Posts Tagged ‘RVBD’

Riverbed Options Active As Shares Soar

 

Today’s tickers: RVBD, LL & FCN

RVBD - Riverbed Technology, Inc. – Front month trading traffic on Riverbed Technology suggests the profits are flowing for one options strategist that hit it out of the park on a three-legged bullish position initiated ahead of the company’s second-quarter earnings report. Shares in the maker of computer networking products are up better than 26% to stand at $18.35 as of midday on the East Coast after the company posted better-than-expected earnings for the second quarter and said full year revenue is likely to increase more than analysts were expecting. It looks like one trader yesterday sold 2,000 puts at the Aug. $13 strike in order to partially offset premium required to buy a 2,000-lot Aug. $14/$17 call spread, all for a net premium outlay of $0.34 per contract. The sharp move to the upside in Riverbed’s shares overnight far exceeded the more than 15% rally required for the position to realize maximum possible profits. Activity in the options today suggests the trader is raking in the chips, closing out all three legs to enjoy net profits of $2.23 per contract in overnight gains. Meanwhile, traders positioning for Riverbed’s shares to extend gains in the near term picked up another 1,100 calls at the Aug. $19 strike for an average premium of $1.02 apiece. Call buyers may profit in the event shares tack on another 9% to exceed the average breakeven price of $20.02 by expiration next month.

LL - Lumber Liquidators Holdings Inc. – Shares in the retailer of hardwood flooring soared to a record today after the company posted better-than-expected second-quarter earnings and upped its full year profit and revenue forecasts. Lumber Liquidators shares jumped 25% to an intraday and new all-time high of $40.77 at the start of the session, sparking increased activity in options on the stock. Traders positioning for shares in Lumber Liquidators to continue higher in the near term purchased upside calls on…
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Time Warner Cable Call Buyer Tunes in for a Rally

Today’s tickers: TWC, RVBD, EXPE & CL

TWC - Time Warner Cable Inc. – An investor expecting shares in Time Warner Cable to pop ahead of March expiration initiated a large stock and option combination play just before 12:30pm in New York. Shares in the TWC are currently down 0.80% this afternoon to stand at $70.53. It looks like the trader enacted a delta neutral position, selling 150,000 shares of the underlying at $70.60 each, and buying 10,000 calls at the March $75 strike at a premium of $0.25 a-pop, on a 0.15 delta. The risk profile of the transaction is such that the trader may benefit somewhat on the short stock leg of the transaction should shares in the name slip in the near term. But, the profit and loss parameters of the position dictate substantially greater gains if Time Warner’s shares surge ahead of expiration day next month. If shares rally, gains on the long calls, which represent a far larger stake in the underlying than the 150,000 shares of which the investor is short, will trump losses realized on the short stock. The investor is well positioned to benefit nicely should the price of the underlying react as he predicts it will. Time Warner Cable’s reading of options implied volatility is up 5.1% on the session at 21.26% as of 1:30pm.

RVBD - Riverbed Technology, Inc. – Shares in Riverbed Technology increased as much as 4.0% this morning to secure an intraday- and new all-time high of $43.54. One big options player appears to be using call options in the name to position for the bullish momentum to continue through June expiration. It looks like the trader picked up 15,000 deep in-the-money calls at the June $39 strike for a hefty premium of $7.30 each, and sold the…
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Amphenol Corp. Calls in High Demand as Shares Rally to New Heights

Today’s tickers: APH, CAVM, PCX & RVBD

APH - Amphenol Corp. – Call options on the manufacturer of electrical, electronic and fiber optic connectors, interconnect systems and coaxial and specialty cable are in high demand this afternoon with shares trading up 3.2% to reach an all-time high of $57.10 by 12:25pm. Investors expecting Amphenol’s shares to continue to rise in the near term purchased in- and out-of-the-money call options in the February contract. More than 4,200 in-the-money calls changed hands at the February $55 strike on paltry previously existing open interest of 561 contracts. It looks like the majority of the calls were purchased for an average premium of $2.38 a-pop. Investors long the calls are poised to profit should shares in Amphenol Corp. surpass the average breakeven price of $57.38 ahead of February expiration. Bullish players looked up to the February $50 strike, as well, exchanging more than 1,400 calls at that strike on scant open interest of 10 contracts. Approximately 1,000 of the higher-strike call options traded on the ask for an average premium of $0.40 each. Traders purchasing the calls start to make money in the event that APH shares gain another 5.8% to exceed the average breakeven price of $60.40 before the contracts expire in a few weeks.

