Posts Tagged ‘LO’

Lorillard Options Active Ahead Of Earnings

Options commentary will resume on July 24, 2013.

Today’s tickers: LO, AXP & VRSN

LO - Lorillard Inc. – Put options on the third-largest U.S. cigarette maker are changing hands today ahead of the company’s second-quarter earnings report on Thursday prior to the opening bell. Shares in the Lorillard are down more than 1.0% at $46.00 as of 1:05 p.m. in New York. The most actively traded options as measured by volume on LO as of the time of this writing are the August and September expiry puts. Front month options volume is concentrated in the Aug $42.5 strike puts, with around 4,700 lots traded versus open interest of 2,613 contracts. Time and sales data suggests most of the $42.5 strike puts were purchased for an average premium of $0.58 apiece during the first hour of the session. The Sep $40 strike puts are also in play, with nearly 7,000 contracts traded so far today. Much of the volume appears to have been purchased at a premium of $0.67 each. Overall options volume on the stock is hovering just below 12,500 contracts as of 1:15 p.m. ET, or roughly 160% of the stock’s average daily volume of around 7,750 contracts.

AXP - American Express Co. – Shares in American Express are in recovery mode today, up 1.4% at $75.11 in early afternoon trading after last week dipping more than 5.0%. Options activity on American Express this morning, however, indicates one or more traders are positioning for the price of the underlying to decline in the near…
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Tesla Options Heat Up As Shares Slide

Options brief will resume September 27, 2012.

Today’s tickers: TSLA, NYT & LO

TSLA - Tesla Motors, Inc. – Shares in electric vehicle maker, Tesla Motors, Inc., are taking a hit today, down 7.8% at $28.27 as of 11:05 a.m. ET, after the company lowered its third-quarter and full-year revenue estimates and said it plans to issue more stock. Options volume on Tesla is nearly twice the stock’s average daily volume this morning, with some strategists preparing for further declines in the price of the underlying. Near-term bearish positioning in the front month is heaviest at the Oct. $26 strike where upwards of 2,100 put options changed hands against open interest of 905 contracts. It looks like traders purchased most of these contracts for an average premium of $1.05 apiece. Put buyers stand ready to profit at expiration next month in the event that Tesla’s shares drop nearly 12% from the current price to settle below the breakeven point at $24.95. Bears also looked to the $28 strike put options expiring in October, buying around 800 contracts in the early going for an average premium of $2.01 each. The purchase of a 300-lot Oct. $29/$32 bear put spread on Monday prepared one strategist for an adverse move in the price of the underlying today. The trader appears to have purchased the spread for a net premium of $1.68 per contract yesterday afternoon, looking for a minimum 1.2% decline in the $30.70 share price at the time of the trade to the breakeven point at $30.32. Shares are currently trading well below the lower $29 striking price; maximum possible profits of $1.32 per contract are available on the strategy at October expiration as long as shares settle below $29.00. Finally, contrarian players positioning for a rebound in TSLA shares in the next four weeks picked up around 400 calls at the Oct. $29 strike for an average premium of $1.07 apiece. Call buyers stand ready to profit at expiration should the stock rally at least 6% over the current price to exceed $30.07.…
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Put Player Positions for a Pullback in Lorillard Shares

Today’s tickers: LO, HMA, AMR & USO

LO - Lorillard Inc. – A three-legged spread involving April contract put options on the cigarette manufacturer appears to be the work of an investor positioning for the price of the underlying stock to slip ahead of expiration. Shares in Lorillard, the maker of Newport cigarettes, the number one menthol brand, are currently up 0.33% to stand at $78.00 as of 12:50pm. The stock rallied as much as 5.7% one week ago to trade as high as $81.18 after the FDA said the risk of lung cancer for smokers of menthol cigarettes does not differ significantly from that of non-menthol cigarettes. But, last week’s sharp run up in LO’s shares was fairly short-lived given other portions of the FDA report that were not quite as positive for big tobacco. One trader expecting Lorillard’s shares to fall in the near-term seems to have established a bearish butterfly spread. The investor picked up 5,000 puts at the April $75 strike for a premium of $4.40 each, sold 10,000 puts at the April $65 strike for a premium of $1.50 apiece, and purchased 5,000 puts at the April $55 strike for a premium of $0.35 a-pop. Net premium paid to initiate the put ‘fly amounts to $1.75 per contract. The trader profits if LO’s shares decline 6.1% from the current price of $78.00 to breach the effective breakeven point at $73.25 by April expiration. Maximum potential profits of $8.25 per contract pad the investor’s wallet in the event that shares plummet 16.7% to settle at $65.00 at expiration. Options implied volatility on the cigarette-stock is up 3.4% at 54.92% just after 1:00pm in New York.

