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…
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.
The present global financial ‘crisis’ began in 2007-8. It is not nearly over. And that simple fact is a problem. Not because of the life-choking misery it inflicts on the lives of millions who had no part in its creation, but because the chances of another crisis beginning before this one ends, is increasing. What ‘tools’ - those famous tools the central bankers are always telling us they have – will our dear leaders use to tackle a new crisis when all those tools are already being used to little ...
With yesterday's gaming of the FOMC statement and press conference behind us, the S&P 500 got back into the business of setting new highs. Today's half-percent gain, 0.49% to be precise, set a record close just below its intraday high, which was also a record.
The yield on the 10-year Note closed at 2.63%, up bp from yesterday's close. It is now 29 bps above its 2014 low.
Here is a daily chart of the index. Volume was close to its 50-day moving average.
Here is the SPY ETF. After yesterday's Fed-triggered trading game, volume returned to the vicinity of its average.
For a longer-term perspective, here is a pair of charts based on daily closes starting with the all-time high prior to the Great Recession.
Thanks to the money printing mania of the world’s central bankers, the Wall Street casino has gone global. Accordingly, mindless speculation and momentum chasing have reached new absurdities, as exemplified by the red hot roster of international high flyers below.
The financial data for the top name on the list, Twitter, is all that is required to remind us that once again markets are trading in the nosebleed section of history, rivaling even the madness of March 2000. Currently, Twitter (TWTR) is valued at $31 billion.That’s 18X revenue, but the catch is that the revenue in question is it’s lifetime...
Administradora de Fondos de Pensiones Provida S.A. (PVD) shares will not be trading on the NY Stock Exchange after today. Tomorrow, shares will be harder to sell. Strangely, I wasn't able to find information on the internet, but Paul just sent me a copy of the email he received from Interactive Brokers.
We're selling PVD out of the Virtual Portfolio today at $87.18.
From: Interactive Brokers dated July 18, 2014
Holders of AFP Provida S.A. American Depository Receipts (ADR) are advised that the Company has elected to terminate the Deposit Agreement effective 2014-09-18.
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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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...
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...
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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