Posts Tagged ‘BCRX’

All-Time High for Amazon has Option Traders Raising the Bar

Today’s tickers: AMZN, MU, ETH, AMR, WYN, TBT, BAC, PCS, DE, ING, RSH & BCRX

AMZN – Amazon.com, Inc. – Shares of the online retailer surged to an all-time high of $125.44 during the trading session. Investors exchanged approximately 241,000 option contracts on AMZN by 3:00 pm (EDT), which represents about 41% of the total existing open interest on the stock of 591,993 lots. Bullish investors expecting Amazon to rally even higher purchased 7,000 calls at the November 135 strike for an average premium of 1.84 apiece. Optimism spread to the higher November 140 strike where 2,800 calls were picked up for 1.05 each. Super bullish traders looked to the highest available strike price in the front month – the November 150 strike – to purchase 1,000 calls for an average premium of 31 cents per contract. Shares of Amazon.com rallied 36% to reach today’s intraday high of $125.44, climbing up from an intra-week low of $91.98 on Thursday October 22, 2009. Investors holding calls at the November 135 strike will profit by expiration if shares of AMZN gain 9% over the high of $125.44 to breach the breakeven price of $136.84. Finally, near-term put options were also in demand by investors looking to lock in gains enjoyed during Amazon’s recent run-up. Traders shelled out an average of 6.92 per contract to buy 3,100 puts at the November 125 strike.

MU – Micron Technology, Inc. – Option traders invested in April contract call options on the semiconductor manufacturer despite the 0.5% decline in shares to $7.41. It appears some 9,200 calls were purchased by MU-optimists at the April 8.0 strike for an average premium of 1.08 per contract. Call-buyers apparently expect shares to rally significantly within the next six months. Investors holding the call options will profit by expiration if shares of MU rally at least 22.5% to the breakeven point at $9.08.

ETH – Ethan Allen Interiors, Inc. – Home-furnishings retailer, Ethan Allen, experienced a more than 14% decline in shares today to $14.30 after the firm forecast a wider-than-expected loss of 21-23 cents for the first quarter. Analysts predicted an 8 cents per share loss before the firm lowered guidance last week. Long-term downside protection is in demand as traders picked up some 5,500 puts at the May 12.5 strike for an average premium of 1.76 apiece. Investors holding long positions in the underlying stock will find protection…
continue reading


Tags: , , , , , , , , , , ,




Weekly Wrap-Up – The Return of Fundamentals?

Fundamentals don't matter, until they do – then they matter a lot

We had a fantastic week because we stuck to the fundamentals and stayed short – even though it was a very painful path to follow.  In last week's wrap-up, facing the never-ending market climb on low volume I had said "I am trying to get bullish, really I am," and I was trying to find bullish plays for members - but we still ended up bearish for the week with a lot of bearish plays being added and thank goodness as it gave us a fantastic week this week!

Just following the plays I mentioned in last week's wrap-up would have been great as we had SKF bullish at $21 (now $26), DIA bearish at $98 (now $96.74), FAZ bullish at $16 (now $22.12), OIH bearish at $120 (now $114.75), SRS bullish at $8.50 (now $9.93) – and those were just from Thursday and Friday, last week was very active and very successful.  I had been quoting Samuel Jackson to highlight my difficulty joining the bullish analysts and I closed last week's comments by saying:  "It really is hard to be the shepherd in this market as I see wolves everywhere, waiting to pounce on the flock as the mainstream media leads them off to slaughter.  Or maybe (hopefully) I’m just being paranoid and everything’s fine…"   

Monday I led off the week with my concerns about the spread of the flu, as the season is upon us.  That gave us 4 bullish (but hedged) plays on SVA, BCRX and CAH (2), none of which are performing so far so all of which are still good entries, especially CAH who got whacked by a DB downgrade on Thursday yet paid back $1Bn in debt on Friday and still look very good long-term.  

I had an early look at the G20s "Framework for Sustainable and Balanced Growth," and our conclusion was that, although a good plan, it sure wasn't something the markets should be all pumped up about as stability was not going to grow us into the bullish valuations that our stocks had already risen to.  I warned members that the media was misinterpreting/misrepresenting this report saying: "You can bet though, that "THEY" are acting on this information and they will be SELLSELLSELLING, as they did on Friday
continue reading


Tags: , , , , , , , , , , , , , , ,




Monday Malicious Microbe Mania

Just when you thought it was safe to invest in Asia!

