Posts Tagged ‘TMO’

Travelers Put Options Active

TRV – Travelers Companies, Inc. – Shares in insurance company Travelers are slightly lower on Thursday morning, down 0.70% at $85.48 as of 11:05 a.m. ET, after the stock was downgraded to ‘Sell’ from ‘Neutral’ with a 12-month target price of $72.00 at Guggenheim Securities.

Options changing hands on TRV in the early going suggest one or more traders are bracing for the price of the underlying to extend losses ahead of the weekend. It looks like options traders picked up more than 1,400 of the Oct $85 strike puts at an average premium of $0.42 apiece. The puts may be profitable at expiration this week if shares in TRV decline another 1.05% from the current price of $85.48 to breach the average breakeven point on the downside at $84.58.

Overall options volume on Travelers Cos. Is hovering just below 2,500 contracts as of the time of this writing, which is roughly three times the stock’s average daily options volume of around 740 contracts. Travelers is scheduled to report third-quarter earnings ahead of the opening bell on Tuesday. 

TMO – Thermo Fisher Scientific Inc. – Options on the provider of technology and products for pharmaceutical, biotech and science research companies are more active than usual today, with volume topping 5,500 contracts in the first hour of trading versus the stock’s average daily options volume of around 1,200 contracts. Shares in the name are up 1.25% on the session at $94.67 as of 10:50 a.m. in New York trading.

The most traded contracts on…
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Near-Term Bullish Bets On The Rise At Thermo Fisher Scientific

 

Today’s tickers: TMO, ODP & LYB

TMO - Thermo Fisher Scientific, Inc. – Front month call buying on the provider of analytical technologies and laboratory products suggests at least one options player is positioning for the price of the underlying to extend gains in the near term. Shares in Thermo Fisher Scientific moved up sharply in the first three months of the 2012, climbing nearly 30.0% to $58.37 by the end of March. April showers washed away some of those gains, however, with the stock surrendering around 9.0% during the first two weeks of this month. Today’s 2.6% pop in the price of the underlying to $54.72 saw a pickup in near-term bullish action on the stock. One or more traders snapped up calls on TMO, with around 1,090 contracts changing hands at the April $55 strike against open interest of 254 positions. Most of the calls appear to have been purchased for an average premium of $0.50 apiece, thus positioning buyers to profit should Thermo Fisher’s shares increase another 1.4% to surpass the breakeven price of $55.50 by expiration next week. The Waltham, Massachusetts-based company is scheduled to report first-quarter earnings ahead of the opening bell on April 25th, the week following options expiration.

ODP - Office Depot, Inc. – The single-largest trade in Office Depot options this morning appears to be a vote of confidence in the office supplies retailer, initiated by an investor positioning for shares in the name to trade north of $2.50 through October expiration. Shares today rose 3.5% to stand at $3.23 as of 12:45 p.m. in New York. It looks like the strategist responsible for the bullish bet on ODP sold 2,500 puts at the Oct. $2.5 strike to pocket premium of $0.25 per contract. The trader keeps the full amount…
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Rumor Mill Drives Heavy Action In Valero Options

Today’s tickers: VLO, EBAY, TMO & TRGT

VLO - Valero Energy Corp. – Reports of takeover chatter fueled frenzied trading in Valero Energy Corp. options, with volume in VLO topping 83,000 contracts by 12:05 pm in New York. Shares in the producer of gasoline, jet fuel and other refined products surged 11.1% to $24.28 in early-afternoon trade. Call options are changing hands at a rate of more than three contracts to each single put option in play on the stock. November and December contracts are the most heavily trafficked thus far in the session, although options plays are present in each available expiry. While trading in Nov. and Dec. calls is mixed, there does appear to be a bullish bias to the transactions. Investors snapped up calls at the Nov. $24, $25, $26 and $27 strikes to position for continued bullish movement in the price of the underlying through expiration next month. The Nov. $25 strike call has generated the most volume, with more than 3,500 contracts having changed hands so far today. It appears buyers of the Nov. $25 strike call picked up more than 1,800 lots for an average premium of $0.99 each. Traders long the contracts may profit at expiration day if shares in VLO rally another 4.7% to surpass the average breakeven price of $25.99. Investors hoping to see sharp gains in the stock over the next few weeks purchased around 515 calls up at the Nov. $31 strike for an average premium of $0.09 each. Premium paid to get long the calls may be lost and gone forever in the event that shares are trading below those levels come expiration day in a few weeks time. Valero Energy Corp. is scheduled to report third-quarter earnings before the opening bell on November 1.

