Posts Tagged ‘ADSK’

Call Butterfly Spread Looks For Upside In Autodesk

Big prints in Autodesk, Inc. (Ticker: ADSK) call options today appear to be part of a call butterfly spread, a strategy that may be profitable if shares in the maker of 3D-software rise to fresh 52-week highs by October expiration. Shares in Autodesk are up 0.85% today at $53.82 as of 12:10 pm ET. The one-by-two-by-one call spread traded during the first 25 minutes of the session and is by far the largest trade in ADSK options today. Overall volume on the stock has soared to 35,000 contracts as of the time of this writing versus average daily volume of around 2,800 contracts.

It looks like one strategist purchased 5,000 calls at both the Oct 55.0 and 65.0 strikes, and sold 10,000 calls at the Oct 60.0 strike. The trade cost a net $0.75 per contract and starts making money if shares in Autodesk rally 3.6% over the current price to exceed the breakeven point at $55.75. Maximum potential profits of $4.25 per contract are available on the call butterfly spread in the event that ADSK shares surge 11.5% to $60.00 at October expiration. Autodesk’s shares traded up to a 52-week high of $58.68 back in February.


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Heavy Trading In Autodesk Options

ADSK – Autodesk, Inc. – A large block of upside call options that traded on Autodesk this morning looks for shares in the maker of 3D printing software to rally substantially into the end of the calendar year. Shares in ADSK increased 3.5% this morning to $41.32. The company is scheduled to report third-quarter earnings after the close on November 21st.

The single-largest trade in Autodesk options so far today appears to be the outright purchase of a block of 10,000 of the Dec $44 strike calls for a premium of $0.88 each. In total, upwards of 14,500 of the $44 calls have changed hands against open interest of 95 contracts. The buyer of the calls at $0.88 each stands ready to profit at expiration next month in the event that Autodesk shares rally more than 9.0% over the current price of $41.13 to trade above the effective breakeven price of $44.88. Shares in ADSK are up nearly 30% since this time last year. 


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Bearish Trades Initiated In Autodesk Options

Today’s tickers: ADSK, SODA & CBI

ADSK - Autodesk, Inc. – Shares in the maker of 2D and 3D design and engineering software are down more than 4.0% today at $35.01 as of 11:40 a.m. ET and options activity on the stock this morning suggests some traders are bracing for the price of the underlying to extend losses during the next couple of weeks. Trading traffic in Autodesk options is heaviest at the Aug $34 strike where upwards of 2,900 puts have changed hands against open interest of 757 contracts. Time and sales data suggests most of the volume was purchased during morning trading for an average premium of $0.33 apiece. Put buyers may profit at expiration next month in the event that ADSK shares slide 3.8% from the current price of $35.01 to breach the average breakeven point on the downside at $33.67. The August expiry put options were also trading heavily during Tuesday’s session. It looks like a roughly 1,900-lot Aug $33/$35 put spread was purchased yesterday at an average net cost of $0.25 per contract. The bearish spread may generate maximum potential profits of $1.75 per contract if shares in Autodesk drop 5.7% to $33.00 by August expiration. The cost of initiating the same Aug $33/$35 put spread has roughly doubled overnight to $0.60 per spread as of the time of this writing.

SODA - Sodastream International Ltd. – Bullish options are active on Sodastream today following the company’s better than expected second-quarter earnings report released ahead of the open this morning. Shares in the name jumped more than 16% to $67.81 after the company raised its full year revenue forecast and posted higher than estimated second-quarter results. Traders positioning for shares in SODA to continue higher during the next couple of sessions snapped up weekly calls on the…
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Put Buyers Set Crosshairs On Target Corp.

 

Today’s tickers: TGT, DOW & ADSK

TGT - Target Corp. – Shares in Target kicked off the final trading session of the week in positive territory, but have since shed earlier gains to stand 0.50% lower on the day at $61.53 as of 11:10 a.m. ET. The big box retailer popped up on our market scanners in the early going due to heavy trading traffic in front month put options. Interest in the Feb. $60 strike puts has been increasing throughout the morning, with volume currently topping 12,100 lots versus previously existing open interest of 2,827 contracts. Most of the put options appear to have been purchased for an average premium of $0.36 apiece. The contracts make money, or provide downside protection, should shares in Target decline another 3.1% to breach the average breakeven point at $59.64 by February expiration. Target Corp. is scheduled to report fourth-quarter earnings before the opening bell on February 27th, nearly two weeks after February options expiration.

