Posts Tagged ‘ABC’

Put Options Active On AmerisourceBergen

Today’s tickers: ABC, VNDA & DMND

ABC - AmerisourceBergen Corp – Shares in AmerisourceBergen are up 2.4% today and nearly 30% year to date, but options in play on the stock suggest one or more traders are bracing for the price of the underlying to potentially pull back during the next couple of months. Shares are currently hovering around $55.00 as of 12:45 p.m. ET, helped higher by an upgrade to ‘Outperform’ from ‘Market Perform’ at Leerink Swann yesterday. The most actively traded options on ABC are the Aug $50 puts, with upwards of 18,000 contracts traded thus far in the session against open interest of just 160 contracts. Time and sales data suggests much of the volume was purchased for an average premium of $0.88 each, thus positioning buyers to profit should shares in ABC drop more than 10% from the current level to breach the average breakeven point on the downside at $49.12 by August expiration. Shares in AmerisourceBergen last traded below $49.12 in March.

VNDA - Vanda Pharmaceuticals, Inc. – Far out of the money call buying on Vanda Pharmaceuticals today indicates some traders are positioning for shares in the name to extend gains in the near term, with the stock up more than 18% on the session at a new three-year high of $11.94 as of 12:30 p.m. ET. The stock moved up sharply today after hedge fund, Baker Bros. Advisors, LLC, disclosed in a 13G filing a 13.99% stake in the company, roughly double the number of shares held by the fund as of the end of March 2013. Shares in VNDA have rallied approximately 120% since mid-May. Options players betting the price of the underlying has more room to run ahead of June expiration snapped up several hundred calls at the Jun $13 and $14 strikes on Tuesday morning. It looks like traders picked up around 500 calls at the $13 strike for an average premium of $0.65 each, and purchased some 300 lots at the higher $14 strike at an average premium…
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Bearish Player Strangles Visa, Inc.

 Today’s tickers: V, ABC, HTHT & DAL

V - Visa, Inc. – The credit card issuer and global electronic payment services provider popped up on our scanners this morning after one bearish options strategist sold a strangle in the January 2011 contract. It looks like the investor responsible for the transaction sees Visa’s shares slipping lower, while still trading within a certain range through expiration next month. Shares in Visa were down less than 1.25% around the time the strangle was put on, but have since plunged more than 4.00% to $77.39 as of 12:55pm in New York. As of midday, it looks like this trader’s directional play enhanced with the sale of a strangle, is now working in his favor. The strangle-strategist sold 2,100 calls at the January 2011 $85 strike for a premium of $1.02 each, and sold the same number of puts at the January 2011 $65 strike at a premium of $0.23 apiece. Gross premium pocketed on the transaction amounts to $1.25 per contract. The strangle was tied to the sale of 42,000 shares of the underlying stock at $79.60 each, which makes sense given the 0.20 delta on the calls. The investor keeps the full premium on the trade as long as shares trade within the boundaries of the strike prices described through January 2011 expiration. The short stance in shares is a sign this individual expects Visa’s shares to fall over the next several weeks, while the sale of the Jan. 2011 $65 strike puts indicates that he does not see shares collapsing more than 15% to a new 52-week low. As with any short strangle, the investor may absorb losses if shares move against him. Losses on the strangle start to accumulate if Visa’s shares rally above the upper breakeven price of $86.25, or should shares slip beneath the lower breakeven point at $63.75, ahead of January expiration day. In hindsight, the strangle was nicely timed. Selling the same Jan. 2011 $65/$85 strangle now yields gross premium of $0.95 per contract versus the far richer $1.25 per contract enjoyed by this early-bird investor.…
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While You Weren’t Looking, Disney Got Cool Again

While You Weren’t Looking, Disney Got Cool Again

Courtesy of Joshua M. Brown, The Reformed Broker 

The House of Mouse has its swagger back, mostly thanks to its CEO Bob Iger

What follows will not be a analysis of Disney ($DIS) the stock, rather a look at why Disney is once again the coolest company in the media game.  Whether or not it’s worthy of investment is up to you.

