Posts Tagged ‘ANR’

Bears Eye Alpha Natural Resources Options

Today’s tickers: ANR, DWA & PVR

ANR - Alpha Natural Resources, Inc. – Front month put options changing hands on coal producer, Alpha Natural Resources, Inc., this morning suggests some traders are positioning for shares in the name to extend losses, with the stock down roughly 8.0% to a six-month low of $5.50. Coal stocks are being pressured for a second consecutive session on news released Friday that Walter Energy pulled out of a $1.55 billion refinancing loan due to market conditions. Traders bracing for Alpha’s shares to continue to slide in the near term snapped up roughly 3,000 puts at the Jun $5.5 strike for an average premium of $0.09 apiece today. The contracts make money at expiration if shares in ANR decline another 3.0% from the current price of $5.58 to settle below the average breakeven point at $5.41. Shares in the name last traded below $5.41 back in September of 2012.

DWA - Dreamworks Animation SKG, Inc. – Upside call options are active on Dreamworks this morning, with shares up as much as 8.5% near the open at a new 52-week high of $24.75 after the maker of animated feature films announced a multi-year deal to provide original content to video-streaming services company, Netflix. Traders positioning for shares in DWA to continue to climb picked up roughly 1,000 calls at the Jul $25 strike for an average premium of $0.63 apiece. Call buyers stand ready to profit at expiration next month should shares in Dreamworks climb another 3.5% to top $25.63.

PVR - PVR Partners L.P. – The owner and operator of natural gas pipelines and processing plants popped up on our ‘hot by options volume’ market scanner on Monday morning due to heavier than usual activity in bearish puts on the stock. Shares in PVR Partners L.P., formerly known as Penn Virginia Resources Partners, L.P., are currently unchanged on the day at $27.19 as of 1:05 p.m. ET,…
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Starwood Hotels Call Options Heat Up As Shares Extend Gains

 

Today’s tickers: HOT, VMW & ANR

HOT - Starwood Hotels & Resorts Worldwide, Inc. – Upside call buying on one of the world’s largest hotel and leisure companies today indicates some options traders are positioning for shares in Starwood Hotels & Resorts Worldwide to continue moving higher during the next couple of weeks. Shares in Starwood are up better than 2% this afternoon to stand at $54.09 as of 12:25 p.m. ET. The stock has been trending higher in recent weeks, up 7.7% since mid-November, following a sharp 18% pullback from a six-month high of $61.09 in September down to as low as $50.42 on November 15th. Options players preparing for shares in Starwood Hotels to continue to gain ground in the near term purchased 2,000 calls at the Dec. $55 strike for an average premium of $0.30 apiece. Call buyers may profit at expiration in the event that HOT’s shares rally another 2.2% over the current price of $54.09 to exceed the average breakeven point at $55.30 at December expiration. Overall options volume on the stock today is noteworthy, with nearly 9,000 contracts in play versus the Starwood’s average daily options volume of around 2,300 contracts. The bulk of the trading traffic is in upside calls, driving the call-to-put ratio up to 19-to-1 in the first half of the trading session.

VMW - VMware, Inc. – Shares in the provider of cloud infrastructure solutions are moving higher on Thursday, currently up 1.6% on the day at $91.76 just after midday on the East Coast. Bursts of front-month put buying on VMware this morning suggests one or more strategists may be locking in recent gains in the price of the underlying. Shares in the name have increased roughly 13% since the end of October. Volume in VMW options is heaviest at the Dec. $85 strike, where upwards of 5,500 puts changed hands against open interest of 1,869 contracts. It looks like most of the volume was purchased at the start of the session for an average premium of $0.95 apiece. Put buyers may be hedging long…
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Which Way Wednesday – Fed Edition

Click to ViewStrap in folks, it's going to be another wild ride!  

As you can see from Doug Short's S&P chart,we are about to slam right into that collapsing 50-day moving average, now at 1,223.40 – right about where the S&P topped out on yesterday's morning spike.  Unfortunately, the Nasdaq topped out and headed down before the other indexes got a chance to complete their up cycle and the Dollar rose back over the 77.50 line and tanked the market – exactly as we predicted it would at the bottom of yesterday morning's post

Of course, I can't MAKE these things happen – I can only tell you what's going to happen and give you trade ideas to help you profit from it.  I mentioned that we had picked up 10 DIA 9/30 $115.75 calls in our virtual $25,000 Portfolio at $1.05 on Monday and they topped out at $1.75 (up 66%) but we took a non-greedy exit at $1.45 in the morning spike (up 33%) and we switched to 20 QQQ 9/30 $57 calls at .45 in the afternoon sell-off.  So, we made $350 off a $1,050 investment and then we spend $900 but now we have 20 contracts instead of 10 but we also have $450 in cash so now risking just $600 of our original investment on the much more volatile Fed day.  

