Posts Tagged ‘PAYX’

AT&T Call Volume Jumps As New Trading Year Begins

Today’s tickers: T, PAYX, LXK & THRX

T - AT&T Inc. – A large bullish position initiated in AT&T call options this morning indicates at least one strategist expects shares in the wireless provider to near their highest of the past 52 weeks. The stock rose 0.85% to $30.49 in the first half of the first trading session of 2012. Options volume on AT&T is heaviest at the Feb. $31 strike, where more than 26,000 call options changed hands against open interest of 6,174 contracts. The bulk of the volume was purchased in one block of roughly 20,400 calls at a premium of $0.26 each. The call buyer may profit at expiration next month in the event that shares in AT&T rally another 2.5% to surpass the breakeven price of $31.26. The wireless provider is scheduled to report fourth-quarter earnings ahead of the opening bell on January 26.

PAYX - Paychex, Inc. – A burst of call and put activity on Paychex in the first hour of trade in the New Year suggests the price of the underlying is likely to make big moves ahead of February expiration. Shares in the provider of employee benefits outsourcing solutions to small and medium sized businesses rose 1.65% to stand at $30.61 as of 11:40 AM ET. Likely the work of one investor, it appears both calls and puts were purchased on Paychex this morning in anticipation of increased volatility in the share price. It looks like the trader purchased roughly 4,000 calls at the Feb. $31 strike for an average premium of $0.62 each, and purchased around 2,650 in-the-money puts at the same strike at a premium of $1.20 apiece. The transactions were not marked as a spread or straddle, but the implications of each position are similar to those of a long straddle. The long calls…
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Bulls Shake Off Disney Doldrums, Position For Brighter Days Ahead

     Today’s tickers: DIS, UBS, TEVA & PAYX

DIS - The Walt Disney Co. – The largest operator of theme parks is a far cry from the happiest place on Earth for investors in Disney today as shares realized their biggest intraday decline since September 2001. The company reported better-than-expected earnings after the closing bell on Tuesday, but the subsequent pop in DIS shares disappeared in the blink of an eye as investors began to price in concerns that slowing economic growth may hit Disney hard given its reliance on the consumer’s willingness to spend. DIS shares fell as much as 14.7% this morning to secure a new 52-week low of $29.60. Though shares tumbled today, it looks like a number of options strategists are positioning for the magic to eventually return. Contrarians betting on a rebound took to multiple expiries, buying calls and selling puts in the August contract, as well as initiating bullish spreads in longer-dated contracts. Near-term optimists employed largely plain-vanilla strategies, picking up more than 2,450 calls at the August $32 strike for an average premium of $0.49 apiece. A number of traders taking in an average premium of $0.66 per contract on the sale of 2,100 puts at the August $29 strike seem more than happy to get long the stock at that level should the puts land in-the-money at expiration next week. Of course, investors selling the puts walk away with the full amount of premium as long as shares exceed $29.00 by next Friday.

Meanwhile, longer-term bullish players appear to be purchasing call spreads. The 2,500-lot Jan. 2012 $30/$40 call spread purchased at a net premium of $2.85 per contract yields positive returns for one strategist should Disney’s shares rally above the effective breakeven point at $32.85 by expiration next year. The buyer of the spread could fetch maximum potential profits of $7.15 per contract in the event that Disney’s shares jump 27.3% over the current price of $31.42 (share price as of 12:10 pm ET) to top…
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M&A Monday – Goldman’s Golden Goose

Hope springs eternal at Goldman Sachs.

This morning our favorite Banksters goosed the EU markets by upping targets on international mining operators Kazakhmys, Lonmin and BHP and that got the European markets off to a flying start out of the gate, despite the fact that UBS had just DOWNgraded the same sector on Friday.  UBS said on Friday that the sector is facing difficult times concerning potential growth with government rulings on mineral leases and the proposed supertax on mining profits in Australia set to hinder metal-based stocks.

