UA - Under Armour, Inc. – Options on the athletic apparel maker are more active than usual today, with volume of 11,300 contracts running more than four times the stock’s 90-day average options volume of 2,475 contracts. Shares in Under Armour are down 0.80% at $98.19 in early-afternoon trade, slipping Tuesday after hitting a new all time high of $99.35 on Monday. Options traders exchanging around 2.5 calls on the name for each single put in play so far in the session appear to be positioning for the price of the underlying to continue to secure fresh highs in the next few weeks. In- and out-of-the-money calls in the front month are seeing the most action, with the April $95 and $97.5 strike calls trading upwards of 1,100 times each. Traders positioning for fresh record highs in the price of the stock snapped up more than 500 calls at each of the April $105 and $110 strikes, paying premiums of $1.00 and $0.33 apiece, respectively. Call buyers may profit at expiration should Under Armour’s shares post sharp gains prior to the Company’s first-quarter earnings report on April 24th. The April contract calls expire several days ahead of UA’s earnings release. Traders long the call options may profit at April expiration as long as Under Armour’s shares surge 6.7% and 11.1% to top average breakeven prices of $106.00 and $110.33, respectively.
AIG - American International Group, Inc. – Shares in AIG have mostly traded within the range of $20.00 to $30.00 during the most recent six month period. Activity in long-dated call options on the insurer, however, suggests one strategist is positioning for the price of the underlying to break out strongly to the upside at some point during the next ten months. Shares…
ORCL – Oracle Corp. – Shares of the software company rallied as much as 1.45% this afternoon to touch an intraday high of $25.75, which is just $0.88 below the stock’s current 52-week high of $26.63. Options activity on Oracle is quite active ahead of the firm’s first-quarter earnings report scheduled for release after the closing bell tomorrow evening. One options investor hoping to see Oracle’s shares extend gains through the start of 2011 initiated a delta neutral hedge in the January 2011 contract. It looks like the trader purchased a total of 12,500 puts at the January 2011 $21 strike for a premium of $0.45 apiece, tied to the purchase of a large number of ORCL shares for $25.65 each, on a 0.15 delta. The long position in shares suggests perhaps that the investor expects tomorrow’s earnings report to lift shares and/or foresees continued bullish movement in the price of the underlying stock over the next 5 months. But, the put options serve as a type of insurance policy for the trader in case Oracle’s shares falter going forward. Options investors exchanged more than 77,800 contracts on the software maker by 3:10 pm ET.
DV – DeVry, Inc. – The for-profit operator of colleges and universities popped up on our ‘hot by options volume’ marker scanner after one investor initiated a call spread in the November contract. DeVry’s shares fell as much as 2.9% in the first half of the trading session to touch down at an intraday low of $41.25, but made a strong recovery in early afternoon trading, and currently stand 1.25% higher on the day at $43.01 as of 12:52 pm ET. The investor populating the November contract wisely established a contrarian debit call spread on the stock when shares were still in the red. The options strategist purchased 2,000 calls at the November $45 strike at a premium of $2.00 each, and sold the same number of calls at the higher November $50 strike for premium of $0.65 apiece. Net premium paid to purchase the spread amounts to $1.35 per contract. The investor is positioned to make money if DeVry’s shares rally another 7.8% over the current price of $43.01 to surpass the effective breakeven point at $46.35 by expiration day in November. Maximum potential profits of $3.65 per contract are available to the call-spreader if…
CRM – Salesforce.com, Inc. – A large-volume ratio call spread on the provider of customer relationship management services this afternoon implies one options investor expects CRM shares to rally significantly by August expiration. Salesforce.com’s shares increased as much as 1.83% today to reach a new 52-week high of $81.23 during the current session. According to a Reuters report this weekend, analysts at Deutsche Bank maintain their ‘buy’ rating on the stock and raised their share price target on CRM to $110 from $100. The optimistic options trader populating the stock this afternoon purchased 13,000 calls at the August $85 strike for a premium of $5.00 apiece, and sold 26,000 calls at the higher August $100 strike for $1.05 each. Net premium paid by the investor for the transaction amounts to $2.90 per contract. Maximum available profits of $12.10 per contract accumulate for the trader if shares of the underlying stock surge at least 23% from the new 52-week high of $81.23 to reach $100.00 by August expiration. The investor starts to make money as long as CRM’s shares trade above the effective breakeven point at $87.90 ahead of expiration day.