Movies:  If there is a parent in America who doesn’t take their child to Toy Story 3 this summer, email me that parent’s contact info so I can alert Child Services.  The Pixar acquisition was the best thing Disney has done in 20 years.  Oh wait, they also bought Marvel, setting themselves up to capitalize on franchises like Iron man, Spider-Man, The Avengers etc. 

The studio also can mine their existing properties forever.  There’s a Tron remake coming out shortly and one can only imagine how many …
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Put Sellers Endorse AFLAC Rally

Today’s tickers: AFL, IYR, ENDP, ABC, GE, & DOW

AFL – The world’s largest seller of supplemental health insurance reported that second-quarter profits fell 35% on “larger-than-usual realized investment losses”. Despite the decline in earnings, options activity on the stock today revealed bullish sentiment by investors amid a more than 8% rally in shares to $38.34. Traders hoping for further upward momentum purchased 1,200 calls at the September 40 strike price for an average premium of 1.37 apiece. Call-buyers will profit if shares of AFL climb 8% higher and surpass the breakeven point at $41.37 by expiration. Additional bullish positioning was seen at the November 35 strike price where 5,000 puts were shed for 2.63 per contract. Investors short the put options receive premium in exchange for bearing the risk that shares decline by expiration. If the puts land in-the-money, traders would have shares of the underlying put to them at an effective price of $32.37. Otherwise, these put-sellers retain the full 2.63 premium. – AFLAC, Inc.

IYR – Shares of the U.S. real estate exchange-traded fund have moved nearly 4.5% higher during today’s trading session to stand at $36.14. Contrarian option traders flooded the ETF, despite the surge in shares, and drove the put-to-call ratio up to more than 19-to-1. The favored approach taken by bearish investors today was the plain-vanilla put spread. The first of two trades up for discussion involved the purchase of 3,000 puts at the September 36 strike price for a premium of 2.00 apiece spread against the sale of 3,000 puts at the lower September 33 strike for 85 cents each. The net cost of the trade amounts to 1.15 and yields maximum potential profits of 1.85 per contract if shares slip to $33.00 by expiration. A much larger put spread was established further out in the January 2010 contract. The trade may have been the work of an investor seeking downside protection on a long position in the underlying. Otherwise, the trader responsible for the spread is hoping to amass profits on bearish movement in the stock. The transaction involved the purchase of 40,000 puts at the January 30 strike price for 1.97 each, spread against the sale of 40,000 puts at the lower January 25 strike for an average premium of 77 cents per contract. The net cost amounts to 1.20 to the investor who will realize maximum gains of 3.80
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“Worthless” AIG Has Option Bears’ Claws All Over It

Today’s tickers: AIG, ABC, RGS, & CSCO

AIG – Investor uncertainty over the fate of the insurance company surged this morning following extremely bearish reports from analysts at Citigroup. One analyst at Citi reported “a seventy percent chance that the equity at AIG is zero”, sending shares of the insurer lower by more than 21% to $10.31. Option traders looking to reel in profits on the rapid erosion in price today were seen gobbling up bearish put options in the near-term July contract. Investors expecting continued declines targeted the nearly at-the-money July 10 strike price and bought more than 4,800 puts for an average premium of 1.05 each. These traders will begin to accrue gains if the market price of the stock falls below the breakeven point at $8.95 by expiration. More pessimistic individuals purchased puts some 2,100 times at the July 7.5 strike for 39 cents each. Perhaps these traders see shares slipping to the current 52-week low on the stock of 6.60 attained back on March 6, 2009. Finally, traders expecting shares of the behemoth to halve by expiration, purchased 1,000 put options at the July 5.0 strike for an average premium of 13 cents per contract. Investors long the 5.0 strike puts breakeven beneath a share price of $4.87. Option implied volatility soared this morning from yesterday’s closing reading of 167% up to more than 200% at times today. – American International Group, Inc.

