Posts Tagged ‘BCSI’

Bearish Spread On DuPont Suggests Shares On The Decline In 2012

Today’s tickers: DD, BCSI, JBLU & FCS

DD - EI du Pont de Nemours & Co. – Shares in the U.S. chemical maker dropped on Friday after the company lowered full-year earnings guidance by $0.10 a share to a range of $3.87 to $3.95 a share. The stock is off its lowest point of the session to stand 4.75% lower on the day at $44.31 just before 12:00 PM ET. Activity in DuPont put options expiring in January 2012 indicate some traders are positioning for the price of the underlying to extend losses in the near term. It appears one strategist initiated a ratio put spread, buying 2,250 puts at the Jan. 2012 $41 strike for a premium of $0.94 each, and selling 4,500 puts at the lower Jan. 2012 $38 strike at a premium of $0.48 apiece. The spread yields a net credit of $0.02 per contract and positions the trader add to profits in the event that shares drop 7.5% from the current price of $44.31 to breach the effective breakeven point on the downside at $41.00 by expiration. Maximum potential profits of $3.02 per contract are available to the investor should DuPont’s shares plunge 14.2% to settle at $38.00 at expiration day in January. The chemical company is scheduled to report fourth-quarter earnings ahead of the opening bell on January 25, after the Jan. 2012 expiry puts will have expired.

BCSI - Blue Coat Systems, Inc. – Investors that bought December expiry call options in the latter half of November saw the value of their positions sky-rocket overnight on news Blue Coat Systems, Inc. agreed to be purchased by an investor group for a reported $1.3 billion. Shares in the provider of Internet-security software jumped 44.5% to $25.27 in the first half of the trading session. Call open interest in the front…
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Butterfly Spread Calls For Target Rally

    Today’s tickers: TGT, ALTR, BCSI & SHW

TGT - Target Corp. – Post-earnings options trading on Target this morning appears to be littered with profit-taking and fresh bullish positioning, among other strategies. Shares in the Minneapolis, MN-based retailer jumped 5.85% to an intraday high of $52.26 after the company posted better-than-expected second-quarter profits. The sharp rally in TGT shares has cooled somewhat, but the stock still stands 2.65% higher on the day at $50.68 as of 11:50 am in New York. In- and out-of-the-money call selling in the front month may be the work of traders taking profits off the table. It looks like investors sold more than 2,400 now in-the-money calls at the August $50 strike for an average premium of $1.94 this morning, and shed another 3,700 calls at an average premium of $0.34 each up at the August $52.5 strike. Substantial open interest in excess of 14,500 calls at each strike indicates traders could be selling-to-close positions. Alternatively, investors may be engaging other strategies such as covered call selling, or outright call selling ahead of expiration on the view that the options will expire worthless or nearly worthless on Friday as time erosion accelerates.

Longer-term activity in Target options suggests one strategist sees shares in the second-largest U.S. discount retailer soaring ahead of January 2012 expiration. It appears the bullish player purchased a call butterfly spread, buying 1,700 calls at the Jan. 2012 $57.5 strike, selling 3,400 calls at the $60 strike, and purchasing 1,700 calls up at the $62.5 strike, all at a net premium of $0.27 per contract. The butterfly spread positions the trader to make money should Target’s shares surge 14.0% in the next six months to surpass the effective breakeven price of $57.77 by January expiration day. Maximum potential profits of $2.23 per contract pad the investor’s wallet in the event that shares jump 18.4% over the current price of $50.68 to settle at $60.00 at expiration next year. The strategy selected greatly reduces premium required to…
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Options Look For GM Rebound Down The Road

 