DOW - Dow Chemical Co. – Upside call options in play on Dow Chemical this morning look for shares in the largest U.S. chemical maker by revenue to rally to their highest level in more than a year during the next couple of months. Shares in the name today trade up better than 0.50% to stand at $34.62 as of 11:45 a.m. ET. The stock has rallied more than 25% off a mid-November, 2012, 52-week low of $27.45.Traders positioning for shares in Dow Chemical to extend gains picked up more than 7,400 calls at the Mar. $36 strike for an average premium of $0.54 each. The bullish options make money if shares in DOW rally another 5.5% to top the average breakeven price of$36.54 by March expiration. Shares in Dow Chemical last traded above $36.54 in July of 2011. Overall options volume in excess of 20,000 contracts in play on the chemical company as of midday in New York is significantly greater than the stock’s average daily volume of around 13,000 contracts. Trading traffic in options on the Midland, Michigan-based Company is on the…
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Retail Bears Abound

Today’s tickers: XRT, IMAX, ADSK & OI

XRT - SPDR S&P Retail ETF – Options traders are positioning for shares in the Retail ETF to fall substantially in the coming months. Massive bearish bets popped up on the XRT in the first half of the trading session with shares slipping further from last week’s new highs. The familiar outline of a put butterfly spread unfurled in the March contract, but was preceded by a large debit put spread initiated in the April contract within the first 15 minutes of trading. Pessimistic players are perhaps speculating that consumers, who now face heftier prices at the pump, are likely to tighten their grip on discretionary dollars going forward. Shares in the XRT, an exchange-traded fund designed to track the performance of the S&P Retail Select Industry Index, are currently down 2.4% at $48.02 as of 12:00pm in New York. In the past week shares in the ETF have pulled back 5.1% from an all-time high of $50.61 last Wednesday. One big put player is well-positioned to benefit from additional weakness in XRT shares in the near term. The investor purchased 20,000 puts at each of the March $46 and March $42 strikes, and sold 40,000 puts at the central March $44 strike, all for a net premium of $0.22 per contract. The net cost of the pessimistic play pales in comparison to the $1.78 per contract in maximum potential profits the investor enjoys if shares in the ETF drop to $44.00 ahead of March expiration. Meanwhile, the buyer of a 17,000-lot April $44/$47 put spread for a net premium of $0.57 per contract could walk away with up to $2.43 per contract in profits if shares in the fund slip beneath $44.00 by April expiration. Options implied volatility on the Retail SPDR has been on the rise throughout the trading session, and currently stands 12.6% higher on the session at 27.35% in early afternoon trade.…
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Qualcomm Strangle Suggests Range-Bound Shares Until October Expiration

Today’s tickers: QCOM, ETFC, CAL, SLB, AUY, EEM, ADSK, NFLX & JNPR

QCOM – Qualcomm, Inc. – Options activity on the digital wireless communications products and services firm indicates shares of the underlying stock could remain range-bound through October expiration. Qualcomm’s shares are down more than 2% to $37.72 with approximately one hour remaining in the trading session. Analysts at Credit Suisse maintain a ‘neutral’ rating on the stock, but slashed its target share price for QCOM to $40.00 from $45.00 and lowered its earnings guidance for 2010 and 2011. According to one options investor, Qualcomm’s shares are likely to trade within a certain range for the next eight months. The trader acted on the range-bound prediction by selling a strangle. The investor sold 10,000 puts at the October $35 strike for a premium of $2.30 each and shed 10,000 calls at the higher October $44 strike for a premium of $1.30 apiece. Gross premium pocketed by the strangler amounts to $3.60 per contract. The trader keeps the full amount of premium only if Qualcomm’s shares trade above $35.00 and below $44.00 through expiration. The premium received acts as a limited buffer against losses should shares swing above or below the strike prices described above. However, losses accumulate for the investor if shares rally above the upper breakeven price of $47.60, or if the stock falls below the lower breakeven point at $31.40 ahead of expiration day in October. Qualcomm’s share price exceeded the upper breakeven point as recently as January 21, 2010, when the stock traded as high as $49.00. Finally, shares have not traded lower than $31.40 – the lower breakeven price on the strangle – since December 5, 2008, when the stock dipped down to $29.33.

