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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Kimble Charting Solutions

Bond Prices About To Fall Off The Cliff?

Courtesy of Chris Kimble

The bull market in bond prices has steady, durable, and trustworthy. Over the past 40 years, if investors could count on anything, it was rising bonds and falling bond yields (interest rates).

But this trend / dynamic may be changing…

The post pandemic spike lower in interest rates (yields) sent bonds to all-time highs… but that quickly gave way to selling and steadily higher interest rates.

Is the bond market about to receive monster message?

As we have done many times before, today we share an “inverted” chart of ...



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Zero Hedge

Market Rollercoaster Continues As Global Markets Rebound From Tuesday Rout

Courtesy of ZeroHedge View original post here.

Once again market sentiment has reversed violently - or rather the opposite - overnight, with yesterday's late day spoo slump inspired by the short squeeze in Rocket Mortgage - which forced hedge funds to liquidate their best positions - being faded and on Wednesday Emini futures jumped 0.6%, global shares gained with European indexes echoed positive moves in Asia, as a recent retreat in Treasury yields fuelled demand for riskier assets... even though the 10Y has rebounded 5bps to 1.45% overnight as focus again turned back to the stimulus-fueled recovery from the pandemic....



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Phil's Favorites

The Texas blackouts showed how climate extremes threaten energy systems across the US

 

The Texas blackouts showed how climate extremes threaten energy systems across the US

Electric service trucks line up after a snow storm in Fort Worth, Texas, on Feb. 16, 2021. Ron Jenkins/Getty Images

Courtesy of Roshanak (Roshi) Nateghi, Purdue University

Pundits and politicians have been quick to point fingers over the debacle in Texas that left millions without power or clean wate...



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Biotech/COVID-19

COVID-19 revealed how sick the US health care delivery system really is

 

COVID-19 revealed how sick the US health care delivery system really is

Many U.S. hospitals and clinics are behind when it comes to sharing information. Teera Konakan/Moment via Getty Images

Courtesy of Elizabeth A. Regan, University of South Carolina

If you got the COVID-19 shot, you likely received a little paper card that shows you’ve been vaccinated. Make sure you keep that card in a safe place. There is no coordinated way to share information about who has been vaccinated and who has not.

...

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ValueWalk

Scientifically Realizing Our Hope for Unity

By Jacob Wolinsky. Originally published at ValueWalk.

President Joe Biden has ushered in our new administration with a call for unity; a noble aspiration which cynics among us have dismissed as unlikely.

Q4 2020 hedge fund letters, conferences and more

Achieving Unity: A Daunting Task

As a nation, we face a daunting task: uniting our country in the midst of a raging pandemic with its resulting economic devastation and societal discord, even as a large portion of our population still refuses to accept the clear results of our past election. All this is overshadowed by the recent specter of ...



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Mapping The Market

Which Governments Ordered Johnson & Johnson's Vaccine?

 

Which Governments Ordered Johnson & Johnson's Vaccine?

Courtesy of Niall McCarthy, Statista

On Wednesday, U.S. regulators announced that Johnson & Johnson's Covid-19 vaccine being developed by its subsidiary Janssen Pharmaceuticals in Belgium is effective at preventing moderate to severe cases of the disease. The jab has been deemed safe with 66 percent efficacy and the FDA is likely to approve it for use in the U.S. within days.

The Ad26.COV2.S vaccine can be stored for up to three months in a refrigerator and requires a single shot, ...



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Digital Currencies

Crypto - It Is Different This Time

 

Crypto – It Is Different This Time

Courtesy of Howard Lindzon

?I have been astonished as you know by the growth of crypto.

I remember back in 2017 when I noticed that Stocktwits message volume on Bitcoin ($BTC.X) surpassed that of $SPY. I knew Bitcoin was here to stay and Bitcoin went on to $19,000 before heading into its bear market.

Today Bitcoin is near $50,000.

Back in November of 2020, something new started to happen on Stocktwits with respect to crypto.

After the close on Friday until the open of the futures on Sunday, all Stocktwits trending tickers turned crypto. The weekend messages on Stocktwits have increased 400 percent.

That has continued each weekend...



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Politics

What is fascism?

 

What is fascism?

A Donald Trump supporter wears a gas mask and holds a bust of him after he and hundreds of others stormed the Capitol building on Jan. 6, 2021. Roberto Schmidt/AFP via Getty Images

Courtesy of John Broich, Case Western Reserve University

Since before Donald Trump took office, historians have debated whether he is a fascist.

As a teacher of World War II history...



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Chart School

The Fastest Money

Courtesy of Read the Ticker

The fast money happens near the end of the long trend.

Securities which attract a popular following by both the public and professionals investors tend to repeat the same sentiment over their bull phase. The chart below is the map of said sentiment.
 


 

Video on the subject.


 

Charts in the video



 



 



Changes in the world is the source of all market moves, to ...



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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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Promotions

Free, Live Webinar on Stocks, Options and Trading Strategies

TODAY's LIVE webinar on stocks, options and trading strategy is open to all!

Feb. 26, 1pm EST

Click HERE to join the PSW weekly webinar at 1 pm EST.

Phil will discuss positions, COVID-19, market volatility -- the selloff -- and more! 

This week, we also have a special presentation from Mike Anton of TradeExchange.com. It's a new service that we're excited to be a part of! 

Mike will show off the TradeExchange's new platform which you can try for free.  

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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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