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

The economic cost of devastating hurricanes and other extreme weather events is even worse than we thought

 

The economic cost of devastating hurricanes and other extreme weather events is even worse than we thought

Courtesy of Gary W. Yohe, Wesleyan University

June marks the official start of hurricane season. If recent history is any guide, it will prove to be another destructive year thanks to the worsening impact of climate change.

But beyond more intense hurricanes and explosive wildfires, the warming climate has been blamed for causing a sharp uptick in all types of extreme weather events across the country, such as ...



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Kimble Charting Solutions

Interest Rates Bottoming On Fed Decision Day?

Courtesy of Chris Kimble.

This afternoon the Fed will announce if they are going to lower interest rates. Does the bond market already have a rate decrease priced into the market? Possible!

This chart looks at the yield on the 10-year note over the past 20-years. Without a doubt, the long-term trend of lower highs remains in play.

Rates have declined over 35% since hitting 20-year falling resistance, that came into play in October of 2018.

The decline has rates testing rising channel support and the 2017 lows this week at (1). While dual support is being tested, weekly momentum is hitting the lowest ...



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Zero Hedge

$1 Billion Worth Of Cocaine Seized At Philadelphia Port

Courtesy of ZeroHedge. View original post here.

Several thousand traders on Wall Street may be extra jittery tomorrow when the FOMC announcement hits at 2:00pm. The reason: shipping containers full of illegal drugs - mostly blow - were found and seized at a Philadelphia port in what authorities described as the largest seizure in the region's history. Back in March we reported by what at a time seemed like a giant haul when a ton and a half of cocaine seized at the port of New York and New Kersey, in what was describe...



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Insider Scoop

Benzinga's Top Upgrades, Downgrades For June 19, 2019

Courtesy of Benzinga.

Top Upgrades
  • SunTrust Robinson Humphrey upgraded Tripadvisor Inc (NASDAQ: TRIP) from Hold to Buy. TripAdvisor shares rose 3.2% to $47.80 in pre-market trading.
  • Wedbush upgraded Six Flags Entertainment Corp (NYSE: SIX) from Neutral to Outperform. Six Flags shares rose 2.5% to $52.90 in pre-market trading.
  • Analysts at Goldman Sachs upgraded Lamb Weston Holdings Inc (NYSE: LW) from Neutral to Buy. Lamb Weston rose 3.5% to $61.03 in pre-market trading.
  • ...


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Biotech

Consumer genetic testing customers stretch their DNA data further with third-party interpretation websites

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

 

Consumer genetic testing customers stretch their DNA data further with third-party interpretation websites

If you’ve got the raw data, why not mine it for more info? Sergey Nivens/Shutterstock.com

Courtesy of Sarah Catherine Nelson, University of Washington

Back in 2016, Helen (a pseudonym) took three different direct-to-consumer (DTC) genetic tests: AncestryDNA, 23andMe and FamilyTreeDNA. She saw genetic testing as a way...



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Chart School

Silver Review

Courtesy of Read the Ticker.

The folks in the federal reserve will debase the US dollar currency to an extreme degree silver will finally lift off the floor.. 

Note: Readers should re watch the silver back screen news video, here.

The following video looks at price action and Wyckoff logic.

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If gold moves, silver wi...

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Digital Currencies

Cryptos Are Crashing As Asia Opens, Bitcoin Back Below $8k

Courtesy of ZeroHedge. View original post here.

Having survived the day's bloodbath in US tech stocks, cryptos are crashing in the early Asian session, apparently playing catch-down to the day's de-risking.

While no catalyst is immediately evident, there are some reports noting 13 large global banks are preparing to launch digital versions of major global currencies next year, though we suspect this drop was more algorithmic that fundamental-driven.

...



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ValueWalk

More Examples Of "Typical Tesla "wise-guy scamminess"

By Jacob Wolinsky. Originally published at ValueWalk.

Stanphyl Capital’s letter to investors for the month of March 2019.

rawpixel / Pixabay

Friends and Fellow Investors:

For March 2019 the fund was up approximately 5.5% net of all fees and expenses. By way of comparison, the S&P 500 was up approximately 1.9% while the Russell 2000 was down approximately 2.1%. Year-to-date 2019 the fund is up approximately 12.8% while the S&P 500 is up approximately 13.6% and the ...



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Members' Corner

Despacito - How to Make Money the Old-Fashioned Way - SLOWLY!

Are you ready to retire?  

For most people, the purpose of investing is to build up enough wealth to allow you to retire.  In general, that's usually enough money to reliably generate a year's worth of your average income, each year into your retirement so that that, plus you Social Security, should be enough to pay your bills without having to draw down on your principle.

Unfortunately, as the last decade has shown us, we can't count on bonds to pay us more than 3% and the average return from the stock market over the past 20 years has been erratic - to say the least - with 4 negative years (2000, 2001, 2002 and 2008) and 14 positives, though mostly in the 10% range on the positives.  A string of losses like we had from 2000-02 could easily wipe out a decades worth of gains.

Still, the stock market has been better over the last 10 (7%) an...



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Mapping The Market

It's Not Capitalism, it's Crony Capitalism

A good start from :

It's Not Capitalism, it's Crony Capitalism

Excerpt:

The threat to America is this: we have abandoned our core philosophy. Our first principle of this nation as a meritocracy, a free-market economy, where competition drives economic decision-making. In its place, we have allowed a malignancy to fester, a virulent pus-filled bastardized form of economics so corrosive in nature, so dangerously pestilent, that it presents an extinction-level threat to America – both the actual nation and the “idea” of America.

This all-encompassing mutant corruption saps men’s souls, crushes opportunities, and destroys economic mobility. Its a Smash & Grab system of ill-gotten re...



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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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