Posts Tagged ‘AUXL’

Buy-Write Strategist Sinks Teeth into Apple Call Options

Today’s tickers: AAPL, AUXL, CSX, CTRP, SNDK, CPB & SLV

AAPL – Apple, Inc. – Options investors fluttered about the iPhone maker today populating the stock with various trading strategies and exchanged more than 234,000 contracts on the stock by 3:40 pm (ET). Apple’s shares are up 0.40% to stand at $247.95 with the final bell set to ring in approximately 15 minutes, but earlier in the session the stock rallied as much as 2.37% to touch an intraday high of $252.80. One strategist expecting the price of the underlying stock to increase sharply ahead of July 16 expiration day initiated a buy-write transaction today. It looks like the investor sold roughly 1,300 calls at the July $280 strike for an average premium of $6.00 apiece and simultaneously purchased Apple shares at an average price of $251.90 each. The premium received for writing the call options effectively reduces the average price paid to purchase shares of the underlying stock to $245.90 apiece. Thus, the covered call strategy positions the investor to walk away with maximum gains of 13.87% should Apple’s shares trade above $280.00 at expiration. Shares of the iPad manufacturer have not exceeded $279.01 in the past 52-weeks. But, the bullish player certainly reduced the cost of getting long Apple shares and is positioned to benefit nicely from upward momentum in the price of the underlying stock whether or not shares are called from him at expiration day in July.

AUXL – Auxilium Pharmaceuticals, Inc. – Shares of the specialty biopharmaceutical company fell as much as 6.85% during the trading session to attain a new 52-week low of $19.99. AUXL’s shares declined following a downgrade to ‘perform’ from ‘outperform’ at Oppenheimer this morning, and are currently down 4.3% to close the trading day at $20.54. The decline in Auxilium’s shares today inspired one options investor to purchase a plain-vanilla debit put spread on the stock. The trader purchased 2,000 now deep in-the-money puts at the July $22.5 strike for a premium of $2.85 apiece, spread against the sale of the same number of puts at the lower July $20 strike for a premium of $1.20 each. The net cost of the transaction amounts to $1.65 per contract, thus positioning the bearish player to accrue maximum potential profits of $0.85 per contract if shares of the underlying stock trade below $20.00 by July expiration day.

CSX – CSX Corp. –
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Bank of America Call Spreaders Target $22.50

Today’s tickers: BAC, HAL, XLE, LVS, AIG, HD & AUXL

BAC - Shares of BAC have gained 2% during the trading session to arrive at the current price of $17.10. A bull call spread established in the January 2010 contract today suggests that one investor expects the stock to rally by expiration next year. It appears that the trader has purchased 15,000 calls at the January 17.5 strike price for an average premium of 2.18 apiece spread against the sale of 15,000 calls at the higher January 22.5 strike for 69 cents each. The net cost of the transaction amounts to 1.49 and allows for maximum potential profits of 3.51 per contract if the stock climbs to $22.50 by expiration. Shares must increase approximately 11% before the investor responsible for the trade breaks even at a price of $18.99. If the stock surges 31.5% higher than the current price, the trader will have realized maximum profits of 3.51 per contract for a total of $5,265,000. – Bank of America Corp. –

HAL - The oil and gas company has enjoyed a more than 2.5% rally in shares to $24.27, prompting some traders to scoop up call options in the September contract. The September 26 strike price had more than 7,000 calls exchange hands this afternoon on previous existing open interest of just 425 contracts. More than 4,200 of those calls were purchased for an average premium of 40 cents apiece. Investors long the calls are hoping to see shares of HAL rise at least 9% to breach the breakeven price on the transaction at $26.40 by expiration. Additional call action was observed at the September 25 and 27 strikes which sandwich the central September 26 strike where the most call activity took place. – Halliburton Co. –

XLE - If the price of crude oil is above $70 per barrel when so many investors are questioning the validity or at least the sustainability of the prevailing recovery, what then are the prospects for oil in 16 months time? One option trader appeared to trade in costly put options expiring in December 2010 in exchange for less expensive call options that would benefit from a rally in the energy sector. A bullish reversal in the December 2010 contract indicates long-term optimism by option traders expecting the energy sector to appreciate over the next 16 months. Despite a dip in the share price to $45…
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Phil's Favorites

Will Bitcoin Crash the Stock Market?

 

Will Bitcoin Crash the Stock Market?

Courtesy of 

When the S&P 500 fell in March last year, it brought Bitcoin down with it. So if stocks can bring down Bitcoin, it’s reasonable to ask if Bitcoin can bring down stocks.*

If you thought the Bitcoin run-up to 60k was emblematic of investor** euphoria, then you probably wondered what would happen if it were to come crashing down. Would that take other high-flying areas of the market down with it?

It might be premature, but as of now, the answer is no.

...



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Digital Currencies

Will Bitcoin Crash the Stock Market?

 

Will Bitcoin Crash the Stock Market?

Courtesy of 

When the S&P 500 fell in March last year, it brought Bitcoin down with it. So if stocks can bring down Bitcoin, it’s reasonable to ask if Bitcoin can bring down stocks.*

If you thought the Bitcoin run-up to 60k was emblematic of investor** euphoria, then you probably wondered what would happen if it were to come crashing down. Would that take other high-flying areas of the market down with it?

It might be premature, but as of now, the answer is no.

...



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Zero Hedge

Disappointing 2Y Auction Tails As Yield Jumps To 15 Month High

Courtesy of ZeroHedge View original post here.

Short-term rates moved sharply higher after last week's technical tweak by the Fed which pushed the IOER and RRP by 5bps to 15 and 5bps respectively, which had a downstream effect on all short-term yields, and today's 2Y auction was a case in point printing at 0.249%, the highest yield since March 2020 and a 0.5bps tail to the When Issued 0.244%. This was the biggest tail on the 2Y since July 2020 when the auction tailed 0.9bps.

And yet today's 2Y auction wasn't all bad: the bid to cover dipped from 2.736 to 2.540 yet even so it was right on top of the 6-auction ...



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Biotech/COVID-19

COVID-19: why lab-leak theory is back despite little new evidence

 

COVID-19: why lab-leak theory is back despite little new evidence

...



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Chart School

RTT Plus Bulletin

Courtesy of Read the Ticker

RTT Plus private blog answer these questions over the last two weeks.

Ending: 2021-06-19

- Metal stocks very bullish after gold smash
- FED taper talk vs Basel 3
- Dollar devaluatioin before end of 2021
- COVID, Vaccine insight (off topic)
- The next play for the deep sate (off topic)
- The debt loaded USA can not break these economic stats


RTT Plus membership required to review.

RTT Plus members can include chart building services if you wish. If you you do not want chart building services select 'RTT Plus' only during the membership sign up process.

Sign up now!






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Politics

The Ukraine Fallacies (with Victor Rud)

 

The Ukraine Fallacies (with Victor Rud)

Americans are confused about the history of Ukraine. That's just how Russia wants it.

Courtesy of Greg Olear, at PREVAIL

Greg is the author of Dirty Rubles: An Introduction to Trump/Russia 

...

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Promotions

Live Webinar with Phil on Option Strategies

 

June is TD Bank's Option Education Month, and today (Thursday, June 10) at 1 pm EST, Phil will speak with host Bryan Rogers about selling options and various option strategies that we use here at Phil's Stock World. Don't miss this event!

Click here to register for TD's live webinar with Phil.

 

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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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