ETFC – E*Trade Financial Corp. – Shares of the financial services firm are down 0.65% to $1.54 in late afternoon trading, but options activity on the stock was initiated by bullish investors positioning for a rebound in share price. One optimistic individual established a ratio call spread in the October contract. The trader bought 5,000 call options at the October $2.0 strike for a premium of $0.18 each and sold 10,000 calls at the higher October $3.0 strike for about $0.04 apiece. The investor paid a net premium of $0.10 per contract for the transaction, but stands ready to accrue maximum potential profits of $0.90 per contract if E*Trade’s share price…
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Hi-Ho Long-Term Silver Bulls!

Today’s tickers: SLV, EWT, CL, BG, ILMN, COH, TMO, SPG, BG, ADSK & SLM

SLV – iShares Silver Trust ETF – A bull call spread in the January 2011 contract on the silver ETF today suggests shares of the SLV may rally significantly over the next year and two months time. Shares of the SLV are currently up 0.5% to $18.23. The silver-bull purchased a ratio call spread by buying 3,000 calls at the January 23 strike for an average premium of 1.93 apiece, and selling 6,000 calls at the higher January 30 strike for about 90 cents each. The net cost of the transaction is reduced to just 13 cents per contract. Shares of the fund must rally at least 27% before the investor breaks even at a price of $23.13. The trader stands ready to accumulate maximum potential profits of 6.87 per contract if the stock surges up to $30.00 by January 2011.

EWT – iShares MSCI Taiwan Index ETF – A massive bearish play on the Taiwan Index exchange-traded fund caught our attention this afternoon with shares of the EWT down 0.5% to $12.64 in late-day trading. It appears one investor established a bearish risk reversal in the December contract to position for potential share price declines through expiration. The trader sold 31,000 calls at the December 13 strike for 20 cents premium apiece, spread against the purchase of 31,000 puts at the lower December 12 strike for 20 cents each. The sale of the calls exactly offset the cost of buying the puts. Essentially the reversal is a “free” bet that shares of the EWT will trend lower ahead of the 2010. The investor responsible for the transaction is likely long shares of the underlying fund and seeking protection to the downside. If shares fall beneath $12.00, the value of the underlying position is protected. However, if shares of the fund rally by expiration, the trader risks having shares of the stock called from him at $13.00 apiece.

CL – Colgate-Palmolive Co. – Speculation that Reckitt Benckiser Group may acquire Colgate-Palmolive spurred an all-out call option feeding frenzy on CL today and lifted shares of the U.S. company to a new 52-week high of $86.33. Investors flooded the November and December contracts, scooping up call options to position for further upward movement in the price of the underlying. The sudden surge in demand for Colgate-Palmolive options…
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Phil's Favorites

After Mega Banks Supervised by the Fed Lose Over $10 Billion to a Highly Leveraged Hedge Fund, Fed Puts Lipstick on a Pig in its Financial Stability Report

Courtesy of Pam Martens

Remember the phrase “putting lipstick on a pig.” It became popular after the dot.com bust when it was learned that the big Wall Street banks had glowingly recommended “hot” new issues of stocks to their customers while secretly calling them “crap” and “dogs” in internal emails.

Putting lipstick on a pig is what the Federal Reserve is attempting to do in the Financial Stability Report it rel...



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Zero Hedge

Are Stocks Cheap, Or Just Another Rationalization?

Courtesy of ZeroHedge View original post here.

Authored by Lance Roberts via RealInvestmentAdvice.com,

Are stocks “cheap,” or is this just another bullish “rationalization.” Such was the suggestion by the consistently bullish Brian Wesbury of First Trust in a research note entitled ...



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Digital Currencies

NFTs are much bigger than an art fad - here's how they could change the world

 

NFTs are much bigger than an art fad – here's how they could change the world

Homes fit for zeroes (and ones). Julien Tromeur

Courtesy of James Bowden, University of Strathclyde and Edward Thomas Jones, Bangor University

Sotheby’s has become the latest establishment name in art to dive into NFTs (non-fungible tokens) through its collaboration with anonymous ...



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