Today’s shocker came out of a World Health Organization meeting yesterday where officials estimate 20% to 30% of Asia’s population -  or between 448 million and 672 million people will be infected by swine flu H1N1 this season.  Hong Kong had their 15th death this weekend and eight more people are in critical condition.  492 new cases were confirmed over the weekend, bringing the official count in Hong Kong alone up to 22,054 infections.  According to the WHO: "China may not be in a situation of what we call extensive local transmission, which Hong Kong is in now." Once it does happen, we can see a lot of severe cases." 

It’s ironic that the G20s efforts to put lipstick on this pig of a global economy may all be derailed by a pig’s disease.  Despite skipping testing and relaxing safety regulations (which will, of course lead to other problems) in order to get tens of millions of doses of vaccines out for mass-inoculation programs, the WHO estimates that China, at best, will be able to inoculate just 5% of the population (65M people).  We went through our last major swine flu scare last April and, here at PSW, we turned it into a half-dozen very successful picks – so let’s look at a few more who should do well in this next round of the crisis: 

  • SVA is the primary vaccine maker in China and you can buy that stock for $8.88 and sell the Jan $7.50 puts and calls for $4.50, which is net $4.38 with a call away at $7.50 (up 71%) if they hold that level through Jan 15th and the break-even to the downside (where you would be assigned the puts) is $5.94, 33% lower than today’s price.  I’m not one to jump on disaster plays usually but this one has pretty good odds. 
  • BCRX has Perimavir in late-stage trials and the FDA is considering a "pre-emergency use authorization review," of the drug, which would be great for BCRX if it goes through and bad if it doesn’t.  As BCRX is already up a lot, the way I would play this one is buying the 2011 $10 calls for $4.10 and selling the 2011 $12.50 calls for $3.60, which is a net .50 entry with a 500% return if BCRX hits $12.50 in 15 months (now $10) and it shouldn’t cause too


continue reading


Tags: , , , , , ,




 
 
 

Phil's Favorites

Big Brother facial recognition needs ethical regulations

 

Big Brother facial recognition needs ethical regulations

Will facial recognition software make the world a safer place, as tech firms are claiming, or will it make the marginalized more vulnerable and monitored? Shutterstock

Courtesy of William Michael Carter, Ryerson University

My mother always said I had a face for radio. Thank God, as radio may be the last place in this technology-enhanced world where your face won’t determine your social status or potential to commit a crime.

RealNetworks, the global leader of a technology that enables the seamless digital delivery of audio and video files across the interne...



more from Ilene

Zero Hedge

Recovery, Recession, Or Depression? The State Of Americans' Livers Exposes Reality

Courtesy of ZeroHedge. View original post here.

"Never been better" is how President Trump and the mainstream would describe the economy with its multi-decade low unemployment, record high share prices, and more job openings than applicants.

However, judging by a new study by BMJ, "never been worse" may be a better description of America.

As Statista's Sarah Feldman...



more from Tyler

Chart School

Gann Angles on Dow and Gold

Courtesy of Read the Ticker.

Gann Angles measure price moves relative to time.

The Dow is moving up the red Gann 1x1 line, so far the recent trend challenge has been over come. As price is near upper green dotted channel Gann angle from Oct 2007 price is now over bought. We can also see the very obvious Elliot 5 wave count from March 2009 lows, and a new Dow high would complete the 5 waves up.

The red line indicator below the Dow price chart is readtheticker.com RTT Flow Index.


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



Gold (GLD) could not get over $130, so a reaction back to minor support at $115 was to be expected.  Support should be found here, an...

more from Chart School

Members' Corner

There Are 3 Main Theories That Explain Trump's Approach to Putin and Russia-Which One Makes the Most Sense?

Theory Time - What do you think?

Thom Hartmann suggests that the "Manchurian Candidate theory" is the least likely explanation for Trump's pro-Russia behavior in "There Are 3 Main Theories That Explain Trump’s Approach to Putin and Russia—Which One Makes the Most Sense?" (below).  disagrees and suggests that Putin probably has "the goods" on Trump in "Trump’s Plot Against America". (To be fair, Hartmann acknowledges that his three theories are not mutually exclusive.) Jonathan Chait argues ...



more from Our Members

Insider Scoop

BofA Points To Yum China's Earnings Downside Risk In Downgrade

Courtesy of Benzinga.

Related 31 Stocks Moving In Friday's Mid-Day Session Benzinga's Top Upgrades, Downgrades For July 20, 2018 ...

http://www.insidercow.com/ more from Insider

Digital Currencies

Citadel CEO Says Bitcoin Still A "Head Scratcher" But Billionaire Lasry Sees $40,000 Soon

Courtesy of ZeroHedge. View original post here.

