Posts Tagged ‘MJN’

Long-Term Bull Populates Mead Johnson Nutrition Post-Earnings

Today’s tickers: MJN, ETFC, GNK & CAT

MJN - Mead Johnson Nutrition Co. – The global provider of pediatric nutrition popped up on our scanners after long-dated call and put options changed hands in the January 2012 contract. Shares in Mead Johnson are down slightly by 0.40% as of 12:30pm to stand at $59.78. The Glenview, IL-based firm reported fourth-quarter earnings of $0.57 a share before the market opened, beating the average forecast by one penny, but revenues for the quarter came in at $803.7 million, which missed estimates of $808.0 million. It looks like one investor is positioning for Mead Johnson’s shares to increase substantially ahead of January 2012 expiration. The investor appears to have sold 1,900 puts at the January 2012 $50 strike at a premium of $2.68 each, in order to buy the same number of call options at the higher January 2012 $65 strike for a premium of $3.58 apiece. The net cost of the bullish risk reversal amounts to $0.90 per contract. Thus, the investor stands ready to make money should shares in MJN rally 10.2% over the current price of $59.78 to exceed the effective breakeven price of $65.90 by expiration day in one year’s time. Options implied volatility on the stock is down 16.4% at 26.00% in early afternoon trade.

ETFC - E*Trade Financial Corp. – Shares in the provider of online brokerage and other financial services rallied as much as 6.7% this morning to secure an intraday high of $16.85 despite a weaker-than-expected earnings report Wednesday evening. Analysts, on average, were expecting ETFC to earn $0.04 a share, but the fourth-largest U.S. retail brokerage said it lost $0.11 a share in the fourth quarter. The earnings miss has not stymied today’s rally in the price of the underlying shares, but traders are favoring…
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Contrarian Player Sees Visa Recovery Story Unfolding by Jan. 2012

Today’s tickers: V, EMC, MON, SAY, MJN, ADM, BBY, EDMC, EBAY & CHS

V – Visa, Inc. – Shares of the global payments company plunged 4.7% this afternoon to an intraday and new 52-week low of $64.90 following reports that said federal caps and pending litigation may limit Visa’s ability to increase prices. The price of the underlying was also helped lower by a downgrade to ‘market perform’ from ‘outperform’ at Sanford Bernstein, where analysts have a 12-month target price of $77.00 a share on the stock. The sharp decline in the price of the credit card issuer’s shares inspired near-term bearish options trading. More interesting, however, were the contrarian players seen initiating bullish positions in the longer-dated January 2012 contract. One optimistic strategist enacted a three-legged bullish combination play to position for a rebound in Visa’s shares. The investor appears to have sold roughly 2,500 puts at the January 2012 $50 strike for premium of $4.39 each, purchased about the same number of January 2012 $70 strike calls at an average premium of $8.37 a-pop, and sold approximately 2,500 calls at the higher January 2012 $90 strike for a premium of $2.50 apiece. The average net cost of the transaction reduces to $1.48 per contract. Thus, the contrarian player stands ready to make money should Visa’s shares jump 10.1% over today’s low of $64.90 to exceed the average breakeven price of $71.48 by expiration day. Maximum potential profits of $18.52 per contract are available to the investor should shares surge 38.7% to trade above $90.00 by January 2012 expiration. Visa’s shares last traded above $90.00 back on May 4, 2010. Options implied volatility on Visa, Inc. is up 10.8% at 33.75% with just over 20 minutes remaining ahead of the closing bell.

EMC – EMC Corp. – A large chunk of call options were purchased on EMC Corp. in early afternoon trading, however, it looks like the investor responsible for the transaction is taking a bearish stance on the stock rather than a bullish one. EMC’s shares rallied as much as 2.25% in the first half of the trading day to reach an intraday high of $20.43. The current 52-week high on the stock is $20.97, attained back on August 4, 2010. At first glance, the purchase of 20,000 calls at the January 2011 $21 strike at a premium of $1.00 each looks like a bullish bet by an…
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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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Mead Johnson and Bristol Myers Split Inspires Option Traders

Today’s tickers: MJN, BMY, FTR & FDO

MJN – Mead Johnson Nutrition Co. – Over the weekend Bristol Myers Squibb decided to sell its remaining 83% stake in Mead Johnson, maker of baby formula, Enfamil. Mead Johnson shares declined by 2% to $44.35 and the additional uncertainty surrounding the issue caused options implied volatility to spike higher in early trading. On Friday the expected degree of movement on the stock stood at 36.5% before jumping today to 56.3% as investors wonder whether the company will be able to stand on its own two feet without Bristol Myers. One option trader who clearly knows the stock well enough appears to have used a short straddle combination to predict that today’s move is bogus on two fronts. Using the December contract the seller wrote around 1,500 call options at 35 cents and sold a similar number of puts at the same strike. Being deep-in-the-money put options the premium here fetched 8.00. The premium especially on the put is boosted by the direction of the share price today but mostly by the 55% leap in implied volatility. The investor thus expects the share price to rise should Bristol find a buyer and similarly expects lower volatility. Last week those puts traded at 6.60. One analyst Bristol Myers has been hunting for a buyer at $60 per share, which may indicate the value this company might add to a willing buyer.

