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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Zero Hedge

Three Shot In Times Square Including Four-Year-Old Girl

Courtesy of ZeroHedge View original post here.

New York's Times Square was temporarily cordoned off on Saturday after at least three people were injured in a shooting, according to NBC News, citing police. The suspect, pictured below, was caught on camera.

Earlier today, 3 people were shot in @TimesSquareNYC, including a 4-year-old child.

Help your @NYPDDetectives identify the man pictured below — they want to talk him about the incident.

Call...



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Phil's Favorites

How big is this crypto boom?

 

How big is this crypto boom?

Courtesy of John Hempton, Bronte Capital

Google Trends doesn't predict stock market rallies, well somtimes it does. But more likely it is coincident with them, the suckers at the end of the boom being the biggest (yet) wave of retail buyers.

Here is a five year trend for the phrase "how to buy stocks" for the USA.

 

It has two peaks, one at the height of t...



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Digital Currencies

How big is this crypto boom?

 

How big is this crypto boom?

Courtesy of John Hempton, Bronte Capital

Google Trends doesn't predict stock market rallies, well somtimes it does. But more likely it is coincident with them, the suckers at the end of the boom being the biggest (yet) wave of retail buyers.

Here is a five year trend for the phrase "how to buy stocks" for the USA.

 

It has two peaks, one at the height of t...



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Biotech/COVID-19

India COVID crisis: four reasons it will derail the world economy

 

India COVID crisis: four reasons it will derail the world economy

India is the fifth largest economy in the world. Deepak Choudhary/Unsplash

Courtesy of Uma S Kambhampati, University of Reading

The second wave of the pandemic has struck India with a devastating impact. With over 300,000 new cases and 3,000 deaths across the country each day at present, the total number of deaths has just passed the 200,000 mark – that’s about one in 16 of all COVID deaths across the world....



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Chart School

Yellen can not stop the dollar decline

Courtesy of Read the Ticker

Printing money results in a lower currency, so long as the currency does not fall too fast.

Previous Post: US Dollar Forecast - Weakness

Here are the very strong fundamentals for a lower US dollar: 

(a) US inflation exploding.
(b) Massive US twin deficits.
(c) Better conditions in Europe.

However French election worries in 2022 Q1 and Q2 may provide US dollar strength (via European weakness) after Christmas, but this strength may come after a low in the DXY near $84.  

It looks like Yellen knows a down swing in the US dollar is near because ...

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Politics

If China's middle class continues to thrive and grow, what will it mean for the rest of the world?

 

If China's middle class continues to thrive and grow, what will it mean for the rest of the world?

Over the past few decades, hundreds of millions of Chinese citizens have become part of the middle class. AP Photo/Ng Han Guan

Courtesy of Amitrajeet A. Batabyal, Rochester Institute of Technology

China’s large and impressive accomplishments over the past four decades have spurred scholars and politicians to debate whether the decline of the West – including the ...



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ValueWalk

Managing Investments As A Charity Or Nonprofit

By Anna Peel. Originally published at ValueWalk.

Maintaining financial viability is a constant challenge for charities and nonprofit organizations.

Q4 2020 hedge fund letters, conferences and more

The past year has underscored that challenge. The pandemic has not just affected investment returns – it’s also had serious implications for charitable activities and the ability to fundraise. For some organizations, it’s even raised doubts about whether they can continue to operate.

Finding ways to generate long-term, sustainable returns for ...



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Kimble Charting Solutions

Will Historic Selloff In Treasury Bonds Turn Into Opportunity?

Courtesy of Chris Kimble

Long-dated treasury bonds have been crushed over the past year, sending ETFs like TLT (20+ Year US Treasury Bond ETF) spiraling over 20%.

Improving economy? Inflation concerns? Perhaps a combination of both… interest rates have risen sharply and thus bond prices have fallen in historic fashion.

Today’s chart looks at $TLT over the past 20 years. As you can see, the recent decline has truly been historic. $TLT’s price has swung from historically overbought highs to oversold lows.

At present, the long-dated bond ETF ($TLT) is trading 7.8% below its 200-...



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Mapping The Market

Suez Canal: Critical Waterway Comes to a Halt

 

Suez Canal: Critical Waterway Comes to a Halt

Courtesy of Marcus Lu, Visual Capitalist

The Suez Canal: A Critical Waterway Comes to a Halt

On March 23, 2021, a massive ship named Ever Given became lodged in the Suez Canal, completely blocking traffic in both directions. According to the Suez Canal Authority, the 1,312 foot long (400 m) container ship ran aground during a sandstorm that caused low visibility, impacting the ship’s navigation. The vessel is owned by Taiwanese shipping firm, Evergreen Marine.

With over 2...



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Promotions

Phil's Stock World's Weekly Webinar - March 10, 2021

Don't miss our latest weekly webinar! 

Join us at PSW for LIVE Webinars every Wednesday afternoon at 1:00 PM EST.

Phil's Stock World's Weekly Webinar – March 10, 2021

 

Major Topics:

00:00:01 - EIA Petroleum Status Report
00:04:42 - Crude Oil WTI
00:12:52 - COVID-19 Update
00:22:08 - Bonds and Borrowed Funds | S&P 500
00:45:28 - COVID-19 Vaccination
00:48:32 - Trading Techniques
00:50:34 - PBR
00:50:43 - LYG
00:50:48 - More Trading Techniques
00:52:59 - Chinese Hacks Microsoft's E...



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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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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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