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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Zero Hedge

2.2 Million Homes In America Still Have Negative Equity, Despite Record High Prices

Courtesy of ZeroHedge. View original post here.

As the boom in mortgage applications and refinancing activity last week would suggest, the return of interest rates toward multi-year lows this year is helping to pump more froth into the already bubblicious American housing market.

But while somebody will inevitably be left holding the bag when the bubble bursts, for now, at least, the inexorable rise in American home prices has bequeathed an outsize benefit on at least one gro...



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Phil's Favorites

Oh, the Conspiracies!

 

Scientist, technology consultant and best-selling author, David Brin explores the topic of conspiracies theories and how to avoid being sucked into them. He shares his "coping mechanism" and the questions he asks himself when evaluating stories to see where they fall on the continuum betwen total garbage, half-truths, and plausible accounts of actual events.

For David's latest posts, visit the Contrary Brin Blog. For his books and short stories, visit his website

 

...

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Biotech

Consumer genetic testing customers stretch their DNA data further with third-party interpretation websites

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

 

Consumer genetic testing customers stretch their DNA data further with third-party interpretation websites

If you’ve got the raw data, why not mine it for more info? Sergey Nivens/Shutterstock.com

Courtesy of Sarah Catherine Nelson, University of Washington

Back in 2016, Helen (a pseudonym) took three different direct-to-consumer (DTC) genetic tests: AncestryDNA, 23andMe and FamilyTreeDNA. She saw genetic testing as a way...



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Kimble Charting Solutions

Gold Bugs Index Attempting 8-Year Breakout, Says Joe Friday

Courtesy of Chris Kimble.

Are Gold Bugs fans about to receive positive news they haven’t had in years? Possible!

This chart looks at the Gold Bugs Index (HUI) on a weekly basis over a couple of decades. The index has spent the majority of the past 20-year inside of rising channel (1).

The index hit the top of the channel in 2011, where it peaked and started creating a series of lower highs for the past 8-years, which has formed line (2).

The index is now kissing the underside of falling resistance and the underside the 2016/2017 lows at (3).

Joe Friday Just The Fa...



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Insider Scoop

Wedbush: Apple's Stock Could Gain $20-$25 From US-China Trade Deal

Courtesy of Benzinga.

The Sino-American trade dispute and near-term developments could prove to be a "major swing factor" for Apple Inc. (NASDAQ: AAPL), according to Wedbush.

The Analyst

Daniel Ives maintained an Outperform rating on Apple with an unchanged $235 pric...



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Chart School

Silver Review

Courtesy of Read the Ticker.

The folks in the federal reserve will debase the US dollar currency to an extreme degree silver will finally lift off the floor.. 

Note: Readers should re watch the silver back screen news video, here.

The following video looks at price action and Wyckoff logic.

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Chart in video

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If gold moves, silver wi...

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Digital Currencies

Cryptos Are Crashing As Asia Opens, Bitcoin Back Below $8k

Courtesy of ZeroHedge. View original post here.

Having survived the day's bloodbath in US tech stocks, cryptos are crashing in the early Asian session, apparently playing catch-down to the day's de-risking.

While no catalyst is immediately evident, there are some reports noting 13 large global banks are preparing to launch digital versions of major global currencies next year, though we suspect this drop was more algorithmic that fundamental-driven.

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ValueWalk

More Examples Of "Typical Tesla "wise-guy scamminess"

By Jacob Wolinsky. Originally published at ValueWalk.

Stanphyl Capital’s letter to investors for the month of March 2019.

rawpixel / Pixabay

Friends and Fellow Investors:

For March 2019 the fund was up approximately 5.5% net of all fees and expenses. By way of comparison, the S&P 500 was up approximately 1.9% while the Russell 2000 was down approximately 2.1%. Year-to-date 2019 the fund is up approximately 12.8% while the S&P 500 is up approximately 13.6% and the ...



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Members' Corner

Despacito - How to Make Money the Old-Fashioned Way - SLOWLY!

Are you ready to retire?  

For most people, the purpose of investing is to build up enough wealth to allow you to retire.  In general, that's usually enough money to reliably generate a year's worth of your average income, each year into your retirement so that that, plus you Social Security, should be enough to pay your bills without having to draw down on your principle.

Unfortunately, as the last decade has shown us, we can't count on bonds to pay us more than 3% and the average return from the stock market over the past 20 years has been erratic - to say the least - with 4 negative years (2000, 2001, 2002 and 2008) and 14 positives, though mostly in the 10% range on the positives.  A string of losses like we had from 2000-02 could easily wipe out a decades worth of gains.

Still, the stock market has been better over the last 10 (7%) an...



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Mapping The Market

It's Not Capitalism, it's Crony Capitalism

A good start from :

It's Not Capitalism, it's Crony Capitalism

Excerpt:

The threat to America is this: we have abandoned our core philosophy. Our first principle of this nation as a meritocracy, a free-market economy, where competition drives economic decision-making. In its place, we have allowed a malignancy to fester, a virulent pus-filled bastardized form of economics so corrosive in nature, so dangerously pestilent, that it presents an extinction-level threat to America – both the actual nation and the “idea” of America.

This all-encompassing mutant corruption saps men’s souls, crushes opportunities, and destroys economic mobility. Its a Smash & Grab system of ill-gotten re...



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OpTrader

Swing trading portfolio - week of September 11th, 2017

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

 

This post is for all our live virtual trade ideas and daily comments. Please click on "comments" below to follow our live discussion. All of our current  trades are listed in the spreadsheet below, with entry price (1/2 in and All in), and exit prices (1/3 out, 2/3 out, and All out).

We also indicate our stop, which is most of the time the "5 day moving average". All trades, unless indicated, are front-month ATM options. 

Please feel free to participate in the discussion and ask any questions you might have about this virtual portfolio, by clicking on the "comments" link right below.

To learn more about the swing trading virtual portfolio (strategy, performance, FAQ, etc.), please click here ...



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Promotions

Free eBook - "My Top Strategies for 2017"

 

 

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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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