Posts Tagged ‘ADI’

Visa Options Active As Stock Said To Join The Dow 30

V – Visa Inc. – Shares in the electronic payments and technology company are on the rise today, gaining as much as 3.3% to hit a one-month high of $184.40 on news the company, along with Goldman Sachs Group Inc. and Nike Inc., will replace Hewlett-Packard Co., Bank of America Corp and Alcoa Inc. in the Dow Jones Industrial Average later this month. Shares in Visa are up approximately 40% since this time last year, but trade roughly 6.0% below the record high of $196.00 secured back on July 25th.

Options volume on Visa rose to more than twice the average daily level, with 24,800 contracts exchanged by 3:40 p.m. in New York. Fresh interest building in weekly calls on Visa today suggests some traders are positioning for shares in the name to extend gains during the next few sessions. The most traded weekly contracts are the Sep 13 ’13 $185 calls, with around 1,900 lots in play versus open interest of 267 contracts. Time and sales data suggests most of the $185 calls were purchased at an average premium of $1.08 apiece. Buyers of the $185 calls stand ready to profit at expiration in the event that Visa shares rally another 1.0% over today’s high of $184.19 to exceed the average breakeven point at $186.08. The Sep 13 ’13 $190 calls are also changing hands this afternoon with around 940 lots traded against open interest of 84 contracts. Most of the $190 calls appear to have been purchased at an average premium of $0.26 each.  

IGT – International Game Technology – Traders appear to be snapping up front month call options on the maker of electronic gaming equipment today, with shares in International Game Technology trading up as much as 7.2% during…
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Road To Commodity Meltdown Paved In Silver Put Options

 Today’s tickers: SLV, COF, DPS & ADI

SLV - iShares Silver Trust ETF – The rebound in investor sentiment following the post-earthquake, fear-driven spike in the Japanese yen was quite remarkable, with global equity benchmarks almost rebounding to February peaks. During that recovery period something critical developed in the currency world that lifted commodity prices to new heights. The debate between FOMC members regarding whether less rather than more stimulus was needed, was eclipsed by the ECB’s reversal of monetary policy, which in turn hobbled the dollar. Demand for commodities took a further step forward as investors swiftly concluded that the dollar was most likely to trail the euro even in a risk-on environment. That has made the cascade in commodity prices all the more spectacular today as growth-sensitive currencies lose favor. The IMF downgrade to growth and Goldman’s warning over a possible stall in the advance has investors targeting downside risk across the commodity field. Silver prices, already at a 30-year high, are likely to stumble further and faster according to a sizable put butterfly strategy on the iShares Silver Trust ETF today. The put ‘fly follows Monday’s massive bearish play on the SLV in which some 100,000 July $25 strike puts were picked up at a premium of $0.10 apiece. The 0.40% decline in the price of the ETF’s shares to $39.05 this afternoon saw the asking price on the July $25 strike puts more than double to $0.21 per contract at times on Tuesday. In contrast, the put’ fly player accelerated the bearish view on the price of silver by targeting May contract put options. The 25,000-lot May $34/$36/$38 bearish butterfly spread positions the player to attain maximum benefits should the price of SLV shares fall around 7.5% to $36.00 by expiration day. The spread cost the trader a net $0.31 in premium per contract, but prepares him to accumulate up to $1.69 per contract if the price of the underlying fund settles at $36.00 at expiration. Nearly 400,000 option contracts have changed hands on the SLV as of 1:15pm in New York.…
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Barrage of Bearish Plays Befall Airgas, Inc.

