BMY - Bristol-Myers Squibb Co. – Shares in drug maker, Bristol-Myers Squibb Co., are ripping higher today, up 6.5% at $44.94, the highest level in more than a decade, ahead of the release of the American Society of Clinical Oncology (ASCO) 2013 Annual Meeting abstracts tonight. The ASCO Annual Meeting begins on May 31st in Chicago. Options on BMY are far more active than usual today, with overall volume topping 64,000 contracts by 12:25 p.m. ET, versus average daily volume of around 11,400 contracts. Traders appear to be snapping up call options on the name, establishing near-term bullish positions on the stock to position for further gains in the price of the underlying. Front month calls are seeing most of the action, with intraday call volume well in excess of open interest across several striking prices. More than 7,000 calls have traded at the May $45 strike against open interest of 316 contracts, with roughly 3,600 calls purchased during the first half of the session for an average premium of $0.54 each. Call buyers make money if shares in BMY rally another 1.3% over the current level of $44.94 to settle above the average breakeven price of $45.54 by expiration this week. In and out of the money call options expiring June 21st are also seeing heavy volume in today’s session.
TIBX - TIBCO Software, Inc. – Upside call buying on software maker, TIBCO, suggests some traders are positioning for the price of the underlying to continue to gain ground in the near term. The stock is up 0.40% this morning at $20.91 as of 11:40 a.m. ET. Shares in TIBX, down roughly 30% since this time last year, have managed to rise 15% off a two-year low of $18.18 reached back on April 19th. Bullish options are changing hands at the Jun $20 strike today, with around 5,000 calls in play versus open interest of 2,742 contracts. Time and sales data indicates the bulk of…
NKE - Nike, Inc. – Weekly call options purchased on Nike yesterday ahead of the footwear and apparel maker’s better-than-expected third-quarter earnings report released after the closing bell on Thursday fetched big overnight profits for some traders, with shares in the name rallying to record highs, up better than 11.5% at $59.79 as of 12:40 p.m. in New York. The change in open interest in the Mar. 28 ’13 $55 strike calls yesterday indicates 3,062 opening positions were initiated. A review of time and sales data suggests most of the volume was purchased at an average premium of $0.84 apiece on Thursday. The sharp rally in NKE shares overnight now finds the premium required to purchase the $55 strike calls has jumped more than five-fold to $4.75 per contract as of the time of this writing. Options traders anticipating more room for the stock to run in the near term purchased more than 3,000 calls at the April $60 strike for an average premium of $0.87 each during the first half of the session. Call buyers may profit at expiration next month as long as shares in Nike top the average breakeven point at $60.87. Overall options volume on the stock is heavier than usual, with upwards of 52,250 contracts in play just before 1:00 p.m. ET, versus the stock’s average daily volume of around 12,000 contracts.
MDLZ - Mondelez International, Inc. – Shares in the world’s largest chocolatier, biscuit baker and candy maker are up sharply on Friday following a report in Britain’s Daily Telegraph said Nelson Peltz’s Trian Fund Management LP has been taking positions in both Mondelez International, Inc. and PepsiCo in recent weeks. The unconfirmed reports cited persons familiar with the matter, and managed to send shares in MDLZ up 4.9% to $29.96, the highest level since the spin-off from Kraft Foods, Inc., last year. Options traders who purchased upside calls on Mondelez yesterday are seeing big overnight gains in the value of their positions today. A review…
Remember what Phil wrote about CNBC back in Dec. 2010? Of course you do, but I'll help you with the actual words anyway:
CNBC has, overall, a 36% drop in ratings caused, perhaps, by 36% of the people who listen to their advice losing their homes with the Fast Money crew dropping a precipitous 56% in the past 12 months but still holding onto the same audience (41K) as Cramer.
Why is CNBC failing in the ratings? Because they put people like Kudlow and Cramer and Adami and Najarian on TV instead of people (yes, like me) who are going to give you the real news and attempt to actually inform you. Now, here’s the thing you need to think about – what kind of TV show(s) have...
It has been a bad day for deals and deadlines all around: first Greece is about to enter July without a bailout program and in default to the IMF with the ECB about to yank its ELA support or at least cut ELA haircuts; also the US failed to reach a nuclear deal with Iran in a can-kicking negotiation that has become so farcical there is no point in even covering it; and now moments ago a third June 30 "deal" failed to reach an acceptable conclusion when Russia and Ukraine were unable to reach an agreement on gas prices at talks in Vienna on Tuesday. As a result, Ukraine is suspending its purchase of Russian gas.
This charts takes a 25-year look at the Pimco High Yield mutual fund. In 1999 & 2007 the fund was diverging against the S&P 500 and once it broke support the fund and broad markets turned weak together.
At this time PHDAX is now testing 4-year support and it has been diverging against S&P for almost a year!
Below looks at the two most popular junk bond ETF’s against the S&P 500
CLICK ON CHART TO ENLARGE
This chart reflects that JNK & HYG are diverging against th...
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BitGold, a platform for savings and payments in gold, is pleased to announce the launch of the BitGold platform for residents of the US and US territories. As of today, US residents can sign up on the BitGold platform and buy, sell, or redeem gold using BitGold’s Aurum payment and settlement technology. US residents will also have access to the BitGold mobile app and a prepaid card when these features launch over the coming weeks. Send and receive gold payment features are not initially available in the US.
Two weeks ago, bulls seemed ready to push stocks higher as long-standing support reliably kicked in. But with just one full week to go before the Independence Day holiday week arrives, we will see if bulls can muster some reinforcements and make another run at the May highs. Small caps and NASDAQ are already there, but it is questionable whether those segments can drag along the broader market. To be sure, there is plenty of potential fuel floating around in the form of a friendly Fed and abundant global liquidity seeking the safety and strength of US stocks and bonds. While the technical picture has glimmers of strength, summer bears lie in wait.
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Baxter Int. (BAX) is splitting off its BioSciences division into a new company called Baxalta. Shares of Baxalta will be given as a tax-free dividend, in the ratio of one to one, to BAX holders on record on June 17, 2015. That means, if you want to receive the Baxalta dividend, you need to buy the stock this week (on or before June 12).
Back in December, I wrote a post on my blog where I compared the performances of various ETFs related to the oil industry. I was looking for the best possible proxy to match the moves of oil prices if you didn't want to play with futures. At the time, I concluded that for medium term trades, USO and the leveraged ETFs UCO and SCO were the most promising. Longer term, broader ETFs like OIH and XLE might make better investment if oil prices do recover to more profitable prices since ETF linked to futures like USO, UCO and SCO do suffer from decay. It also seemed that DIG and DUG could be promising if OIH could recover as it should with the price of oil, but that they don't make a good proxy for the price of oil itself.
Kim Parlee interviews Phil on Money Talk. Be sure to watch the replays if you missed the show live on Wednesday night (it was recorded on Monday). As usual, Phil provides an excellent program packed with macro analysis, important lessons and trading ideas. ~ Ilene
The replay is now available on BNN's website. For the three part series, click on the links below.
Part 1 is here (discussing the macro outlook for the markets)
Part 2 is here. (discussing our main trading strategies)
Part 3 is here. (reviewing our pick of th...
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 email@example.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.
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