Posts Tagged ‘ACHN’

Achillion Options In Focus As Shares Continue To Run

Shares in Achillion Pharmaceuticals (Ticker: ACHN) are spiking for a second consecutive session on Tuesday, up more than 60% today to $6.89, and adding to Monday’s near 60% run from $2.87 as of the close on Friday up to $4.25 at yesterday’s close. Shares in the name jumped Monday on speculation the maker of experimental drugs could be a takeover target following news that Merck & Co. (Ticker: MRK) has agreed to purchase Idenix Pharmaceuticals Inc. (Ticker: IDIX) for $3.85 billion. Achillion continued to rally on Tuesday after the company said in a press release that the U.S. Food and Drug Administration has removed the clinical hold on sovaprevir, a drug being developed for the potential treatment of chronic hepatitis C viral infection (HCV), to allow the company to conduct trials in patients with HCV. Merck paid a big premium for Idenix, buying the company for $24.50 a share in cash versus Friday’s closing price for IDIX of $7.22, to acquire Idenix’s lead drug, IDX21437, to treat hepatitis C.

Some traders speculating that shares in Achillion may continue to push higher looked to the options market to position for further upside. Bullish trades initiated yesterday have in some cases resulted in significant overnight profits. In particular, buyers of around 2,000 of the Jun 5.0 strike calls on Monday paid an average asking price of $0.22 apiece for those contracts. Today, the Jun 5.0 strike calls are changing hands at $1.85 each as of 11:30 a.m. ET. Traders looking for fresh highs appear to be targeting the Jul 7.0 strike calls, with upwards of 2,100 contracts in play at present versus open interest of just 11 contracts. Time and sales data suggests most of the volume was purchased at an average premium of $1.10 apiece during the first half of the session. Buyers of the Jul 7.0 strike calls stand ready to profit at expiration next month in the event that ACHN shares rally another 22% over the current price of $6.65 to exceed the average breakeven point at $8.10.

Overall options volume on Achillion is well above normal levels, with nearly 24,000 contracts traded on the stock versus average daily volume of around 220 contracts. Both puts and calls are active on ACHN as evidenced by the put/call ratio of 1.0 as of the time of this writing.

Chart – Achillion shares up 140% this week


Tags:




Options See Little Hope For Near-Term Dreamworks Rally

Today’s tickers: DWA, GPS, SM & ACHN

DWA - Dreamworks Animation SKG, Inc. – The creator of family-favorite feature films such as the Shrek movies and more recently, Puss in Boots, popped up on our ‘hot by options volume’ market scanner this morning after a large block of call options changed hands in the December contract. It looks like the investor responsible for the transaction may be writing the calls, perhaps in the expectation that shares in Dreamworks Animation are unlikely to increase much from their current level. Shares in DWA currently trade 0.90% lower on the day at $17.24 as of 12:45 PM in New York. The investor appears to have sold 6,000 calls outright at the Dec. $17.5 strike for a premium of $0.75 per contract. The trader walks away with the full amount of premium in hand, a total of around $450,000, as long as shares in Dreamworks settle below $17.50 at expiration next month. While the calls do not appear to be tied to any simultaneous transaction in the underlying stock, it is possible the investor is already long the stock and selling covered calls. However, if the trader is naked short the call options, he could face potentially devastating losses in the event that shares spike higher in the next four weeks. In the latter scenario, the investor starts losing money on the position if shares rally 5.9% to surpass the effective breakeven price of $18.25 at expiration.

GPS - The Gap, Inc. – Shares in the operator of the Gap and Banana Republic fell 3.6% to $18.56 on Friday following the San Francisco, California-based company’s third-quarter earnings report after the final bell on Thursday. The largest U.S. clothing retailer earned $0.38 a share in the quarter, which beat average analyst expectations of $0.36 a share, however, the company reported sales of $3.58 billion, missing the consensus estimate of $3.59 billion. One bearish options trader appears to be positioning for the price of the underlying to continue to head south for the winter. It looks like the investor purchased a 1,500-lot Dec. $15/$18 put spread for an average net premium of $0.53 per contract. The strategist may profit at expiration in the event that GPS shares decline another 5.9% to breach the average breakeven price of $17.47. Maximum potential profits of $2.47 per contract are available to the trader should shares in Gap, Inc. drop another 19.2% to trade…
continue reading


Tags: , , ,




 
 
 

Zero Hedge

FAA Slaps Boeing 737 Max With New Safety Directive For Faulty Control Switches

Courtesy of ZeroHedge View original post here.

