Posts Tagged ‘AEO’

Options Change Hands On Teen Retailers

AEO – American Eagle Outfitters – Shares in teen apparel retailer American Eagle Outfitters rallied as much as 4.4% to $15.52 in the early going on Tuesday, rising in sympathy with competitor Aeropostale on reports private equity firm, Sycamore Partners, has taken a roughly 8.0% stake in the company. Shares in Aeropostale jumped 20% on the news to a three-week high of $10.32.

Traders positioning for shares in American Eagle to extend gains in the near term snapped up October expiry call options straight out of the gate this morning. The Oct $16 strike calls are the most active contracts on AEO by volume today, with upwards of 12,000 lots in play against open interest of just 340 contracts. Time and sales data indicates most of the calls were purchased for an average premium of $0.27 each. Traders long the $16 strike calls stand ready to profit at expiration next month should shares in AEO rise 4.8% over today’s high of $15.52 to exceed the average breakeven price of $16.27.

Aeropostale options are also changing hands today, with notable fresh interest building in the Jan 2014 $12 strike calls. It looks like more than 1,900 of the $12 calls were purchased during morning trading for an average premium of $0.51 each. The $12 strike calls may be profitable at expiration next year given a more than 21% increase in the price of ARO shares to top the breakeven price of $12.51. 


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Foot Locker Put Options Active As Stock Gets Stomped

Today’s tickers: FL, FOSL & AEO

FL - Foot Locker Inc. – Shares in Foot Locker are down sharply today, off 6.5% at $35.17 as of 12:30 p.m. ET, amid a down day for U.S. stocks. The stock yesterday reached a new 52-week high of $37.85. Traders bracing for shares in the name to potentially slide further ahead of the company’s second-quarter earnings report expected out later this month appear to be buying up August expiry put options on the stock. The Aug $35 strike puts are the most actively traded by volume thus far in the session, with upwards of 6,200 contracts in play versus open interest of 744 put options. It looks like one strategist purchased a block of 5,000 of the $35 puts during the first hour of the trading day at a premium of $0.45 each. The bearish, or perhaps protective, stance makes money at expiration next week in the event that FL shares decline another 1.7% to settle below the breakeven point on the downside at $34.55. In the money put options are also attracting volume, with around 2,900 of the Aug $36 strike puts purchased in the early going for an average premium of $0.95 apiece. Overall options volume on Foot Locker in excess of 15,000 contracts this afternoon is well above the stock’s average daily volume of around 2,300 contracts.

FOSL - Fossil Group, Inc. – Front month calls on watch and accessories maker, Fossil Group, are changing hands at a clip today, with shares in the name up better than 18% at a new 52-week high of $127.32 as of 12:15 p.m. in New York. The stock jumped after the company posted better than expected second-quarter earnings and raised its estimates for full year earnings and revenue. Shares earlier in the session reached $129.25,…
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Pfizer Bulls Take To Weekly Options

Today’s tickers: PFE, AEO & DDD

PFE - Pfizer, Inc. – Shares in Pfizer are among the few stocks in the Dow Jones Industrial Average that are trading higher today, up 0.80% on the session at $29.61 as of midday in New York, amid a down day for U.S. equities. The stock is on the rise after the drug maker announced the reorganization of its commercial operations into three business units. Weekly call options changing hands on the pharmaceutical company today indicate some traders are preparing for shares in the name to extend gains during the next four trading sessions. Upside call buyers looked to the Aug 02 ’13 $29.5 and $30 strike calls, snapping up more than 4,400 calls at the $29.5 strike for an average premium of $0.22 each. The contracts, most of which appear to have been purchased by one trader, make money at expiration in the event that Pfizer’s shares settle above the breakeven price of $29.72. It looks like traders purchased more than 2,800 calls at the Aug 02 ’13 $30 strike at a premium of $0.09 apiece. Buyers of the $30 weekly calls stand read to profit at expiration should shares in Pfizer rise another 1.6% to exceed $30.09.