HMA - Health Management Associates, Inc. – Shares in the health care services provider are down 1.4% in early afternoon trade to…
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Butterflies, Straddles and Spreads, Oh My!

Today’s tickers: HRS, EWZ, RSH, PNRA, IVN, LO & DOW

HRS – Harris Corp. – A three-legged bullish play on the international communications and information technology company that serves government and commercial markets around the world indicates one option strategist expects shares of the underlying stock to rally significantly by expiration day in February 2011. Harris Corp.’s shares are up 0.95% at $44.46 just before 2:30 pm (ET), but earlier in the session rallied as much as 1.8% to an intraday high of $44.84. HRS shares moved higher on news the firm recently won a number of large contracts. One such contract is a 30-month, $25-million contract under the Network-Centric Solutions contract vehicle, which requires Harris to upgrade network infrastructure at 15 National Guard sites. Harris Corp. popped up on our ‘hot by options volume’ market scanner in the first half of the trading day following the implementation of a three-legged bullish transaction. The investor responsible for the trade essentially sold puts to finance the purchase of a debit call spread. In doing so, the trader sold 1,500 puts at the February 2011 $35 strike for a premium of $1.75 per contract, purchased 1,500 calls at the February 2011 $45 strike for a premium of $4.65 each, and sold 1,500 calls at the higher February 2011 $55 strike for premium of $1.20 apiece. The net cost of the transaction amounts to $1.70 per contract. Thus, the options player is poised to profit as long as Harris Corp.’s shares rally 5.00% over the current price of $44.46 to surpass the effective breakeven point at $46.70 by expiration day. The investor walks away with maximum potential profits of $8.30 per contract if HRS shares surge 23.7% to trade above $55.00 by February 2011 expiration. The short put stance at the February 2011 $35 strike implies the investor is happy to have 150,000 shares of the underlying stock put to him at $35.00 each should the puts land in-the-money by expiration day.

EWZ – iShares MSCI Brazil Index Fund – An investor itching for a rally in shares of the Brazil ETF purchased a bullish call butterfly spread in the August contract this afternoon. Shares of the EWZ, an exchange-traded fund designed to correspond to the price and yield performance of publicly traded securities in the aggregate in the Brazilian market, as measured by the MSCI Brazil Index, fell 1.05% to trade at…
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Mega Earnings Monday – 1,000 Reports This Week!

What a crazy week this is going to be!

Pre-Market we're hearing from BLK, CAT (are we building stuff?), EXP, HTZ, HUM, LO, TUES and TZOO and later we will hear from BSX, CHH, OLN, RSH, RCII, TXN (major) and my "friendbuddypal" Cramer's TSCM (if they are not delayed).  Revenues at The Street have crept back up this year in a recovery that pretty much mirrors the market.  The company does pay a nice 2.6% dividend, which works out to a nice $200,000 bonus on Jimmy's 2.1M shares (6.7% of the company) so you know that bonus will be a priority for the company.  Cramer was BUYBUYBUYing his own stock at $2.41 in January but sadly they have no options to hedge…  They might make a nice pick-up after earnings if they disappoint and head back to $3 or less.

