Posts Tagged ‘ARUN’

Bearish Options Active On Gold Miners ETF

 

Today’s tickers: GDX, PCRX & ARUN

GDX - Market Vectors Gold Miners Index ETF – Big prints in GDX put options on Tuesday morning indicate some traders are positioning for shares in the Market Vectors Gold Miners Index ETF to potentially drop to the lowest level since December of 2008. Shares in the ETF are off 3.0% today at $28.85 as of midday in New York. Volume in GDX options is heaviest in the Jun $27 strike puts where nearly 40,000 puts have traded versus open interest of 16,819 contracts. It looks like the bulk of the volume was purchased for an average premium of $0.89 per contract. Put buyers stand ready to profit at June expiration should the price of the underlying plunge 9.5% from the current level to trade below the average breakeven price of $26.11 by expiration. Sizable prints in the Jun $27 puts helped push the put/call ratio on GDX above 4.4 during the first half of the session.

PCRX - Pacira Pharmaceuticals, Inc. – Shares in specialty pharmaceutical company, Pacira Pharmaceuticals, Inc., are bouncing around on Tuesday, rising as much as 2.0% in the early going, before reversing gains to trade down 2.0% at $27.84 by 12:25 p.m. ET. The company reports first-quarter earnings ahead of the opening bell tomorrow. Options changing hands on Pacira this morning suggest one trader is positioning for PCRX shares to approach record highs in the near term. It looks like more than 1,000 of the May $30 strike calls were purchased for an average premium of $0.90 each. The bullish strategy makes money if shares in the pharmaceutical company rally 11% over the current price of $27.84 to top the average breakeven price of $30.90 by expiration next week. Shares in PCRX are up more than 180% since this time last year.

ARUN - Aruba Networks, Inc. – The provider of network access solutions for mobile enterprise networks released preliminary…
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Bullish Bets On The Rise In Las Vegas Sands Options

 

Today’s tickers: LVS, ARUN & PLCE

LVS - Las Vegas Sands, Inc. – U.S. stocks rebounded this morning on better-than-expected earnings from Hewlett-Packard and AIG released Thursday, and following market-soothing comments from St. Louis Fed Chief, James Bullard, to CNBC’s Squawk Box on Friday morning. Shares in casino resort operator, Las Vegas Sands, joined in on the end-of-week rally, rising as much as 2.5% in the early going to touch $50.32. Heavy trading traffic in May expiry call options this morning suggests some traders are positioning for shares in the name to extend gains during the next few months. The May $52.5 strike calls are seeing the most volume, with more than 21,000 contracts in play versus open interest of 282 contracts as of 11:45 a.m. ET. It looks like most of the calls were purchased for an average premium of $2.04 each. Fresh interest is also building in the May $50 strike calls where roughly 4,700 contracts appear to have been purchased for an average premium of $3.10 apiece. Traders long the May $50 and $52.5 strike calls may profit at expiration should shares in LVS rally approximately 6.0% and 9.0% to exceed average breakeven points at $53.10 and $54.54, respectively. Finally, one or more bullish traders appear to be buying the May $50/$60 call spread for an average net premium of $2.65 per contract. The bull call spread pays off if shares in Las Vegas Sands top the breakeven price of $52.65 by May expiration, with maximum potential profits of $7.35 per contract available if the stock jumps to a record high of $60.00.

ARUN - Aruba Networks, Inc. – Shares in Aruba Networks jumped nearly 30% on Friday morning to a new 52-week high of $26.78 after the provider of enterprise mobility solutions reported better-than-expected second-quarter earnings and sales, and forecast third-quarter revenue above analyst estimates. A sizable bullish bet initiated on Aruba ahead of the company’s earnings release is paying off for one trader today, as shares sit at their highest level since July…
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Call Buying Detected Even As Express Shares Plummet

 