AEO - American Eagle Outfitters – Options changing hands on teen retailer, American Eagle Outfitters, on Monday morning indicate at least one strategist is positioning for shares in the name to declines in the near term. Shares in AEO are off 0.40% to stand at $19.12 as of 11:55 a.m. ET. The Aug $19 strike put options are the most actively traded contracts as measured by volume on the retailer today, with around 5,600 lots traded versus open interest of 2,732 contracts. Most of the puts appear to have been purchased by one trader this morning for…
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Bullish Options Trade On American Eagle Looks For Shares To Extend Run

 

Today’s tickers: AEO, HON & GDP

AEO - American Eagle Outfitters, Inc. – A large long-term bullish options play on teen retailer, American Eagle Outfitters, Inc., near the open looks for shares in the name to potentially reach levels not seen since 2007 by January 2014. Shares in American Eagle soared in 2012, rising approximately 90% since the first week of the year to touch a four-year high of $23.94 back on September 19th. Though off their highest level of the year, shares in AEO increased 2.6% this morning to $21.56 after the stock was rated new ‘Market Outperform’ with a 12-month target share price of $27.00 at Avondale Partners LLC. A three-legged options combination spread initiated on AEO at the start of the session prepares one options player to profit should the price of the underlying continue to push higher during the next calendar year. The strategist responsible for the single-largest transaction in American Eagle options today appears to have sold 5,000 puts at the Jan. 2014 $18.5 strike in order to substantially reduce the cost of buying a 5,000-lot Jan. 2014 $22/$30 call spread. Net premium paid to establish the position amounts to $0.20 per contract and prepares the trader to make money above an effective breakeven price of $22.20. Maximum potential profits of $7.80 per contract are available on the spread should American Eagle’s shares gain 40% to top $30.00 by expiration in January 2014. The trader could wind up having 500,000 shares of the underlying stock put to him or her at expiration in the event of a sharp pullback in shares of the high-flyer to the $18.50-level and below.

HON - Honeywell International, Inc.– Shares in diversified industrials company, Honeywell International, Inc., are up 0.15% as of 11:50 a.m. in New York to stand at $61.53, adding to gains realized earlier in the week after the company agreed to take a 70% stake in Tulsa, Oklahoma-based Thomas Russell Co. for…
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Traders Take To Angie’s List Options

Today’s tickers: ANGI, DRI & AEO

ANGI - Angie’s List, Inc. – Demand for Angie’s List options, which have been available for trading for less than one week, is on the rise today. Shares in the operator of same-named website that aggregates consumer ratings for local service providers such as electricians and plumbers rose 3.7% to stand at $14.53 in early-afternoon trade. The stock ended the month of November below its $13.00 IPO price, but has come back to life in December, rallying back above its initial IPO this past Friday. The Internet company’s shares continued their ascent on Monday, but call selling by one strategist suggests he sees little chance the stock will achieve new record highs by January 2012 expiration. The trader appears to have sold 800 calls at the Jan. 2012 $17.5 strike for a premium of $0.90 apiece. The full amount of premium received on the transaction is safe in the investor’s wallet as long as Angie’s List shares trade below $17.50 at expiration day next month. Shares in ANGI would need to jump 26.6% to top the upper breakeven price of $18.40 in order for the investor to start losing money on the position.

DRI - Darden Restaurants, Inc. – Options traders appear to be gearing up for shares in the operator of Red Lobster and Olive Garden to rise over the next couple of weeks to December expiration. Shares in Darden Restaurants, Inc. increased 0.90% to stand at $47.95 as of 11:50 AM in New York. The stock has rallied more than 7.0% in the past six trading session. Investors hungry for additional gains in the price of the underlying snapped up more than 2,300 calls at the Dec. $50 strike for an average premium of $0.35 a-pop. Call buyers stand prepared to profit should shares in Darden climb…
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Boeing Bears Bulk Up On Put Options Ahead Of Earnings