Since returning the Boeing 737 Max to the skies earlier this year, it seems like the Federal Aviation Administration (FAA) discovers a new issue with the planes every month. 

According to Reuters, the FAA issued a new safety directive Thursday for all 737 Max airplanes and other 737 variants to address a problem with decreased fire suppression capabilities.

...

more from Tyler

Phil's Favorites

PhilStockWorld's LIVE Weekly Webinar 08-04-2021

 

 

PSW's LIVE Weekly Webinar 08-04-2021

 

Major Topics:

00:00:22 - Checking on the Market
00:02:05 - USD | Currencies
00:02:57 - Indices
00:04:15 - Crude Oil WTI
00:12:59 - Price of Gas in California
00:15:58 - RCL
00:27:08 - AMC
00:28:27 - COVID 19 Update
00:44:50 - PFE
00:57:16 - ISX
01:01:44 - DIS
01:10:49 - AMGN | Cruise Ships
01:14:09 - TROX
01:21:03 - HPQ | AAPL | MSFT
01:26:29 - HBI
01:36:36 - LNG | M | PFE | VIAC | WBA | INTC
01:45:49 - SPWR

 

...



more from Ilene

Chart School

RTT browsing latest..

Courtesy of Read the Ticker

Please review a collection of WWW browsing results. The information here is delayed by a few months, members get the most recent content.



Date Found: Saturday, 13 March 2021, 06:40:57 PM

Click for popup. Clear your browser cache if image is not showing.


Comment: @crossbordercap Peak liquidity already evidence from our GLI momentum signal...has 6-9 month lead-time on markets and 15-20 months on economies



Date Found: Friday, 19 March 2021, 10:55:22 PM

Click for popup. Clear your browser cache if image is not showing.


Comment: ...



more from Chart School

Biotech/COVID-19

Americans Tend To Stick To Their Stance On COVID-19 Vaccines

 

Source: Bloomberg, via ZeroHedge

Courtesy of Felix Richter, Statista

As U.S. health officials and the Biden administration desperately try to kickstart the stalling rollout of COVID-19 vaccines in face of the highly contagious Delta variant, President Biden...



more from Biotech/COVID-19

Digital Currencies

What are stablecoins? A blockchain expert explains

 

What are stablecoins? A blockchain expert explains

Stablecoins promise more stability than other cryptocurrencies. DenBoma/iStock via Getty Images

Courtesy of Stephen McKeon, University of Oregon

Stablecoins are a type of cryptocurrency linked to an asset like the U.S. dollar that doesn’t change much in value.

The majority of the dozens of stablecoins that currently exist use the dollar as their benchm...



more from Bitcoin

Politics

Bipartisan infrastructure deal begins to address consequences of a warming planet: 3 essential reads

 

Bipartisan infrastructure deal begins to address consequences of a warming planet: 3 essential reads

A lot of coastal infrastructure wasn’t designed for the frequent flooding and crashing waves brought by rising seas. Jeffrey Greenberg/Universal Images Group via Getty Images

Courtesy of Bryan Keogh, The Conversation and Stacy Morford, The Conversation

...



more from Politics

Promotions

Free Webinar Wednesday: July 7, 1:00 pm EST

 

Don't miss Phil's Webinar on July 7 at 1:00 pm EST. It's FREE and open to all who wish to join.

Click here: 

https://attendee.gotowebinar.com/register/6552545459443187211

Join us to learn Phil's trading tactics and strategies in real-time!

...

more from Promotions

Kimble Charting Solutions

Crude Oil Cleared For Blast Off On This Dual Breakout?

Courtesy of Chris Kimble

Is Crude Oil about to blast off and hit much higher prices? It might be worth being aware of what could be taking place this month in this important commodity!

Crude Oil has created lower highs over the past 13-years, since peaking back in 2008, along line (1).

It created a “Double Top at (2), then it proceeded to decline more than 60% in four months.

The countertrend rally in Crude Oil has it attempting to break above its 13-year falling resistance as well as its double top at (3).

A successful breakout at (3) would suggest Crude Oil is about to mo...



more from Kimble C.S.

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 ...



more from ValueWalk

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...



more from M.T.M.

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...



more from Tech. Traders

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...



more from Lee

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.
...

http://www.insidercow.com/ more from Insider





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...

Learn more About Phil >>


As Seen On:




About Ilene:

Ilene is editor and affiliate program coordinator for PSW. Contact Ilene to learn about our affiliate and content sharing programs.