Posts Tagged ‘ADS’

Symantec Corp. Calls Look For Shares To Extend Rally

 

Today’s tickers: SYMC, ADS & FLO

SYMC - Symantec Corp. – Shares in the maker of security software traded up as much as 1.0% to a new 52-week high of $22.91 during the first few hours of the trading day, but are off earlier highs at present to stand just 0.05% higher on the day at $22.68 as of midday in New York. The stock has risen nearly 30% during the past six months, and some options traders appear to be positioning for the price of the underlying to extend gains during the next couple of months. The most actively traded options contracts on Symantec today are the April $25 strike calls, with upwards of 8,000 call options changing hands against open interest of 600 contracts. Traders paid an average premium of $0.20 apiece for the $25 calls, and may profit at April expiration in the event that SYMC shares rally 11% during the next nine weeks to top $25.20.

FLO - Flowers Foods, Inc. – Put options are changing hands on Flowers Foods this morning, with shares in the maker of breads, buns and snack cakes down 1.4% at $27.61 in early afternoon trading. Heavy put buying on Flowers in the early going drove overall options volume above 4,500 contracts, sizable volume versus the stock’s average daily level of around 470 contracts. Most of the activity is in the Mar. $25 strike puts, which appear to have been purchased roughly 4,000 times for an average premium of $0.37 apiece. Traders snapping up downside puts on Flowers stand ready to profit at expiration next month should shares in the food products company drop 11% to settle below the average breakeven price of $24.63. The Thomasville, Georgia-based bread maker has bid on certain Hostess bread bakeries and bread brands ahead of a competitive auction at the end of the month. Flowers Foods shares have rallied more than 35% since Hostess declared bankruptcy in mid-November.…
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Options Players Swarm Starbucks Corp. After Earnings

Today’s tickers: SBUX, SYY, GS & ADS

SBUX - Starbucks Corp. – Shares in Starbucks reached their highest since the company’s 1992 IPO on Friday, following the release of better-than-anticipated third-quarter earnings from the Seattle, Washington-based coffee shop operator after the closing bell on Thursday. Starbucks Corp.’s shares earlier rose as much as 7.95% to an intraday high of $44.69. While SBUX shares may be high as a kite post-earnings, options traders appear to be coming down ahead of the weekend. Call selling and put buying in the November contract today may be a sign some strategists are taking profits, locking in gains or possibly positioning for shares to cool in the near term. Put players focused on the Nov. $41 strike, where more than 7,000 contracts changed hands against open interest of 3,279 positions. It looks like much of the volume was printed by buyers of the bearish options at an average premium of $0.44 apiece. Put buyers may profit at November expiration if shares in the world’s largest coffee-shop operator tumble 9.25% to breach the average breakeven price of $40.56. Another 1,500 put options appear to have been purchased at the lower Nov. $39 strike at an average premium of $0.17 a-pop. As for SBUX calls, selling was more prevalent than buying at each strike from the Nov. $42 strike call up through the Nov. $46 strike call. The Nov. $45 strike call is most active, with upwards of 3,600 contracts in play against 2,727 lots of open interest. It looks like investors sold around 1,600 of these calls to pocket premium of $0.59 each. Investors may be taking profits off the table or betting against the likelihood that SBUX shares will continue to hit fresh highs ahead of expiration in two weeks. Options implied volatility on Starbucks Corp. is lower by 9.5% to arrive at 34.6% following earnings.

SYY - Sysco Corp. – Though trading in Sysco Corp. options is mixed this morning, one aspect of the activity is consistent, investors are positioning for the price of the underlying to move following the company’s first-quarter earnings report ahead of the opening bell on Monday. Traders are snapping up both call and put options on the largest North American distributor of food in anticipation of near-term bullish or bearish movement in the price of the stock. Options implied volatility on the stock is running 22.4% higher on the day at 29.65% as…
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Plenty of put selling as market slide picks up steam

Today’s tickers: LTM, AA, JCP, LEG, INTC, ADS, FXI, GE, APOL & MDCO

LTM – Life Time Fitness, Inc. – The fitness and health brand edged onto our ‘hot by options volume’ market scanner after a large sale of puts was transacted in the March contract. Shares of the professional fitness company are currently down by over 5.5% to $9.42. It appears that one investor sold over 9,700 puts at the March 7.5 strike price for a premium of 25 cents each. Is this some optimism on behalf of an investor despite the decline in share price today? The chunk of puts observed represents nearly half of the existing open interest on the stock, and thus may indeed be tied to a short stock position. If it is not tied to stock but rather is naked put-selling, this investor faces real downside exposure should shares continue declining.

AA – Alcoa Inc. – A large 10,000 lot put spread just traded in the April series of Alcoa whose shares are taking a 7% beating today at $5.85. An investor traded the 5.0 and 7.5 puts at a net 1.41 premium. Implied volatility on the options is running at around 104% given the slip through the existing 52-week low.