We also have a lot of M&A activity, also courtesy of GS, who are leading the resurgence this year with 225 deals to date worth $401.6Bn, accounting for about 20% of all activity going through Goldman's sticky fingers.  In a sign of the times, however, GS only generated $961M in revenues as an M&A advisor as they cut a lot of discounts in order to land the top spot in dealmaking.  Although outdealt by GS, MS, Rothchild, JPM and DB all made more in fees than the Uncle Lloyd show.

In a sign of the end of times, GS's London Headquarters has been taken over by lenders after the owner fell into receivership.  GS's landlord, Antedon, is an offshore real estate firm that bought the building for $500M at the top of the market in 2007 and GS has locked up the building through 2026 at what seems to be not enough money to keep Antedon liquid – it would be very interesting to trace the web of deals that led to this massive default.  

Meanwhile, the consortium of Irish investors that own GS's other London building are also bailing out, this action is coinciding with what Ireland's Independent says is a campaign by Wall Street Hedge Funds to short sell Irish Government Bonds.  US hedge funds Groveland Capital and Corrientes Advisors are thought to have taken major positions against Irish debt. Giant €60bn asset-manager Pictet also revealed that it had earlier bet against Irish government bonds. JP Morgan is also thought to have taken a bearish position on Irish debt.  The International Monetary Fund estimated that up to €3bn of Ireland's debt was being targeted by speculators through the uses of derivatives.

So,…
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Options Player Reveals Long-Term Bullish Sentiment on AIG

Today’s tickers: AIG, MU, F, POT, CLF, PAYX, ERIC, SVU, LFC & CA

AIG – American International Group, Inc. – The insurer’s shares experienced a fantastic 56.7% run up from its low point in the current month of $24.54 on March 3, 2010, up to yesterday’s intraday high of $38.45. During the current session, AIG surrendered a small portion of its recent share price gains, slipping slightly lower by 1.40% to stand at $34.62 in afternoon trading. Extreme-bullish positioning in long-dated options caught our attention today as one investor established a call spread in the January 2011 contract. The optimistic trader purchased 5,500 calls at the January 2011 $50 strike for a premium of $3.65 apiece, and sold the same number of calls at the higher January 2011 $75 strike for $1.30 each. The net cost of the transaction, and maximum loss potential faced by the investor, amounts to $2.35 per contract. American International Group’s shares must surge 51.2% from the current price of $34.62 in order for the trader to break even on the spread at $52.35 per share. Perhaps the individual responsible for the trade expects AIG’s shares to rebound up to the current 52-week high on the stock of $55.90 (attained back on August 28, 2009), or above within the next ten months to expiration. Maximum available profits of $22.65 per contract – total gains of $12.4575 million – accumulate for the bullish player if AIG’s shares jump 116.6% from today’s price to $75.00 by January expiration day. Shares last traded above $75.00 back in October of 2008.

MU – Micron Technology, Inc. – A large-volume long-term bullish transaction on the manufacturer of semiconductor devices indicates one big options player anticipates continued upward movement in the price of Micron’s shares by expiration in January 2011. Shares rallied 2.55% to $10.05 this afternoon, but earlier increased more than 4% to reach an intraday high of $10.25. The optimistic investor purchased a debit call spread in by picking up 20,000 in-the-money call options at the January 2011 $10 strike for a premium of $2.07 apiece, marked against the sale of 20,000 calls at the higher January 2011 $15 strike for $0.58 each. The net cost of the spread amounts to $1.49 per contract, positioning the investor to amass profits if Micron’s shares exceed the breakeven price of $11.49 by expiration next year. Maximum potential profits of $3.51 per contract…
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NRG Takeover Spills Into Curious Option Combo

