Posts Tagged ‘ASML’

Emerging Markets Bear With Butterfly Wings Dominates EEM Puts In Afternoon Trading

Today’s tickers: EEM, ETFC, CVA, CSCO, CMCSK, XLI, CATM, AXL & ASML

EEM – iShares MSCI Emerging Markets Index ETF – An enormous bearish put butterfly spread comprised of 240,000 put options cast a gloomy shadow over the emerging markets fund late in afternoon trading. Shares of the EEM, an exchange-traded fund designed to provide investment results that correspond to the price and yield performance of the MSCI Emerging Markets Index – an index created to measure equity market performance in the global emerging markets, are down 0.35% at $37.21 as of 3:30 pm (ET). The massive bearish transaction on the fund suggests one big player is bracing for a potential 19% pullback in the price of the underlying shares by June expiration. The butterfly spread spans the June $25/$30/$35 strikes, with 60,000 puts picked up at the June $25 strike for a premium of $0.11 each [wing 1] and another 60,000 puts purchased at the higher June $35 strike for a premium of $0.88 apiece [wing 2]. The body of the butterfly involved the sale of 120,000 puts at the central June $30 strike for a premium of $0.27 a-pop. The net cost of the spread amounts to $0.45 per contract. The EEM’s shares must slip beneath the upper breakeven price of $34.55 before the investor starts to make money ahead of June expiration. Maximum available profits of $4.55 per contract pad the investor’s wallet if shares of the underlying fund fall 19.35% from the current price to settle at $30.00 at expiration. Shares of the EEM last traded below $34.55 back on August 19, 2009, and touched a 52-week low of $30.12 back on June 23, 2009. The investor responsible for the giant transaction only ever risks losing $0.45 per contract, but stands ready to amass more than 10 times that amount – $4.55 per contract – if shares nose-dive down to $30.00 ahead of expiration day next month.

ETFC – E*Trade Financial Corp. – A massive three-legged options combination play initiated on financial services firm, E*Trade Financial Corp., suggests one investor sees shares of the provider of online brokerage services trading within a narrow range through expiration in January 2011. ETFC shares are up 2.05% at $1.49 as of 2:30 pm (ET). The big options player initiated a sold strangle, selling 30,000 calls at the January 2011 $2.0 strike for $0.21 apiece and shedding 30,000 puts at…
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UPS Put Action

Today’s tickers: UPS, BBY, MBI, XLF, HIG, MOS & ASML

UPS United Parcel Service, Inc. – The package delivery company, which delivers an average of more than 14.7 million pieces per day around the globe, has experienced a share price decline of more than 2.5% to $54.35. UPS appeared near the top of our ‘most active by options volume’ market scanner this afternoon after one investor traded massive chunks of put options on the stock. The trader looks to be extending downside protection by establishing a multi-leg calendar spread. The now in-the-money May 55 strike price saw the sale of 36,000 puts for a premium of 1.85 apiece spread against two purchases. The first 20,000 puts were picked up at the June 55 strike price for a premium of 3.40 each while the second chunk of 20,000 put options were bought at the July 55 strike price at a cost of 4.10 to the trader. All three legs of the trade were enacted simultaneously and protect the investor – who is likely long the stock – from downward movements in the share price over the next couple of months. Other noteworthy activity on UPS occurred at the June 60 strike price where bullish individuals purchased 3,700 calls for an average premium of 45 cents apiece. Shares would need to rally by 11% from the current price and breach the breakeven point at $60.45 in order for bulls to profit on the June 60 calls by expiration.

BBY Best Buy Company, Inc. – Shares of the specialty retailer have suffered a decline of more than 3.5% to $36.75. We observed option traders taking a bearish stance on the stock today, particularly in the June contract. The June 35 strike price had traders stocking up on downside protection as some 9,000 puts were coveted for an average premium of 1.96 apiece. An additional 1,750 put options were picked up at the higher June 36 strike for a pricier 2.41 each. The pessimistic view for next month was confirmed as some 1,800 calls were sold at the June 42.5 strike price for about 81 cents per contract. Option implied volatility on Best Buy has climbed since yesterday’s reading of 54% to the current value of 62%.

MBI MBIA Inc. – The financial services firm climbed as high as $7.90 today after reporting better-than-expected first-quarter results, although the stock has seen gains erode over…
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September SPDR puts active

Today’s tickers: SPY, F, DELL, SYMC, DE, FITB, ASML, SMH & UNH

SPY SPDR Trust Series – So implied volatility as measured by the fear gauge known as the VIX, the CBOE volatility index has come screaming off today after a nerve-soothing employment report. The VIX is down 2.17 points today to 31.25. The ongoing rally for equities is likely a snapback against an Armageddon-like scenario priced in to stocks throughout the first quarter. With a lessening in the economic contraction and today’s data icing the cake, investors have thrown in the towel on the bear market and have reduced demand for protection through puts. However, in the S&P index, one investor seems to feel that the rebound won’t extend beyond September and has bought a sizeable chunk of protective puts. The SPDR trades at one-tenth the value of the underlying index and today is 2.5% to the better at 93.15. Some 72,000 put options at the September contract have been purchased at the 75.0 strike for premiums anywhere between 1.84 and 2.05. Breakeven in the worst case example would be at 72.96. That would need a decline of 21.6% to come good. At some point, investors will sit around the camp fire and have a rethink after this huge counter-trend rally. What’s next?