Another trade idea we like ahead of the Fed that's still playable is 20 FAS weekly $13/14 bull call spreads at .38 ($760), selling 10 JPM Oct $28 put for .55 ($550) for net $210 invested on the 20 $1 spreads.  The worst-case on this spread is owning JPM for net $28.10, which is 13% off the current price and the best case is a $1,790 profit (852%) in a week.  That sounds like a lot but options let you do funny things like at 11:30 in Member Chat, we saw PCLN making new highs against news that we thought was not actually that good for them on closer examination.  Our trade idea to take advantage of that was:  

If you want to play PCLN bearish – it’s very risky but the weekly $565/555 bear put spread is $6 and you can sell the $565 calls for


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Harley-Davidson Calls Pop as Bulls Position to Ride Rally Higher

Today’s tickers: HOG, V, CRI & ANR

HOG - Harley-Davidson, Inc. – Shares in Harley-Davidson roared to life during the month of June, rising some 20.0% since June 13. Bullish players expecting the price of the underlying to continue to accelerate to the upside scooped up call options this morning. HOG’s shares are currently up 1.75% on the day to stand at $41.69 as of 11:35 am ET. Call options in the front month are the most heavily trafficked, with the July $43 strike call attracting the greatest volume. Investors exchanged more than 4,100 calls at the July $43 strike against previously existing open interest of just 33 contracts. It looks like traders purchased most of the calls at that strike for an average premium of $0.36 a-pop. Call buyers profit if shares in the motorcycle manufacturer climb another 4.0% over the current price of $41.69 to surpass the average breakeven point at $43.36 by July expiration. Harley-Davidson’s shares traded within pennies of the breakeven price back in April when the stock rallied to a 2-year high of $43.15. The July contract calls expire four days before HOG reports second-quarter earnings. In-the-money calls set to expire in August received some attention, as well. It looks like some 2,100 calls may have been purchased for an average premium of $2.74 each at the August $40 strike. The calls changing hands at this strike could be closing positions as open interest at this strike is sufficient to cover volume generated thus far in the session. The rise in demand for HOG calls helped lift options implied volatility on the stock 7.4% to 32.23% by 11:50 am in New York.

V - Visa, Inc. – The run-up in Visa’s shares sparked by the Fed’s decision to impose a $0.22 cap on swipe fees rather…
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Bearish Players Eye Men’s Wearhouse Put Options Ahead of Earnings

Today’s tickers: MW, ABV, ANR & ODP

MW - The Men’s Wearhouse, Inc. – Investors are posturing in Men’s Wearhouse put options this afternoon ahead of the retailer’s first-quarter earnings report after the final bell. Shares in the Houston, TX-based company are well off their lows of the session, but still trade 0.65% lower today at $30.61 as of 1:35pm on the East Coast. One options strategist donned a debit put spread in the June contract to position for the price of the underlying shares to fall. The trader picked up 1,500 puts at the June $30 strike for a premium of $1.25 each, and sold the same number of puts at the lower June $28 strike at a premium of $0.47 a-pop. Net premium paid to initiate the spread amounts to $0.78 per contract. The investor profits if shares in Men’s Wearhouse drop 4.5% post-earnings to breach the effective breakeven price of $29.22. Maximum potential profits of $1.22 per contract pad the investor’s wallet in the event that MW’s shares plunge 8.5% in the next week and a half to trade below $28.00 at June expiration. Options implied volatility on the clothing company currently stands 7.7% higher on the session at 50.64%. Investors have exchanged a total of 6,295 call and put options on the stock as of 1:40pm, which is substantial relative to MW’s total open interest of 11,578 contracts. Pre earnings report options players are exchanging more than 3.5 put options on the stock for each single call option on the retailer this afternoon.

ABV - AmBev – Shares in AmBev, a subsidiary of global brewing company Anheuser-Busch InBev, rose nearly 1.1% at the start of the trading session to $31.94. Activity in AmBev call options this morning suggests one strategist expects shares in the biggest brewery in…
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Phil's Favorites

Bloomberg Has Built a Star Wars Machine to Try to Steal the Democratic Nomination

Courtesy of Pam Martens

Michael Bloomberg

Billionaire Michael Bloomberg is used to getting his way. After serving two terms as New York City’s Mayor as a Republican, he used his own vast stash of cash to repeal term limits and give himself another four-year term, running as an Independent. Now he has promised to do the unprecedented: spend $1 billion of his own money to install himself as President of the United States, running on the Democratic ticket.

