Posts Tagged ‘AEM’

Bears Mine For Put Options On Agnico-Eagle As Shares Nosedive

Today’s tickers: AEM, ANF, LEN & ALTR

AEM - Agnico-Eagle Mines Ltd. – News that Agnico-Eagle Mines indefinitely suspended operations at its Goldex mine in Quebec took the luster out of shares in the gold mining company today. The stock fell nearly 20.0% to a multi-year low of $45.78 at its lowest point of the session. Some options traders are positioning for the stock to look even more tarnished by the end of the week. Meanwhile, demand for longer-dated put options on Agnico-Eagle Mines suggests the shares may remain under pressure through AEM’s third-quarter earnings release next Wednesday, for the remainder of 2011, and into the New Year.

Near-term bears jockeyed for put options in the October contract. The Oct. $45 and $47.5 strikes are two of the most active, with the majority of positions in each largely initiated by buyers. Traders exchanged roughly 1,400 in-the-money puts at the Oct. $47.5 strike against open interest of 317 contracts. These contracts were purchased roughly 930 times for an average premium of $0.89 a-pop. Investors long the puts may profit if shares in AEM trade below the average breakeven price of $46.61 at expiration later this week. The Oct. $45 strike put is the most active in the front month, with more than 2,100 of the contracts in play against open interest of 578 lots. Investors purchased most of the put options for an average premium of $0.55 each, and may make money on the bearish position in the event that shares in the gold mining company slip beneath the average breakeven point at $44.45 by expiration day.

Buyers of November contract put options at the $40, $35 and $32.5 strikes may see the value of their deep out-of-the-money options rally should the company’s third-quarter earnings or forward guidance disappoint. Finally, longer-term pessimism cropped up in the Jan. 2012 $45 strike put where some 1,700 contracts were purchased for an average premium of $3.78 apiece. The investor or investors holding the put options may profit at expiration next year if shares in AEM slide 10.0% off today’s low of $45.78 to breach the average breakeven point on the downside at $41.22. Shares in Agnico-Eagle Mines last traded below $41.22 back in December 2008. The overall reading of options implied volatility on the stock popped up 26.7% to 57.2% in the first half of the session.

ANF - Abercrombie & Fitch Co. – Sizable prints in Abercrombie…
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Optimism Detected In Plum Creek Timber Options Despite Earnings Miss

Today’s tickers: PCL, XLE, TIN & AEM

PCL - Plum Creek Timber Co., Inc. – Seattle, WA-based Plum Creek Timber Co. posted lower-than-anticipated second-quarter net income of $0.27 a share after the close on Monday, missing average the average analyst forecast of $0.29 a share to send the price of the underlying down as much as 4.2% today to $38.75. Put options on Plum Creek are active post-earnings, but it looks like much of the volume was generated by investors taking long-term bullish views on the stock. Trading traffic in PCL options is heaviest at the Jan. 2012 $38 strike where more than 2,700 puts changed hands against previously existing open interest of just 65 contracts. The majority of the puts exchanged at that strike appear to have been sold at an average premium of $2.32 per contract. Put sellers keep the full amount of premium received on the transaction as long as shares in Plum Creek Timber exceed $38.00 through expiration day in January. Traders short the puts have time erosion working in their favor, and may also benefit from subsiding levels of options implied volatility on the stock. Investors likely expect shares to resist above $38.00 over the next six months, but stand ready to take delivery of the stock at an effective price of $35.68 a share, on average, should the puts land in-the-money at expiration next year.

XLE - Energy Select Sector SPDR Fund – Massive prints in September contract call options covering the Energy SPDR appear to be the work of an investor adjusting a previously established bullish position on the sector. Shares in the XLE, an exchange-traded fund that tracks the performance of the Energy Select Sector of the S&P 500 Index, turned positive this afternoon to trade 0.10% higher on the day at $79.50…
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Bulls Prep for Continued Run-Up in Sprint

 

Today’s tickers: S, SMH, AEM & XRT

S - Sprint Nextel Corp. – Shares in the third-largest U.S. mobile provider hit a new 2-year high today, rising as much as 5.9% earlier in the session to $5.90. The communications company’s share price took a big hit after AT&T and T-Mobile announced plans to merge back in March, but the stock has sky-rocketed in the two months since then, gaining 41.5% off its post-deal announcement low of $4.17. Perhaps shares were helped higher on news Leap Wireless International joined “team Sprint” in opposing the $39 billion acquisition of T-Mobile by AT&T. Shares in Sprint Nextel Corp. may also be higher ahead of the Thursday release of Google’s mobile-payment service, which will operate on Sprint’s phones. Investors positioning for the uptrend to continue over the long term initiated bullish plays in the November contract. It looks like traders are employing ratio call spreads, buying roughly 2,500 calls at the November $7.0 strike for an average premium of $0.31 each, and selling around 5,000 calls up at the higher November $8.0 strike at an average premium of $0.14 apiece. Net premium required on average to establish the trade amounts to just $0.03 per contract. Ratio call spreaders stand prepared to make money in the event that Sprint’s shares surge 19.2% over today’s high of $5.90 to surpass the average breakeven price of $7.03 by expiration day in November. Maximum potential profits of $0.97 per contract are available on the transaction should the price of the underlying stock jump 35.6% to settle at $8.00 at expiration. Sprint Nextel Corp. shares last traded above $7.03 back in September 2008. The sale of twice as many of the higher-strike calls substantially lowered the price at which call spreaders break even, but also ups the amount of risk undertaken on the position. The uncovered short calls may result in losses in the event that shares spike above the upper breakeven price of $8.97 at expiration in November. Options implied volatility…
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Contrarians Position for Medifast to Trim Losses