Today’s tickers: ARG, QSFT, VTR, MET, SPWRA, USO, JPM, BMY, ADI & EXPE

ARG – Airgas, Inc. – Options investors initiated diverse bearish strategies on the distributor of industrial, medical and specialty gases this afternoon with shares of the underlying stock lower by 1.75% to $61.73 as of 3:15 pm (ET). Pessimistic players are likely wary of potential sharp share price erosion should Air Products & Chemicals Inc., the industrial gases maker forging a hostile takeover of Airgas in a proposed $5.1 billion bid for the company, fail to ultimately close the deal. Maybe bearish options investors are taking a cue from Paul Huck, CFO at Air Products & Chemicals, who yesterday stated, “there is a large drop in the stock price awaiting this, should Air Products go away” because “If we go away, who else is going to show up and pay this?” Airgas’s share price, which is up roughly 39% since Air Products’ offer went public ahead of February 5, 2010, would likely come crashing down if for some reason Air Products walks away given the lack of other serious competing offers for ARG at this time. Bearish traders bracing for potential share price hemorrhaging purchased a debit put spread and sold calls in the July contract and enacted a ratio bearish risk reversal in the October contract. One investor purchased 2,925 puts at the July $55 strike for a premium of $1.50 each, and sold the same number of puts at the lower July $50 strike for $0.65 apiece. Net premium paid for the spread amounts to $0.85 per contract, thus yielding maximum potential profits of $4.15 each if Airgas shares decline 19% to breach the $50.00 level by expiration day. The sale of 5,000 calls at the July $65 strike for an average premium of $1.05 each may or may not be the work of the same investor. Open interest of 19,000+ calls at the July $65 strike implies the call seller could be closing out a previously established long stance on the stock. Otherwise, the responsible party expects to keep the $1.05 premium per contract received on the sale as long as shares of the underlying stock do not exceed $65.00 ahead of July expiration. Finally, one pessimistic individual populating the October contract sold 5,000 calls at the October $70 strike for a premium of $1.28 each in order to buy twice as many puts…
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Buy Pick: ADI

What to Buy: ADI

Courtesy of David of The Oxen Group

The buy pick is made every evening at Midnight before the next day begins. The pick is a single day trade of a stock or ETF. The Oxen Group provides analysis, entry/exit points, resistance levels, and a rating for the pick. Picks are only single day trades.

ADI chartYesterday was interesting. Tomorrow, the important home sales and beginning of the FOMC meeting will be market movers. Investors are looking optimistic about the Fed’s meeting because the Fed believes the recession will end this late summer, and it should take actions this week that reiterate that feeling. That is why The Oxen Group is somewhat bullish for tomorrow.

Additionally, we like the news coming from Isil Corp., in after hours. The company announced that they were raising their revenue guidance from $123-$132 million to $145-$148 million. The company has seen an increase in demand for their products. This should be nice news for all broadline semiconductor companies, including competitor Analog Devices Inc. (ADI). Isil rose 6% in afterhours, which signals that the stock will pop tomorrow, hopefully bringing up ADI.

ADI should receive some general tech buzz from the Oracle earnings that are coming tomorrow afternoon about which analysts are bullish. Further, futures on the NASDAQ are currently neutral, as investors are looking for data and news to direct the market tomorrow. The real key to ADI’s ability to move up, though, is its technicals. ADI is heavily oversold, and it has moved down 5/7 days. It is very near a lower bollinger band and even slightly undervalued. This means that a lot of buyers could reenter the stock with the bullish broadline semiconductor news from Isil. Additionally, investors may be cautious at the start of the day after yesterday’s movement and a great price to buy in is very possible. Look for ADI to move up with a possible tech rebound.

Entry: First 5-20 minutes
Exit: 2-4% increase from buy in price

Resistance: Upper 25.00

 


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Kimble Charting Solutions

Are Bank Stocks Sending Bullish Message To Investors?

Courtesy of Chris Kimble

Just as the health of the banking sector is a big deal to the economy, it’s equally important to the S&P 500 (SPY) and broader stock market.

Although the bull market has grinding higher, it’s awaiting confirmation from the banks and banks stocks.

Today’s chart is of the S&P 500 Bank ETF (KBE) and shows how the banks are at an important juncture in time and price.

KBE (the bank ETF) is testing the upper end of a falling channel, offering bulls an opportunity for a breakout – see point (2).

The banks were at a similar juncture nearl...



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Zero Hedge

Africom Confirms Russian Air Defense System Shot Down US Drone Over Libyan Capital  

Courtesy of ZeroHedge View original post here.

U.S. Africa Command (Africom) has confirmed that an unarmed American drone over the Libyan capital last month was shot down by Russian air defenses, reported Reuters.

Africom dropped three headlines via Reuters in the overnight, revealing how the surveillance drone was shot down over Tripoli. 

  • EXCLUSIVE-U.S....



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Phil's Favorites

Where The Rich Are Getting Richer - Mapping America's 200 Wealthiest Counties 

Courtesy of ZeroHedge

Wealth inequality has erupted across the country over the last decade as the Federal Reserve's policy of ramping asset prices to the moon has widely failed to distribute wealth evenly. If you want to figure out where all the money went on a geographical basisBloomberg has published a new report that shows the 200 wealthiest counties in the US. 

