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Posts Tagged ‘RRC’

Hewlett-Packard Options Point To Possible Rebound

www.interactivebrokers.com

 

Today’s tickers: HPQ, NWSA & RRC

HPQ - Hewlett-Packard Co. – Bullish trading in Hewlett-Packard options this morning suggests some traders are positioning for a rebound in battered shares of the tech giant. The stock snapped a four-day losing streak on Tuesday, rallying 2.1% to $21.50 by midday in New York, following the better-than-expected ISM non-manufacturing index report this morning. Shares in HPQ have lost nearly 30.0% of their value since mid-February. Traders picking up in-the-money calls in the July expiry are prepared to benefit should shares in Hewlett continue to recover during the next six weeks. More than 11,500 calls have changed hands at the July $21 strike against open interest of 3,028 positions. It looks like most of the contracts were purchased for an average premium of $1.36 apiece, thus positioning buyers to profit at expiration should HPQ’s shares rally another 4.0% to surpass the average breakeven point at $22.36.

NWSA - News Corp. – A sizable trade in News Corp. call options today appears to be a bet against any significant rally in shares of the international media company during the next eight trading sessions. The stock is currently flat on the day at $18.59 as of 12:15 p.m. ET. News Corp. popped up on our ‘hot by options volume’ market scanner this morning after some 8,295 June $19 strike calls were sold at a premium of $0.20 apiece. The strategy results in maximum possible profits of $0.20 per contract should the options expire worthless next week. Naked short calls leave the seller vulnerable to unlimited losses to the upside in the event of a rally in the price of the underlying above the effective breakeven price of $19.20, however, it’s possible the strategist is long the stock and selling covered rather than uncovered calls against the position. Shares in News Corp. have declined 10.2% in the past four weeks, but need only rally 3.3% over the current price of $18.59 to…
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Bulls Bombard Research in Motion Ahead of BlackBerry 9800 Launch

www.interactivebrokers.com

Today’s tickers: RIMM, INTU, LVS, RRC, MHS, HSP & CHS

RIMM – Research in Motion Limited – Optimistic options players populated the Blackberry maker’s August contract, selling puts and buying calls to prepare for the price of the underlying stock to continue climbing ahead of expiration day next month. RIMM’s shares rallied as much as 4.53% today to an intraday high of $55.59 on reports the Canadian company will reveal its new touch screen BlackBerry in New York next Tuesday. Investors are chomping at the bit to see if the BlackBerry 9800 can give iPhone maker, Apple, a run for its money – or market share. RIMM’s shares have bounced up off their early-July lows, but the recovery could be short-lived if the 9800 turns out to be a disappointment. Traders hoping to see a successful launch of the touch screen device, and subsequent share price appreciation, employed bullish strategies. Investors picked up at least 3,800 calls at the now in-the-money August $55 strike for an average premium of $2.15 apiece. Buying interest spread to the higher August $57.5 strike where 3,900 calls were purchased at an average premium of $1.16 each. Uber-bulls bought roughly 2,900 call options at the August $60 strike for an average premium of $0.68 a-pop. Investors long the August $60 strike calls are poised to profit should RIMM’s shares surge 9.25% to surpass the average breakeven price of $60.68 by August expiration. The sale of out-of-the-money put options is another bullish signal investors are itching for the current rally to continue. Traders sold some 2,000 puts at the August $50 strike for an average premium of $0.55 each, and shed another 5,200 puts at the higher August $52.5 strike for an average premium of $1.21 apiece. In total, options players exchanged more than 91,300 contracts on Research in Motion by 3:40 pm ET. Options implied volatility on RIMM is up 3.4% to 43.85% ahead of the final bell.

INTU – Intuit Inc. – The provider of business and financial management solutions popped up on our ‘hot by options volume’ market scanner late in the trading session after one options strategist initiated a bearish transaction in the October contract. Intuit’s shares are down slightly by 0.15% to stand at $39.50 as of 3:15 pm ET. It looks like the trader bought a plain-vanilla debit put spread, buying 6,346 puts at the October $37.5 strike for a…
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Strangle Strategist Sees Sharp Shifts in Johnson Controls Shares

www.interactivebrokers.com

Today’s tickers: JCI, LEA, X, LFT, TS, MU, LULU, DLB & RRC

JCI – Johnson Controls, Inc. – A long strangle enacted on the maker of batteries for automobiles and hybrid electric vehicles this afternoon implies the firm’s share price could swing dramatically ahead of May expiration. Johnson’s shares gained 0.72% in late afternoon trading to stand at $33.35. Earlier in the session shares of the underlying stock reached a new 52-week high of $33.60. The investor responsible for the long strangle play is expecting to profit if JCI’s shares trade outside of a specified range ahead of expiration day. The volatility player purchased roughly 10,000 puts at the May $32 strike for an average premium of $0.89 apiece and picked up 10,000 calls at the higher May $34 strike for $1.14 each. The net cost of the strangle amounts to $2.03 per contract. Shares must trade above the upper breakeven price of $36.03, or trade beneath the lower breakeven point at $29.97, in order for the strangler to amass profits ahead of May expiration.