Today’s tickers: MED, AMD, NSM & AEM

MED - Medifast, Inc. – Shares in the maker of weight management products shed 12.0% this morning to touch down at an intra-session low of $22.19 following disappointing earnings from competitor NutriSystem, Inc. NTRI’s shares dropped 31.2% today to a fresh 52-week low of $13.90 post-earnings. Medifast’s earnings are just around the corner, with the report scheduled for release ahead of the opening bell on March 3, 2011. Despite the gloomy forecast out of NutriSystem, it looks like one investor is positioning for a more positive outcome from Medifast. The contrarian player appears to have purchased a debit call spread, buying 1,000 calls at the April $23 strike for an average premium of $2.19 each, and selling the same number of calls at an average premium of $0.99 apiece. The net cost of the bullish play amounts to $1.20 per contract and positions the trader to make money should MED’s shares bounce back up by around 9.0% to surpass the average breakeven point at $23.20 ahead of April expiration. Maximum potential profits of $1.80 per contract are available to the call-spreader if shares in Medifast rally 17.2% off today’s low of $22.19 to trade above $26.00 before the calls expire in April. The rise in demand for MED options helped lift options implied volatility on the stock 12.0% to 80.16% in early afternoon trade.

AMD - Advanced Micro Devices – A sizeable stock and options combination play on Advanced Micro Devices caught our eye this morning. It looks like one strategist initiated a delta neutral position on AMD in the July contract. Shares in the name are up 3.3% to arrive at $9.40 as of 12:50pm. The investor appears to have sold 319,000 shares of the underlying at a price of $9.34 each, and…
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Option Player Reenergizes Bullish Stance on RRI Energy, Inc.

Today’s tickers: RRI, USO, GLD, MT, AEM, INTC, ESRX, C, KO & GEOY

RRI – RRI Energy, Inc. – A large-volume call option combination play launched RRI Energy onto our ‘most active by options volume’ market scanner this afternoon. The investor responsible for the activity banked profits by selling-to-close a previously established long call position. The trader also initiated a new bullish stance on the stock to position for a near-term rebound in shares of the underlying. RRI’s shares are down more than 2.5% today to $5.58. It appears the investor originally purchased 35,000 calls at the now deep in-the-money December 4.0 strike for a premium of 1.30 apiece in early November when shares were at $5.15. Today the trader sold the chunk of call options for 1.55 each, banking net profits of 15 cents per contract. Finally, the RRI-optimist established a fresh bullish stance at the in-the-money January 5.0 strike by buying 35,000 calls for a premium of 85 cents apiece. Shares must rally about 5% from today’s price in order for the investor to break even at $5.85 by expiration next month. The increase in demand for option contracts on the stock lifted option implied volatility significantly. Volatility on RRI Energy increased 21.66% from an intraday low of 55.31% to a high of 67.29%.

USO – United States Oil Fund LP – Shares of the USO fund slipped slightly lower during the trading session, falling less than 1% to $36.50, as of 3:00 pm (EDT). Short strangle plays in the July contract suggest shares of the fund are likely to remain range-bound for the next seven months to expiration. Investors shed 2,500 calls at the July 38 strike for a premium of 3.56 apiece, in conjunction with the sale of the same number of puts at the lower July 33 strike for a premium of 2.75 each. Short-stranglers receive a gross premium of 6.31 per contract on the trade. They keep the full amount of premium if USO’s shares trade within the strike prices described through expiration. Shares of the fund traded within the range of $33-$38 for the four month period starting July 15, 2009, and ending October 12, 2009. Perhaps today’s short strangle sellers expect to see similar inertia in USO shares for the next seven months to expiration.

GLD – SPDR Gold Trust ETF – A bullish risk reversal on the gold exchange-traded fund suggests…
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Zero Hedge

This KKR-Backed Healthcare Firm Just Slashed Doctors' Pay In The Middle Of An "Unprecedented" Pandemic

Courtesy of ZeroHedge View original post here.

Even if they aren't exactly certain how the business model works, Twitter blue checks and the rest of the mainstream media - having been whipped into an anti-banker fervor by Bernie Sanders and the last glowing embers of Occupy - never pass up an opportunity to kick private equity in the nuts.