Today’s tickers: BA, AEO, BP & TOT

BA - The Boeing Co. – Weekly put options covering the commercial airline manufacturer are active ahead of Boeing’s third-quarter earnings report ahead of the opening bell on Wednesday. Shares in Boeing rallied earlier this morning, but have since turned negative to stand 0.20% lower on the session at $64.46 as of 11:25 am EDT. Put players may be picking up downside protection ahead of the earnings release should the report fail disappoint at mid-week. Traders purchased nearly 500 in-the-money puts at the Oct.’28 $65 strike for an average premium of $1.63 each, and picked up some 2,000 puts at the Oct.’28 $62.5 strike at an average premium of $0.78 apiece. Put volume at each strike is far exceeds open interest levels. Investors long the contracts may profit at expiration day if BA’s shares trade below the average breakeven prices of $63.37 and $61.72, respectively. Meanwhile, traders doubting the stock will tank on the earnings report, sold 2,196 puts at the Oct.’28 $57.5 strike to pocket premium of $0.11 per contract. Put sellers keep the premium received on the transaction as long as shares in The Boeing Company top $57.50 at expiration day this week. Traders short the puts could wind up having shares of the underlying put to them at expiration should the stock drop 10.8% from the current price of $64.46 to trade below the $57.50 strike price.

AEO - American Eagle Outfitters, Inc. – Call options on American Eagle Outfitters are on-trend with investors positioning for shares in the teen retailer to rally during the next four weeks to November expiration. American Eagle is scheduled to report third-quarter earnings ahead of the open on November 17. Shares in AEO are currently up 3.1% at $13.40 as of 11:10 am in New York. Call buying and put selling in the front month ensued within minutes of the morning bell. Investors expecting shares in the apparel and accessories retailer to increase snapped up roughly 1,800 calls at the Nov. $14 strike for an average premium of $0.46 each. Trading traffic in near-term calls was heaviest at the Nov. $15 strike, where more than 8,900 contracts changed hands against open interest of 4,829 positions. It looks like most of the Nov. $15 strike calls were purchased for an average premium of $0.22 apiece. Call buyers profit at expiration in the event that AEO’s shares surge 13.6% to…
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Massive Trade in American Eagle Calls Commands Attention

Today’s tickers: AEO, AMKR, SWFT & ELX

AEO - American Eagle Outfitters, Inc. – Options on apparel retailer American Eagle are some of the most active today after one big player traded 65,000 February contract call options on the stock. Shares in the name surged 9.1% to an intraday high of $14.32 after June retail sales for apparel and teen stores came in far better than estimated. The run up in the price of the underlying today as well as the rise in implied volatility on the stock seem to have set the stage for the massive position initiated in AEO options. The trader sold some 65,000 calls at the February $15 strike, against nearly nonexistent open interest, to pocket premium of $1.10 per contract. Premium received on the trade amounts to $7.15 million, which the investor keeps as long as the calls expire worthless at expiration next year. The investor responsible for the transaction sees shares likely trading below $15.00 over the next eight months, but is on the hook to deliver a staggering 6.5 million shares of stock should the calls land in-the-money at expiration.

American Eagle’s shares spent the majority of their days trading above $15.00 from around February 10 through May 5. It seems reasonable to suspect the stock could once again rally above that level, particularly given the occasional bouts of takeover rumors that have pushed shares higher in the past. The enormity of the transaction and the risk of potentially needing to fulfill the contractual obligation to deliver stock at $15.00, regardless of how expensive shares could be in the open market at that time, may mean the investor responsible for the trade is long the stock and selling covered calls. In this scenario the trader is happy to pocket the rich premium…
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Bullish Player Goes for Second Helping of Kraft Call Options

