, in the next several months to expiration.

KBE – SPDR KBW Bank ETF – Shares of the SPDR KBW Bank fund, which replicates the performance of the KBW Bank Index, slipped 0.75% during the course of the trading day to stand at $28.18 with 35 minutes remaining in the session. Earlier today, one investor pocketed a net credit by selling a large chunk of call options spread against the purchase of put contracts. The trader sold 28,260 calls at the May $29 strike for a premium of $0.58 each, and purchased the same number of puts at the lower May $27 strike for $0.40 apiece. A net credit of $0.18 per contract pads the investor’s wallet as long as shares of the underlying fund trade below $29.00 through expiration day in May. Additional profits are available should shares slip beneath $27.00 in the next several weeks. The transaction may be linked to an underlying share position. If this is the case, the put options serve as downside protection should the fund’s share price erode, but the short position in calls could result in the investor having the underlying shares called away from him at expiration should the call contracts land in-the-money at that time.

XRT – SPDR S&P Retail ETF – A massive bearish transaction on the XRT, an exchange-traded fund which seeks to replicate the performance…
continue reading


Tags: , , , , , , , ,




 
 
 

Zero Hedge

Norway Desperately Needs Large Oil Discoveries

 

Norway Desperately Needs Large Oil Discoveries

Courtesy of Zero Hedge

Authored by Tsvetana Paraskova via OilPrice.com,

Thanks to cost-cuts and large oil discoveries made before the oil price crash, Norway will be able to sustain its oil and gas production over the next five years. But reduced exploration drilling and lack of big discoveries in the past two years spell trouble for Western Europe’s biggest oil and gas producer after 2023, authorities fear.

Nearly two-thirds of the undiscovered resources are thought to be located in the Baren...



more from Tyler

Phil's Favorites

What if the price of Bitcoin is the least interesting thing about it?

 

What if the price of Bitcoin is the least interesting thing about it?

Courtesy of 

Over the summer, I reviewed Steven Johnson’s book about innovation, called The Invention of Air. Johnson shows us how a simple insight by one of the least technically gifted scientists in history led to a massive chain reaction of human understanding about the world we live in and how it truly works.

If you missed my synopsis, it’s here.

...



more from Ilene

Digital Currencies

What if the price of Bitcoin is the least interesting thing about it?

 

What if the price of Bitcoin is the least interesting thing about it?

Courtesy of 

Over the summer, I reviewed Steven Johnson’s book about innovation, called The Invention of Air. Johnson shows us how a simple insight by one of the least technically gifted scientists in history led to a massive chain reaction of human understanding about the world we live in and how it truly works.

If you missed my synopsis, it’s here.

...



more from Bitcoin

ValueWalk

Payback - a key term for investors in 2018

By joniferdingcong. Originally published at ValueWalk.

When will I get my money back? This week Tim Bennett explains how payback can answer this simple, but vital, question.

The post Payback – a key term for investors in 2018 appeared first on ValueWalk.

Sign up for ValueWalk's free newsletter here.

...

more from ValueWalk

Insider Scoop

Vetr Crowd Upgrades Exxon Mobil

Courtesy of Benzinga.

The Vetr community upgraded Exxon Mobil Corporation (NYSE: XOM) from 2.5 stars (Sell) to 3 stars (Hold). Crowd confidence reflected this sentiment, with 50 percent of Vetr users giving the stock a Hold rating, 33.3 percent a Sell, and 13.7 percent a Buy, indicating mixed outlooks on the stock.

See how crowdsourced ratings could help you time the market

This crowd upgrade came as shares of the oil company closed at $86.79. The Vetr community and analysts alike remained slightly bullish, with Vetr users setting a $87.51 target price and analysts setting target prices within the $80-$90 range.

...

http://www.insidercow.com/ more from Insider

Chart School

Weekly Market Recap Jan 14, 2017

Courtesy of Blain.

After 3 days of mild “rest” – and the first down day of the year (!!) for the S&P 500, bulls came back with bells on Thursday and Friday, driving indexes to record highs yet again.  This is starting to get “parabolic”… some shades of the type of things we saw in 1999.  (See the S&P 500 and NASDAQ charts below)  The S&P 500 gained 1.6% and the NASDAQ 1.7% for the week.

“This reminds me of January 2000,” said Kent Engelke, chief economic strategist, at Capitol Securities Management, which manages $4 billion in assets, referring to the nearly unceasing climb to records for stocks and the unease it can inspire.  “It’s scary, the unrelenting advance,” he added.

“The move isn’t about fundamentals...



more from Chart School

Biotech

How Alzheimer's disease spreads throughout the brain - new study

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

 

How Alzheimer's disease spreads throughout the brain – new study

Courtesy of Thomas E CopeUniversity of Cambridge

Harmful tau protein spreads through networks. Author provided

Alzheimer’s disease is a devastating brain illness that affects an estimated 47m people worldwide. It is the most common cause of dementia in the Western world. Despite this, there are currently no treatments that are effective in curing Alzheimer’s disease or preventing its relentless progressio...



more from Biotech

Mapping The Market

Trump Admin Bans CDC From Using Words Like 'Science-Based,' 'Diversity'

By Jean-Luc

These are the policies of a theocracy, not a modern democracy:

Trump Admin Bans CDC From Using Words Like ‘Science-Based,’ ‘Diversity’

The Trump administration has prohibited the Centers for Disease Control and Prevention (CDC) from using words like “science-based,” “diversity,” and “transgender” in their official documents for next year’s budget, according to the Washington Post.

Senior CDC budget leader Alison Kelly met with the agency’s policy analysts on Thursday to announce ...



more from M.T.M.

Members' Corner

An Interview with David Brin

Our guest David Brin is an astrophysicist, technology consultant, and best-selling author who speaks, writes, and advises on a range of topics including national defense, creativity, and space exploration. He is also a well-known and influential futurist (one of four “World's Best Futurists,” according to The Urban Developer), and it is his ideas on the future, specifically the future of civilization, that I hope to learn about here.   

Ilene: David, you base many of your predictions of the future on a theory of historica...



more from Our Members

OpTrader

Swing trading portfolio - week of September 11th, 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 ...



more from OpTrader

Promotions

NewsWare: Watch Today's Webinar!

 

We have a great guest at today's webinar!

Bill Olsen from NewsWare will be giving us a fun and lively demonstration of the advantages that real-time news provides. NewsWare is a market intelligence tool for news. In today's data driven markets, it is truly beneficial to have a tool that delivers access to the professional sources where you can obtain the facts in real time.

Join our webinar, free, it's open to all. 

Just click here at 1 pm est and join in!

[For more information on NewsWare, click here. For a list of prices: NewsWar...



more from Promotions

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...



more from Kimble C.S.

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...

more from David



FeedTheBull - Top Stock market and Finance Sites



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...

Learn more About Phil >>


As Seen On:




About Ilene:

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.

Market Shadows >>