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Posts Tagged ‘LINTA’

Staples Firm – Proctor & Gamble Options Suggest Further Upside

Today’s tickers: PG, CTXS, LINTA, HIG, CVS, UUP, VIX, AONE, SWKS, CLX, BCSI & NVDA

PG - The Proctor & Gamble Co. – Bullish action on Proctor & Gamble today suggests one investor expects shares to continue to rally ahead of expiration in November. Shares are currently trading 1% higher to $61.13. The trader purchased 10,000 calls at the now in-the-money November 60 strike for 1.39 each, and simultaneously sold 10,000 calls at the higher November 62.5 strike for 26 cents apiece. The net cost of buying the call spread amounts to 1.13 per contract and yields maximum potential profits of 1.37 each if shares rally up to $62.50 by expiration. Shares need only rally another 2.2% from the current price to reach the $62.50-level.

CTXS - Citrix Systems, Inc. – Software developer, Citrix Systems, attracted bullish option traders to the November contract today amid a 1% increase in shares to $38.80. Investors displayed optimistic sentiment on the stock by selling approximately 10,600 puts at the November 35 strike for 10 cents premium apiece. Put-sellers retain the full dime-per-contract as long as shares remain above $35.00 through expiration this month. Shares of CTXS have traded above $36.00 since September 4, 2009.

LINTA - Liberty Media Corp. – Shares of the broadcasting and entertainment company rallied 1% during the trading session to $12.14. Plain-vanilla call buying action on the stock today suggests some investors expect shares to rise significantly by expiration in January 2010. Traders purchased about 11,800 calls at the January 15 strike for an average premium of 25 cents apiece. Call-buyers will accumulate profits if shares surge at least 26% from the current price to surpass the breakeven point at $15.25 by expiration.

HIG - Hartford Financial Services Group, Inc. – Medium-term investors placed bearish bets on the insurance and financial services firm today. Shares are currently trading less than 0.25% higher to $24.16 after suffering significant erosion throughout the week. One pessimistic trader initiated a bearish risk reversal in the January 2010 contract. The investor sold 4,500 calls at the January 27 strike for an average premium of 78 cents apiece to partially finance the purchase of the same number of put options at the lower January 21 strike for 1.68 each. The net cost of the transaction is reduced to a more palatable 90 cents per contract, but does leave the investor exposed in the event of a rally of more than 11.7% by expiration…
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Phil's Favorites

Mortgage Debt as a Percentage of Consumer Credit. You Have Officially Entered Hell.

Mortgage Debt as a Percentage of Consumer Credit. You Have Officially Entered Hell.

Courtesy of Paco Ahlgren at Bottom Violation

See the green part of the graph? That’s home mortgage debt up until 2008.

See the blue part? That’s consumer credit.

Call me mathematical, but what’s wrong with this picture? More importantly, what propaganda machine continues to succeed in preventing the breathing portion of hu...



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Chart School

Weekly Market Report

Weekly Market Report for March 14 - March 20, 2010

Courtesy of InTheMoneyStocks.com

The S&P 500 traded higher again this week. The index traded higher by 11 points from last weeks close. So far the January high of 1150 has held as resistance. Should the market break out and confirm above this 1150 level the next major weekly resistance area will be around 1200.00. Options expiration is on Friday March 19th, 2010. This usually makes for a volatile, and choppy week of trading as a lot of institutional games will be played into expiration.  The SPDR Gold Shares ETF (NYSE:GLD) sold off sharply losing nearly 3.00 points on the week. Last week we mentioned the possibility of a lower high pivot being formed and this is exactly what took place. The 104... more from Chart School

Trading Goddess

Monday Morning - Moody's Makes More Negative Noises

Top ratings agency, Moody's says the US & UK are "substantially" closer to losing their AAA credit ratings as the cost of servicing their debt rose.


Under the ratings company’s so-called baseline scenario, the U.S. will spend more on debt service as a percentage of revenue this year than any other top-rated country except the U.K., and will be the biggest spender from 2011 to 2013, Moody’s said today in a report. “We expect the situation to further deteriorate in terms of the key ratings metrics before they start stabilizing,” Cailleteau said. “This story is not going to stop at the end of the year. There is inertia in the deterioration of credit metrics.”


Under its adverse scenario, which assumes 0.5 percent lower growth each year, less fiscal adjustment and a stronger inte...



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The Options Report

By Andrew Wilkinson


Options Player Reveals Long-Term Bullish Sentiment on AIG

Today’s tickers: AIG, MU, F, POT, CLF, PAYX, ERIC, SVU, LFC & CA

AIG - American International Group, Inc. – The insurer’s shares experienced a fantastic 56.7% run up from its low point in the current month of $24.54 on March 3, 2010, up to yesterday’s intraday high of $38.45. During the current session, AIG surrendered a small portion of its recent share price gains, slipping slightly lower by 1.40% to stand at $34.62 in afternoon trading. Extreme-bullish positioning in long-dated options caught our attention today as one investor established a call spread in the January 2011 contract. The optimistic trader purchased 5,500 calls at the January 2011 $50 strike for a premium of $3.65 apiece, and sold the same number of calls at the higher January 2011 $75 strike for $1.30 each. The net cost of the transaction, an...



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Insider Zone


INSIDER SELLING HITS NEW 2010 HIGH

Update on insider activity from Pragcap -- selling still far exceeds buying, confirming my thoughts on Feb. 20 that trends haven't changed. - Ilene 

INSIDER SELLING HITS NEW 2010 HIGH

Courtesy of The Pragmatic Capitalist 

The recent uptick in stocks has not been met with much enthusiasm by corporate insiders.  In fact, pessimism rules the day in the land of insider buying and selling trends.  For the week ending February 26th insiders sold a total of $1.88...


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

OpTrader


Swing trading portfolio - week of March 15th 2010

This post is for live trades and daily comments. 

To learn more about the swing trading portfolio (strategy, membership etc.), please click here

- Optrader

...

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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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