Today’s tickers: KFT, GG, AEO & STEC

KFT - Kraft Foods, Inc. – Retail-therapy may be less attractive today following disappointing reports from industry giants such as The Gap, Inc., but options traders are still managing to enhance bullish spirits by turning to food instead. Kraft Foods popped up on our scanners today due to heavy trading traffic in June contract call options. It looks like one player is extending optimism on the stock, having purchased call options on Kraft five weeks prior, on April 15. Shares in Kraft Foods increased as much as 1.3% this afternoon to touch an intraday and new 52-week high of $35.44. It appears the investor purchased June $34 strike calls five weeks ago for an average premium of $0.40 per contract when shares in the name were hovering around $33.29. Kraft’s shares rallied 6.45% in the past five weeks to touch today’s new 52-week high, but the value of the June $34 strike calls has increased more than three-fold during the same time period. Some 7,000 call options at the June $34 strike were sold today for an average premium of $1.46 each. If we assume the call seller and buyer are one and the same, net profits on the position amount to $1.06 per contract. Next, it looks like a fresh batch of roughly 7,000 call options were purchased up at the higher June $36 strike for an average premium of $0.25 per contract. Profits on the fresh bullish stance kick in at expiration next month as long as Kraft’s shares rally another 2.3% to exceed $36.25 within the next six weeks. Other bullish players purchased some 1,400 in-the-money calls at the June $33 strike for an average premium of $2.44 each. Another strategist appears to be ditching a bearish position on Kraft Foods by unraveling a ratio put spread in the September contract. Options implied volatility on Kraft trimmed 3.5% to stand at 31.33% this afternoon.…
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Bearish Player Targets Verigy Ltd. Put Options

Today’s tickers: VRGY, AEO, FAST & XLK

VRGY - Verigy Ltd. – A sizable put spread on the maker of chip-testing equipment suggests one option strategist is prepared for shares in Verigy Ltd. to drop ahead of April expiration. Shares in Singapore-based Verigy are currently up 0.85% to stand at $13.03 perhaps after analysts at JPMorgan upgraded the semiconductor sector to ‘constructive’ from ‘cautious.’ Verigy looked to acquire LTX-Credence Corp. back in November in an all-stock deal that valued its takeover target at $500 million including net debt, but those plans may fall through as Japanese chip-testing equipment giant, Advantest Corp., extended its own offer to acquire Verigy at a substantial premium of $15.00 a share, up from an original bid of $12.50 a share, at the end of last year. The merger of Verigy and Advantest would form the largest manufacturer of semiconductor testing equipment in the world. Perhaps the put player populating Verigy today is prepared to see shares in the name drop if the deal with Advantest ultimately falls through in the next six weeks to April expiration. The investor purchased 5,200 puts at the April $13 strike for a premium of $1.00 each, and sold the same number of puts at the lower April $11 strike at a premium of $0.25 apiece. Net premium paid to initiate the spread amounts to $0.75 per contract. Thus, the trader starts making money should Verigy’s shares decline 6.00% to breach the effective breakeven price of $12.25 ahead of April expiration day. Maximum potential profits of $1.25 per contract pad the investor’s wallet in the event that shares in VRGY plummet 15.6% from the current price of $13.03 to trade below $11.00 by expiration next month.

AEO - American Eagle Outfitters, Inc. – Call options on the casual clothing retailer are…
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Bullish Player Adjusts Sizable Stance in EMC Corp. Call Options

 Today’s tickers: EMC, MHS, AA & AEO

EMC - EMC Corp. – Large blocks of in- and out-of-the-money call options exchanged on EMC Corp. during the first 25 minutes of the trading session appear to be the work of one investor taking profits off the table on the one hand, and ultimately extending bullish sentiment on the stock on the other. Shares in the provider of information infrastructure technologies and solutions are currently up a slightly 0.10% to stand at a fresh 52-week high of $27.11 just before 12:00pm. It looks like the options trader originally purchased 30,000 calls at the April $24 strike for $1.00 per contract back on January 3, 2011, when shares in the name were trading around $23.23. The subsequent rally in the price of the underlying lifted premium on the now deep in-the-money calls, allowing the investor to sell all 30,000 call options at that strike today for a premium of $2.86 apiece. Net profits on the transaction amount to $1.86 per contract. Next, the trader paid a premium of $0.83 per contract to buy a fresh batch of 30,000 calls up at the July $29 strike. The investor starts to make money on the new bullish stance in the event that EMC Corp.’s shares increase another 10.0% to exceed the effective breakeven share price of $29.83 by expiration day in July.