EBAY - eBay, Inc. – Bearish activity in eBay, Inc. options this morning suggests one strategist may profit if shares in the provider of online marketplaces and secure payment services decline substantially within the next four weeks. Meanwhile, trading traffic in November contract call options may be the work of an investor throwing in the towel on hopes for a sharp near-term rally in the price of the underlying. Shares in EBAY slipped 2.75% to $30.80 by 11:30 am in New York. Volume in eBay’s options is heaviest at the Nov. $29 strike, where it appears one trader purchased around 6,000 puts for an average premium of…
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Wells Fargo Weekly Puts In Play As Financials Retreat

Today’s tickers: WFC, EQIX & TMO

WFC - Wells Fargo & Co. – Highly anticipated third-quarter earnings released from JPMorgan this morning knocked financials off what had started to look like a possible road to recovery. Shares in Wells Fargo, set to reveal its own performance for the third quarter ahead of the opening bell on Monday, fell 4.3% to $25.80 by 12:20 pm EDT. Put buyers burst onto the scene straight out of the gate on Thursday. Investors chomping at the bit for downside protection are snapping up puts that could have been purchased yesterday for a fraction of the present cost. Bearish action in the weeklys is heaviest at the Oct. ’14 $26 strike, where more than 12,000 now in-the-money puts changed hands against open interest of 3,465 contracts. It looks like more than 8,000 of the puts were purchased for an average premium of $0.39 a-pop by midday on Wall St. The premium required to buy the puts at the tail-end of Wednesday’s session ranged between $0.12 and $0.15 per contract. Investors are trading more than two put options on Wells Fargo this afternoon for each single call option in action on the stock today. Options implied volatility on WFC, which had come off earlier in the week, currently stands 9.7% higher on the day at 49.3%.

EQIX - Equinix, Inc. – Fresh prints in Equinix call options suggest one strategist is positioned for the price of the underlying to realize substantial, albeit limited, gains through expiration day in November. The ratio call spread initiated on the provider of network neutral data center services may be a bullish bet on the stock ahead of the company’s third-quarter earnings report on October 26. Shares in Equinix currently trade 0.75% lower on the day at $94.16. It looks like the…
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Big Payday for Pre-Earnings Put Buyer on RIMM

Today’s tickers: RIMM, TMO, CNO & PIP

RIMM - Research In Motion Ltd. – Ouch. Shares in the BlackBerry maker plunged 23.35% today to an intraday- and four-year low of $27.08 following the release of worse-than-anticipated first-quarter earnings on Thursday after the close. Ongoing concerns regarding RIMM’s ability to stay competitive in the smartphone market coupled with the company’s second revision lower to earnings estimates for the full year were reason enough for investors to punish the stock. Options volume on Research In Motion is greater than 565,000 contracts as of 1:05pm in New York. Puts are trading roughly 1.75 times to each single call option in play this afternoon. Trading traffic is heaviest in June contract options expiring today, while weekly options expiring next Friday generated interest, as well. Nearer-term contracts are certainly the most popular today, but traders are also generating substantial volume in longer-dated options. The largest single print in options on the stock thus far in the session appears to be the work of one strategist profiting from RIMM’s pain. It looks like the investor purchased roughly 30,000 puts at the January 2012 $35 strike for a premium of $4.80 on Wednesday. The nose-dive in the price of the underlying stock sent premium on those puts flying, and it appears the trader sold the position for $7.80 a-pop within the first 25 minutes of the opening bell this morning. In roughly 48 hours, the put buyer has banked net profits of $3.00 per contract on the position, or total gains of approximately $9 million. Next, it looks like the investor extended bearish sentiment on the stock by purchasing another chunk of around 30,000 puts at the lower January 2012 $30 strike for a premium of $4.76 each. The fresh lot of puts position the trader to profit should shares in RIMM trade beneath the effective breakeven price of $25.24 at expiration next year. Of course, the put buyer need not wait until expiration to take profits on position if…
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2010 Outlook – A Tale of Two Economies