JCP – J.C. Penney Company, Inc. – The major retailer popped onto our ‘most active by options volume’ market scanner after more than 27,000 puts – representing about 20% of the total open interest on the stock – traded at the March 12.5 strike price. JCP is lower by 4% at $14.50 today. Open interest of only 6,129 contracts currently resides at the 12.5 strike confirming that today’s trading has fresh impetus. Within today’s total volume at the strike, over 14,000 puts sold for an average premium of 37 cents. This indicates that a trader is either selling puts in conjunction with shorting the stock or just outright confident that the shares won’t slip below $12.13 by expiration. If they do, this investor would be happy to own them.

LEG – Leggett & Platt, Inc. – The manufacturer and producer of a variety of engineered products has declined slightly by 3% to $11.87 today, and appeared on our ‘hot by options volume’ market scanner after over 10,200 puts were shed by one investor at the March 10 strike price for a premium of 15 cents apiece. The lot of puts sold represents more…
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Phil's Favorites

The Second Great Depression... But Not Really

 

The Second Great Depression… But Not Really

By John Mauldin, Thoughts from the Frontline 

"It's a recession when your neighbor loses his job;
it's a depression when you lose yours."

—Harry S. Truman, 33rd US President

In recent weeks, numerous commentators started to suggest the US and the world are entering a depression.

For some areas of the economy, that is clearly true. But not every area.

Today we will explore what some smart minds are saying about the current economic environment. I'll also aim to help you navigate through its complexity.

Here's one t...



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Zero Hedge

American Airlines Slated To Drop Dozens Of Flights To Smaller Cities As Government Aid Dries Up

Courtesy of ZeroHedge View original post here.

With the government set to stop subsidizing the industry, airlines are gasp> actually going to have to make operational changes to effectively deal with the lack of demand. Oh, the horror of free market forces actually forcing companies to make business changes!

This starts with American Airlines, who is reportedly preparing to drop two dozen small and medium city flights as federal coronavirus aid is set to end. The aid had previously mandated that airlines were not allowed to cut service ...



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ValueWalk

Coronavirus stimulus checks talks fall apart as Congress goes on vacation

By Michelle Jones. Originally published at ValueWalk.

Our predictions regarding the coronavirus stimulus checks and related relief appears to be correct. Congress has abdicated its duty and gone on vacation while Americans await unemployment and other related stimulus programs. While the action is hard to fathom, there is a good chance the market will crash or other pressure will bring the sides together sooner than the current schedule of September 8th.

Prior coverage

The two sides continue to drift apart on the bill over Coronavirus stimulus checks and relief legislation. From a game theory perspective, I believe the Democrats are in the driver’s seat. If the bill is not passed, the economy will crash further and lead to certain electoral losses for Trump and the GOP. Therefore, the Democrats have little incentive to push for a speedy passage of the bill.

...



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Biotech/COVID-19

Rapid screening tests that prioritize speed over accuracy could be key to ending the coronavirus pandemic

 

Rapid screening tests that prioritize speed over accuracy could be key to ending the coronavirus pandemic

Broad and frequent screening could catch coronavirus cases before they can spread to others. Vaidas Bucys/EyeEm via Getty Images

Courtesy of Zoë McLaren, University of Maryland, Baltimore County

Broad access to testing is one of the most powerful tools to keep the COVID-19 pande...



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Kimble Charting Solutions

Silver Could Be Creating Large Reversal Pattern, Says Joe Friday

Courtesy of Chris Kimble

Could Silver prices from 30-years ago be influencing price action this month? Joe Friday suggests it is possible.

This chart looks at Silver Futures on a monthly basis over the past 40-years. Fibonacci levels were applied to the 1980 highs ($50) and 1991 lows ($.350) in Silver.

The 50% retracement levels of the 1980 high/1991 low came into play as support for a few months at each (1). Once this support broke, Silver fell another 50%.

The impressive rally over the past 8-weeks has Silver testing the 50% retracement level as potential...



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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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Chart School

Silver Big Channel

Courtesy of Read the Ticker

Big channels are the sand pit of price action. Lets review some big trends of these past months.


GLD
- Moving higher to upper solid red line channel


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XAU
- Ready to pause, or simply explode.



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SILVER
- Ready to pause, or simply explode.


Click for popup. Clear your browser cache if image i...



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Digital Currencies

Raoul Pal: "It May Not Be Worth Owning Any Asset Other Than Bitcoin"

Courtesy of ZeroHedge View original post here.

Authored by Turner Wright via CoinTelegraph.com,

Raoul Pal, CEO and founder of Real Vision, says Bitcoin may soon become his only asset for long-term investments.

image courtesy of CoinTelegraph ...



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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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Members' Corner

Coronavirus, 'Plandemic' and the seven traits of conspiratorial thinking

 

Coronavirus, 'Plandemic' and the seven traits of conspiratorial thinking

No matter the details of the plot, conspiracy theories follow common patterns of thought. Ranta Images/iStock/Getty Images Plus

Courtesy of John Cook, George Mason University; Sander van der Linden, University of Cambridge; Stephan Lewandowsky...



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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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Mapping The Market

How IPOs Are Priced

Via Jean Luc 

Funny but probably true:

...

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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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