ABC – The drug distribution company appeared on our ‘hot by options volume’ market scanner today after one investor initiated a bullish reversal in the August contract. Shares of ABC are off slightly less than 1% to stand at $17.78. Hoping for upward movement in the price of the underlying by expiration next month, the optimistic investor looked to the August 15 strike price to sell 5,000 puts for 15 cents apiece which he spread against the purchase of 5,000 calls at the higher August 20 strike for 20 cents each. The transaction cost the trader a nickel per contract. ABC shares must rally 13% from the current price in order for the investor to begin to amass profits at the breakeven point of $20.05. We note that the market price of ABC has not breached $20.00 since September 15, 2008. – AmeriSource Bergen Corporation

RGS – The owner and operator of hair franchises and retail product salons has experienced
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ValueWalk

The Last Gold Rush...Ever!

By Jacob Wolinsky. Originally published at ValueWalk.

Excerpt from The Last Gold Rush…Ever! courtesy of Post Hill Press

Q3 2020 hedge fund letters, conferences and more

From The Gold Dollar Standard To The Mere Dollar Standard

Few realize that today’s US dollar is the third iteration of the country’s currency in less than a hundred years. (It is no consolation that other countries have done worse. Between 1986 and 1994, Bra...



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Phil's Favorites

Rabobank: "A Dangerous Moment"

Courtesy of ZeroHedge

By Michael Every of Rabobank

The markets have started a new week of trading in risk off mode (when this note was heading to press) amid fading expectations that the US Congress will pass another fiscal package. With just 8 days left until the presidential election, both sides may not have a sufficient incentive to reach an agreement. Even if there is no deal in the coming days, a fiscal stimulus is still likely to be agreed after the election to support businesses and households as the US is struggling to contain the coronavirus pandemic. In fact, President Trump’s chief of staff openly admitted that the US is “not going to control” the pandemic and instead will focus on “proper mitigation factors”, such as vaccines and treatments. Former Vice President Biden s...



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Zero Hedge

Rabobank: "A Dangerous Moment"

Courtesy of ZeroHedge

By Michael Every of Rabobank

The markets have started a new week of trading in risk off mode (when this note was heading to press) amid fading expectations that the US Congress will pass another fiscal package. With just 8 days left until the presidential election, both sides may not have a sufficient incentive to reach an agreement. Even if there is no deal in the coming days, a fiscal stimulus is still likely to be agreed after the election to support businesses and households as the US is struggling to contain the coronavirus pandemic. In fact, President Trump’s chief of staff openly admitted that the US is “not going to control” the pandemic and instead will focus on “proper mitigation factors”, such as vaccines and treatments. Former Vice President Biden s...



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Biotech/COVID-19

An epidemiologist explains the new CDC guidance on 15 minutes of exposure and what it means for you

 

An epidemiologist explains the new CDC guidance on 15 minutes of exposure and what it means for you

A girl wearing a mask walks down a street in the Corona neighborhood of Queens on April 14, 2020 in New York City. Johannes Eisele/AFP via Getty Images

Courtesy of Ryan Malosh, University of Michigan

The Centers for Disease Control and Prevention has new guidance clarifying what exactly “close cont...



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Politics

How to track your mail-in ballot

 

How to track your mail-in ballot

Make sure you know when your ballot is arriving, and whether it’s been accepted for counting back at your election office. erhui1979/DigitalVision Vectors via Getty Images

Courtesy of Steven Mulroy, University of Memphis

Many voters who want to participate in the election by mail are concerned about when they’ll receive their ballot – and whether it will get back in time to be counted.

The pandemic has caused interest in ...



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Kimble Charting Solutions

Doc Copper/Gold Indicator Breaking Out Again?

Courtesy of Chris Kimble

The Doc Copper/Gold ratio broke above a 2-year falling channel back in 2016 at (1). Following this breakout, it rallied for the next year. During that year, Copper related assets did very well!

The ratio peaked in the summer of 2018 and created a series of lower highs over the past two years.

The strength of late has the ratio attempting to break above dual resistance at (2).

If the ratio continues to push higher and succeeds in breaking out, Copper, Basic Materials (XLB), and ...



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Chart School

Dow Gann Angle Update

Courtesy of Read the Ticker

Time to see what happens to the Dow post US elections.