Today’s tickers: EXPR, ARO & ARUN

EXPR - Express, Inc. – Specialty retailer Express, Inc.’s shares are getting hammered today, down more than 20% at $11.90 as of 11:10 a.m. in New York, after the company lowered its third-quarter earnings forecast and said same-store sales will decline in the mid-single digit range. Express, Inc. shares, publicly traded since the company’s May 2010 IPO, have not yet managed to catch a bid in today’s session as the stock continues to hit fresh record lows. Options traders betting shares in the name will rebound by the start of the new calendar year snapped up January 2013 expiry call options this morning. Contrarian bets are heaviest at the Jan. 2013 $15 strike where approximately 975 calls were purchased at a premium of $0.45 apiece. Call buyers may profit at expiration next year in the event that EXPR shares jump 30% over the current price of $11.90 to top the effective breakeven point at $15.45. Getting long the Jan. 2013 $15 call has been painful for one or more options traders who appear to have purchased at least 550 of the contracts back on September 4th for a premium of $2.20 per contract. The value of the call options has collapsed in the four weeks since then, down nearly 90% so far to the current asking price of $0.30 apiece.

ARO - Aeropostale, Inc.– Shares in teen retailer, Aeropostale, Inc., are moving lower this morning, perhaps in sympathy with Express, Inc., after the specialty retailer cut its third quarter profit forecast. ARO shares are currently down 2.3% at $13.05 as of 11:00 a.m. ET, and it looks like some options traders are positioning for the price of the underlying to extend losses in the near term. Trading traffic in Aeropostale options is heaviest in the Oct. $13 strike put where more than 8,000 contracts have changed hands versus open interest of 1,239 positions. It looks like most of the…
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Emerging Markets ETF Options Fly

Today’s tickers: EEM, GG, ARUN & XLI

EEM - iShares MSCI Emerging Markets Index ETF – Options volume on the EEM has topped 525,000 contracts in the first two hours of the trading session after one big emerging-markets bull banked substantial profits on a previously established position, and extended his optimistic view on the fund through May expiration. Shares in the EEM are down one penny on the session to stand at $49.86 as of 11:15am in New York. It looks like the strategist accumulated upside exposure on the ETF during the month of March, buying a 100,000-lot April $50/$52 call spread for an average premium of $0.20 per contract on March 8th and 9th, when shares in the fund were hovering around $43.89. The subsequent 13.5% rise in the price of the underlying since the transaction was initiated lifted premium on the calls, allowing the options trader to sell the 100,000-lot call spread for $0.46 per contract this morning. The call-spreader pockets average net profits of $0.26 per contract, or around $2.6 million, on this leg of the transaction. Next, the EEM-optimist constructed a fresh debit call spread in the May contract, buying 100,000 calls at the May $51 strike at a premium of $0.80 each, and selling the same number of calls at the higher May $53 strike for a premium of $0.22 a-pop. Net premium paid to initiate the transaction amounts to $0.58 per contract. Thus, the trader is poised to profit in the event that shares in the EEM rally 3.4% over the current price of $49.86 to surpass the effective breakeven point— and a new 52-week high— of $51.58 by expiration day next month. Maximum potential profits of $1.42 per contract, or $14.2 million, are available to the investor should shares in the ETF surge 6.3% to trade above $53.00 by May expiration. Finally, the sale of two sizable chunks of in-the-money April contract call options generated big gains for another EEM-bull this morning. It looks like the…
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Zero Hedge

An American Horror Story: Rabobank On The Recession Of 2020

Courtesy of ZeroHedge View original post here.

Authored by Philip Marey via Rabobank,

Summary
  • While the outlook for 2020 remains sketchy, heavily dependent on non-economic factors, we now expect GDP to fall by 6% in 2020.

  • With a slowdown in February and a sharp contraction of the economy in March, we expect GDP growth in Q1 to be negative (-5% quarter on quarter at an annualized rate).

  • However, the most extreme economic growth figure is likely to be Q2 GDP growth with the lockdown continuing through at least April and l...



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Phil's Favorites

The PhilStockWorld.com Weekly Webinar - 04-08-2020

For LIVE access on Wednesday afternoons, join us at Phil's Stock World – click here.

 

Major Topics:

00:01:34 - Checking on the Markets
00:04:32 - Current News
00:31:34 - LEVI
00:35:08 - AMZN
00:39:26 - Mark Mahaney's Stock Coverage
00:43:00 - Public Transportation & Disinfecting
00:48:08 - Petroleum Status Report & OPEC
01:00:24 - COVID-19 Update | WYNN
01:16:00 - Portfolio Projection: Income Portfolio
01:17:23 - FUTURES
01:18:49 - Earnings Portfolio
01:19:27 - STP | LTP
01:22:52 - S&P 500
01:30:05 - AAPL
01:34:15 - VIX
01:36:00 - M
01:42:56 - VIAC
01:47:02 - XOM
01:50:29 - LB
01:52:44 - IRBT
01:57:48 - Crude Oil WTI
02...