CAVM - Cavium Networks, Inc. – Shares in the provider of semiconductor processors shot up 14.7% in the first 15 minutes of the trading session to secure an intraday high of $45.35 following the firm’s better-than-expected fourth-quarter earnings report released after the close of trading on Monday. Cavium also revealed its forecast for first-quarter profit is greater than that of Wall Street, which helped shares higher and spurred a number of analyst upgrades today. Although signs of optimism on CAVM abound, a more pessimistic view appears to be playing…
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Creeping Confidence Emerging In Citi?

Today’s tickers: C, WLP, ORCL, PCAR, EK, TLB & RVBD

C – Not sure what’s going on at Citigroup today, at least in the options patch. Base salaries might be up 50% for some employees who chose to weather the storm as its share took a battering along the way to ceding some ownership to the government, but one options strategy today could imply better times for the banker within 18 months. Using the January 2011 put options, we spy a 20,000 lot spread in which we observe the 2.5 puts were bought for 74 cents. Against this, we see identical volume at the 7.5 strike, which by the spread definition must have been sold at 4.84. That combination would leave the investor with a credit spread for a premium coming his way of 4.10. Losses accrue beneath a share price of $3.40, which is the point of using the 2.5 strikes to limit losses. If we’re looking at this trade correctly and both sides were opening bargains, then this investor would appear to be predicting better times ahead for Citi on the assumption that it’s getting its house in order. The question mark becomes whether the investor is closing old positions at either strike, where admittedly there is a ton of open interest. – Citigroup Inc.

WLP– The Indiana-based health benefits company edged onto our ‘most active by options volume’ market scanner after one investor appears to have established a ratio call spread in the August contract. Shares of the firm are up slightly by about 1.5% to $49.71. Hoping for continued bullish movement, the trader purchased 5,000 calls at the just out-of-the-money August 50 strike price for a premium of 3.50 each and simultaneously sold 10,000 calls at the higher August 55 strike for 1.54 per contract. The net cost of the transaction amounts to 42 cents and yields maximum potential profits of 4.58 if shares can rally up to $55.00 by expiration. The investor would begin to amass profits if shares increase just 71 cents from the current price to surpass the breakeven point at $50.42 by expiration in a couple of months. – WellPoint, Inc.

ORCL – Shares of the second-largest software maker have surged 8% to $21.41 and bullish option traders have taken the rally in stride by getting long call options on the stock in the August contract. The rise in shares is
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DryShips upgrade attracts option investors to upper deck

Today’s tickers: DRYS, XTO, LGF, MCRI, RVBD, RF, HA, CBS, PCLN

DRYS DryShips, Inc. – The drybulk carrier’s share price rally of more than 25% to $6.94 breathes new life into DryShips’ sails today amid an upgrade to ‘outperform’ from ‘market perform’ by an analyst at Oppenheimer & Co. this morning. The company has also managed to raise $500 million via equity offering that it plans to use to decrease its massive debt. Option investors saluted the bullish news by purchasing calls in the May contract. At the May 7.5 strike price 7,300 calls were picked up for an average premium of 59 cents apiece. Shares need only rise by an additional 7% in order for the May 7.5 strike calls to land in-the-money by expiration next month. More optimistic traders selected the May 9.0 strike and bought 3,000 calls for about 28 cents per contract. Another positive sign for the cargo-carrier was the sale of 1,400 puts at the May 6.0 strike price for 74 cents each as some investors hope that shares remain above the breakeven on the trade at $5.26 by expiration. While much of the activity we observed was bullish in the May contract, we did notice that some downside protection was sought at the May 7.5 strike price as about 2,100 in-the-money puts were picked up at an average premium of 1.55 each.

XTO XTO Energy, Inc. – Shares of the oil and gas exploration company have rallied by more than 3% to $35.20. XTO edged onto our ‘most active by options volume’ market scanner after one investor took profits by closing a short put position. It appears that this individual originally established a short position on March 11, 2009, by selling 19,500 puts at the August 22.5 strike price for a premium of 1.86 apiece. Today, he purchased the lot of 19,500 puts at the same strike for an average price of 75 cents apiece. The difference between the two put premiums yields this investor 1.11 today for closing the position. It looks as though he plans to once again profit from a similar trade as he sold 15,000 puts at the August 26 strike price for an average premium of 1.35 apiece.