Today’s tickers: EXC, NRG, PALM, ANF, CAL, AMTD & PAYX

EXC – The company has been increasingly less successful in trying to persuade shareholders at NRG – NRG Energy– to tender their shares to the company in what has become an ugly battle. Shares in both companies are on the rise today at $51.08 (Exelon) and $23.70 (NRG). Two sizeable footprints were left for analysts to explore in options trading. Here’s what we think is happening. Perhaps the easier half of the trade is a nearby July 22.50/17.50 put spread on shares of NRG. An investor bought 50,000 higher strike puts at 72 cents and sold 25,000 puts at the 17.50 for a nickel per contract. The investor likely expects that management at NRG will be successful in convincing its investors that the Exelon deal isn’t a good fit. The CEO mailed his thoughts urging investors to remain loyal to his leadership. In the event that the takeover fades, as appears the case, this investor might benefit from some of the hot money hopping out of the stock. Exelon options were a little more convoluted. An investor appears to have bought 50,000 July calls at the 55 strike at 39 cents and taking a sizeable credit on the sale of the same amount of calls expiring in August at the 50 strike. He’s possibly thinking that the near-term prospects for the company in the event of a botched deal would buoy the shares. Thereafter some of the optimism might fade. – Exelon Corp.

PALM – Shares of the Pre-maker, which launched earlier in June, are stable at $13.96 ahead of earnings data after the closing bell on Thursday. The fact that sales of the Pre won’t materially impact the bottom-line earnings numbers means we may have to wait longer for further developments from the company. However, investors have been in a buying tizzy for stock in the company all year and have driven shares from $1.14 to $15.25 recently. The options market, however, has been forced to maintain a careful eye on developments given the depths to which the shares plummeted earlier this year and still attributes a relatively high reading of implied volatility of 90% on options on the stock. That makes hedging a little more expensive that it ought and heading into earnings today, one investor appears to have tried to do so by implementing a put
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Phil's Favorites

What Doug Jones's win means for Mitch McConnell, Steve Bannon and the Democrats

 

What Doug Jones's win means for Mitch McConnell, Steve Bannon and the Democrats

Courtesy of David C. BarkerAmerican University

Senate Majority Leader Mitch McConnell calls for Roy Moore to step aside. He later said “let the voters decide.” AP Photo/J. Scott Applewhite

Here’s the thing about selling your soul: The devil had better deliver. It’s one thing to be damned; it’s another to be a damned loser.

This is the difficult lesson that the Republican National Committee and much of the GOP are learning right now, in the wake of Ro...



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Zero Hedge

Alibaba Launches Giant Car Vending Machines In China

Courtesy of Zero Hedge

Shares of Alibaba fell on Thursday morning, despite an exciting news story involving the Chinese e-commerce juggernaut, which is rushing to shake up the way people buy cars in China. Alibaba seems to be taking a page from Amazon’s acquisition of Whole Foods, with the continued push into physical retail. The plan outlined by Alibaba, is to open two giant car vending machines in early 2018, shaped like a futuristic tubular building with a giant cat’s head on top.

Having monopolized the online world, Alibaba continues to push offline with investments in Chinese bricks and mortar retailers.

Alibaba CEO Daniel Zhang said back in November, “physical store...



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Chart School

Tape Reading - Dow Jones Price Waves

Courtesy of Read the Ticker.

This is a continuation of price wave analysis.

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RTT Volume wave analysis like this helps the retail investor find price action that is true. The reference to 'tape reading' is by the definition of Richard Wyckoff (section 5M of the Wyckoff Course), you can learn more about RTT Volume Wave here.





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 ...

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Insider Scoop

Attention Contrarians: This Analyst Says JD.com Set Up Could Be In Your Favor

Courtesy of Benzinga.

Related JD Want Some Exposure To China's Growth? Stifel Says Buy JD Or Alibaba Q3 13F Roundup: How Buffett...

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Biotech

Designer proteins that package genetic material could help deliver gene therapy

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

 

Designer proteins that package genetic material could help deliver gene therapy

Courtesy of Ian HaydonUniversity of Washington

Delivering genetic material is a key challenge in gene therapy. Invitation image created by Kstudio, CC BY

If you’ve ever bought a new iPhone, you’ve experienced good packaging.

The way the lid slowly separates from the box. The pull...



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Digital Currencies

Not A Bubble?

Courtesy of ZeroHedge. View original post here.

Meet The Crypto Company - up almost 20,000% since inception in September...

To a market cap of over $12.6 billion...

Grant's Interest Rate Observer drew the world's attention to this 'company' yesterday.....



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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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