Today’s tickers: GM, BCSI, DSX & GME

GM - General Motors Co. – A couple of bullish bets in options covering automobile manufacturer, General Motors, may prove prudent investments for some strategists should shares in GM increase approximately 15.0% by January expiration. Shares in the Detroit, MI-based company are on the rise in early-afternoon trade, standing 0.45% higher on the session at $26.54 as of 12:10 pm in New York. It looks like options players initiated two ratio call spreads this morning. The larger of the transactions involved the purchase of 3,602 calls at the Jan. 2012 $26 strike at a premium of $2.82 each, against the sale of 7,204 calls up at the Jan. 2012 $30 strike for a premium of $1.22 apiece. Net premium paid for the spread amounts to $0.38 per contract, thus positioning the trader to make money should shares in the automaker exceed the effective breakeven price of $26.38 at expiration in January. The investor could rake in maximum potential profits of $3.62 per contract in the event that shares in GM rally 13.0% to settle at $30.00 at expiration next year. Meanwhile, the smaller and more optimistic of the trades engaged the purchase of 1,000 Jan. 2012 $27 strike calls for an average premium of $2.37 each, and the sale of twice as many of the Jan. 2012 $31 strike contracts at an average premium of $0.97 a-pop. The net cost of the spread amounts to $0.43 apiece, and therefore an average breakeven share price of $31.43. Maximum potential profits of $3.57 per contract are available on the trade should shares in the car maker surge 16.8% to settle at $31.00 at expiration day. Shares in GM last traded above $31.00 back in mid-July.

BCSI - Blue Coat Systems, Inc. – Call options on Blue…
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Demand for Blue Coat Systems Call Options Pops

Today’s tickers: BCSI, BHP, KFT & MOBI

BCSI - Blue Coat Systems, Inc. – Speculation and unconfirmed rumors that Cisco may be interested in acquiring rival Blue Coat Systems sent shares in Sunnyvale, CA-based Blue Coat up as much as 8.0% this afternoon to an intraday high of $28.85. Investors flocked to the May contract to buy out-of-the-money call options on the stock in case the there’s any element of truth driving the takeover chatter, or simply to benefit from rising call premiums that result from the higher implied volatility and share price that’s likely to accompany continued speculation. Options traders exchanged more than 4,500 calls at the May $29 strike on open previously existing open interest of just 150 contracts. It looks like bulls purchased the majority of the calls for an average premium of $0.71 apiece. Call buyers stand prepared to profit in the event that Blue Coat’s shares rally another 3.0% to surpass the average breakeven price on the upside at $29.71 by May expiration. Investors purchased another 1,000 call options up at the May $30 strike, paying an average premium of $0.57 a-pop. Higher-strike call buyers make money if shares in Blue Coat Systems increase 6.0% over today’s high of $28.85 to exceed the average breakeven share price of $30.57 in the time remaining to expiration. Options implied volatility on the stock jumped 21.8% to 50.04% on Friday afternoon, and continues to climb in the final hours of the trading week.

BHP - BHP Billiton Limited – Put players initiated diverse bearish options strategies on the natural resources company today, with shares in BHP Billiton slipping 0.65% to $99.79 on speculation China may do more to combat the faster-than-expected rise in inflation. The bulk of volume generated in BHP’s options appears to be the work of one…
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Options Traders Position for Pullback in S&P 500 Index

 Today’s tickers: SH, APC, BCSI & SNV

SH - ProShares Short S&P500 ETF – Call buying on the ProShares Short S&P500, an exchange-traded fund that seeks daily investment results that correspond to the inverse of the daily performance of the S&P 500 Index, indicates options traders expect the pullback in the market to continue through February expiration. The massive run up in stocks since September 2010 drove the ProShares Short S&P500 ETF to a 52-week low of $42.63 last Friday. But, shares in the fund have started to climb with rising fears over dampening economic growth, pushing the price of the underlying up 0.55% today to $43.21 as of 12:15pm in New York. Bearish players picking up call options foresee shares in the fund rising, and consequently the S&P 500 Index falling ahead of February expiration. More than 6,790 calls changed hands at the February $45 strike on open interest of just 978 contracts. It looks like the majority, or roughly 5,140 of the calls, were purchased for a premium of $0.20 a-pop. Investors purchasing the call options make money if shares in the fund rally another 4.6% to surpass the effective breakeven price of $45.20 ahead of expiration day next month. Total volume in options traded on the ProShares Short S&P500 has climbed to 9,083 in early afternoon trade today, which is substantial compared to the 14,880 lots of overall previously existing open interest on the fund. Options implied volatility on the ETF has inched up 5.1% to 16.14% as of 12:20pm.