I'm full of useful information on hundreds of stocks right now because I've been researching our new Buy List but I'm not pleased with what I've been seeing so far and this week's tidal wave of earnings, with 1,000 companies reporting means we're in no hurry to dip our toes in the water.  I told Members this morning I should probably be working on a Sell List, as it's much easier to find companies I want to short than ones I want to buy.  Even in the Weekly Wrap-Up, we featured a 1,900% downside hedge on the Russell to offset the 566% plays and other bullish plays we've begun to reluctantly take, just so we don't feel too silly in this runaway market. 

If you have never watched Jim Cramer discussing the sleazy, manipulative ways he used to game the markets – you really must take 10 minutes and watch this video, where Jim explains how any immoral bastard with $10M can yank the entire futures market around at will.  He prefaces one of his favorite strategies with "this is blatantly illegal but.. I think it's really important… these are things you MUST do on a day like today and if you are not doing it, maybe you shouldn't be in the game."  Are you playing the game or are you being played? 

The biggest game ever played may be unwinding as we speak.  Bloomberg reports that foreign-exchange profits from carry trades are disappearing as differences in central
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Apple Shares Reach New 52-Week High Ahead of iPad Release

Today’s tickers: AAPL, GDXJ, CEPH, LO, MHK, VRTX & MJN

AAPL – Apple, Inc. – Shares of the iPhone and iPod maker rallied to a new 52-week high of 233.87 in morning trading with just five days remaining before the firm’s newest product, the iPad, hits retail stores across the U.S. Bullish options trading patterns on the stock today indicate optimistic sentiment on Apple ahead of the iPad’s release on Saturday morning. One investor enacted a bullish put credit spread in the May contract in order to benefit from continued strength in the price of Apple’s shares through expiration. It looks like approximately 10,000 puts were shed at the May $210 strike for an average premium of $3.46 per contract, marked against the purchase of about the same number of puts at the lower May $200 strike for $1.95 each. The investor responsible for the spread pockets a net credit of $1.51 per contract, which he keeps in full as long as Apple’s shares trade above $210.00 through May expiration. Maximum potential losses faced by the trader amount to $8.49 per contract should shares of the underlying stock plummet 14.5% to $200.00 ahead of expiration day in May.

GDXJ – Market Vectors Junior Gold Miners ETF – The GDXJ, which is an exchange-traded fund that seeks to replicate the price and yield performance of the Market Vectors Junior Gold Miners Index, realized a 1.25% appreciation in the value of its underlying share price to $25.82 today. The Market Vectors Junior Gold Miners Index tracks the overall performance of foreign and domestic publicly traded companies of small/medium-capitalization that primarily engage in gold and/or silver mining. Despite the move higher in shares today, one options trader initiated a bearish debit put spread in the May contract. It appears the investor purchased 10,000 in-the-money puts at the May $26 strike for a premium of $1.65 apiece and sold the same number of puts at the lower May $23 strike for $0.52 each. The net cost of the put spread amounts to $1.13 per contract. If the investor responsible for the trade holds no underlying share position, maximum potential profits of $1.87 per contract are available if shares slip to $23.00 by expiration day in May. However, the trader may be buying the spread to protect the value of an existing underlying share position, in which case protection kicks in beneath the breakeven share…
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Retail ETF Sees Large Protective Ratio Put Play

Today’s tickers: XRT, CSX, POT, MON, LO & DRYS

XRT– Shares of the retail ETF have lifted higher by more than 6% to $29.19 today despite the decline in U.S. consumer spending for the second month in a row. Spending continues to suffer in the face of rising unemployment and increased efforts to save by consumers still raw from the record wealth destruction experienced in the recession. We observed one investor populate the XRT with a ratio put spread likely employed to lock into gains enjoyed on the recent rally and to establish protection from potential downward movement in shares through September’s expiration. The ratio spread involved the purchase of 25,000 puts at the September 25 strike price for a premium of 1.17 apiece which were spread against the sale of 50,000 puts at the lower September 20 strike for about 35 cents per contract. The net cost of the transaction amounts to 82 cents and yields maximum potential profits of 4.18 if shares were to edge down to $20.00 by expiration. – SPDR Retail ETF