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ValueWalk

Public pensions face liquidity crunch amid volatility

By Michelle Jones. Originally published at ValueWalk.

Public pensions have had weak liquidity for a long time, but the recent volatility has made a bad situation even worse. S&P noted that pensions‘ investment horizons are decades long. As a result, many funds claim that market turmoil doesn’t affect their returns because they have plenty of time to ride out volatility. However, funds with weak liquidity don’t have that luxury in the current volatility.

Q1 2020 hedge fund letters, conferences and more

Public pensions in liquidity stress

S&P Global Ratings analyst Todd Kanaster and team said in a recent report that because of ...



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Biotech/COVID-19

COVID-19 is hitting black and poor communities the hardest, underscoring fault lines in access and care for those on margins

 

COVID-19 is hitting black and poor communities the hardest, underscoring fault lines in access and care for those on margins

Nurse Shelia Rickman participates in an after-shift demonstration on Monday, April 6, 2020, in Chicago’s Hyde Park neighborhood, after media reports of disproportionate numbers of black people dying from COVID-19 in the city. AP Photo/Charles Rex Arbogast

Grace A. Noppert, University of North Carolina at Chapel Hill

As the COVID-19 epidemic continues to ravage the American public, an unsurprisin...



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Kimble Charting Solutions

Silver/Gold Indicator Creates Largest Bullish Pattern In Decades!

Courtesy of Chris Kimble

Is an important metals indicator sending one of the largest bullish messages in nearly 50-years? Very Possible!

This chart looks at the Silver/Gold ratio on a monthly basis since the mid-1970s. Historically metals bulls want to see the ratio heading up, to send the metals complex a solid bullish message.

The ratio hit the top of the falling channel (A) back in 2011, where it created a large bearish reversal pattern. Since creating the bearish pattern at resistance, the ratio has experienced a significant decline.

9 years after hitting the top of the channel the ratio hit the bottom of the channel at (1) last month, where it looks to have created one of the largest monthly b...



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The Technical Traders

Adaptive Fibonacci Suggests Much Lower Prices Yet To Come - Part I

Courtesy of Technical Traders

Our Adaptive Fibonacci Price Modeling system suggests a much deeper price move is in the works and the current price rally will likely end near resistance levels identified by the Adaptive Fibonacci Price Modeling system.  We are posting this research post for friends and followers to help them understand the true structure of price and to allow them to prepare for what we believe will become a much deeper downside price move in the future.

Fibonacci Price Theory teaches us that price moves in waves within up and down price cycles. The recent peak in price, near February 25, 2020, has resulted in a very deep -36% price collapse in the S&P 500 (ES) recently. This dow...



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Chart School

The Big Short movie guides us to what is next for the stock market

Courtesy of Read the Ticker

There is nothing new in WallStreet, it is only the players that change. Sometimes a market player or an event gets ahead of the crowd and WallStreet has to play catch up.

Previous Post Dow 2020 Crash Watch Dow, Three strikes and your out!

It is important to understand major WallStreet players do not want to miss out on a money making moves.  







...

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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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Members' Corner

10 ways to spot online misinformation

 

10 ways to spot online misinformation

When you share information online, do it responsibly. Sitthiphong/Getty Images

Courtesy of H. Colleen Sinclair, Mississippi State University

Propagandists are already working to sow disinformation and social discord in the run-up to the November elections.

Many of their efforts have focused on social media, where people’s limited attention spans push them to ...



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Digital Currencies

While coronavirus rages, bitcoin has made a leap towards the mainstream

 

While coronavirus rages, bitcoin has made a leap towards the mainstream

Get used to it. Anastasiia Bakai

Courtesy of Iwa Salami, University of East London

Anyone holding bitcoin would have watched the market with alarm in recent weeks. The virtual currency, whose price other cryptocurrencies like ethereum and litecoin largely follow, plummeted from more than US$10,000 (£8,206) in mid-February to briefly below US$4,000 on March 13. Despite recovering to the mid-US$6,000s at the time of writin...



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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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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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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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