The Dow Gann Angle Target 3 (from 2007 top) is on the table, and what a ride that will be. The FED went BRRRRR is all the fundamental news you need to know. Gann angles are very good tool to see how the masses are pushing price.


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The last two US elections saw Bitcoin and the DOW rally well for 6 months, due to stimulus. The most bearish 2020 US Election case for the markets is a Biden win with the Senate and Congress controlled by the Democrats, somehow this blog feels that is very unlikely. So what could go wrong!


...

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Digital Currencies

Bitcoin: the UK and US are clamping down on crypto trading - here's why it's not yet a big deal

 

Bitcoin: the UK and US are clamping down on crypto trading – here's why it's not yet a big deal

Where there’s a bit there’s a writ. Novikov Aleksey

Courtesy of Gavin Brown, University of Liverpool

The sale and promotion of derivatives of bitcoin and other cryptocurrencies to amateur investors is being banned in the UK by the financial regulator, the Financial Conduct Authority (FCA). It is a...



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Mapping The Market

COVID-19 Forces More Than Half of Asset Management Firms to Accelerate Adoption of Digital Marketing Technology

By Jacob Wolinsky. Originally published at ValueWalk.

There is no doubt that the use of technology to support client engagement initiatives brings both opportunities and threats but this has been brought into sharp focus this year with the COVID-19 pandemic.

The crisis has brought to the fore the need for firms to enable flexibility in client engagement – the expectation that providers will communicate to clients on their terms, at their speed and frequency and on their preferred channels, is now a given. This is even more critical when clients are experiencing unparalleled anxiety from both market conditions and their own personal circumstances.

...

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The Technical Traders

Adaptive Fibonacci Price Modeling System Suggests Market Peak May Be Near

Courtesy of Technical Traders

Our Adaptive Fibonacci Price Modeling system is suggesting a moderate price peak may be already setting up in the NASDAQ while the Dow Jones, S&P500, and Transportation Index continue to rally beyond the projected Fibonacci Price Expansion Levels.  This indicates that capital may be shifting away from the already lofty Technology sector and into Basic Materials, Financials, Energy, Consumer Staples, Utilities, as well as other sectors.

This type of a structural market shift indicates a move away from speculation and towards Blue Chip returns. It suggests traders and investors are expecting the US consumer to come back strong (or at least hold up the market at...



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Lee's Free Thinking

Texas, Florida, Arizona, Georgia - The Branch COVIDIANS Are Still Burning Down the House

 

Texas, Florida, Arizona, Georgia – The Branch COVIDIANS Are Still Burning Down the House

Courtesy of Lee Adler, WallStreetExaminer 

The numbers of new cases in some of the hardest hit COVID19 states have started to plateau, or even decline, over the past few days. A few pundits have noted it and concluded that it was a hopeful sign. 

Is it real or is something else going on? Like a restriction in the numbers of tests, or simply the inability to test enough, or are some people simply giving up on getting tested? Because as we all know from our dear leader, the less testing, the less...



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Insider Scoop

Economic Data Scheduled For Friday

Courtesy of Benzinga

  • Data on nonfarm payrolls and unemployment rate for March will be released at 8:30 a.m. ET.
  • US Services Purchasing Managers' Index for March is scheduled for release at 9:45 a.m. ET.
  • The ISM's non-manufacturing index for March will be released at 10:00 a.m. ET.
  • The Baker Hughes North American rig count report for the latest week is scheduled for release at 1:00 p.m. ET.
...

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Promotions

Free, Live Webinar on Stocks, Options and Trading Strategies

TODAY's LIVE webinar on stocks, options and trading strategy is open to all!

Feb. 26, 1pm EST

Click HERE to join the PSW weekly webinar at 1 pm EST.

Phil will discuss positions, COVID-19, market volatility -- the selloff -- and more! 

This week, we also have a special presentation from Mike Anton of TradeExchange.com. It's a new service that we're excited to be a part of! 

Mike will show off the TradeExchange's new platform which you can try for free.  

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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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