BBRY – BlackBerry Ltd. – Shares in BlackBerry are moving higher today, up as much as 7.3% during the first half of the session to touch $7.75, the highest level since November 1st. Today’s gains add to the strong rally in BBRY shares seen on Friday on the heels of comments from the company’s interim CEO, John Chen. Currently trading at $7.64 on the day, the stock is up 40% since touching down at a record low of $5.44 on December 10th.
Upwards of 100,000 contracts have changed hands on BlackBerry as of 12:30 p.m. EST on Monday, which is around the total options volume the stock sees on average each day. Trading in BBRY calls is outpacing that of puts, with the call/put ratio hovering near 3.0 as of the time of this writing. Trading in far out of the money put options expiring in March, however, indicates some traders are prepared for the rebound in the price of the underlying to potentially reverse course during the next few months. It looks like traders snapped up around 2,500 of the Mar ’14 $4.0 strike puts at a premium of $0.08 each. The contracts may be profitable at expiration if shares in BlackBerry plunge roughly 50% from the current price of $7.64 to breach the breakeven point on the downside at $3.92.
KORS – Michael Kors Holdings Ltd. – Options on Michael Kors are more active than usual today, with volume above 12,000 contracts as of 11:30 a.m. EST versus the stock’s average daily options volume of around 7,800 contracts. Shares in the retailer fell 5.1% to $79.59 during morning trading on cautious comments regarding holiday sales from an analyst at Wedbush Securities, which has an ‘Outperform’ rating on Kors and a target price of $84.00 on the stock.
Trading in KORS weekly call and put options this morning suggests one trader is positioning for the price of the underlying to remain volatile this week. It looks like one strategist purchased a 300-lot 27 Dec ’13 $80 straddle for a net premium of $2.20 each. The position makes money if shares in the retailer rally above the upper breakeven price of $82.20 or below the lower breakeven point at $77.80 by expiration this week.
KORS - Michael Kors Holdings Ltd. – Shares in luxury apparel and accessories retailer, Michael Kors Holdings Ltd., are soaring today after the company posted better-than-expected first-quarter earnings and same-store sales and raised its forecast for second-quarter and full year profit. The stock jumped 16% in the first half of the session to an intraday high of $49.12, nearing its post-IPO high of $50.69 reached back in March. One options strategist who initiated a three-legged bullish spread in the September expiry contracts yesterday ahead of the earnings report this morning saw the value of his or her position skyrocket overnight. It appears the trader sold 525 of the Sept. $36 strike put in order to partially offset the cost of buying a 525-lot Sept. $43/$48 call spread. The sale of the $36 puts and the $48 calls reduced the premium required to get long the Sept. $43 strike calls to just $0.70 per contract from the asking price of $2.82 apiece, effectively lowering the breakeven point to $43.70 from $45.82 while limiting profits to a maximum of $4.30 per contract. Shares in the name are currently above $48.00; if the stock exceeds $48.00 at September expiration, the options trader may walk away with the maximum payout available on the spread. Alternatively, the strategist could choose to take substantial profits off the table today or at some future date by buying-to-close the puts and selling-to-close the call spread.
APC - Anadarko Petroleum Corp. – A large call butterfly spread initiated on Anadarko Petroleum Corp. this afternoon suggests one options player is positioning for the price of the underlying to post big gains during the next few months. Shares in the name, up 0.65% on the day at $68.95 as of 12:50 p.m. in New York, have rallied 22% off the June 4th 52-week low of $56.42, though the stock remains down 12% year to date despite the summer rebound. The…
TIF - Tiffany & Co. – Options on the world’s second-largest luxury jewelry retailer are mixed today, with much of the action centering in the front month calls and puts. The day’s volume, currently at 21,500 contracts as of 11:35 a.m. in New York, is more than twice the stock’s 90-day average volume of 9,971 options. The pick-up in options activity arrives on the heels of the Company’s fourth-quarter results and full-year earnings guidance ahead of the opening bell. The jeweler’s full-year earnings forecast at $4.05 per share beat analyst expectations, sending the price of the underlying up as much as 8.0% on Tuesday morning to $74.20. The sharp rally in Tiffany’s shares is a move one strategist had been positioning for last week. It appears the investor initiated a bull call spread back on Monday March 12, buying the April $70/$75 spread roughly 3,500 times at an average net premium of $1.54 per contract. The rise in open interest at both strikes in the days that followed may mean the trader added to the position last week. The bullish play on the jeweler is working out so far, with the shares well above an estimated breakeven share price of $71.54 on the spread. The trader walks away with maximum available profits as long as Tiffany’s shares move up another 1.1% over today’s high of $74.20 to top $75.00 at expiration next month.
