Posts Tagged ‘LZB’

La-Z-Boy Options Active Ahead Of Earnings

Today’s tickers: LZB, DD & PRLB

LZB - La-Z-Boy, Inc. – Shares in furniture producer, La-Z-Boy, Inc., increased as much as 3.9% to $19.80 at the start of the session, the highest level since 2004, ahead of the company’s fourth-quarter earnings report after the closing bell today. Options volume is up ahead of the report, with roughly 400 contracts in play this afternoon versus average daily volume of around 80 contracts. Trading in La-Z-Boy call options is outpacing puts, with the call/put ratio up above 4.3 as of the time of this writing. Some traders appear to be positioning for shares in LZB to rally post-earnings, purchasing out-of-the-money call options expiring in June and July. Front month call buyers looked to the Jun $22.5 strike, purchasing around 50 lots at an average premium of $0.14 each, and the $25 strike calls, picking up 40 contracts at an average premium of $0.18 apiece. The Jun $20 strike calls attracted volume during Monday’s session, as well. Time and sales data suggests one trader likely purchased 100 of the $20 calls for a premium of $0.55 apiece yesterday morning. The bullish bet pays off at expiration as long as shares in LZB settle above the effective breakeven price of $20.55.

DD - E.I. du Pont de Nemours & Co. – Call options changing hands on DuPont in the early going on Tuesday suggest one trader is positioning for shares in the name to potentially rise to the highest level since 2000 during the next seven months. Shares in DuPont are up 0.20% on the session at $53.80 just before midday in New York. It looks like the strategist purchased a roughly 2,600-lot Jan 2014 $57.5/$62.5 call spread for an average net premium of $1.07 per contract. The bullish position starts making money if shares in DuPont rally 9.0% over the current price of $53.80 to exceed the average breakeven point at $58.57, with maximum potential profits of $3.93 per contract available on the spread should shares surge 16% to $62.50 by January…
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GDWheee Friday – Could be a Wild Ride!

Attention ladies and gentlemen:

The stock market will soon be leaving the station, please secure all personal items, pull down the safety bar (our Disaster Hedges) and keep all body parts inside ride at all times.  Well you know you can follow all of the safety instructions and STILL get smacked in the face with a black swan (like our friend Fabio, pictured here) which is why we elected to get back to cash ahead of this report.  The markets were just too insane this week and who the heck knows if Europe will still be a Union on Monday or what the GDP number is going to be (but I do think it's a miss). 

Since our biggest weekend fear is financial panic in Europe, our cash US dollars will become more valuable in a crisis and if the market drops, all the better as we can ride back in and do some bargain hunting.  If the market takes off on good GDP and Greece is "fixed" and Spain is "fixed" and Portugal and Ireland are not really a problem (especially for MS and JPM) and the CRIMINAL charges against Goldman look beatable and and the Financial Reform Bill doesn't disrupt the market with a disorderly breakup of the big banks and the Bank of International Settlements Report continues to be ignored and the run on the Greek banks doesn't spread to other STUPID counties – well, then we can BUYBUYBUY because, if all this doesn't matter, then it's very likely that the entire planet Earth could explode but Wall Street will keep ticking higher.

Yep, I can't wait to ride this baby mindlessly higher!  After all, what can go wrong?  BIDU is ONLY $710 a share, BLK is $190, CMP is $76, GOLD is $84, BUCY is $65, FAST is $56, MMM is $90, FOSL $40, F $13.50, DECK $149, SHOO $55, TPX $35, LZB $14, CTB $22, NOG $16, CEO $176, FTI $75, CLB $150, CIB $46, BBD $19, TD $75, BCA $45, BAP $87, ITUB $22, EDU $94, WYNN $93, FFIV $72, CY $14, CREE $77, UPS $70, UNP $78… 

These were stocks I was looking at last week, when I told members I thought it was easier to construct a Sell List than our usual…
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$100,000 Virtual Portfolio Update – Week 5

