Posts Tagged ‘AZN’

Puts Active On Bankrate As Shares Slide After Earnings

Options brief will resume February 15, 2013

Today’s tickers: RATE, AZN & PRLB

RATE - Bankrate, Inc. – Shares in the operator of Internet-based consumer banking and personal finance companies are down sharply this morning after the company reported lower-than-expected fourth-quarter earnings on Tuesday. The stock dropped more than 19% at the start of the session to touch a new 52-week low of $10.00. Options traders bracing for shares in the name to decline in the near term established bearish positions in Bankrate options during Tuesday’s trading session. The post-earnings report nosedive in RATE shares today has resulted in substantial overnight paper profits on some of these positions. It looks like traders who snapped up 190 puts at the Feb. $12.5 strike for an average premium of $0.53 apiece yesterday, now find their contracts changing hands at $2.45, or 4.6 times as much, as of 11:20 a.m. ET on Wednesday. Similarly, around 100 of the Mar. $12.5 strike put options purchased for an average premium of $0.90 each on Tuesday, are today trading at $2.20 per contract. Overall options volume of 685 contracts in play on RATE this morning is up sharply versus the stocks average daily volume of around 80 contracts. Puts are more active than calls, with the put/call ratio hovering at 5.0 just after 11:30 a.m. ET.

AZN - AstraZeneca PLC – Upside calls on biopharmaceutical company, AstraZeneca, are active this morning with shares in the name up 0.70% on the day at $45.84, helped higher by positive comments from an analyst at UBS. The single-largest print in AZN options appears to be a large bullish bet that pays off if shares in AstraZeneca rally sharply during the next five months. It looks like one strategist purchased a block of 9,000 calls at the July $50 strike for a premium of $0.65 apiece during the first 30 minutes of the trading session. The position makes money if shares in the drug maker jump 10% over the current price of $45.84 to exceed the effective breakeven point…
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Calls Active On Reports Yahoo! May Be In Talks To Sell Stake In Alibaba

 

Today’s tickers: YHOO, MSI & AZN

YHOO - Yahoo!, Inc. – Shares in Yahoo!, Inc. are up better than 5.0% this morning, though not on the back of Facebook’s highly anticipated IPO. YHOO’s shares rose as much as 6.3% to $15.87, the highest since Valentine’s Day, on reports the company is in talks to potentially sell its stake in Chinese Internet Company, Alibaba Group Holding Ltd., for an estimated $7 billion. Options traders positioning for shares to continue to rise are targeting weekly call options, perhaps on speculation a deal could be announced as early as next week. Call buyers snapped up more than 3,100 lots at the May 25 ’12 $16 strike for an average premium of $0.21 apiece and another 420 contracts at the higher $17 strike at an average premium of $0.07 each. Traders long the $16 and $17 weeklies may profit at expiration next Friday if shares in YHOO rally another 2.1% and 7.6% to top average breakeven prices of $16.21 and $17.07, respectively. Bullish action spread to the June expiry calls as well, with more than 8,000 of the $16 strike contracts purchased for an average premium of $0.52 each. The value of the call options could certainly lose their value, however, should talks fizzle out and shares surrender the day’s gains.

MSI - Motorola Solutions, Inc. – No sign of May flowers for investors in Motorola Solutions, Inc., with shares in the provider of data communications and telecommunications equipment down roughly 9.0% since the start of the month. A burst of put buying on MSI this morning suggests some traders expect the price of the underlying shares to continue to slide in the near term. Shares in Motorola Solutions are currently down 0.85% at $47.47 as of 12:00 p.m. in New York. Put buyers looked to the June $47 strike, picking up around 1,200 lots at an average premium of $1.41 apiece, and more than 3,200 put options at the…
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Contrarian Options Player Sheds Put Options on Lloyd’s Banking Group PLC

Today’s tickers: LYG, XLV, MSFT, XLF, F, AZN, LYV, AZO, MW & XLNX

LYG – Lloyd’s Banking Group PLC – One optimistic options strategist initiated a short put stance on Lloyd’s Banking Group PLC today, suggesting perhaps that shares of the underlying stock are not likely to collapse much further ahead of October expiration. Lloyd’s Banking Group shares fell as much as 8.9% to an intraday low of $2.88 in morning trading, but recovered slightly during the session to stand 5.05% off yesterday’s close at $3.16 a share as of 2:45 pm (ET). Across the pond, Lloyd’s Banking Group shares declined the most in London trading, falling 8.9% to 50.52 pence, as concerns over the creditworthiness of European financial institutions continues to weigh heavily on U.K. banking stocks. But, back to U.S. equity options on LYG, the contrarian investor opted to sell short 4,000 puts at the October $2.5 strike in order to pocket premium of $0.30 per contract. The trader keeps the full amount of premium received on the sale as long as LYG’s share price exceeds $2.50 through expiration day in October. The short sale of put options in this case implies the investor is happy to have 400,000 shares of the underlying stock put to him at an effective price of $2.20 each should the put contracts land in-the-money at expiration.