APC - Anadarko Petroleum Corp. – Shares of the oil and gas exploration and production company are currently down 1.90% to stand at $75.00 as of 11:10am in New York, but it looks like one optimistic options player is taking advantage of the pullback by placing a bullish bet on the stock in May contract. Anadarko is scheduled to report earnings for the fourth quarter after the market closes on January 31, 2011. The debit call spread strategy employed on APC this morning…
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Three-Legged Bears Tackle Emerging Markets Options

 Today’s tickers: EEM, MRVL, BCSI & XRT

EEM - iShares MSCI Emerging Markets Index ETF – A number of large-volume spreads on the emerging markets fund this morning signal investor pessimism on the sector through February expiration. Shares of the EEM, an exchange-traded fund designed to measure equity market performance in the global emerging markets, fell 0.50% to $47.62 by 12:20pm in New York. Three-legged bearish spreads, wherein investors sold out-of-the-money calls to partially finance the purchase of put spreads, are popular with strategists populating the EEM today. The larger of two similar bearish plays involved the sale of 15,500 calls up at the February $52 strike for a premium of $0.05 each, purchase of the same number of puts at the February $47 strike at a premium of $0.96 apiece, and the sale of 15,500 puts at the lower February $43 strike for premium of $0.19 each. The net cost of the transaction amounts to $0.72 per contract and positions the responsible party to profit should shares in the EEM decline another 2.80% from the current price of $47.62 to breach the effective breakeven point to the downside at $46.28 ahead of February expiration day. Maximum potential profits of $3.28 per contract are available to the trader should shares in the ETF drop 9.7% lower to trade below $43.00 before the contracts expire next month. A like-minded tactician established a similar spread, but sold call and put options at closer-to-the-money strikes to further reduce the premium required to take a bearish stance on the fund. This options player sold 14,000 of the February $50 strike calls, picked up 14,000 puts at the February $47 strike, and sold the same number of puts at the February $43 strike. The trader paid a net premium of $0.24 per contract and breaks even on the spread if the EEM’s shares decline 1.80% to trade below $46.76 ahead of expiration. Maximum potential profits of $1.76 per contract pad the investor’s wallet should shares dip below $45.00 at expiration next month. Selling calls at the February $50 and $52 strikes reduces the cost of the bearish spreads, but is not a riskless tactic to employ. Investors are on the hook to deliver…
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Contrarian Player Plants Bull Call Spread on Seed Maker Monsanto Co.

 Today’s tickers: MON, EWZ, XLB, HPQ, V, BCSI & SLB

MON - Monsanto Co. – Shares of the maker of genetically modified seeds seemed to be recovering at the start of the current session following Tuesday’s horrendous performance wherein the stock fell as much as 9.80% from an intraday high of $52.64 to a low of $47.50. MON’s shares managed to rebound 4.50% off Tuesday’s low of $47.50 to briefly touch an intraday high of $49.62, although the rally proved to be short-lived and shares are down 1.00% at $48.25 as of 3:15 pm ET. Though MON was unable to keep hold of earlier gains, one contrarian player is optimistic that Monsanto’s shares will reverse course and head back up by November expiration. The investor purchased a call spread, buying 5,000 calls at the November $55 strike at a premium of $0.85 each, and selling the same number of calls at the higher November $60 strike for a premium of $0.27 apiece. Net premium paid to establish the transaction amounts to $0.58 per contract. Thus, the investor is ready to make money should Monsanto’s shares surge 15.20% over the current price of $48.25 to surpass the effective breakeven point on the spread at $55.58 by November expiration. Maximum potential profits of $4.42 per contract are available to the bullish player if MON’s shares jump 24.35% to trade above $60.00 by expiration day.

