Posts Tagged ‘OMX’

Options In Play On Retailers Supervalu, OfficeMax And Urban Outfitters

     Today’s tickers: SVU, OMX & URBN

SVU - SUPERVALU Inc. – The sale of a massive block of 25,000 call options on the supermarket operator this morning may mean one strategist has little appetite for a significant Supervalu rally, at least through September expiration day. No telling if the two are related, but the sale of the call options occurred roughly one hour before the company’s CFO was scheduled to present to investors at the Goldman Sachs 18th Annual Global Retailing Conference in New York City. SVU’s shares rallied at the open, increasing 2.5% to an intraday high of $7.84, but surrendered much of those gains to stand 0.65% higher on the session at $7.70 as of 12:25 pm ET. The investor responsible for the hefty transaction may or may not be long the stock. It looks like the trader sold 25,000 calls outright at the September $8.0 strike for a premium of $0.20 per contract. The premium remains in the investor’s wallet as long as Supervalu’s shares trade below $8.00 and the calls expire worthless at expiration next week. Potentially devastating losses could result for the trader if the short calls are uncovered, and the price of the underlying stock spikes higher ahead of expiration. Premium received on the sale of the calls provides limited protection in the event of an SVU rally, but the insurance policy gives way to losses if SVU’s shares exceed the effective breakeven price of $8.20 at September expiration day. If the investor is long the stock, it seems he is happy to pad his portfolio with premium today, and willing to have shares called from him at $8.00 should the calls land in-the-money next Friday.

OMX - OfficeMax Inc. – Shares in the office supplies retailer rallied 6.3% this morning to $5.59 despite third-quarter sales estimates that trail those recorded in the same period last year, CEO Ravi Saligram’s comments that OfficeMax is, “experiencing a soft Back-to-School season,” and tough macroeconomic conditions to boot. Saligram spoke today at the…
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Options Strategist Harvests Gains on EQIX Call Butterfly Spread

Today’s tickers: EQIX, OMX, TER & JBLU

EQIX - Equinix, Inc. – In the final trading week of 2010 we reported seeing one options strategist purchase a sizable bullish call butterfly spread on Equinix. It has been nearly four months to the day since the investor paid a net premium of $3.10 per contract for the June $85/$100/$115 call ‘fly, and it looks like the trader is reeling in substantial profits today by unraveling the position. Shares in the provider of global data center services are currently up 3.8% to stand at $100.30 as of 11:20am in New York. The company reported first-quarter earnings of $0.53 a share on Wednesday, which beat average analyst expectations of $0.30 a share in net income for the quarter. The trader responsible for the bullish spread nearly hit the nail on the head. On December 29, 2010, shares in Equinox closed the session at $81.20. Since then, the stock has climbed roughly 23.5% to today’s price. While the upward move in the price of the underlying happened a bit more quickly than estimated, the trader’s predictions for the magnitude of the move were pretty much spot on. It appears the investor closed out the spread this morning, selling 15,000 calls at the now deep in-the-money June $85 strike for a hefty premium of $16.20 each, bought back the 30,000 short calls at the June $100 strike for a premium of $4.70 each, and sold 15,000 of the June $115 strike call options at a premium of $0.30 a-pop. The trader takes in net premium of $7.10 per contract by closing out the spread, and therefore realizes net profits of $4.00 per contract, or around $6 million in total, after accounting for the initial cost of buying the spread at $3.10 apiece. Had Equinix’s shares risen more slowly, hitting $100.00 at expiration in June, the investor could have realized maximum potential profits of $11.90 per contract. But, in the end the investor’s predictions for EQIX’s performance and the…
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Bullish Players Gorge on Apple Calls

Today’s tickers: AAPL, APC, GE, CCL, EMC, RAH, EEM, WAG, FTR, OMX & JPM

AAPL – Apple, Inc. – Bulls sank their teeth into Apple call options today in order to position for continued appreciation in the price of the underlying through August expiration. The iPhone maker’s shares increased as much as 2.10% during the trading session to secure an intraday high of $275.97 perhaps on news the firm sold 3 million iPads in the first 80 days since the product was introduced to the U.S. marketplace. Apple optimists expecting shares to surpass yesterday’s new 52-week high of $279.01 purchased 1,100 calls at the August $280 strike for a hefty premium of $14.64 apiece. Investors long the calls are positioned to profit if Apple’s shares rally 6.75% over today’s intraday high of $275.97 to trade above the average breakeven point at $294.64 by August expiration. Bulls anticipating more significant share price gains by August expiration purchased approximately 2,500 calls at the higher August $290 strike for an average premium of $9.70 each. Investors long the August $290 strike contracts make money if the iPod maker’s shares surge 8.6% to exceed the average breakeven price of $299.70 by expiration day. Finally, uber-bulls bought 2,000 calls at the higher August $300 strike for an average premium of $7.38 a-pop. Traders holding the August $300 strike calls stand ready to accumulate profits as long as Apple’s shares jump 11.4% to trade above the average breakeven point on the calls at $307.38 by expiration day in August. Nearly 200,000 option contracts changed hands on Apple, Inc. by 3:00 pm (ET), with call options trading 1.35 times to each single put option in play.