BMY – Bristol Myers Squibb – For its part shares surged to a one-year high after it jettisoned Mead Johnson, rising 5.7% to $24.47. The progress was slow throughout the morning that some call sellers were left wanting at the November 24 strike. Early sellers were forced to rethink as they tossed out calls at 27 cents per contract only to see buyers step in shortly after 10am to pay 34 cents before things really got interesting with call options currently commanding a 65 cent premium. Some 9,800 calls changed hands at this strike – almost equivalent to the 10,694 previously established calls. Put sellers were also in evidence using the same November contract and collected rich premiums in the expectation that the share price will rise despite the additional risk that the company has a less diversified product line in light of the Mead Johnson announcement. Option implied volatility rose, but only jumped from 21% to 23%.

FTR – Frontier Communications Corp.
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Zero Hedge

Theresa May Strikes $1 Billion Governing Deal With Northern Irish Party

Courtesy of ZeroHedge. View original post here.

UK Prime Minister Theresa May has struck a so-called confidence and supply deal with Northern Ireland’s Democratic Unionist Party, one which will give the Conservatives sufficient votes to pass the Queen’s Speech and the budget, while Northern Ireland will get an extra €1 billion over two years as a result of the deal.

Together, the Conservatives and the DUP will have 327 MPs, representing a tiny but sufficient working majority in the 650-member House of Commons. The two parties however do not have a majority in the House of Lords the u...



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ValueWalk

Rust Belt No Longer: Chemical Plants Bringing Manufacturing Jobs Back to Youngstown

By insidesources. Originally published at ValueWalk.

Youngstown, Ohio–Youngstown seems like the heart of the rust belt, a former steel town with a strong union presence that saw massive job losses after changing economic conditions forced the closure of manufacturing plants in the 1970s.  Industry is returning to Youngstown, however–it just looks a little different. Instead of the steel pipes and raw materials the area produced before, manufacturers are instead looking at the area as a perfect location for chemical manufacturing. This, in turn, is boosting hiring in the area.

Royal Dutch Shell is building a $6 billion cracker plant 40 miles south of Youngstown in Monaca, Pa. In addition, PTT Global, a Thai company, is considering a similar scale project in Belmont County. Plants of this scale will create thousands of construction jobs for a two to th...



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Phil's Favorites

Sports, Stocks, & the Magic Quadrants

 

Sports, Stocks, & the Magic Quadrants

Courtesy of Wade, Investing Caffeine

Picking stocks is a tricky game and so is sports betting. With the NFL and NCAA football seasons only a few months away, we can analyze the professional sports-betting industry to better understand the complexities behind making money in the stock market. Anybody who has traveled to Las Vegas, and bet on a sporting event, understands that simply choosing a game winner is not enough for a casino to pay you winnings. You also need to forecast how many points you think a certain team will win or lose by (i.e., the so-called “spread”) – see also ...



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Biotech

We have a vaccine for six cancers; why are less than half of kids getting it?

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

 

We have a vaccine for six cancers; why are less than half of kids getting it?

Courtesy of Electra D. Paskett, The Ohio State University

Early in our careers, few of us imagined a vaccine could one day prevent cancer. Now there is a vaccine that keeps the risk of developing six Human Papillomavirus (HPV)-related cancers at bay, but adoption of it has been slow and surprising low.

Although it’s been available for more than a decade, as of 2014 only 40 percent of girls had received the full three doses of the vaccine, while only ...



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Digital Currencies

Bitcoin Buyer Beware

Courtesy of Zero Hedge

Entrepreneurs have a new trick to raise money quickly, and it all takes place online, free from the constraints of banks and regulators. As Axios reports, since the beginning of 2017, 65 startups have raised $522 million using initial coin offerings — trading a digital coin (essentially an investment in their company) for a digital currency, like Bitcoin or Ether.

One recent example, as NYT reports, saw Bay Area coders earn $35 million in less than 30 seconds during an online fund-raising event...



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Insider Scoop

Marveling At Multi-Factor ETFs

Courtesy of Benzinga.

Related This Goldman ETF Keeps Growing Getting Smarter About Smart Beta Related ...

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Chart School

Russell 2000 at Rising Support

Courtesy of Declan.

There wasn't much to say about today, but the one index which caught my attention was the Russell 2000. The index caught a bounce in demand at the rising trendline and also did enough to recover the 20-day MA. Traders looking for pullback opportunity could take a look at the Russell 2000. Stops on a loss of 1,397.


The Nasdaq is primed for a move to challenge 6,350. Today's doji marks indecision just below 6,250 but if it can push above this price level it would likely trigger a spate of short covering. Technicals hav...

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OpTrader

Swing trading portfolio - week of June 19th, 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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Mapping The Market

Frontier laid off state Senate president after broadband vote it didn't like

Courtesy of Jean-Luc

Speaking of FTR – not nice people…

Frontier laid off state Senate president after broadband vote it didn’t like

By Arstechnica.com

Broadband provider Frontier Communications recently laid off the West Virginia state Senate president after a vote the company didn't like—and yes, you read that correctly.

West Virginia does not have a full-time legislature, and state lawmakers can supplement their part-time government salaries ($20,000 a year,&...



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Promotions

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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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Members' Corner

Robert Sapolsky: The biology of our best and worst selves

Interesting discussion of what affects our behavior. 

Description: "How can humans be so compassionate and altruistic — and also so brutal and violent? To understand why we do what we do, neuroscientist Robert Sapolsky looks at extreme context, examining actions on timescales from seconds to millions of years before they occurred. In this fascinating talk, he shares his cutting edge research into the biology that drives our worst and best behaviors."

Robert Sapolsky: The biology of our best and worst selves

Filmed April 2017 at TED 2017

 

p.s. Roger (on Facebook) saw this talk and recommends the book ...



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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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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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