And if there's one industry where private equity has done the most to directly...



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Phil's Favorites

What the coronavirus does to your body that makes it so deadly

 

What the coronavirus does to your body that makes it so deadly

SARS-CoV-2 virus particles (pink dots) on a dying cell. National Institute of Allergy and Infectious Diseases, NIH

Benjamin Neuman, Texas A&M University-Texarkana

COVID-19 is caused by a coronavirus called SARS-CoV-2. Coronaviruses belong to a group of viruses that infect animals, from peacocks to whales. They’re named for the bulb-tipped spikes that project from the virus’s surface and give the appearance of a corona surrounding it.

A coronavirus infection usually plays o...



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Biotech/COVID-19

What the coronavirus does to your body that makes it so deadly

 

What the coronavirus does to your body that makes it so deadly

SARS-CoV-2 virus particles (pink dots) on a dying cell. National Institute of Allergy and Infectious Diseases, NIH

Benjamin Neuman, Texas A&M University-Texarkana

COVID-19 is caused by a coronavirus called SARS-CoV-2. Coronaviruses belong to a group of viruses that infect animals, from peacocks to whales. They’re named for the bulb-tipped spikes that project from the virus’s surface and give the appearance of a corona surrounding it.

A coronavirus infection usually plays o...



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ValueWalk

Junior gold stocks offer a place of refuge in a falling market

By Michelle Jones. Originally published at ValueWalk.

Junior gold stocks have taken a beating alongside other stocks, but history suggests this could be the time to dive in. The Vaneck Vectors Junior Gold Miners ETF is down from where it was in February, although it’s starting to show signs that it could revive soon.

Q4 2019 hedge fund letters, conferences and more

Crescat likes junior gold stocks

In their March update to investors, Crescat Capital said junior gold stocks retested the lows of a nine-year bear market. ...



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Kimble Charting Solutions

Depression Coming or Is the Bottom Already In? Joe Friday Says Your Answer Lies Here!

Courtesy of Chris Kimble

Are we headed towards a Depression or is the worst already behind us? In today’s world, comparisons to the great depression are easy to find.

Are the Depression concerns well founded or are the declines of late already pricing in a bottom?

In my humble opinion, this chart and the upcoming price action of this index will go miles and miles towards telling us if we are headed towards very tough times or if the huge declines of late are actually in a bottoming process.

This chart looks at the Thomson Reuters Equal Weighted Commodity Index on a monthly basis over the past 54 years. The index has been heading south, reflecting weakness in demand for basi...



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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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The Technical Traders

Founder of TradersWorld Magazine Issued Special Report for Free

Courtesy of Technical Traders

Larry Jacobs owner and editor of TradersWorld magazine published a free special report with his top article and market forecast to his readers yesterday.

What is really exciting is that this forecast for all assets has played out exactly as expected from the stock market crash within his time window to the gold rally, and sharp sell-off. These forecasts have just gotten started the recent moves were only the first part of his price forecasts.

There is only one article in this special supplement, click on the image or link below to download and read it today!

...

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Chart School

Big moving Averages and macro investment decisions

Courtesy of Read the Ticker

When price is falling every one wonders where demand will come in.


RTT black screen Tv videos study the simplest measure of price (simple moving average). What has happen before guides us now. 














Changes in the world is the source of all market moves, to catch and ride the change we believe a combination of Gann Angles, ...

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Members' Corner

10 ways to spot online misinformation

 

10 ways to spot online misinformation

When you share information online, do it responsibly. Sitthiphong/Getty Images

Courtesy of H. Colleen Sinclair, Mississippi State University

Propagandists are already working to sow disinformation and social discord in the run-up to the November elections.

Many of their efforts have focused on social media, where people’s limited attention spans push them to ...



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Digital Currencies

While coronavirus rages, bitcoin has made a leap towards the mainstream

 

While coronavirus rages, bitcoin has made a leap towards the mainstream

Get used to it. Anastasiia Bakai

Courtesy of Iwa Salami, University of East London

Anyone holding bitcoin would have watched the market with alarm in recent weeks. The virtual currency, whose price other cryptocurrencies like ethereum and litecoin largely follow, plummeted from more than US$10,000 (£8,206) in mid-February to briefly below US$4,000 on March 13. Despite recovering to the mid-US$6,000s at the time of writin...



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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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Lee's Free Thinking

Why Blaming the Repo Market is Like Blaming the Australian Bush Fires

 

Why Blaming the Repo Market is Like Blaming the Australian Bush Fires

Courtesy of  

The repo market problem isn’t the problem. It’s a sideshow, a diversion, and a joke. It’s a symptom of the problem.

Today, I got a note from Liquidity Trader subscriber David, a professional investor, and it got me to thinking. Here’s what David wrote:

Lee,

The ‘experts’ I hear from keep saying that once 300B more in reserves have ...



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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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