XLV – Health Care Select Sector SPDR Fund – A large chunk of out-of-the-money put options were purchased on the Health Care Select Sector SPDR Fund today as part of a delta neutral trade enacted by one cautiously optimistic options player. Shares of the XLV, an exchange-traded fund designed to produce investment results that correspond to the price and yield performance of the Health Care Select Sector of the S&P 500 Index, declined 0.65% to stand at $28.54 as of 3:35 pm (ET). It looks like the investor purchased up to 22,500 put options with a .31 delta at the September $26 strike for a premium of $1.08 per contract. The trader picked up the puts in conjunction with the purchase of stock at $28.25 a-pop. The delta neutral transaction is meant to offset potential losses faced by the investor should shares of the XLV continue lower because of the larger proportion of put options held by the trader. The purchase of shares of the underlying stock in combination with the put options indicates the investor…
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Lam Research Options Draw Optimistic Crowd

Today’s tickers: LRCX, AZN, BRCD, F, MTG, RSH & FL

LRCX – Lam Research Corp. – Contrarian option players initiated bullish trades on Lam Research Corporation today even though shares are trading 7% lower to $32.79. Investors sold nearly 5,000 in-the-money put options at the March $35 strike for an average premium of $1.71 apiece. Put-sellers are perhaps positioning for a rebound in the price of the underlying stock ahead of expiration next month. Traders keep the $1.71 premium per contract on the sale only if LRCX’s shares rally above $35.00 by expiration day. Short-put sellers receive the premium in exchange for bearing the risk that the puts land in-the-money at expiration and shares of the underlying stock are put to them at an effective price of $33.29 apiece. Optimism spread to the April $35 strike where 1,000 calls were picked up for an average premium of $1.15 apiece. Lam Research’s shares must jump 10.25% from the current value before call-buyers start to accumulate profits above the breakeven share price of $36.15. The increase in demand for options on LRCX today boosted options implied volatility on the stock about 11.1% to 37.54%.

AZN – AstraZeneca PLC – A bearish risk reversal was initiated on pharmaceuticals firm, AstraZeneca, today despite news the firm is raising its 2010 earnings outlook to $5.90-$6.30 per share up from $5.75-$6.15 per share. AstraZeneca improved its 2010 outlook after revealing plans to pay $783 million to settle a tax dispute with United Kingdom regulators. Shares were up earlier in the session, but are currently trading lower by less than 0.10% to $43.51. The pessimistic play involved the sale of 5,000 calls at the July $50 strike for a premium of $0.60 apiece, spread against the purchase of 5,000 puts at the lower July $40 strike for a premium of $1.35 each. The net cost of the reversal transaction amounts to $0.75 per contract. The investor responsible for the trade is perhaps hoping to accumulate profits to the downside should the stock trade beneath the breakeven share price of $39.25 by expiration in July.

BRCD – Brocade Communications Systems, Inc. – The supplier of networking equipment forecast maximum 2010 earnings of $0.58 per share, which underwhelmed analysts expecting $0.60 per share. A plethora of analyst downgrades combined with the lower-than-expected 2010 profit forecast pummeled Brocade’s share price down 23.50% to $5.32 today. BRCD was downgraded to ‘hold’…
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Pharmboy’s Phavorite Phings

 

Greetings PSW members from Pharmboy!

This is my first shot at writing a formal post for everyone on a few biotech/pharma picks that I believe have promise for nice returns over the next 6 to 18 months.  Much of the work here is a compilation of readings elsewhere, summarized for you all to make your own conclusions.  Here we go:

Big Pharma

 

GlaxoSmithKline (GSK) – has a robust pipeline in inflammation, cancer and other therapeutic areas.  A few line extensions could do well generic simvistatin (Zocor) + Avandia) for cardio/diabetes.  Will compete against Vytorin, and others like it.   In the pipeline, GSK has an Orexin antagonist for sleep disorders (very hot area), several drugs for asthma/COPD in Phase II including a PDE-4 and FLAP inhibitor.  The asthma/COPD drugs have huge potential as a monotherapy or in some combination, as they are the newest line of therapies that have come along for asthma/COPD in some time (GSKs strength). GSK also has a VLA4 antagonist for multiple sclerosis in phase II. 