LEA – Lear Corp. – Bullish options activity on the manufacturer of automotive seat systems suggests at least one investor is preparing for shares to trade at a significantly higher price by expiration in September. Lear’s shares increased 0.85% to $80.37during the current session to trade just $0.53 below the current 52-week high on the stock of $80.90. The optimistic options strategist initiated a debit call spread by purchasing 2,500 calls at the September $85 strike for a premium of $5.40 apiece, and by selling the same number of calls at the higher September $95 strike for $2.10 each. Net premium paid for the transaction amounts to $3.30 per contract. Thus, the trader stands ready to accrue maximum potential profits of $6.70 per contract if Lear’s shares surge 18.20% from the current price to $95.00 by expiration day in September.

X – United States Steel Corp. – Bullish options trading on U.S. Steel Corp. today follows news reports that steelmakers are set to hike prices globally as the economic recovery drains inventory levels and boosts demand and prices for raw materials. The price of steel, according to a Bloomberg News article, increased 9.1% in the U.S. during the month of February. U.S. Steel’s shares rallied 2% during the first half of the trading session to stand at $64.77, and earlier this morning traded up to…
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Help One Of Our Own PSW Members

"Hello PSW Members –

This is a non-trading topic, but I wanted to post it during trading hours so as many eyes can see it as possible.  Feel free to contact me directly at jennifersurovy@yahoo.com with any questions.

Last fall there was some discussion on the PSW board regarding setting up a YouCaring donation page for a PSW member, Shadowfax. Since then, we have been looking into ways to help get him additional medical services and to pay down his medical debts.  After following those leads, we are ready to move ahead with the YouCaring site. (Link is posted below.)  Any help you can give will be greatly appreciated; not only to help aid in his medical bill debt, but to also show what a great community this group is.

http://www.youcaring.com/medical-fundraiser/help-get-shadowfax-out-from-the-darkness-of-medical-bills-/126743

Thank you for you time!

 
 

Chart School

The Perfect (Dollar) Storm - When Currencies Collide Part 2

Courtesy of Doug Short.

Click here to read Part 1.

Part 2 Summary
  • Major breakout in USD means:
    • U.S. stocks over foreign markets
    • Stocks over bonds
    • Higher price multiples for U.S. stock markets
  • Short-term, USD due for a breather and euro for a rally

Investment Implications of a USD Breakout

Should the USD break out from its 2005 to present bearish trend, we should see some significant developments in inter-market relationships. For starters, the relative performance of U.S. stocks to the MSCI World Stock Index Excluding the U.S. shows a strong correlation to the USD Index. Should t...



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Phil's Favorites

The Consequences Of Fracking: Two Clashing Views

Courtesy of Andy Tully via OilPrice.com

Two academic studies of the health dangers of hydraulic fracturing, or fracking, have produced different conclusions.

One, conducted by Yale University, said people living near fracking sites report increased health problems. The other, by Penn State University, says fracking water stays underground, far below the groundwater supplies that people use for drinking, and poses no threat.

Both studies were conducted in Pennsylvania, part of the Marcellus Shale formation in the sprawling Appalachian Basin in the eastern United States. It holds enormous reserves of gas and has been a focus of fracking activity and protests.

In the Yale study, former Yale medical professor Dr. Peter Rabinowitz reported in the...



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Zero Hedge

The Last Straw? Venezuela Runs Out Of Fake Breasts

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

Venezuelan women are revolting complaining. While the citizens of the socialist utopia can withstand shortages of food, toilet paper, and now even news paper, in a nation thought to have one of the world's highest plastic surgery rates, ...



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Promotions

See Live Demo Of This Google-Like Trade Algorithm

If GOOGLE, the NSA, and Bill Gates all got together in a room with the task of building the most accurate trading algorithm… it wouldn’t just be any ordinary system… it’d be the greatest trading algorithm in the world.

Well, I hate to break it to you… they never got around to building it, but my colleagues at Market Tamer did.

Follow this link to register for their training webinar where they’ll demonstrate the tested and proven Algorithm powered by the same technological principles that have made GOOGLE the #1 search engine on the planet!

And get this…had you done nothing but traded a handful of conservative alerts since its inception, you would have experienced portfolio gains exceeding 200%!

Plus, when you register for the webinar you’ll g...