APC – Anadarko Petroleum Corp. – Shares of the independent oil and gas exploration and production company which holds a 25% stake in BP’s leaking well in the Gulf of Mexico dropped 4.35% late in the session to stand at $41.56 as of 3:15 pm (ET). Despite the decline in the price of the underlying today one optimistic option strategist positioned himself to one day bask in the light at the end of the tunnel by enacting a bullish debit call spread in the November contract. APC’s shares plunged 53.4% from a high of $74.14 on April 20 – the day the leak was triggered – down to a 52-week low of $34.54 on June 9, 2010. Since bottoming out on…
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Options on Halliburton Get Messy

Today’s tickers: HAL, IPG, AMGN, BP, COF, FXI, OMX, NEM & FSLR

HAL – Halliburton Co. – Making sense of options activity on oil company, Halliburton Co., this afternoon is difficult due to the chaotic and seemingly pattern-less trading taking place on the stock. Investors exchanged more than 200,000 contracts on HAL by 3:00 pm (ET), which represents approximately 37% of total existing open interest on the stock of 541,062 contracts. Frenzied options trading was catalyzed by news the firm is assisting in ongoing investigations regarding the oil spill in the Gulf of Mexico as HAL reportedly provided a variety of oilfield services to Deepwater Horizon rig, which is the rig that caught fire and sank last week. Options volume and options implied volatility on Halliburton jumped while its shares slipped 6.3% to $31.26. The surge in demand for option contracts on the stock, coupled with uncertainty regarding possible repercussions stemming from HAL’s connection to the situation in the Gulf of Mexico, lifted the overall reading of options implied volatility 25.4% to 44.13% as of 3:25 pm (ET). Trading activity is heaviest in the May contract with decent volume building in both call and put options. Some bearish investors bracing for continued share price erosion purchased about 2,200 puts at the lowest available strike – the May $25 strike price – for an average premium of $0.16 apiece. Buying interest in put options was also apparent at the May $26 strike where 1,800 puts were picked up for an average premium of $0.20 each. May $29 strike puts were the most heavily trafficked as more than 16,700 contracts changed hands by 3:22 pm (ET), versus previously existing open interest of just 2,743 contracts at that strike. But, the put action was certainly not one-sided as investors took to buying and selling the contracts, with buyers gaining the right to sell the stock at $29.00, and sellers receiving an average premium of $0.81 per contract in exchange for bearing the risk of having shares of the underlying stock put to them at $29.00. Similar two-way trading traffic in calls took place at out-of-the-money strike prices as some traders threw in the towel on bullish stances expiring in May. Meanwhile, contrarian players purchased out-of-the-money calls, perhaps to prepare for a potential rebound in the price per share ahead of expiration next month.

IPG – Interpublic Group of Cos., Inc. – Advertising and…
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Phil's Favorites

Investors Will Never Get the Answer to "Why Now?"

 

Investors Will Never Get the Answer to “Why Now?”

Courtesy of Joshua Brown, The Reformed Broker

Andrew Lo’s heuristic to understanding why markets are resistant to rules is that we can’t think about them as though they’re governed by physics or mechanics. He refers to markets as biological systems, which are highly susceptible to unpredictability, adaptation and evolution. I think that’s right, based on everything I’ve seen, read and experienced over the last twenty years. Or, I should say, this is the best explanation I’ve seen anyone make.

Attempts to understand...



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Insider Scoop

Earnings Scheduled For December 11, 2017

Courtesy of Benzinga.

Companies Reporting After The Bell
  • Quanex Building Products Corporation (NYSE: NX) is estimated to post quarterly earnings at $0.29 per share on revenue of $232.47 million.
  • KMG Chemicals, Inc. (NYSE: KMG) is projected to post quarterly earnings at $0.63 per share on revenue of $106.60 million.
  • Peregrine Pharmaceuticals, Inc. (...


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Zero Hedge

A Gift From The Oldies

Courtesy of ZeroHedge. View original post here.

By Chris at www.CapitalistExploits.at

I bumped into a friendly bloke at my local gym last week. Jim is his name.

Jim tells me he just started because, and I quote, "my doctor says I'm going to die unless I do something".

Now, I assure you it doesn't take a doctor to figure this out.

One glance in Jim's direction and you can tell that underneath all that weight there's a big struggling heart in there... just ready to explode. He was surprisingly fr...



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Digital Currencies

All You Need To Know About Today's Bitcoin Futures Contract

Courtesy of ZeroHedge. View original post here.

CBOE Global Markets Inc and CME Group Inc will launch futures contracts on bitcoin on Dec. 10 and Dec. 17 respectively. Here are some of the differences between the products to be offered by the exchange operators.

CONTRACT UNIT
  • The Cboe Bitcoin Futures Contract will use the ticker XBT and will equal one bitcoin.
  • The CME Bitcoin Futures Contract will use the ticker BTC and will equal five bitcoins.
PRICING AND SETTLEMENT
  • Both Cboe’s and CME’s bit...


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Chart School

Time for a funny

Courtesy of Read the Ticker.

Many countries who are neighbors, have digs at each other.

Taking a dig at the Aussies.

Asking an Aussie to work the weekend with his mates.




A 'smoko' is a union tea break for blue collar workers. A song from a Aussie kid!





NOTE: readtheticker.com does allow users to load objects and text on charts, however some annotations are by a free third party image tool named Paint.net

Investing Quote...

.."Anyone who buys or sells a stock, a bond or a commodity for profit is speculating if he employs intelligent foresight...



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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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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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Ilene is editor and affiliate program coordinator for PSW. She manages the site market shadows, archives, more. Contact Ilene to learn about our affiliate and content sharing programs.

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