EWZ - iShares MSCI Brazil Index ETF – Investors are placing near-term bearish bets on the Brazil fund this afternoon by selling calls to finance the purchase of put spreads in the October contract. The large pessimistic plays could be the work of traders hedging long positions or the mark of outright bearish bettors expecting the price of the underlying fund to slip lower ahead of expiration next month. Shares of the EWZ, an exchange-traded fund designed to replicate the price and yield performance of publicly traded securities in the aggregate in the Brazilian market – as measured by the MSCI Brazil Index, rallied…
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Staples Firm – Proctor & Gamble Options Suggest Further Upside

Today’s tickers: PG, CTXS, LINTA, HIG, CVS, UUP, VIX, AONE, SWKS, CLX, BCSI & NVDA

PG – The Proctor & Gamble Co. – Bullish action on Proctor & Gamble today suggests one investor expects shares to continue to rally ahead of expiration in November. Shares are currently trading 1% higher to $61.13. The trader purchased 10,000 calls at the now in-the-money November 60 strike for 1.39 each, and simultaneously sold 10,000 calls at the higher November 62.5 strike for 26 cents apiece. The net cost of buying the call spread amounts to 1.13 per contract and yields maximum potential profits of 1.37 each if shares rally up to $62.50 by expiration. Shares need only rally another 2.2% from the current price to reach the $62.50-level.

CTXS – Citrix Systems, Inc. – Software developer, Citrix Systems, attracted bullish option traders to the November contract today amid a 1% increase in shares to $38.80. Investors displayed optimistic sentiment on the stock by selling approximately 10,600 puts at the November 35 strike for 10 cents premium apiece. Put-sellers retain the full dime-per-contract as long as shares remain above $35.00 through expiration this month. Shares of CTXS have traded above $36.00 since September 4, 2009.

LINTA – Liberty Media Corp. – Shares of the broadcasting and entertainment company rallied 1% during the trading session to $12.14. Plain-vanilla call buying action on the stock today suggests some investors expect shares to rise significantly by expiration in January 2010. Traders purchased about 11,800 calls at the January 15 strike for an average premium of 25 cents apiece. Call-buyers will accumulate profits if shares surge at least 26% from the current price to surpass the breakeven point at $15.25 by expiration.

HIG – Hartford Financial Services Group, Inc. – Medium-term investors placed bearish bets on the insurance and financial services firm today. Shares are currently trading less than 0.25% higher to $24.16 after suffering significant erosion throughout the week. One pessimistic trader initiated a bearish risk reversal in the January 2010 contract. The investor sold 4,500 calls at the January 27 strike for an average premium of 78 cents apiece to partially finance the purchase of the same number of put options at the lower January 21 strike for 1.68 each. The net cost of the transaction is reduced to a more palatable 90 cents per contract, but does leave the investor exposed in the event of…
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Kimble Charting Solutions

Nasdaq 100 Relative Strength Testing 2000 Highs

Courtesy of Chris Kimble

The tech bubble didn’t end well. BUT it did tell us that the world was shifting into the technology age…

Since the Nasdaq 100 bottomed in 2002, the broader markets have turned over leadership to the technology sector.

This can be seen in today’s chart, highlighting the ratio of Nasdaq 100 to S&P 500 performance (on a “monthly” basis).

As you can see, the bars are in a rising bullish channel and have turned sharply higher since the 2018 stock market lows. This highlights the strength of the Nasdaq 100 and large-cap tech stocks.

...

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Zero Hedge

Israeli Leaders Say West Bank Annexation Must Wait Due To COVID-19

Courtesy of ZeroHedge View original post here.

What was surely supposed be the most controversial and provocative move in all recent Israeli-Palestine conflict history was supposed to be initiated yesterday, July 1st, according to prior target date statements of Prime Minister Benjamin Netanyahu to annex up to one-third of West Bank territory, including the Jordan Valley.

