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

Animal Spirits: The Beanie Baby Bubble

 

Animal Spirits: The Beanie Baby Bubble

Courtesy of 

We spoke to David Lau a few weeks ago about how they work with advisors. Check out the whole show here.

On today’s show we discuss:

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Zero Hedge

Iran Says S.Korea To Release $1BN Of Its Frozen Funds After Tanker Seizure

Courtesy of ZeroHedge View original post here.

Iran and South Korea have been engaged for the past two months in intense crisis meetings triggered by the Jan.4 Iranian seizure of the South Korean-flagged tanker MT Hankuk Chemi off the Islamic Republic's southern waters. From the start of the IRGC's capturing the vessel and detaining its crew, Tehran pointed to $7 billion to $10 billion in Iranian assets in Korean banks previousl...



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ValueWalk

Workhorse Blows Up; Buffett And Berkshire Get Busy

By Jacob Wolinsky. Originally published at ValueWalk.

Whitney Tilson’s email to investors discussing Workhorse Group Inc (NASDAQ:WKHS) blows up; Buffett and Berkshire get busy; the king of SPACs wants you to know he’s the next Warren Buffett.

Q4 2020 hedge fund letters, conferences and more

Workhorse Blows Up

1) Another day, another blowup of one of the stocks I've warned my readers about...

On Monday, it was software supplier Ebix (EBIX). Yesterday, it was electric-vehicle developer Workhorse (WKHS), which tumbled 47% and was down ...



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Kimble Charting Solutions

Is Rising Inflation About To Hit U.S. Economy In Big Way?

Courtesy of Chris Kimble

Inflation seems to be a thing of the past… but current trading in bond and commodity markets tell us that it could become a thing of the future!

Inflation hasn’t been an issue, or even on our radar, since the 1980s. Sure, the 2007 surge in oil prices offered some concern but the financial crisis killed any thoughts of inflation.

So what’s got us concerned about inflation in 2021?

Today we take a look at long-term charts of two potential inflation indicators: Crude Oil ...



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Digital Currencies

What Is Top Shot?

 

What Is Top Shot?

Courtesy of 

What I’m about to write is going to sound incredibly stupid. Some of it also might not be factually accurate, as I’m still very much a NoobWhale.  If you want to learn more, I suggest you start herehere, or ...



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Biotech/COVID-19

6 important truths about COVID-19 vaccines

 

6 important truths about COVID-19 vaccines

For many, distinguishing between fact and fiction is difficult. Olemedia/E+ via Getty Images

Courtesy of Sarah Lynch, Binghamton University, State University of New York and Kanneboyina Nagaraju, Binghamton University, State University of New York

One of the biggest barriers s...



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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: Saturday, 29 August 2020, 05:46:16 PM

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


Comment: Low liquidity means price can MOVE fast either way!



Date Found: Saturday, 29 August 2020, 05:52:11 PM

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


Comment: if you have 100% of life savings in stocks alone, please adjust for a crash...



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Politics

Why the British abandoned impeachment - and what the US Congress might do next

 

Why the British abandoned impeachment – and what the US Congress might do next

The impeachment trial of Warren Hastings in 1788. Library of Congress

Courtesy of Eliga Gould, University of New Hampshire

Impeachment was developed in medieval England as a way to discipline the king’s ministers and other high officials. The framers of the U.S. Constitution took that idea and applied it to presidents, judges and other federal leaders.

Now that tool is in use, and in question, during ...



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Mapping The Market

The Countries With The Most COVID-19 Cases

 

The Countries With The Most COVID-19 Cases

By Martin Armstrong, Statista, Jan 12, 2021

This regularly updated infographic keeps track of the countries with the most confirmed Covid-19 cases. The United States is still at the top of the list, with a total now exceeding the 22 million mark, according to Johns Hopkins University figures. The total global figure is now over 85 million, while there have been more than 1.9 million deaths.

You will find more infographics at ...



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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.

This type of a structural market shift indicates a move away from speculation and towards Blue Chip returns. It suggests traders and investors are expecting the US consumer to come back strong (or at least hold up the market at...



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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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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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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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