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All About Trends

Mid-Day Update

Reminder: David 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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Sabrient

Sector Detector: Bulls go down swinging, refusing to give up much ground

Courtesy of Sabrient Systems and Gradient Analytics

Although the stock market displayed weakness last week as I suggested it would, bulls aren’t going down easily. In fact, they’re going down swinging, absorbing most of the blows delivered by hesitant bears. Despite holding up admirably when weakness was both expected and warranted, and although I still see higher highs ahead, I am still not convinced that we have seen the ultimate lows for this pullback. A number of signs point to more weakness ahead.

In this weekly update, I give my view of the current market environment, offer a technical analysis of the S&P 500 chart, review our weekly fundamentals-based SectorCast rankings of the ten U.S. business sectors, and then offer up some actionable trading ideas, including a sector rotation strategy using ETFs and an enhanced version using top-r...



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OpTrader

Swing trading portfolio - week of September 15th, 2014

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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Insider Scoop

Compass Point Sees Good Things Ahead For Navient Corp

Courtesy of Benzinga.

In a report published Monday, Compass Point analyst Michael Tarkan reiterated a Buy rating and $21.00 price target on Navient Corp (NASDAQ: NAVI).

In the report, Compass Point noted, “We reiterate our Buy rating on NAVI shares after analyzing updated credit data within the company's private student loan trusts, which indicate continued YOY improvement in delinquency and default rates. The data captures statistics for trusts originated from 2002 through 2014 for the three months ended August 31, 2014, providing a good leading indicator for 3Q14 credit trends. The ongoing improvement should give management flexibility to continue to lower provision expenses to drive earnings higher.”

Navient Corp closed on Friday at $17.62.

Latest Ratings for NAVI DateFirm...

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Stock World Weekly

Stock World Weekly

Newsletter writers are available to chat with Members regarding topics presented in SWW, comments are found below each post.

Here's the latest Stock World Weekly. Enjoy!

[Sign in with your PSW user name and password, or take a free trial here.]

Image courtesy of Business Insider, Jay Yarow's This Is The Best Description Of How Apple's Business Works Right Now.

 

...

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Option Review

Big Prints In VIX Calls

The CBOE Vix Index is in positive territory on Friday morning as shares in the S&P 500 Index move slightly lower. Currently the VIX is up roughly 2.75% on the session at 13.16 as of 11:35 am ET. Earlier in the session big prints in October expiry call options caught our attention as one large options market participants appears to have purchased roughly 106,000 of the Oct 22.0 strike calls for a premium of around $0.45 each. The VIX has not topped 22.0 since the end of 2012, but it would not take such a dramatic move in the spot index in order to lift premium on the contracts. The far out-of-the-money calls would likely increase in value in the event that S&P500 Index stocks slip in the near term. The VIX traded up to a 52-week high of 21.48 back in February. Next week’s release of the FOMC meeting minutes f...



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Digital Currencies

Making Sense of Bitcoin

Making Sense of Bitcoin

By James Black at International Man

Despite the various opinions on Bitcoin, there is no question as to its ultimate value: its ability to bypass government restrictions, including economic embargoes and capital controls, to transmit quasi-anonymous money to anyone anywhere.

Opinions differ as to what constitutes "money."

The English word "money" derives from the Latin word "moneta," which means to "mint." Historically, "money" was minted in the form of precious metals, most notably gold and silver. Minted metal was considered "money" because it possessed luster, was scarce, and had perceive...



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Market Shadows

Helen Davis Chaitman Reviews In Bed with Wall Street.

Author Helen Davis Chaitman is a nationally recognized litigator with a diverse trial practice in the areas of lender liability, bankruptcy, bank fraud, RICO, professional malpractice, trusts and estates, and white collar defense. In 1995, Ms. Chaitman was named one of the nation's top ten litigators by the National Law Journal for a jury verdict she obtained in an accountants' malpractice case. Ms. Chaitman is the author of The Law of Lender Liability (Warren, Gorham & Lamont 1990)... Since early 2009, Ms. Chaitman has been an outspoken advocate for investors in Bernard L. Madoff Investment Securities LLC (more here).

Helen Davis Chaitman Reviews In Bed with Wall Street. 

By Helen Davis Chaitman   

I confess: Larry D...



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Pharmboy

Biotechs & Bubbles

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

Well PSW Subscribers....I am still here, barely.  From my last post a few months ago to now, nothing has changed much, but there are a few bargins out there that as investors, should be put on the watch list (again) and if so desired....buy a small amount.

First, the media is on a tear against biotechs/pharma, ripping companies for their drug prices.  Gilead's HepC drug, Sovaldi, is priced at $84K for the 12-week treatment.  Pundits were screaming bloody murder that it was a total rip off, but when one investigates the other drugs out there, and the consequences of not taking Sovaldi vs. another drug combinations, then things become clearer.  For instance, Olysio (JNJ) is about $66,000 for a 12-week treatment, but is approved for fewer types of patients AND...



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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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