Posts Tagged ‘ASH’

Positive Outlook from LDK Chief Boosts Solar Stocks and Options

Today’s tickers: LDK, BP, ASH & VIA

LDK - LDK Solar Co. Ltd. – The prospects look brighter for solar panel maker according to its president who told Taiwanese electronics website DigiTimes that the industry hit its low point in the first quarter. LDK’s chief also told the website not only to expect a second-quarter rebound but that the industry was not playing out investors’ currently pessimistic scenario. Adding fuel to a rally across shares in the renewable energy sector was confirmation from Germany that its last nuclear power station would close in 2022. One investor struck to make a bullish play on LDK by writing put options expiring in less than three weeks raking in a total premium of $145,000. The investor sold 5,000 put options for 29 cents apiece guaranteeing to take delivery of 50,000 shares at $7.00 each by June 17. Just two weeks ago LDK’s share price meaningfully breached $10.00 for the first time since September on fears for earnings across the industry. Last week they traded as low as $6.14 before today’s rally took hold and kicked them back to as high as $7.24. Currently the speculative strategy is an at-the-money investment, but by taking in the 29 cent premium the investor is effectively lowering his buy price to $6.71 and presumably is banking on June 7 earnings to help vilify his stance.

BP - BP Plc – Shares in Europe’s second-largest oil company have performed strongly in recent weeks, shrugging off a disastrous outcome with its Russian subsidiary that left it floundering without an expansion policy. Nevertheless investors have warmed to recent news of possibly less financial liability resulting from the Gulf of Mexico spillage one year ago. Shares reached the highest since May 2 on Tuesday in early going although have pared gains throughout…
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Retail investors paint mixed picture through options

Today’s tickers: XRT, EXPD, RIMM, EWJ, GM, STP, MU, WFC, XLF, JPM & ASH

XRT Retail ETF SPDR – Shares of the retail ETF were on the rise today, gaining more than 3.5% to arrive at $23.58. Some traders established bearish bets using options, while one bullish trade stood out like a sore thumb in the June contract. At the June 22 strike price one investor purchased 17,200 in-the-money calls for a sizeable premium of 3.12 apiece. The rest of the notable trades were decidedly looking for downside movement in shares. At the near-term April contract a credit spread was initiated by purchasing 3,000 calls at the 24 strike price for 85 cents and selling 3,000 calls at the 22 strike for 2.00 apiece. The net credit enjoyed on the trade amounts to 1.15 and will be retained in full if shares fall below $22.00 by expiration. Another pessimistic investor crafted a put spread in the June contract by purchasing 5,000 puts at the 24 strike price for 2.40 each and selling 5,000 puts at the 20 strike for 90 cents. The net cost of the trade amounts to 1.50 and yields a maximum potential profit of 2.50 if shares can fall to $20.00 by expiration. Profits will begin to amass on the downside if shares fall below the breakeven on the trade at $22.50. Finally, some 5,000 puts were traded at the May 22 strike where there had previously been no open interest. The bulk of the smoke-signals from traders today suggest that the rally XRT experienced today will be short-lived.

EXPD Expeditors International of Washington, Inc. – The global logistics services company has experienced a share price rally of 6% to $29.64. EXPD appeared on our ‘high option volume put/call ratio’ market scanner with a put-to-call ratio of 190. One investor looks to be taking profit today from the short sale of 20,000 puts at the May 20 strike price, which may have originally been sold for a premium of between 0.88 cents and 1.18 per contract. The purchase of those 20,000 puts for 30 cents closes out the short position and leaves the investor with a profit of between 0.58 cents and 0.88 cents. Further along in the August contract it looks like this same investor is reestablishing a short put position. With no existing open interest at the May 22.5 strike price, 15,000 puts were…
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Phil's Favorites

Goldman Sachs Refuses to Say If It Was Placing Trades for Dallas Fed President Kaplan as Materially False Statement Released by Board on Kaplan's Relationship with Goldman Sachs

Courtesy of Pam Martens

Federal Reserve Building in Washington, D.C.

The biggest trading scandal in the Federal Reserve’s 108-year history took down two Federal Reserve Bank Presidents yesterday. Boston Fed President Eric Rosengren, who traded in and out of REITs last year in amounts of $1,000 to $50,000, will leave this Thursday; Dallas Fed President Robert Kaplan, whose trading made Rosengren look like a Boy Scout, will step down from his post at the e...



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Zero Hedge

Blain: The Threat Board Is Looking Busy

Courtesy of ZeroHedge View original post here.

