Posts Tagged ‘AN’

Market bullish, options bearish

Today’s tickers: XLI, XLY, DELL, CAT, XLF, AET, AN, EWT, SLAB, QLGC, BYD & INTC

XLI Industrial Select Sector SPDR – The industrials ETF attracted massive amounts of downside protection by investors fearing a near-term contraction in shares of the fund. The price per share is currently up by 3% to $23.19 on the day following broader market gains experienced today. However, traders have enacted a decidedly bearish position on the fund in the near-term May contract. At the May 19 strike price more than 65,100 puts were purchased for an average premium of 17 cents apiece. These option contracts will begin to yield profits to the downside beginning at the breakeven share price of $18.83. Further along, the in-the-money June 23 strike price saw traders who were likely banking gains on the rise in shares today by selling approximately 27,000 calls for an average premium of 65 cents per contract.

XLY Consumer Discretionary Select Sector SPDR – The consumer discretionary ETF jumped onto our ‘most active by options volume’ market scanner after investors bought a huge chunk of puts in the near-term May contract. Shares have rallied by 4% to $21.80 today, creating lesser cost premiums on put options. At the May 20 strike price approximately 58,100 puts were picked up for an average premium of 18 cents apiece. Investors have certainly appeared to brace themselves for bearish movements in the fund. Fleshing out the pessimistic picture was the sale of 2,290 calls at the May 23 strike for 82 cents which indicates that traders do not see today’s rally stemming too much further, particularly in the near-term.

DELL Dell Inc. – The just-in-time manufacturer of personal computers has rallied by more than 4% to $11.35 amid broad market gains today. We observed one trader who appears to have established a covered call in the January 2010 contract. It is likely that this investor bought shares of the underlying stock today or was already long the stock previously, and then sold 24,500 calls at the January 12.5 strike price for a premium of 1.50 each. The trader pockets the 1.50 premium and has locked into gains of 10% on the rise in share price should the calls land in-the-money and the underlying stock get called from him at expiration next year.

CAT Caterpillar, Inc. – Shares of CAT have rallied by more than 3.5% today to arrive at…
continue reading


Tags: , , , , , , , , , , ,




Semiconductor credit spread indicates bearish view

Today’s tickers: SMH, ELAN, FDX, DELL, AN, GE, POT, PCLN & ERIC

SMH Semiconductor HOLDRS Trust – The semiconductors ETF has seen shares decline by more than 3.5% to stand at $18.11 today. We noticed one investor who is looking to profit from a near-term pull back in shares, by establishing a credit spread in the April contract. While the open interest at the April 18 strike suggests that there has been bullish activity there recently, we believe the trader we observed today is taking the opposite stance. At the April 20 strike price 25,000 calls were purchased at 46 cents apiece, while at the April 18 strike 25,000 in-the-money calls were sold for 1.36 each. The net credit achieved with this strategy amounts to 90 cents and is safe in the bank if shares remain below $18 by expiration next month. SMH has not traded above $20 since November of 2008, and the stock has reached a line of resistance at around $18. This investor may turn out to have made a wise choice in taking advantage of the richer premium afforded by the in-the-money contracts at the lower strike, and he will look for both the April 18/20 calls to expire worthless in 30 days in order to pocket the 90 cent premium. This bear was not alone in the woods today, as the May contract saw 14,000 puts purchased at the 14 strike price for 24 cents apiece. Super-pessimists are looking for shares to decline below the 52-week low on the stock at $14.51 because profits begin to amass as shares fall beginning at the breakeven share price of $13.76.

ELN Elan Corporation PLC – The neuroscience-based biotechnology company has experienced a share price decline of 2% to $5.29. ELN appeared on our ‘hot by options volume’ market scanner after one investor traded a large number of calls in the January 2010 contract. The trader purchased 28,000 calls for 20 cents each at the January 17.5 strike price. Given that shares are light-years away from nearing $17.50, we investigated the open interest of 29,000 at the 17.5 strike. It looks as though this investor sold a good portion of these 28,000 calls short on January 8, 2009 for a premium which ranged between 70 cents and 1.25 per contract when shares were at $9.00. We noted at the time in our commentary that this was part of…
continue reading


Tags: , , , , , , , ,




AutoNation benefiting from shifts in consumer trend

Today’s tickers: AN, GD, HSY, MSFT & NOK

AN – AutoNation Inc. – Shares of the automotive retailer have lifted 6% today to $10.33, a price that represents a more than 160% increase over the 52-week low of $3.97 established just as the broad market reached its weakest point for 2008 in November. AutoNation continues to thrive in this depressed economic environment, whereas the big four automakers are left struggling in vain to avoid the descent to bankruptcy. AN has captured a sweet spot in the auto industry given that consumers continue to require automobiles for transportation purposes, but are currently without the means to purchase new vehicles. And so AutoNation welcomes cash-strapped consumers to its franchises, while big-auto laments the loss of customers, which it so desperately needs. Interestingly, CEO Mike Jackson, reported that demand for highly fuel-efficient autos and hybrid vehicles has fallen off a cliff given the decline in the price of gasoline, and now AN’s lots are chock-full of the cars. Perhaps if gasoline prices rally and consumers once again remember the long-run cost savings hybrids accrue, the hybrid vehicles will once again fly off the shelves. AN popped onto our ‘hot by options volume’ market scanner today after some interesting trades were established in the March and April contracts. At the March 10 strike price, 10,000 puts were sold for 40 cents each while at that same strike, 5,000 calls appear to have been purchased for 90 cents apiece. It also looks like these two trades were connected to the purchase of 2,500 calls at the April 10 strike price for 1.45 per contract, as well as the purchase of 2,500 calls at the April 12.5 strike for 45 cents each. We believe that the puts were sold as a vehicle to finance the purchase of calls as this investor seeks further upside on AN. The March 10 calls are already in-the-money as of today, but shares would need to rally by an additional 21% in order for the April 12.5 calls to land in-the-money by expiration. The investor appears to feel confident that the shares will remain above $10.00 at expiration.