"It was the best of times, it was the worst of times, it was the age of wisdom, it was the age of foolishness, it was the epoch of belief, it was the epoch of incredulity, it was the season of Light, it was the season of Darkness, it was the spring of hope, it was the winter of despair, we had everything before us, we had nothing before us, we were all going direct to Heaven, we were all going direct the other way--in short, the period was so far like the present period, that some of its noisiest authorities insisted on its being received, for good or for evil, in the superlative degree of comparison only." – Charles Dickens, 1859

Dickens famous novel (which was originally written as a weekly series in 31 installments) depicts life in the time of the French revolution but was also a parable, meant to warn the British aristocracy that they should not ingore the parallels to the social inequities that existed at the time in England.  Dickens warned the nobles that the seeds of revolution were planted through unjust acts and surely there would be a time of reaping yet to come

It is said that the French Revolution was sparked by outrage over a statement by the Queen Mary Antoinette who, when told that the peasants had no bread to eat, supposedly replied (she never actually said this) "Qu’ils mangent de la brioche" or "Then let them eat cake."  It's hard for us to imagine the impact of this statement in modern times but "peasants" were 90% of the population at the time and bread was 90% of what they ate, consuming 50% of the average family's income (people weren't silly enough to pay for housing back then – they just found a bit of land, bought some wood and nails and built their own homes).  Brioche was a luxury combination of bread enriched with flour and butter so the statement "Qu’ils mangent de la brioche" implies both lack of caring and cluelessness on the part of the Queen. 

The United States had what passes for a revolution between 2006 and 2008 as we threw out the Republicans and went with a Democrat-controlled government.  While the Bush administration, the Republican Congress and Fox News may have been as clueless as a French Queen to the plight of the people…
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Hi-Ho Long-Term Silver Bulls!

Today’s tickers: SLV, EWT, CL, BG, ILMN, COH, TMO, SPG, BG, ADSK & SLM

SLV – iShares Silver Trust ETF – A bull call spread in the January 2011 contract on the silver ETF today suggests shares of the SLV may rally significantly over the next year and two months time. Shares of the SLV are currently up 0.5% to $18.23. The silver-bull purchased a ratio call spread by buying 3,000 calls at the January 23 strike for an average premium of 1.93 apiece, and selling 6,000 calls at the higher January 30 strike for about 90 cents each. The net cost of the transaction is reduced to just 13 cents per contract. Shares of the fund must rally at least 27% before the investor breaks even at a price of $23.13. The trader stands ready to accumulate maximum potential profits of 6.87 per contract if the stock surges up to $30.00 by January 2011.

EWT – iShares MSCI Taiwan Index ETF – A massive bearish play on the Taiwan Index exchange-traded fund caught our attention this afternoon with shares of the EWT down 0.5% to $12.64 in late-day trading. It appears one investor established a bearish risk reversal in the December contract to position for potential share price declines through expiration. The trader sold 31,000 calls at the December 13 strike for 20 cents premium apiece, spread against the purchase of 31,000 puts at the lower December 12 strike for 20 cents each. The sale of the calls exactly offset the cost of buying the puts. Essentially the reversal is a “free” bet that shares of the EWT will trend lower ahead of the 2010. The investor responsible for the transaction is likely long shares of the underlying fund and seeking protection to the downside. If shares fall beneath $12.00, the value of the underlying position is protected. However, if shares of the fund rally by expiration, the trader risks having shares of the stock called from him at $13.00 apiece.