Authored by Bill Blain via MorningPorridge.com,

“Many people have speculated that if we knew exactly why the bowl of petunias had thought that we would know a lot more about the nature of the Universe than we do now.”

Markets are never as bad as you fear, but never as good as you hope. The Threat Board has seldom looked so complex: we can try to predict outcomes, but its notoriously difficult. The list of potential ignition points seems to be expanding ex...



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Biotech/COVID-19

New Johnson & Johnson data shows second shot boosts antibodies and protection against COVID-19 - but one dose is still strong against delta variant

 

New Johnson & Johnson data shows second shot boosts antibodies and protection against COVID-19 – but one dose is still strong against delta variant

Public health officials have been waiting for good data before making any decisions about booster shots for people who received Johnson & Johnson’s Janssen COVID-19 vaccine. AP Photo/Mary Altaffer

Courtesy of Maureen Ferran, Rochester Institute of Technology ...



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Chart School

Silver during periods of Industrial Inflation

Courtesy of Read the Ticker

When industrial inflation is hotter than consumer inflation silver does well.

Previous Post: Silver, after the FED said taper talk is a long way off

In the chart below we see the relationship between silver and the yield curve and the Producer Price Inflation. 

The yield curve is the US 30 yr interest rate less the Fed Funds interest rate (blue line). When the blue line is high a steep yield curve is present, and when it is low a flat yield curve is present. A steep yield curve is when longer term rates are higher than short term rates vica versa for a flat yi...

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Digital Currencies

China Declares All Virtual Currency Transactions "Illegal", Sending Crypto Prices Tumbling

Courtesy of ZeroHedge

China expanded its escalating crackdown on cryptocurrencies on Friday when its central bank declared that all activities related to digital coins are “illegal” and must be banned.

In a statement dated Sept. 15 but was only posted onto the central bank’s website at 5 p.m. local time on Friday, the People’s Bank of China said the latest notice was to further prevent the risks surrounding crypto trading and to maintain national security and social stability.

Naming bitcoin, ether and tether as examples, the centra...



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Politics

'What Betrayal Looks Like': UN Report Says World on Track for 2.7°C of Warming by 2100

 

Image by Gerd Altmann from Pixabay

'What Betrayal Looks Like': UN Report Says World on Track for 2.7°C of Warming by 2100

"Whatever our so-called 'leaders' are doing," said Swedish climate activist Greta Thunberg, "they are doing it wrong."

By Jake Johnson, Common Dreams

The United Nations warned Friday t...



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Promotions

Phil's Interview on Options Trading with TD Bank

TD Bank's host Bryan Rogers interviewed Phil on June 10 as part of TD's Options Education Month. If you missed the program, be sure to watch the video below. It should be required viewing for anyone trading or thinking about trading using options. 

Watch here:

TD's webinar with Phil (link) or right here at PSW

Screenshots of TD's slides illustrating Phil's examples:

 

 

&n...



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Kimble Charting Solutions

Crude Oil Cleared For Blast Off On This Dual Breakout?

Courtesy of Chris Kimble

Is Crude Oil about to blast off and hit much higher prices? It might be worth being aware of what could be taking place this month in this important commodity!

Crude Oil has created lower highs over the past 13-years, since peaking back in 2008, along line (1).

It created a “Double Top at (2), then it proceeded to decline more than 60% in four months.

The countertrend rally in Crude Oil has it attempting to break above its 13-year falling resistance as well as its double top at (3).

A successful breakout at (3) would suggest Crude Oil is about to mo...



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ValueWalk

Managing Investments As A Charity Or Nonprofit

By Anna Peel. Originally published at ValueWalk.

Maintaining financial viability is a constant challenge for charities and nonprofit organizations.

Q4 2020 hedge fund letters, conferences and more

The past year has underscored that challenge. The pandemic has not just affected investment returns – it’s also had serious implications for charitable activities and the ability to fundraise. For some organizations, it’s even raised doubts about whether they can continue to operate.

Finding ways to generate long-term, sustainable returns for ...



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Mapping The Market

Suez Canal: Critical Waterway Comes to a Halt

 

Suez Canal: Critical Waterway Comes to a Halt

Courtesy of Marcus Lu, Visual Capitalist

The Suez Canal: A Critical Waterway Comes to a Halt

On March 23, 2021, a massive ship named Ever Given became lodged in the Suez Canal, completely blocking traffic in both directions. According to the Suez Canal Authority, the 1,312 foot long (400 m) container ship ran aground during a sandstorm that caused low visibility, impacting the ship’s navigation. The vessel is owned by Taiwanese shipping firm, Evergreen Marine.

With over 2...



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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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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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