MHS - Medco Health Solutions Inc. – The healthcare company and provider of pharmacy services popped up on our ‘hot by options volume’ market scanner this morning after one strategist initiated a delta neutral strategy using calls, puts and Medco stock. Shares in the name are currently up 0.50% to arrive at $62.29 in early afternoon trade. It looks like the investor purchased 295,800 shares in MHS at a price of $61.88 each, purchased 5,100 puts at the January 2012 $55 strike for a premium of $3.60 each, and sold the same number of call options up at the January 2012 $72.5 strike at a premium of $2.50 apiece,…
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Phil's Favorites

How palm oil became the world's most hated, most used fat source

 

How palm oil became the world’s most hated, most used fat source

Oil palm fruit in North Aceh, Indonesia. Fachrul Reza / Barcroft Media via Getty Images

Courtesy of Jonathan E. Robins, Michigan Technological University

Palm oil is everywhere today: in food, soap, lipstick, even newspaper ink. It’s been called the world’s most hated crop because of its association with de...



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Biotech/COVID-19

The FDA's weak drug manufacturing oversight is a potentially deadly problem

 

The FDA’s weak drug manufacturing oversight is a potentially deadly problem

Though drug recalls are relatively uncommon in the U.S., reduced inspections increase the likelihood of manufacturing errors that slip through the cracks. AP Photo/Rafiq Maqbool

Courtesy of Adrian V. Hernandez, University of Connecticut and C. Michael White, University of Connecticut

The ...



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Zero Hedge

Buzzfeed Is Finally Going Public In SPAC Merger Valued At $1.5 Billion

Courtesy of ZeroHedge View original post here.

Update (1100ET): At long last, Buzzfeed is finally going public, a crowning career accomplishment for founder and CEO Jonah Peretti.

As we reported earlier, Peretti confirmed on Thursday morning that Buzzfeed had agreed to merge with the obscure 890 5th Avenue Partners (yes, it's named after the fictional headquarters of the Avengers), which raised $250 million in an IPO earlier this year.

The SPAC is led by CEO Emiliano Calemzuk and executive chairman Adam Rothstein, and counts NBCUniversal ad sale chief Linda YAccarino, former Buzzfeed President Greg Coleman, Time W...



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Digital Currencies

Will Bitcoin Crash the Stock Market?

 

Will Bitcoin Crash the Stock Market?

Courtesy of 

When the S&P 500 fell in March last year, it brought Bitcoin down with it. So if stocks can bring down Bitcoin, it’s reasonable to ask if Bitcoin can bring down stocks.*

If you thought the Bitcoin run-up to 60k was emblematic of investor** euphoria, then you probably wondered what would happen if it were to come crashing down. Would that take other high-flying areas of the market down with it?

It might be premature, but as of now, the answer is no.

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Chart School

RTT Plus Bulletin

Courtesy of Read the Ticker

RTT Plus private blog answer these questions over the last two weeks.

Ending: 2021-06-19

- Metal stocks very bullish after gold smash
- FED taper talk vs Basel 3
- Dollar devaluatioin before end of 2021
- COVID, Vaccine insight (off topic)
- The next play for the deep sate (off topic)
- The debt loaded USA can not break these economic stats


RTT Plus membership required to review.

RTT Plus members can include chart building services if you wish. If you you do not want chart building services select 'RTT Plus' only during the membership sign up process.

Sign up now!






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Politics

The Ukraine Fallacies (with Victor Rud)

 

The Ukraine Fallacies (with Victor Rud)

Americans are confused about the history of Ukraine. That's just how Russia wants it.

Courtesy of Greg Olear, at PREVAIL

Greg is the author of Dirty Rubles: An Introduction to Trump/Russia 

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Promotions

Live Webinar with Phil on Option Strategies

 

June is TD Bank's Option Education Month, and today (Thursday, June 10) at 1 pm EST, Phil will speak with host Bryan Rogers about selling options and various option strategies that we use here at Phil's Stock World. Don't miss this event!

Click here to register for TD's live webinar with Phil.

 

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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...



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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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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.

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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.

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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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