LGF Lions Gate Entertainment Corporation – The diversified independent producer and distributor of motion pictures jumped to the top of our ‘hot by options volume’ market scanner after one investor…
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Phil's Favorites

Carillion Q&A: The consequences of collapse and what the government should do next

 

Carillion Q&A: The consequences of collapse and what the government should do next

Courtesy of John Colley, Warwick Business School, University of Warwick

Construction giant Carillion has gone into liquidation. The UK’s second-largest construction firm was one of the government’s biggest contractors, involved in huge infrastructure projects like the HS2 rail link and the Royal Liverpool University Hospital. It also provides services across the public sector such as running libraries, schools and prisons. Here’s what you need to know about Carillion’s collapse.

Why did the government keep placing...



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ValueWalk

Nebraska Furniture Mart in the 1980s

By The Acquirer's Multiple. Originally published at ValueWalk.

little gem of a 1980s NBC News story about Rose Blumkin, better known to folks in Omaha as “Mrs. B.”. Rose Blumkin apparently was a fixture in Omaha, and ran a HUGE furniture store in Nebraska. Please don’t confuse Mrs. Blumkin with that dirty word “BLUMPKIN”. That’s not nice.

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The post Nebraska Furniture Mart in the 1980s appeared first on ...



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Zero Hedge

North And South Korea Agree To Form Joint Team, Will March Together At Olympic Opening Ceremony

 

North And South Korea Agree To Form Joint Team, Will March Together At Olympic Opening Ceremony

Courtesy of Zero Hedge

In a decision that Yonhap called an "unprecedented breakthrough", North and South Korea have agreed to form their first joint Olympic team and will march together under a unified flag during the opening ceremony. The two Koreas agreed to form a joint women's ice hockey team to take part in the Winter Olympics to be held February 9-25 in Pyeongchang, the two ...



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Digital Currencies

What if the price of Bitcoin is the least interesting thing about it?

 

What if the price of Bitcoin is the least interesting thing about it?

Courtesy of 

Over the summer, I reviewed Steven Johnson’s book about innovation, called The Invention of Air. Johnson shows us how a simple insight by one of the least technically gifted scientists in history led to a massive chain reaction of human understanding about the world we live in and how it truly works.

If you missed my synopsis, it’s here.

...



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Insider Scoop

5 Biggest Price Target Changes For Wednesday

Courtesy of Benzinga.

  • Goldman Sachs raised Groupon Inc (NASDAQ: GRPN) price target from $4.70 to $5.40. Groupon shares closed at $5.03 on Tuesday.
  • Barclays boosted the price target for Pure Storage Inc (NYSE: PSTG) from $19 to $22. Pure Storage shares closed at $16.16 on Tuesday.
  • Stifel increased the price target for Deere & Company (NYSE: DE) from $161 to $184. Deere shares closed at $167.54 on Tuesday.
  • Mizuho raised the price target on QUALCOMM, Inc. (NASDAQ: ...


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Chart School

Weekly Market Recap Jan 14, 2017

Courtesy of Blain.

After 3 days of mild “rest” – and the first down day of the year (!!) for the S&P 500, bulls came back with bells on Thursday and Friday, driving indexes to record highs yet again.  This is starting to get “parabolic”… some shades of the type of things we saw in 1999.  (See the S&P 500 and NASDAQ charts below)  The S&P 500 gained 1.6% and the NASDAQ 1.7% for the week.

“This reminds me of January 2000,” said Kent Engelke, chief economic strategist, at Capitol Securities Management, which manages $4 billion in assets, referring to the nearly unceasing climb to records for stocks and the unease it can inspire.  “It’s scary, the unrelenting advance,” he added.

“The move isn’t about fundamentals...



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Biotech

How Alzheimer's disease spreads throughout the brain - new study

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

 

How Alzheimer's disease spreads throughout the brain – new study

Courtesy of Thomas E CopeUniversity of Cambridge

Harmful tau protein spreads through networks. Author provided

Alzheimer’s disease is a devastating brain illness that affects an estimated 47m people worldwide. It is the most common cause of dementia in the Western world. Despite this, there are currently no treatments that are effective in curing Alzheimer’s disease or preventing its relentless progressio...



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Mapping The Market

Trump Admin Bans CDC From Using Words Like 'Science-Based,' 'Diversity'

By Jean-Luc

These are the policies of a theocracy, not a modern democracy:

Trump Admin Bans CDC From Using Words Like ‘Science-Based,’ ‘Diversity’

The Trump administration has prohibited the Centers for Disease Control and Prevention (CDC) from using words like “science-based,” “diversity,” and “transgender” in their official documents for next year’s budget, according to the Washington Post.

Senior CDC budget leader Alison Kelly met with the agency’s policy analysts on Thursday to announce ...



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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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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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About Phil:

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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