Well this has been annoying

After 30 days of trading our current virtual portfolio value is just $100,454.39 as we took quite a setback when we sold naked calls ahead of the move up.  Fortunately, we didn't lose our cool and rode it out.  In fact, we only made one trade in the past two weeks so there hasn't been much to report and there still isn't but the end of our first month is a good time for an update.  Of course, we do have a lot of outstanding October Premium to collect so the next two weeks are when we make our real money

We still have $92,315 in cash so plenty of buying power should we choose to deploy it but we are sticking with our plan of scaling into the postions we have, which means we're letting them run out through October 16th expirations and we'll see if we finally get the bargains we've been waiting for to set up our longer term bull plays.  For now, in this VERY conservative, low-touch virtual portfolio, we've been following Warren Buffett's Investing Rule #1:  Don't lose money!

Description Price Paid Last Price Qty Market Value Margin Req. Profit Loss %
AIG CALL 40 Oct 09 $6.30 $5.50 -1 $550.00 $1,196.20 $80.00 12.70%
On target with AIG at $43.40, this is typical of our outstanding sales with the VIX so high – we just have to wait.
AMZN CALL 90 Oct 09 $3.60 $2.80 -10 $2,800.00 $16,127.50 $800.00 22.22%
We wouldn't do this play if we needed the margin but a nice $2,800 to collect if AMZN stays below $90
BAC CALL 10 Jan 11 $8.60


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Testing Tuesday Morning – S&P 1,010 Edition

So far so good.

As I said in yesterday's post (and the weekend wrap-up), we were well-positioned for the drop – It's just a quesiton of finding a bottom now.  It didn't take very long as we found it at 9:46 when I sent out an Alert to Members saying: "Once again it’s a good time to sell the DIA $95 puts at $2 as the volume on this sell-off is not at all exciting so far.  As long as the Dow holds 9,450 (now 9,475) it’s a good play."  We had a couple of spikes below but, on the whole, 9,450 held like a champ and those puts hit our 20% target by the day's end (some of our quicker traders even had a chance to double dip).  That level and 1,010 on the S&P will be our critical tests today as well

As you can see from David Fry's SPY chart, that 1,010 line on the S&P represents the bottom of the range we broke out of on Aug 21st after failing it several times earlier in the month so it either holds this week or last week begins to look like noting more than a blow-off top at the tip of a downturn. 

We followed through with our DIS play but we're still hoping to do better on the call sale to complete our buy/write.  We took an early stab at shorting OIH but chickened out by the end of the day and we took advantage of a nice drops in ITMN, LZB (hedged) and CIM (hedged) while adding protective plays by going long in TZA (hedged) so it was a busier day than we planned.  We also picked up some more fills for our $100K Virtual Portfolio, as per our weekend plans and that virtual portfolio jumped $500 on the day, which is nice for a down day and indicates we are doing pretty well on that balance thing…

At 1:03 I sent out an Alert to Members saying: "Should be stick time after a blow out bottom - I still like those DIA $95 puts sold naked for $2+, looking for .25 to .50."  We got a false run at 2:30 then a drop down to a blow-out spike at 3:30 and then, of course, the daily stick, that took up right back to
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$100,000 Virtual Portfolio Update – Week 1

It's been a crazy first week but we're up a little already.

So far, only 16 of the 26 contracts we wanted have been filled and we've had some difficulty due to Wall Street Survivor not allowing us to enter spreads, which led us to getting fairly random fills.  Also, I apologize for the lack of access but I've been assured those issues will be resolved next week.  For that reason, I have not deviated from the Alert I sent out on Monday and all those unfilled bids remain in place but let's use this time to review where we are now as far as what's open and what's left to fill.

As we've collected plenty of money already we are achieving our primary goal so this is not about making drastic changes but let's analyse each play and see what has been filled and what needs to be filled next and whether or not we feel we can hit that target next week (action items are highlighted in red):

AIG:  2011 $30 calls filled at $13.45 (now $26.50), 2011 $30 puts filled at $9.05 (now $9) and Sept $33 calls sold for $4.70 (now $17.95). 