Bloomberg’s campaign increasingly resembles an octopus with money gushing out of its tentacles into anything and everything that will inject Mic...



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Zero Hedge

China Stocks Surge, S&P Futs Hit All Time High On Latest Chinese Monetary Stimulus

Courtesy of ZeroHedge View original post here.

European stocks rose on Monday, Chinese shares surged, recovering all their post-coronavirus losses and S&P and Nasdaq futures jumped to new all time highs as investors took encouragement from the Asian country’s monetary (if not fiscal) pledges to support the world’s second-biggest economy in the face of the coronavirus outbreak. The yen and gold both slipped.

...



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Insider Scoop

AMX Buys Fellow Alabama Company Powell, Adds Reefer Capacity

Courtesy of Benzinga

Alabama Motor Express will push deeper into the refrigerated business with purchase of Powell Transport Solutions.

The acquisition, announced earlier this week, will bring 35 refrigerated trailers to AMX, the company said in a statement. A spokeswoman for AMX, in response to questions submitted by FreightWaves, said the company's business is currently about 10% refrigerated. The AMX fleet before the acquisition was 210 trailers, she said.

Powell's business is 100% refrigerated, according to the...



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Biotech & Health

Coronavirus: the blow to the Chinese economy could be felt for years

 

Coronavirus: the blow to the Chinese economy could be felt for years

Courtesy of Chusu He, Coventry University

Investors are still being fairly complacent about the novel coronavirus. After the number of new daily cases suddenly shot up to more than 15,000 on February 12 following more than a week of decline, there were some jitters in the markets. With Chinese authorities saying the increase was due to a decision to broaden the definition for diagnosing people, there were falls in the region of 1% in European markets, and smaller retrenchments in Asia and North America.

It is...



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Members' Corner

How to Stop Bill Barr

 

How to Stop Bill Barr

We must remove this cancer on our democracy.

Courtesy of Greg Olear, at PREVAIL, author of Dirty Rubles: An Introduction to Trump/Russia

...



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The Technical Traders

Is The Technology Sector Setting Up For A Crash? Part I

Courtesy of Technical Traders

One thing that continues to amaze our research team is the total scale and scope of the Capital Shift which is taking place across the globe.  For almost 5+ years, foreign investors have been piling into the US stock market chasing the stronger US dollar and continued advancement of US share prices. It is almost like there is no other place on the planet that will allow investors to pool capital into such a variety of strong assets while protecting against foreign capital risks.  Yet the one big question remains – when will a price reversion event hit the US stock
market?

So many researchers, even our team of researchers, believe we have found the keys to unloc...



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Kimble Charting Solutions

Joe Friday Says Germany (DAX) Could Rally 30%, Happy Valentines Day For The Bulls!

Courtesy of Chris Kimble

German DAX Index “weekly” Chart

The German DAX is one of the more important global stock market indices, as it represents the largest economy / market in the Euro Zone.

So it would be a real treat for the bulls to see this stock market index breakout as we celebrate Valentine’s Day.

The facts, Ma’am. Just the facts; The German DAX looks to have formed a bullish ascending triangle over the past 3 years and it is currently attempting to breakout above the top at (1)....



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ValueWalk

Russell 2000 Index (RUT) hits an almost one-month high

By Gorilla Trades. Originally published at ValueWalk.

Ad the Russell 2000 Index (INDEXRUSSELL: RUT) hit an almost one-month high today, commenting on today’s trading Gorilla Trades strategist Ken Berman said:

Q4 2019 hedge fund letters, conferences and more

Russell 2000 Index (INDEXRUSSELL: RUT) Outperforms Large-Cap Benchmarks

While the overnight session was nothing short of scary stocks held on to most of yesterday's gains and small-caps even extended their winning streak. The Russell 2000 Index (INDEXRUSSELL: RUT) hit an almost one-month high today, finishing higher for the fourth day in a row while outperforming the large-cap benchmarks, and since the Volatility...



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Chart School

Dow theory warning from the Utilities Index

Courtesy of Read the Ticker

Charles Dow died in 1902, and the investors should thank him for his ever lasting Dow Theory Analysis.

Carrying on this blog theme looking at the Utility stocks. Previous post.
Dow Jones Utility index could trade like the FANGs
Formula for when the Great Stock Market Rally ends



You can learn about Dow Theory here

This post is concerned wi...

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Digital Currencies

Bitcoin Price May Hit $27K All-Time High By Summer, Predicts Fundstrat's Tom Lee

Courtesy of ZeroHedge View original post here.

Authored by William Suberg via CoinTelegraph.com,

Bitcoin is primed for average gains of almost 200% over the next six months, one of its best-known supporters has told mainstream media. 

...



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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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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

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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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