Posts Tagged ‘AZO’

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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Iron-Ore Bull Excavates Massive Credit Spread on Vale S.A.

Today’s tickers: VALE, ANF, ARIA, GCI, S, KR, SYY, AZO, TLB & RAI

VALE – Vale S.A. – Option volume on iron-ore producer, Vale, exploded this afternoon after one investor exchanged 102,200 puts in the June 2010 contract. The put activity actually implies bullish sentiment on Vale despite the 3% decline in shares this afternoon to $27.36. It appears the contrarian trader sold 51,100 in-the-money puts at the June 29 strike for a premium of 4.45 each, and purchased 51,100 puts at the lower June 23 strike for 1.75 apiece. The iron-bull receives a net credit of 2.70 per contract on the trade, which he keeps if VALE’s shares rally above $29.00 by expiration in June. Shares closed at $29.40 just last week on December 2, 2009. The investor is exposed to losses to the downside if shares decline through the breakeven price of $26.30. Maximum potential losses of 3.30 per contract accumulate for the trader if the stock sinks 16% from the current price to $23.00 by June’s expiration day.

ANF – Abercrombie & Fitch Co. – A number of large-volume put transactions on fashion retail store operator, Abercrombie & Fitch, indicates investor pessimism on the stock through expiration in January 2010. Abercrombie’s shares slipped 1.5% during afternoon trading to $35.11. Perhaps bearish option traders were dismayed by the firm’s weaker-than-expected November sales report. ANF posted a 17% decline in same-store sales for the month, which was far worse than the 9.3% decline anticipated by analysts. It appears one investor initiated a four-legged combination play aimed at protecting against near-term declines in the value of ANF shares. First the investor established a ratio put spread by purchasing 15,000 puts at the January 35 strike for 2.10 apiece, marked against the sale of 30,000 puts at the lower January 32 strike for 95 cents each. The net cost of the ratio spread amounts to 20 cents per contract. Next, the trader effectively created an uneven butterfly spread by rolling a previously established put position in the January 2010 contract up to a higher strike price. It seems the trader originally purchased 15,000 puts at the January 29 strike for roughly 2.50 apiece on October 2, 2009. Today the individual took a loss on that position by selling the puts for 40 cents apiece to buy the same number of put options at the higher January 31 strike for 80 cents…
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Phil's Favorites

How America's partisan divide over pandemic responses played out in the states

 

How America’s partisan divide over pandemic responses played out in the states

The COVID-19 pandemic seems to have widened the partisan divide between Democrats and Republicans on health care. John M. Lund Photography/Getty Images

Courtesy of Julie VanDusky-Allen, Boise State University and Olga Shvetsova, Binghamton University, State University of New York

Throughout the COVID-19 pandemic, a ...



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Biotech/COVID-19

How America's partisan divide over pandemic responses played out in the states

 

How America’s partisan divide over pandemic responses played out in the states

The COVID-19 pandemic seems to have widened the partisan divide between Democrats and Republicans on health care. John M. Lund Photography/Getty Images

Courtesy of Julie VanDusky-Allen, Boise State University and Olga Shvetsova, Binghamton University, State University of New York

Throughout the COVID-19 pandemic, a ...



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Zero Hedge

Antimony: A Mineral With A Critical Role In The Green Future

Courtesy of ZeroHedge View original post here.

If someone asked you to name the first mineral that came to mind, odds are, it wouldn’t be antimony.

Yet, despite its lack of fanfare, Visual Capitalist explains below just how significant a role it plays in our day-to-day lives.

This graphic from Perpetua Resources provides an overview of antimony’s key uses, and the critical role it plays in the movement towards clean energy, amo...



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Digital Currencies

Tesla Suspends Bitcoin Payments Over "Concerns About Environmental Impact"

Courtesy of ZeroHedge

After announcing plans to accept payment for Tesla's cars in bitcoin back in February, Tesla CEO Elon Musk has just announced via tweet that the company will suspend bitcoin payments over concerns about the environment.

As perhaps the biggest booster of bitcoin in corporate America, Tesla announced during its Q1 earnings report released last month that it made a $272 million profit selling some of the bitcoin it had purchased on the company's balance sheet. Earlier this week, Musk joked about the possibility that the firm might accept Doge for payment.

In a note published on Twitter, Musk wrote that while he is still personally a believer in the crypto currency, Tesla has become concerned about the role of fossil fuels in bitcoin minin...



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Chart School

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Courtesy of Read the Ticker

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Comment: Bitcoin ambitions ...



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Comment: PMI juiced back up ...



Date Found: Sunday, 22 November 2020, 05:49:42 PM
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Politics

If China's middle class continues to thrive and grow, what will it mean for the rest of the world?

 

If China's middle class continues to thrive and grow, what will it mean for the rest of the world?

Over the past few decades, hundreds of millions of Chinese citizens have become part of the middle class. AP Photo/Ng Han Guan

Courtesy of Amitrajeet A. Batabyal, Rochester Institute of Technology

China’s large and impressive accomplishments over the past four decades have spurred scholars and politicians to debate whether the decline of the West – including the ...



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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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Kimble Charting Solutions

Will Historic Selloff In Treasury Bonds Turn Into Opportunity?

Courtesy of Chris Kimble

Long-dated treasury bonds have been crushed over the past year, sending ETFs like TLT (20+ Year US Treasury Bond ETF) spiraling over 20%.

Improving economy? Inflation concerns? Perhaps a combination of both… interest rates have risen sharply and thus bond prices have fallen in historic fashion.

Today’s chart looks at $TLT over the past 20 years. As you can see, the recent decline has truly been historic. $TLT’s price has swung from historically overbought highs to oversold lows.

At present, the long-dated bond ETF ($TLT) is trading 7.8% below its 200-...



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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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Promotions

Phil's Stock World's Weekly Webinar - March 10, 2021

Don't miss our latest weekly webinar! 

Join us at PSW for LIVE Webinars every Wednesday afternoon at 1:00 PM EST.

Phil's Stock World's Weekly Webinar – March 10, 2021

 

Major Topics:

00:00:01 - EIA Petroleum Status Report
00:04:42 - Crude Oil WTI
00:12:52 - COVID-19 Update
00:22:08 - Bonds and Borrowed Funds | S&P 500
00:45:28 - COVID-19 Vaccination
00:48:32 - Trading Techniques
00:50:34 - PBR
00:50:43 - LYG
00:50:48 - More Trading Techniques
00:52:59 - Chinese Hacks Microsoft's E...



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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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