Netanyahu and other top Israeli officials claimed to have a 'green light' from the Trump administration, but at this point it's anything but certain. “We are in discreet talks with US officials here,” Netanyahu ...



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Phil's Favorites

Which drugs and therapies are proven to work, and which ones don't, for COVID-19?

 

Which drugs and therapies are proven to work, and which ones don't, for COVID-19?

We are slowly figuring out which drugs and therapies are effective against the new coronavirus. Anton Petrus / Getty Images

Courtesy of William Petri, University of Virginia

I am a physician and a scientist at the University of Virginia. I care for patients and conduct research to find better ways to diagnose and treat infectious ...



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Biotech/COVID-19

Which drugs and therapies are proven to work, and which ones don't, for COVID-19?

 

Which drugs and therapies are proven to work, and which ones don't, for COVID-19?

We are slowly figuring out which drugs and therapies are effective against the new coronavirus. Anton Petrus / Getty Images

Courtesy of William Petri, University of Virginia

I am a physician and a scientist at the University of Virginia. I care for patients and conduct research to find better ways to diagnose and treat infectious ...



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ValueWalk

FedEx Corp.: Fundamentals Support the Price Increase

By F.A.S.T. Graphs. Originally published at ValueWalk.

Introduction

After reporting better than 4th quarter results on Tuesday, the stock price of FedEx Corporation (NYSE:FDX) has been on a tear. With this article, I plan to demonstrate that the fundamentals support the current price rise. Moreover, the fundamentals also suggest that it is not too late to take a long-term position in this leading air freight and logistics company.

Q1 2020 hedge fund letters, conferences and more

Yesterday, FedEx reported a surge in quarterly adjusted earnings of $2.53 per share compared to expectations of $1.52 per s...



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The Technical Traders

Long-Term Consumer Discretionary Winners

Courtesy of Technical Traders

I was live on TD Ameritrade TV talking about consumer discretionary, staples, and utility sectors. Explained is a unique crossover on how some discretionary stocks are also becoming a consumer staple.

Get My ETF Trade Signals, Entry, Targets, and Stop Levels – CLICK HERE ...

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Chart School

US Dollar with Ney and Gann Angles

Courtesy of Read the Ticker

Where is price going, is there strength or weakness in the chart?


Previous Post on the US Dollar : Where is the US Dollar trend headed ?


The question is always what will the future price action look like ?


This post will highlight the use of lines generated by angles. Not trend lines, as trend lines require two known points on a chart, where as angles require only one known point and a angle degree to draw a line. The question then becomes how is the angle degree determined.



There are two theories: ...

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Lee's Free Thinking

These Charts Show COVID 19 Is Spreading in the US and Will Kill the Economy

 

These Charts Show COVID 19 Is Spreading in the US and Will Kill the Economy

Courtesy of  

The COVID 19 pandemic is, predictably, worsening again in much of the US. Only the Northeast, and to a lesser extent some Midwestern states, have been consistently improving. And that trend could also reverse as those states fully reopen.

The problem in the US seems to be widespread public resistance to recommended practices of social distancing and mask wearing. In countries where these practices have been practi...



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Digital Currencies

Blockchains can trace foods from farm to plate, but the industry is still behind the curve

 

Blockchains can trace foods from farm to plate, but the industry is still behind the curve

App-etising? LDprod

Courtesy of Michael Rogerson, University of Bath and Glenn Parry, University of Surrey

Food supply chains were vulnerable long before the coronavirus pandemic. Recent scandals have ranged from modern slavery ...



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Members' Corner

Coronavirus, 'Plandemic' and the seven traits of conspiratorial thinking

 

Coronavirus, 'Plandemic' and the seven traits of conspiratorial thinking

No matter the details of the plot, conspiracy theories follow common patterns of thought. Ranta Images/iStock/Getty Images Plus

Courtesy of John Cook, George Mason University; Sander van der Linden, University of Cambridge; Stephan Lewandowsky...



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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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Mapping The Market

How IPOs Are Priced

Via Jean Luc 

Funny but probably true:

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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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