It's no secret by now that asset holders (those who own real estate, stocks, bonds, classic cars, wine, and fancy artwork) were the largest beneficiaries of the Fe...



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Digital Currencies

The Road To Retirement: Millennials Put Their Faith In Bitcoin But Goldman Says Go With Gold

Courtesy of ZeroHedge View original post here.

"Drop Gold" - the ever-present tagline of Grayscale's Bitcoin Trust TV commercial - appears to be working its magic on a certain cohort of society.

2019 has seen assets under management in GBTC soar...

Source: Bloomberg

And for Millennials, according to the lates...



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Insider Scoop

Scott Galloway Calls For Twitter's Board To Replace 'Part-Time CEO' Jack Dorsey Amid Africa Move Plans

Courtesy of Benzinga

A shareholder in Twitter Inc. (NASDAQ: TWTR) and New York University business professor wrote an open letter Friday to the company's board calling for the replacement of CEO Jack Dorsey.

What To Know

Scott Galloway, who owns more than 330,000 shares of Twitter stock a...



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Lee's Free Thinking

Chart Shows the Fed Ramping Up Not QE - Funding Almost All Treasury Issuance

 

Chart Shows the Fed Ramping Up Not QE – Funding Almost All Treasury Issuance

Courtesy of Lee Adler, Wall Street Examiner 

The Fed is ramping up “Not QE” .

The Fed bought $2.2 billion in notes today in its POMO, “not QE,” operations. Actually $2.15 billion because they sold back a whole $50 million. Must have been a little glitch in the force.

This brings the Fed’s total outright purchases of Treasuries to $170 billion since it started Not QE, on September 17.

It also did $107 billion in gross new repo loans to Primary Dealers to buy Tre...



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Chart School

Silver stock taking the sector higher

Courtesy of Read the Ticker

As the US economy begins to show late cycle characteristics like: GDP slowing, higher inflation, higher wage costs, CEO confidence slump. 

Previous Post: Gold Stocks Review

The big players in the market are looking for the next swing off good value lows. This means more money is finding it way into the gold and silver sector, and it is said gold and silver stocks actually lead the metal prices.

The cycle below shows prices are ready to move in the months ahead (older chart re posted).


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Members' Corner

Sacha Baron Cohen Uses ADL Speech to Tear Apart Mark Zuckerberg and Facebook

 

Sacha Baron Cohen Uses ADL Speech to Tear Apart Mark Zuckerberg and Facebook

By Matt Wilstein

Excerpt:

Sacha Baron Cohen accepted the International Leadership Award at the Anti-Defamation League’s Never is Now summit on anti-Semitism and hate Thursday. And the comedian and actor used his keynote speech to single out the one Jewish-American who he believes is doing the most to facilitate “hate and violence” in America: Facebook founder and CEO Mark Zuckerberg.

He began with a joke at the Trump administration’s expense. “Thank you, ADL, for this recognition and your work in fighting racism, hate and bigotry,” Baron Cohen said, according to his prepared...



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The Technical Traders

VIX Warns Of Imminent Market Correction

Courtesy of Technical Traders

The VIX is warning that a market peak may be setting up in the global markets and that investors should be cautious of the extremely low price in the VIX. These extremely low prices in the VIX are typically followed by some type of increased volatility in the markets.

The US Federal Reserve continues to push an easy money policy and has recently begun acquiring more dept allowing a deeper move towards a Quantitative Easing stance. This move, along with investor confidence in the US markets, has prompted early warning signs that the market has reached near extreme levels/peaks. 

Vix Value Drops Before Monthly Expiration

When the VIX falls to levels below 12~13, this typically v...



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Biotech

Why telling people with diabetes to use Walmart insulin can be dangerous advice

Reminder: We are available to chat with Members, comments are found below each post.

 

Why telling people with diabetes to use Walmart insulin can be dangerous advice

A vial of insulin. Prices for the drug, crucial for those with diabetes, have soared in recent years. Oleksandr Nagaiets/Shutterstock.com

Courtesy of Jeffrey Bennett, Vanderbilt University

About 7.4 million people ...



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Mapping The Market

How IPOs Are Priced

Via Jean Luc 

Funny but probably true:

...

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Promotions

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Phil has a chapter in a newly-released eBook that we think you’ll enjoy.

In My Top Strategies for 2017, Phil's chapter is Secret Santa’s Inflation Hedges for 2017.

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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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