GD – General Dynamics Corp. – Over the course of the last six months, shares at defense contractor, General Dynamics have fared badly falling from around $95 to $35 per share. You can blame the broad macro environment or you can focus on…
continue reading


Tags: , , , ,




 
 
 

Zero Hedge

Five Reasons For The Weakness Of The Argentine Economy

Courtesy of ZeroHedge. View original post here.

Authored by Daniel Lacalle via dlacalle.com,

Argentina has been “printing money for the people” MMT-style for many years. Its wrongly-called “inclusive monetary policy” of the past - print money to finance massive government spending - has driven the country to massive inflation and depression.

This is the main reason why a country with an excellent education, human capital, and high economic potential has third-world inf...



more from Tyler

Phil's Favorites

Why Easter is called Easter, and other little-known facts about the holiday

Happy Easter Everyone! 

Why Easter is called Easter, and other little-known facts about the holiday

What is the origin of Easter eggs? Katie Morrow, CC BY-NC-ND

Courtesy of Brent Landau, U...



more from Ilene

Insider Scoop

Uber To Sell Minority Stake Of Its Autonomous Vehicle Unit To Japanese Consortium

Courtesy of Benzinga.

Uber Technologies is planning to sell a 14 percent stake in its autonomous vehicle unit to existing investor Softbank, Japanese automaker Toyota, and auto parts manufacturer Denso ahead of its much-anticipated initial public offering (IPO), which is expected to happen in May. Though...



http://www.insidercow.com/ more from Insider

Digital Currencies

5 Cryptocurrency Tax Questions To Ask On April 15th

Courtesy of ZeroHedge. View original post here.

Authored by David Kemmerer via CoinTelegraph.com,

Depending on what country you live in, your cryptocurrency will be subject to different tax rules. The questions below address implications within the United States, but similar issues arise around the world. As always, check with a local tax professional to assess your own particular tax situation.

...



more from Bitcoin

Chart School

RTT browsing latest..

Courtesy of Read the Ticker.

Please review a collection of WWW browsing results. The information here is delayed by a few months, members get the most recent content.



Date Found: Thursday, 18 October 2018, 05:33:01 PM

Click for popup. Clear your browser cache if image is not showing.


Comment: Why The Stock Market Is Heading For Disaster youtu.be/Gubf0A5pHL0



Date Found: Monday, 29 October 2018, 12:55:07 PM

Click for popup. Clear your browser cache if image is not showing.


Comment: Ross Beaty: We Are Star...



more from Chart School

Kimble Charting Solutions

Silver Bear Market Faces Big Price Support Test!

Courtesy of Chris Kimble.

When silver, gold, and the precious metals industry were red-hot bullish in the 2000’s, investors could do no wrong.

You could buy SILVER at just about any price and it would go higher.

In today’s chart, you can see three large green bullish ascending triangles from the 2000’s that lead to big gains. But that was the bull market before the current bear market.

The tables have turned since the 2011 price top. Silver quickly formed a bearish descending triangle and fell another 50 percent when that broke down. This sent a vicious bear mark...



more from Kimble C.S.

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 ...



more from ValueWalk

Biotech

Marijuana is a lot more than just THC - a pharmacologist looks at the untapped healing compounds

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

 

Marijuana is a lot more than just THC - a pharmacologist looks at the untapped healing compounds

Assorted cannabis bud strains. Roxana Gonzalez/Shutterstock.com

Courtesy of James David Adams, University of Southern California

Medical marijuana is legal in 33 states as of November 2018. Yet the federal government still insists marijuana has no legal u...



more from Biotech

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...



more from Our Members

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...



more from M.T.M.

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 ...



more from OpTrader

Promotions

Free eBook - "My Top Strategies for 2017"

 

 

Here's a free ebook for you to check out! 

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.

This chapter isn’t about risk or leverage. Phil present a few smart, practical ideas you can use as a hedge against inflation as well as hedging strategies designed to assist you in staying ahead of the markets.

Some other great content in this free eBook includes:

 

·       How 2017 Will Affect Oil, the US Dollar and the European Union

...

more from Promotions





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...

Learn more About Phil >>


As Seen On:




About Ilene:

Ilene is editor and affiliate program coordinator for PSW. She manages the site market shadows, archives, more. Contact Ilene to learn about our affiliate and content sharing programs.

Market Shadows >>