CSX– The rail-based transportation supplier has experienced a share price rally of more than 6.5% to $33.94 in today’s trading session, attracting a plethora of option traders to the station. Near-term investors locked into recent gains by getting long of put options some 3,000 times at the June 33 strike price for 1.19 each. The higher and now in-the-money June 34 strike price saw 1,200 puts bought for 1.51 apiece. Bullish options sentiment spread to the July 35 strike price where 3,900 calls were scooped up for an average premium of 2.10 each. Call buyers at the July 35 strike are looking for shares of CSX to climb another 9% through the breakeven point at $37.10 in order to garner profits by expiration. Optimism for continued bullish movement in the stock spread to the November contract where it appears one trader has enacted a butterfly spread. The purchase of 6,000 calls at the November 40 strike price for 2.10 apiece [body] was offset by the sale of 3,000 calls at the November 35 strike for 3.80 each [wing 1] and by the sale of 3,000 calls at the higher November 45 strike price for 1.00 per contract [wing 2]. The trader receives a 60 cent credit for the transaction (1*3.80 + 1*1.00 – 2*2.10 = 0.60 cents). The investor would retain the net
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ValueWalk

Lynch, Bezos, Capital Allocation And Dividend Investing

By Sure Dividend. Originally published at ValueWalk.

Sure Dividend’s goal is to reach as many people as possible about the advantages of investing in high quality dividend growth stocks for the long run.

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Zero Hedge

Only 73% OF Americans Are "Likely To Adhere To The Law"

Courtesy of ZeroHedge. View original post here.

Many factors influence how effectively a government is able to uphold the rule of law and some of them include access to courts, lack of corruption, effective policing and institutional competence.

While some governments are able to combine these efficiently, resulting in strong adherence to the law, Statista's Niall McCarthy notes that others tend to struggle...



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Chart School

Rallies Slow As Semiconductors Tag Resistance

Courtesy of Declan.

Friday saw the indices close near the lows of the day as Semiconductors tagged resistance and its 20-day MA. Supporting technicals offered a mix of bullish and bearish markets but shorts have their opportunity with a stop above 1,334.


The S&P edged a close above the bullish mid-line in stochastics along with a 'buy' in On-Balance-Volume. However, the index also experienced a relative loss against Small Caps as it struggles to attract new buyers.

...

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Digital Currencies

As Bitcoin Nears $11,000, Here's A History Of Its Biggest Ups And Downs

Courtesy of ZeroHedge. View original post here.

The cryptocurrency rebound off Feb 5th's bloodbath lows (below $6,000 for Bitcoin) has been impressive, as a 'mysterious' massive buyer 'bought the dip' and momentum took care of the rest.

With Bitcoin now nearing $11,000 (almost a double off the lows), ...



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Insider Scoop

Walmart, Target Are Susquehanna's Top Picks Ahead Of Retail Earnings Season

Courtesy of Benzinga.

Related WMT Upcoming Earnings: Hurricane Effects Still Trickling Through For Home Depot? Did Walmart Meet It...

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Biotech

What is 'right to try,' and could it help?

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

 

What is 'right to try,' and could it help?

In this March 18, 2011 photo, Cassidy Hempel waved at hospital staff as she was being treated for a rare disorder. Her mother Chris, left, fought to gain permission for an experimental drug. AP Photo/Marcio Jose Sanchez

Morten Wendelbo, Texas A&M University and Timothy Callaghan, ...



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Mapping The Market

The tricks propagandists use to beat science

Via Jean-Luc

How propagandist beat science – they did it for the tobacco industry and now it's in favor of the energy companies:

The tricks propagandists use to beat science

The original tobacco strategy involved several lines of attack. One of these was to fund research that supported the industry and then publish only the results that fit the required narrative. “For instance, in 1954 the TIRC distributed a pamphlet entitled ‘A Scientific Perspective on the Cigarette Controversy’ to nearly 200,000 doctors, journalists, and policy-makers, in which they emphasized favorable research and questioned results supporting the contrary view,” say Weatherall and co, who call this approach biased production.

A second approach promoted independent research that happened to support ...



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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...



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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 ...



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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.

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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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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...

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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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