KORS - Michael Kors Holdings, Ltd. – The number of open options positions on Michael Kors Holdings, Ltd., as measured by open interest of 30,337 total contracts, is roughly 65.0% comprised of call positions. The preponderance of open KORS calls versus puts was heightened yesterday by one large transaction involving roughly 10,200 far out-of-the-money front month calls. The Company…
KORS - Michael Kors Holdings Ltd. – A number of options strategists appear to have benefitted handsomely from bullish positions held in the House of Kors today, with shares in the luxury retailer ballooning on better-than-expected third-quarter earnings. Shares in Michael Kors Holdings Ltd. have more than doubled since the December IPO, trading 22.7% higher on the day at $41.25 as of 11:40 a.m. Options on Kors are abuzz with after-earnings activity, with around 3.6 call options changing hands for each single put option in play. Some traders that placed bullish bets on the retailer in the weeks leading up to earnings in some cases saw the value of their positions sky-rocket. One buyer of a 1,500-lot Feb. $34/$37 call spread at an average net premium of $1.05 per contract on Feb. 9th may reel in maximum possible profits on the position at expiration, given shares in KORS are now trading well above the upper $37 strike. Call open interest in the front month is heaviest at the $33 strike where more than 5,480 positions were opened before today. It looks like most of the volume was generated in a single block of 4,831 calls that traded at $1.15 each on Feb 7th. The calls traded to the middle of the market one week ago with the bid/ask showing $1.05/$1.30. Today, these deep in-the-money calls trade at bid/ask of $8.20/$8.40 as of 12:15 p.m. The impact of better-than-expected earnings on the shares certainly makes for a happy Valentine’s Day for the trader in the event he or she purchased the contracts last week or a rather Grey day were the calls originally sold. Finally, investors positioning for shares in Kors to extend gains snapped up in-the-money calls at the $40 strike in February and March, as well as picked up around 255 calls out at the May $44 strike at an average premium of $1.56 each.…
Bert Dohmen of the Wellington Letter comments on Apple Inc (no association with readtheticker)
Readtheticker.com Gann Angle Review. As you can see a very technical time for Apple Inc.
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.."The market is like a slowly revolving wheel: Whether the wheel will continue to revolve in the same direction, stand still or reverse depends upon the forces which come in contact with it hub and tread"...
Richard D Wyckoff .."Look at market fluctuations as your friend rather than your enemy; pr...
The EPI had an interesting chart and comments in its report The Vast Majority of the 5.8 Million Missing Workers Are Under Age 55. Since the start of the Great Recession over six years ago, labor force participation has dropped significantly. Most of the drop—roughly three-quarters—was due to the lack of job opportunities in the Great Recession and its aftermath. There are now 5.8 million workers who are not in the labor force but who would be if job opportunities were strong.
It is possible that some of these missing workers who are at or near retirement age have given up hope of...
Common sense suggests that reading esteemed financial publications and major brokerage house research reports would help you make good decisions. However, in many situations it leads to exactly the opposite result.
Most people don’t have the ability and resources to evaluate individual muni bonds. They count on their brokers or financial advisors to steer them into appropriate issues while relying heavily on rating agencies’ bond ...
Today was the beginning of “spring break” for the market. At least it seemed that way with a very low trading volume of only 600M shares on the NYSE. Either the college crowd does more trading than we imagined or parents are taking the week off as well.
The market barely woke up for the session with the S&P 500 down 0.05% and the NASDAQ down 0.03%. However, the DJI must have gotten extra sleep this weekend as it was up 0.21%. Small caps took a bigger hit with the Russell 2000 dropping nearly 0.50% percent. There was nothing major in the news other than a disappointing trading figure from China. Indeed, the whole week will only include a meager four major economic reports with Wholesale Inventories tomorrow, Retail Sales and Jobless Claims on Thursday, and Producer Price In...
The dramatic moves in fuel cell related stocks continues this week, with shares in Plug Power (Ticker: PLUG), FuelCell Energy (Ticker: FCEL) and Ballard Power Systems (Ticker: BLDP) beginning the trading week with explosive gains ahead of FuelCell Energy’s first-quarter earnings report after the closing bell, and following on the heels of a large order from Walmart for Plug Power, which the company confirmed in a press release on February 26th.
Shares in PLUG rose as much as 38% to touch $11.41 this afternoon, marking a near 150% move to the upside in the price of the underlying since Monday morning of last week when the stock opened at $4.60....
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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).
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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...
Welcome to the fouth update of the IRA Virtual Portfolio. First I am going to summarize the current state of the Portfolio then I will get into all the activity we had during September expiration.
Profit and Loss – Net of closed positions the portfolio is up a total of $769
Market Commentary – Last expiration I said, "I would like to put a total of $20,000 to work by the end of SEP expiration. If the VIX pops up to around 20 I plan to put about $50,000 total to work." The market didn't quite reach the goal but I did manage to deploy $15,000 of buying power. I still feel the market is too high and expect a correction during October. If the vix pops up to around 20 I still plan to put about $50,000 to work. If a correction doesn't happen I still plan to have a total of $25,000 in buying power put to work by October expiration. Now on to the act...
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