This is the first I have seen of this in a pipeline for clinical trials.  VLA4 is the target of Tysabri from BIIB.  One hypothesis is that a small molecule that binds to the receptor but does not completely knock out the receptor like a mAb may be better for MS patients.  Remember, Tysabri has a potential of a rare neurological condition progressive multifocal leukoencephalopathy (PML) when administered in combination with interferon beta-1a, another immunosuppressive drug often used in the treatment of multiple sclerosis.  

One other note for growth, Amgen (AMGN) revealed its commercialization strategy for osteoporosis treatment, denosumab, one of the most keenly anticipated new drugs set to reach the market for several years, naming GlaxoSmithKline (GSK) as partner in Europe and other countries.  GSK has several cancer treatments as well as vaccines in various stages, so it is my belief that
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Zero Hedge

Federal Decision On Mask Mandate Imminent: Report

Courtesy of ZeroHedge View original post here.

Despite Dr. Anthony Fauci's claim that the federal government wouldn't adopt any new confusing and unscientific mask or vaccine guidance, CNN reports that federal officials are preparing to announce new nation-wide masking guidance after NYC and California ordered public workers to either provide proof of their vaccination status or mask up, while LA has ordered people to wear masks in public once again. According to CNN, the decision is "imminent", and could arrive as soon as Tuesday....



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Phil's Favorites

Bonds and Inflation

 

Bonds and Inflation

Courtesy of Michael Batnick

So this is different. Inflation has never been this high, with bond yields this low.

Rates should, in theory, be a way to gauge what market participants think about future inflation. Higher inflation would cripple today’s coupons, so again, in theory, investors would demand higher rates for that risk.

But investing isn’t about theories. At some point, we need to acknowledge reality. It’s probably time we update our models, mental and otherwise.

There are varying explanations as to why this relationship may no longer hold, and I t...



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Digital Currencies

Is Amazon About To Start Accepting Crypto?

Courtesy of ZeroHedge

For the first time ever, Amazon has shown itself to be interested in crypto with a new major hire within its payments-focused team.

Posted on Thursday, the new role seeks an experienced product leader with expertise in blockchain, central bank digital currencies and cryptocurrencies to “develop the case for the capabilities which should be developed” and drive overall product vision.

The Payments Acceptance & Experience team is seeking an experienced product leader to develop Amazon’s Digital Currency and Blockchain strategy and product roadmap

The Amazon Payment Acceptance & Experie...



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Biotech/COVID-19

US is split between the vaccinated and unvaccinated - and deaths and hospitalizations reflect this divide

 

US is split between the vaccinated and unvaccinated – and deaths and hospitalizations reflect this divide

As coronavirus cases surge, unvaccinated people are accounting for nearly all hospitalizations and deaths. Fat Camera/E+ via Getty Images

Courtesy of Rodney E. Rohde, Texas State University and Ryan McNamara, University of North Carolina at Chapel Hill ...



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Chart School

Investing with Channels - Review

Courtesy of Read the Ticker

The US has a lot of debt, to sell more units of the debt to non US buyers the FED and Treasury must get the unit price of the debt down.

This video assumes a 'risk on' bullish bias into the Nov 2022 US mid terms. The bias assumes a US dollar trending down from it current high price of $93 on the DXY.






Chart 1 - US Dollar Channels


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Chart 2 - Ethereum/USD


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Politics

New York defines illegal firearms use as a 'public nuisance' in bid to pierce gun industry's powerful liability shield

 

New York defines illegal firearms use as a ‘public nuisance’ in bid to pierce gun industry’s powerful liability shield

Illegal gun use is now a public nuisance in New York. AP Photo/Bebeto Matthews

Courtesy of Timothy D. Lytton, Georgia State University

Could calling the illegal use of firearms a “public nuisance” bring an end to the gun industry’s immunity from civil lawsuits? ...



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Promotions

Free Webinar Wednesday: July 7, 1:00 pm EST

 

Don't miss Phil's Webinar on July 7 at 1:00 pm EST. It's FREE and open to all who wish to join.

Click here: 

https://attendee.gotowebinar.com/register/6552545459443187211

Join us to learn Phil's trading tactics and strategies in real-time!

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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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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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