Ken Griffin, the CEO and founder of the Citadel hedge fund, has reiterated his negative stance on Bitcoin (BTC) in an interview with CNBC this morning.

Speaking at the Delivering Alpha Conference in New York, ...



more from Bitcoin

Biotech

How summer and diet damage your DNA, and what you can do

Reminder: Pharmboy and Ilene are available to chat with Members, comments are found below each post.

 

How summer and diet damage your DNA, and what you can do

Bright sun and fatty foods are a bad recipe for your DNA. By Tish1/shutterstock.com

Courtesy of Adam Barsouk, University of Pittsburgh

Today, your body will accumulate quadrillions of new injuries in your DNA. The constant onslaught of many forms of damage, some of which permanently...



more from Biotech

Mapping The Market

Mistakes were Made. (And, Yes, by Me.)

Via Jean-Luc:

Famed investor reflecting on his mistakes:

Mistakes were Made. (And, Yes, by Me.)

One that stands out for me:

Instead of focusing on how value factors in general did in identifying attractive stocks, I rushed to proclaim price-to-sales the winner. That was, until it wasn’t. I guess there’s a reason for the proclamation “The king is dead, long live the king” when a monarchy changes hands. As we continued to update the book, price-to-sales was no longer the “best” single value factor, replaced by others, depending upon the time frames examined. I had also become a lot more sophisticated in my analysis—thanks to criticism of my earlier work—and realized that everything, including factors, moves in and out of favor, depending upon the market environment. I also realized...



more from M.T.M.

ValueWalk

Buffett At His Best

By csinvesting. Originally published at ValueWalk.

Bear with me as I share a bit of my history that helped me create SkyVu and the Battle Bears games. The University of Nebraska gave me my first job after college. I mostly pushed TV carts around, edited videos for professors or the occasional speaker event. One day, Warren Buffet came to campus to speak to the College of Business. I didn’t think much of this speech at the time but I saved it for some reason. 15 years later, as a founder of my own company, I watch and listen to this particular speech every year to remind myself of the fundamentals and values Mr. Buffett looks for. He’s addressing business students at his alma mater, so I think his style here is a bit more ‘close to home’ than in his other speeches. Hopefully many of you find great value in this video like I have. Sorry for the VHS...



more from ValueWalk

Kimble Charting Solutions

The Stock Bull Market Stops Here!

 

The Stock Bull Market Stops Here!

Courtesy of Kimble Charting

 

The definition of a bull market or bull trends widely vary. One of the more common criteria for bull markets is determined by the asset being above or below its 200 day moving average.

In my humble opinion, each index above remains in a bull trend, as triple support (200-day moving averages, 2-year rising support lines, and February lows) are still in play ...



more from Kimble C.S.

OpTrader

Swing trading portfolio - week of September 11th, 2017

Reminder: OpTrader is available to chat with Members, comments are found below each post.

 

This post is for all our live virtual trade ideas and daily comments. Please click on "comments" below to follow our live discussion. All of our current  trades are listed in the spreadsheet below, with entry price (1/2 in and All in), and exit prices (1/3 out, 2/3 out, and All out).

We also indicate our stop, which is most of the time the "5 day moving average". All trades, unless indicated, are front-month ATM options. 

Please feel free to participate in the discussion and ask any questions you might have about this virtual portfolio, by clicking on the "comments" link right below.

To learn more about the swing trading virtual portfolio (strategy, performance, FAQ, etc.), please click here ...



more from OpTrader

Promotions

NewsWare: Watch Today's Webinar!

 

We have a great guest at today's webinar!

Bill Olsen from NewsWare will be giving us a fun and lively demonstration of the advantages that real-time news provides. NewsWare is a market intelligence tool for news. In today's data driven markets, it is truly beneficial to have a tool that delivers access to the professional sources where you can obtain the facts in real time.

Join our webinar, free, it's open to all. 

Just click here at 1 pm est and join in!

[For more information on NewsWare, click here. For a list of prices: NewsWar...



more from Promotions

All About Trends

Mid-Day Update

Reminder: Harlan is available to chat with Members, comments are found below each post.

Click here for the full report.




To learn more, sign up for David's free newsletter and receive the free report from All About Trends - "How To Outperform 90% Of Wall Street With Just $500 A Week." Tell David PSW sent you. - Ilene...

more from David





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...

Learn more About Phil >>


As Seen On:




About Ilene:

Ilene is editor and affiliate program coordinator for PSW. She manages the site market shadows, archives, more. Contact Ilene to learn about our affiliate and content sharing programs.

Market Shadows >>