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

Will COVID-19 Lead To A Gold Standard?

Courtesy of ZeroHedge View original post here.

Authored by Alasdair Macleod via GoldMoney.com,

Even before the coronavirus sprang upon an unprepared China the credit cycle was tipping the world into recession. The coronavirus makes an existing situation immeasurably worse, shutting down China and disrupting global supply chains to the point where large swathes of global production simply cease.

The crisis is likely to be a wake-up call for complacent investors, who are content to buy benchmark bonds i...



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Phil's Favorites

What scientists are doing to develop a vaccine for the new coronavirus

 

What scientists are doing to develop a vaccine for the new coronavirus

It is critical to learn more about SARS-CoV-2, including its source and why transmission appears to be more efficient than with previous coronaviruses. (Shutterstock)

Courtesy of Marc-Antoine De La Vega, Université Laval

With an increasing number of confirmed cases in China and 24 other countries, the COVID-19 epidemic caused by the novel coronavirus (now known as SARS-CoV-2) looks concerning to many. As of Feb. 19, the latest numbers listed 74,280 confirmed cases including 2,006 deaths. Four of these de...



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Biotech & Health

What scientists are doing to develop a vaccine for the new coronavirus

 

What scientists are doing to develop a vaccine for the new coronavirus

It is critical to learn more about SARS-CoV-2, including its source and why transmission appears to be more efficient than with previous coronaviruses. (Shutterstock)

Courtesy of Marc-Antoine De La Vega, Université Laval

With an increasing number of confirmed cases in China and 24 other countries, the COVID-19 epidemic caused by the novel coronavirus (now known as SARS-CoV-2) looks concerning to many. As of Feb. 19, the latest numbers listed 74,280 confirmed cases including 2,006 deaths. Four of these de...



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Members' Corner

Why do people believe con artists?

 

Why do people believe con artists?

Would you buy medicine from this man? Carol M. Highsmith/Wikimedia Commons

Courtesy of Barry M. Mitnick, University of Pittsburgh

What is real can seem pretty arbitrary. It’s easy to be fooled by misinformation disguised as news and deepfake videos showing people doing things they never did or said. Inaccurate information – even deliberately wrong informatio...



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The Technical Traders

Gold Rallies As Fear Take Center Stage

Courtesy of Technical Traders

Gold has rallied extensively from the lows near $1560 over the past 2 weeks.  At first, this rally didn’t catch too much attention with traders, but now the rally has reached new highs above $1613 and may attempt a move above $1750 as metals continue to reflect the fear in the global markets.

We’ve been warning our friends and followers of the real potential in precious metals for many months – actually since early 2018.  Our predictive modeling system suggests Gold will rally above $1650 very quickly, then possibly stall a bit before continuing higher to target the $1750 range.

The one thing all skilled traders must consider is the longer-term fear that is build...



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Kimble Charting Solutions

Precious Metals Eyeing Breakout Despite US Dollar Strength

Courtesy of Chris Kimble

Gold and silver prices have been on the rise in early 2020 as investors turn to precious metals as geopolitical concerns and news of coronavirus hit the airwaves.

The rally in gold has been impressive, with prices surging past $1600 this week (note silver is nearing $18.50).

What’s been particularly impressive about the Gold rally is that it has unfolded despite strength in the US Dollar.

In today’s chart, we look at the ratio of Gold to the US Dollar Index. As you can see, this ratio has traded in a rising channel over the past 4 years.

The Gold/US Dollar ratio is currently attempting a breakout of this rising channel at (1).

This would come on further ...



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Insider Scoop

68 Stocks Moving In Friday's Mid-Day Session

Courtesy of Benzinga

Gainers
  • Trans World Entertainment Corporation (NASDAQ: TWMC) shares climbed 120.5% to $7.72 after the company disclosed that its subsidiary etailz entered into a deal with Encina for $25 million 3-year secured revolving credit facility.
  • Celldex Therapeutics, Inc. (NASDAQ: CLDX) fell 39.8% to $3.1744. Cantor Fitzgerald initiated coverage on Celldex Therapeutics with an Overweight rating and a $8 price target.
  • TSR, Inc. (NASDAQ: TSRI) gained 36.2% to $8.17.
  • ...


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Digital Currencies

Altcoin season 2.0: why bitcoin has been outgunned by crypto rivals since new year

 

Altcoin season 2.0: why bitcoin has been outgunned by crypto rivals since new year

‘We have you surrounded!’ Wit Olszewski

Courtesy of Gavin Brown, Manchester Metropolitan University and Richard Whittle, Manchester Metropolitan University

When bitcoin was trading at the dizzying heights of almost US$2...



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ValueWalk

What US companies are saying about coronavirus impact

By Aman Jain. Originally published at ValueWalk.

With the coronavirus outbreak coinciding with the U.S. earnings seasons, it is only normal to expect companies to talk about this deadly virus in their earnings conference calls. In fact, many major U.S. companies not only talked about coronavirus, but also warned about its potential impact on their financial numbers.

Q4 2019 hedge fund letters, conferences and more

Coronavirus impact: many US companies unclear

According to ...



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Chart School

RTT browsing latest..

Courtesy of Read the Ticker

Please review a collection of WWW browsing results. The information here is delayed by a few months, members get the most recent content.



Date Found: Tuesday, 01 October 2019, 02:18:22 AM

Click for popup. Clear your browser cache if image is not showing.


Comment: Wall of worry, or cliff of despair!



Date Found: Tuesday, 01 October 2019, 06:54:30 AM

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Comment: Interesting.. Hitler good for the German DAX when he was winning! They believed .. until th...



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Lee's Free Thinking

Why Blaming the Repo Market is Like Blaming the Australian Bush Fires

 

Why Blaming the Repo Market is Like Blaming the Australian Bush Fires

Courtesy of  

The repo market problem isn’t the problem. It’s a sideshow, a diversion, and a joke. It’s a symptom of the problem.

Today, I got a note from Liquidity Trader subscriber David, a professional investor, and it got me to thinking. Here’s what David wrote:

Lee,

The ‘experts’ I hear from keep saying that once 300B more in reserves have ...



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Mapping The Market

How IPOs Are Priced

Via Jean Luc 

Funny but probably true:

...

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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:

 

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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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