F Ford Motor Company – The only big-three auto company in the US to remain standing without federal aid has climbed 2% to $6.20 per share today. The bullish move in shares could be due to the news that Ford may receive as much as $440 million in government loans. The money would be utilized to facilitate the conversion of a Michigan SUV (sport utility vehicle) factory to one that builds small, fuel-efficient automobiles. Ford edged onto our ‘most active by options volume’ market scanner later on in the afternoon after one individual was seen getting bullish on the stock. In the January 2011 contract the trader was seen shedding 55,000 put options at the January 2.5 strike price for a premium of 80 cents apiece. The investor pockets the premium today as he does not see shares declining through $2.50 over the next year and a half. Option implied volatility on Ford is currently at 85%.

DELL Dell, Inc. – The just-in-time provider of personal computers attracted bullish options investors despite the more than 3.5% decline in shares to $10.65. Perhaps individuals looking for…
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Phil's Favorites

Trump's interpreters for Putin meetings face ethical dilemma

 

Trump's interpreters for Putin meetings face ethical dilemma

Russian President Vladimir Putin, right, makes a statement, as U.S. President Donald Trump, left, looks on. AP Photo/Pablo Martinez Monsivais

Courtesy of Laura Burian, Middlebury

President Donald Trump met several times with Russian President Vladimir Putin while no other American was privy to the communication except for a State Department interpreter.

In July 2018, Democratic members of the House I...



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Zero Hedge

SocGen Weighs Closure Of Prop Trading Unit After Stunning 20% Loss

Courtesy of ZeroHedge. View original post here.

Shortly after BNP Paribas closed its prop trading unit (reminding readers of the financial press that the practice of risking shareholder money for profit continued in Europe after the financial crisis, along with the sometimes enormous consequences of seemingly trivial human errors) and its US commodities derivatives trading unit, the Paris-based bank's smaller cross-town rival SocGen is weighing whether to close its own $4.7 billion prop t...



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ValueWalk

Steve Eisman: Short UK Banks On Brexit

By Jacob Wolinsky. Originally published at ValueWalk.

Steve Eisman gained fame when predicting the financial crisis of 2008. Now he is shorting British banks because of the risks a hard Brexit poses to the British market.

Image source: YouTube Video ScreenshotSteve Eisman: A Hard Brexit Is The Path Of Least Resistance

Q3 hedge fund letters, conference, scoops etc

Transcript...



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Kimble Charting Solutions

Triple Breakout Test In Play For S&P 500!

Courtesy of Chris Kimble.

Is the rally of late about to run out of steam or is a major breakout about to take place in the S&P 500? What happens at current prices should go a long way in determining this question.

This chart looks at the equal weight S&P 500 ETF (RSP) on a daily basis over the past 15-months.

The rally from the lows on Christmas Eve has RSP testing the top of a newly formed falling channel while testing the underneath side of the 2018 trading range and its falling 50-day moving average at (1).

At this time RPS is facing a triple resistance test. Wil...



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Insider Scoop

Cars.com Explores Strategic Alternatives, Analyst Sees Possible Sale Price Around $30 Per Share

Courtesy of Benzinga.

Related 44 Biggest Movers From Yesterday 38 Stocks Moving In Wednesday's Mid-Day Session ...

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Digital Currencies

Crypto-Bubble: Will Bitcoin Bottom In February Or Has It Already?

Courtesy of Michelle Jones via ValueWalk.com

The new year has been relatively good for the price of bitcoin after a spectacular collapse of the cryptocurrency bubble in 2018. It’s up notably since the middle of December and traded around the psychological level of $4,000... so is this a sign that the crypto market is about to recover?

Of course, it depends on who you ask, but one analyst discovered a pattern which might point to a bottom next month.

A year after the cryptocurrency bubble popped

CCN...



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Chart School

Weekly Market Recap Jan 13, 2019

Courtesy of Blain.

In last week’s recap we asked:  “Has the Fed solved all the market’s problems in 1 speech?”

Thus far the market says yes!  As Guns n Roses preached – all we need is a little “patience”.  Four up days followed by a nominal down day Friday had the market following it’s normal pattern the past nearly 30 years – jumping whenever the Federal Reserve hints (or essentially says outright) it is here for the markets.   And in case you missed it the prior Friday, Chairman Powell came back out Thursday to reiterate the news – so…so… so… patient!

Fed Chairman Jerome Powell reinforced that message Thursday during a discussion at the Economic Club of Washington where he said that the central bank will be “fle...



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Members' Corner

Why Trump Can't Learn

 

Bill Eddy (lawyer, therapist, author) predicted Trump's chaotic presidency based on his high-conflict personality, which was evident years ago. This post, written in 2017, references a prescient article Bill wrote before Trump even became president, 5 Reasons Trump Can’t Learn. ~ Ilene 

Why Trump Can’t Learn

Donald Trump by Gage Skidmore (...



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Biotech

Opening Pandora's Box: Gene editing and its consequences

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

 

Opening Pandora's Box: Gene editing and its consequences

Bacteriophage viruses infecting bacterial cells , Bacterial viruses. from www.shutterstock.com

Courtesy of John Bergeron, McGill University

Today, the scientific community is aghast at the prospect of gene editing to create “designer” humans. Gene editing may be of greater consequence than climate change, or even the consequences of unleashing the energy of the atom.

...

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Mapping The Market

Trump: "I Won't Be Here" When It Blows Up

By Jean-Luc

Maybe we should simply try him for treason right now:

Trump on Coming Debt Crisis: ‘I Won’t Be Here’ When It Blows Up

The president thinks the balancing of the nation’s books is going to, ultimately, be a future president’s problem.

By Asawin Suebsaeng and Lachlan Markay, Daily Beast

The friction came to a head in early 2017 when senior officials offered Trump charts and graphics laying out the numbers and showing a “hockey stick” spike in the nationa...



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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 ...



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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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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.

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