CPB – Campbell Soup Co. – Options traders anticipating a sharp increase in the price of Campbell Soup Co.’s shares by November expiration scooped up record numbers of call options on the global manufacturer and marketer of branded convenience food products today. CPB’s shares traded 0.25% higher in late afternoon trading to $35.45, which is just off their current 52-week high of $35.80 (attained back on December 2, 2009). Campbell-bulls purchased approximately 5,200 calls at the November $40 strike for an average premium of $0.55 per contract. Investors holding these contracts are prepared to profit should Campbell’s share price jump 14.4% from the current price to exceed the average breakeven point to the upside at $40.55. Investors exchanged roughly 5,925 option contracts on CPB during the trading session, which represents 56% of the total existing open interest on the stock of 10,567 lots.
VALE – Vale S.A. – Diverse bullish options strategies employed on Brazilian metals and mining company, Vale S.A., today indicates investors are expecting the price of the iron-ore maker’s shares to appreciate in the next few months. Vale’s shares rallied 1.20% at the start of the session to an intraday high – and new…
"War is merely the continuation of policy by other means." – Carl von Clausewitz
The political elites, Federal Reserve and special interests that really run the show hiding behind Congress and the president of either party in America's closed two-party monopoly seem to be running scared in many regards. They rightly have many fears for their political future as well as the profits and survival of the major international corporations and banking interests that support the current political leadership and regime.
Here's a brief update from "Ellen" who lives in Lviv, a city in Western Ukraine. Hello Mish
We have quite a panic over the collapse of currency. People buy any food product that can be stored. Everyone wants to rid of Hryvnia. We haven't seen anything like this since 1991 when the Soviet Union collapsed. Stores are empty.
It is hard to say what exchange rate this days, somewhere between 34 and 42
There were riots in downtown today. A group of protesters was beaten up by police. They marched through downtown and gave a last warning to government officials. Next time they said they will shoot some officials.
Ukraine is on a brink, but the West is not in a hurry to give us money. Perhaps they want something. Maybe they know the money will end up with corrupt officials who will steal it.
The markets had much to consider this week, most notably Fed Chair Yellen's semi-annual congressional testimony on Tuesday and Thursday and today's updates on Consumer Sentiment and GDP. The S&P 500 showed relatively little reaction to any of this week's economic events, trading within a microscopic 0.79% range from its intraday low on Monday to its intraday high on Wednesday (which was also its record high). Today's -0.30% closing loss trimmed the February monthly gain to a whopping 5.49%, the biggest monthly gain since October of 2011, 40 months ago, when the index rose 10.77%.
Chris Kimble's chart for KOL shows a recently beaten down ETF struggling to pull itself up from the ashes. As the chart shows, KOL has recently drifted down to levels not seen since the financial crisis of 2008-9.
Bouncing or recovering with energy in general, coal prices appear to have stabilized in the short-term. Reflecting coal prices, KOL has traded between $13.45 and $19.75 during the past year. Bouncing from lows, KOL traded around 2% higher yesterday from $14.26 to $14.48 on high volume. It traded another 3.6% higher in after hours to $15, possibly related to ...
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Stocks are hitting new highs across the board, even though earnings reports have been somewhat disappointing. Actually, to be more precise, Q4 results have been pretty good, but it is forward guidance that has been cautious and/or cloudy as sales into overseas markets are expected to suffer due to strength in the US dollar. Healthcare and Telecom have put in the best results overall, while of course Energy has been the weakling. Still, overall year-over-year earnings growth for the S&P 500 during 2015 is expected to be about +8%.
In this weekly update, I give my view of the current market environment, offer a technical analysis of the S&P 500 cha...
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PSW Members - well, what a year for biotechs! The Biotech Index (IBB) is up a whopping 40%, beating the S&P hands down! The healthcare sector has had a number of high flying IPOs, and beat the Tech Sector in total nubmer of IPOs in the past 12 months. What could go wrong?
Phil has given his Secret Santa Inflation Hedges for 2015, and since I have been trying to keep my head above water between work, PSW, and baseball with my boys...it is time that something is put together for PSW on biotechs in 2015.
Cancer and fibrosis remain two of the hottest areas for VC backed biotechs to invest their monies. A number of companies have gone IPO which have drugs/technologies that fight cancer, includin...
Stocks got off to a rocky start on the first trading day in December, with the S&P 500 Index slipping just below 2050 on Monday. Based on one large bullish SPX options trade executed on Wednesday, however, such price action is not likely to break the trend of strong gains observed in the benchmark index since mid-October. It looks like one options market participant purchased 25,000 of the 31Dec’14 2105/2115 call spreads at a net premium of $2.70 each. The trade cost $6.75mm to put on, and represents the maximum potential loss on the position should the 2105 calls expire worthless at the end of December. The call spread could reap profits of as much as $7.30 per spread, or $18.25mm, in the event that the SPX ends the year above 2115. The index would need to rally 2.0% over the current level...
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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