It stinks that we couldn't fill the $33 puts as that would have given us a big gain. In chat we discussed taking them out anyway and leaving the long calls as is, expecting a pullback.  No matter what happens, we have an expectation of rolling this caller to October puts and calls and those strikes pay more than $20 so this is a non-issue at the moment and we successfully collected $470.

We do want to roll the 2011 $30 put to the 2011 $55 puts, now $24.88 for $16.  That puts us into a guaranteed $25 spread for $16, a good trade-off

BAC: 5 Sept $17 puts were sold for .51 (now .39) and 5 2011 $20 puts were bought for $5.45 (now $5.55).

We didn't fill the call side of this spread, which was buying 5 2011 $10 calls for $8.60 (now $9.10) and selling 5 Sept $17 calls for $1.60 (now $1.38).  We're looking for the banks to sell off but, if we do trigger the short sale on the upside, we will need to take the cover leap.  Collected $255.


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Phil's Favorites

How burnout is plaguing doctors and harming patients

 

How burnout is plaguing doctors and harming patients

Courtesy of Jay DesaiUniversity of Southern California

Exhaustion and burnout among physicians are growing problems. wavebreakmedia/Shutterstock.com

The presidential symposium at this year’s Annual Meeting of the Child Neurology Society of America in early October in Kansas City raised many eyebrows. The first presentation of this symposium focused on burnout rates among neurologists around the country.

Many of my colleagues f...



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Zero Hedge

It's Official: Bitcoin Surpasses "Tulip Mania", Is Now The Biggest Bubble In World History

Courtesy of ZeroHedge. View original post here.

One month ago, a chart from Convoy Investments went viral for showing that among all of the world's most famous asset bubbles, bitcoin was only lagging the infamous 17th century "Tulip Mania."

One month later, the price of bitcoin has exploded even higher, and so it is time to refresh where in the global bubble race bitcoin now stands, and also whether it has finally surpassed "Tulips."

Conveniently, overnight the former Bridgewater analysts Howard Wang and Robert Wu who make up C...



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Insider Scoop

7 Stocks To Watch For December 12, 2017

Courtesy of Benzinga.

Some of the stocks that may grab investor focus today are:

  • Casey's General Stores Inc (NASDAQ: CASY) reported weaker-than-expected earnings for its second quarter. Casey's shares dropped 3.62 percent to $116.86 in the after-hours trading session.
  • KMG Chemicals, Inc. (NYSE: KMG) reported upbeat results for its first quarter on Monday. KMG Che...


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Digital Currencies

No, Bitcoin Won't Boil The Oceans

Courtesy of ZeroHedge. View original post here.

Authored by Elaine Ou via Bloomberg.com,

Concerns about the cryptocurrency's energy use are overblown...

While much of the world marvels at bitcoin’s meteoric rise, another part is focused on an environmental byproduct:

The sheer amount of electricity that crypto-currencies use.

By some estimates, bitcoin’s consumption ...



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Chart School

Weekly Market Recap Dec 10, 2017

Courtesy of Blain.

Before we talk about the stodgy ole stock market, anyone see that Bitcoin?  $11K last week – $16K this week…. and as I write this bitcoin futures are up over $18K. Just another week in the life…. (here is what you need to know about bitcoin futures)

Back to your regularly scheduled program… the S&P 500 rested a bit while a small correction rolled through the massive winners of 2017 in mega cap tech land, but in the end all was well again by Friday.

“The Nasdaq Composite Index was getting a little frothy, so it&...



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Biotech

DNA has gone digital - what could possibly go wrong?

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

 

DNA has gone digital – what could possibly go wrong?

Courtesy of Jenna E. GallegosColorado State University and Jean PeccoudColorado State University

Modern advances come with new liabilities. Sergey ...



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ValueWalk

Tax Bill May Spark Exodus From High-Tax States

Courtesy of FinancialSense.com via ValueWalk.com

The following is a summary of our recent podcast, “Exodus – The Major Wealth Migration,” which can be listened to on our site here on on iTunes here.

It’s looking increasingl...



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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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Mapping The Market

Puts things in perspective

Courtesy of Jean-Luc

Puts things in perspective:

The circles don't look to be to scale much!

...

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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.

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...



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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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