CL – Colgate-Palmolive Co. – Speculation that Reckitt Benckiser Group may acquire Colgate-Palmolive spurred an all-out call option feeding frenzy on CL today and lifted shares of the U.S. company to a new 52-week high of $86.33. Investors flooded the November and December contracts, scooping up call options to position for further upward movement in the price of the underlying. The sudden surge in demand for Colgate-Palmolive options…
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Chart School

Weekly Market Recap Nov 19, 2017

Courtesy of Blain.

Monday, Tuesday, and Friday saw the now usual “no volatility” days – while bears finally saw some action on Wednesday, bulls came right back Thursday with even bigger gains.  So while we have been cautious on the market for 3 weeks now all that has meant is consolidation in the market (granted the Russell 2000 has taken some hits).  For the week the S&P 500 fell 0.3% while the NASDAQ gained 0.5%. Economic news was light (we cover retail sales below), and earnings are coming to their tail end so we are in a bit of a news vacuum as negotiations about the tax reform bills will take the reigns.

Retail sales slowed in October, rising...



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Zero Hedge

"Worst Case Scenario" Looms As Merkel's "Jamaica Coalition" Collapses; EUR Sinks

Courtesy of ZeroHedge. View original post here.

We warned on Friday that German Chancellor Angela Merkel faced a 'night of the long knives' in her efforts to bring together the co-called 'Jamaica' coalition of four parties and after a desperate weekend of talks, Bloomberg reports Merkel's efforts at forming a coalition have failed meaning a second election looms and sending the euro sliding...



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Phil's Favorites

A Fiscal Disappointment - Of Tax Reform & Growth Fairies

Courtesy of Real Investment Advice.com

I encourage you to take a few minutes to review my previous analysis of the effectiveness of tax cuts on the economy.

The Committee For A Responsible Budget penned after the passage of the tax bill:

“The House approved debt-financed tax cuts based on predictions of magical...



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Digital Currencies

Bitcoin Soars To Record High Above $8000 After Mugabe Speech

Courtesy of ZeroHedge. View original post here.

With Bitcoin trading at $13,499 on Golix, the chaotic environment in Zimbabwe has spread to the global price of the cryptocurrency driving it beyond $8000 for the first time in history as President Mugabe fails to resign in a national address following the nation's coup.

It appears many Zimbabweans have found an alternate way to store/transfer wealth away from Mugabe's prying (and co...



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Biotech

The two obstacles that are holding back Alzheimer's research

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

 

The two obstacles that are holding back Alzheimer's research

Courtesy of Todd GoldeUniversity of Florida

Family members often become primary caregivers for loved ones with Alzheimer’s disease. tonkid/Shutterstock.com

Thirty years ago, scientists began to unlock the mysteries regarding the cause of Alzheimer’...



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Insider Scoop

10 Stocks To Watch For November 17, 2017

Courtesy of Benzinga.

Related AMAT 8 Stock's Moving In Thursday's After-Hours Session 12 Stocks To Watch For November 16, 2017 ...

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ValueWalk

Robert Mugabe Under House Arrest, Military Takes Control Of Zimbabwe

By Andjela Radmilac. Originally published at ValueWalk.

Zimbabwe’s head of state, 93-year-old Robert Mugabe, has been placed under house arrest after what seems to be a military coup took place in the nation’s capital.

By U.S. Navy photo by Mass Communication Specialist 2nd Class Jesse B. Awalt/Released [Public domain], via Wikimedia CommonsRobert Mugabe is safe

Following numerous reports on social media late Thursday night about the increased military presence in Harare, the capital of Zimbabwe, the country’s military took...



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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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