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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Financial Markets and Economy

Stock Bubbles, Bond Busts Make Credit Suisse’s Ambush List (Bloomberg)

An equity bubble in Japan, Treasury yields at 4 percent and Marine Le Pen in the Elysee Palace all feature in Credit Suisse Group AG’s annual roundup of shocks that could surprise markets in the year ahead.

Any country leaving euro zone must settle bill first: ECB's Draghi (Reuters)

Any country leaving the euro zone would need to settle its claims or debts with the bloc's payments system before severing ties, European Central Bank President Mario Draghi said.

...

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Market News

News You Can Use From Phil's Stock World

 

Financial Markets and Economy

Stock Bubbles, Bond Busts Make Credit Suisse’s Ambush List (Bloomberg)

An equity bubble in Japan, Treasury yields at 4 percent and Marine Le Pen in the Elysee Palace all feature in Credit Suisse Group AG’s annual roundup of shocks that could surprise markets in the year ahead.

Any country leaving euro zone must settle bill first: ECB's Draghi (Reuters)

Any country leaving the euro zone would need to settle its claims or debts with the bloc's payments system before severing ties, European Central Bank President Mario Draghi said.

...

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Zero Hedge

Trump's Declaration Of War: 12 Things He Must Do For America To Be Great Again

Courtesy of ZeroHedge. View original post here.

President Trump’s brief inaugural speech was a declaration of war against the entirety of the American Ruling Establishment. All of it.

As Paul Craig Roberts details, Trump made it abundantly clear that Americans’ enemies are right here at home: globalists, neoliberal economists, neoconservatives and other unilateralists accustomed to imposing the US on the world and involving us in endless and expensive wars, politicians who serve the Rulin...



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ValueWalk

Great Interviews: The Psychology of Human Misjudgement Charlie Munger

By VWArticles. Originally published at ValueWalk.

Great Interviews: The Psychology of Human Misjudgement Charlie Munger

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Kimble Charting Solutions

Mr. President you want this to hold, says Joe Friday

Courtesy of Chris Kimble.

Consumer Confidence of late has continued to move higher, now reaching above the highs hit back in 2007. Long-Term S&P 500 returns are far below historical norms, when confidence is this high. We are not saying that high consumer confidence means the market is at a top!

Below is a look at the Advance/Decline line on a short-term basis.

CLICK ON CHART TO ENLARGE

Joe Friday Just The Facts; It could be important for support to hold, of this bearish rising wedge above.

...

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Chart School

Small Cap Losses Accelerate

Courtesy of Declan.

Small Caps again took the brunt of the selling as Shorts took advantage of yesterday's small rally back to former support (turned resistance) to enter positions. With the 'bull trap' in full effect, the next target down for the index is 1,308. Of supporting technicals, only Stochastics [39,1] is left to break its bullish alignment,


The S&P took a modest loss, but not enough to break it out of its consolidation. Volume was also lighter. With the Russell 2000 on the way down, it's suggesting the S&P will follow suit....

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Members' Corner

How To Poop At Work?

Courtesy of Nattering Naybob.

Once again it's "in the Toilet Thursday" or "Thursday's in the Loo". 

In our last episode, How to Poop On A Date? we were graced with a delicate shituation: what ever to do when your finally back at her place, snuggling in for a little "brown chicken brown cow" and you get hit with "Love Potion #2".

This week in How to Poop At Work? ,what to do when your at a big fancy pants meeting, when out of nowhere, you need to download a brown load?



...

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OpTrader

Swing trading portfolio - week of January 16th, 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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Digital Currencies

China's Bitcoin Exchanges Suspend Margin Trading

Courtesy of Zero Hedge

China's bitcoin traders who use the most popular bitcoin exchange not only in China, but also the entire world, BTCChina, were met with an unexpected warning on Friday:

Starting from January 12th, 2017, BTCChina has suspended margin loan service. If you have any questions, please contact Customer Service: support@btcc.com.

BTCChina, which commands over 37% of global bitcoin trading...

... wasn't alone.

Fo...



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Mapping The Market

If we try it enough, it will work.

Via Jean-Luc

Brownback wants Trump to emulate what he did in Kansas because it worked so well:

Sam Brownback Calls on Donald Trump to Mimic His Kansas Tax Plan

By RICHARD RUBIN and  WILL CONNORS

Sam Brownback, the Kansas governor whose tax cuts brought him political turmoil, recurring budget holes and sparse evidence of economic success, has a message for President-elect Donald Trump: Do what I did.

In 2013, Mr. Brownback set out to create a lean, business-friendly government in his state that other Republicans could replicate. He now faces a $350 million deficit when the Kansas legislature convenes in January and projections of a larger one in 2018. The state’s economy is flat and his party is fractured...

...

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Biotech

The Medicines Company: Insider Buying

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

I'm seeing huge insider buying in the biotech company The Medicines Company (MDCO). The price has already moved up around 7%, but these buys are significant, in the millions of dollars range. ~ Ilene

 

 

 

Insider transaction table and buying vs. selling graphic above from insidercow.com.

Chart below from Yahoo.com

...

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Promotions

Phil's Stock World's Las Vegas Conference!

 

Come join us for the Phil's Stock World's Conference in Las Vegas!

Date:  Sunday, Feb 12, 2017 and Monday Feb 13, 2017.            

Beginning Time:  8:00 am Sunday morning

Location: Caesar's Palace in Las Vegas

Notes

Caesar's has tentatively offered us rooms for $189 on Saturday night and $129 for Sunday night. However, we have to sign the contract ASAP. We need at least 10 people to pay me via Paypal or we may lose the best rate for the rooms. (Once we are guaranteed ten attendees, I will put up instructions to call the hotel for individual rooms.)

The more people who sign up,...



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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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