Posts Tagged ‘BDK’

Bulls and Bears Vie for Virgin

Today’s tickers: VMED, FSLR, BDK, SNDK

VMED – Option trades in play on Virgin today reflect near-term bullish and long-term bearish sentiment by investors amid a more than 3% decline in shares to $9.52. The provider of high-speed internet access, pay-television, and telephone services in the United Kingdom attracted call-buyers to the July contract. Approximately 6,000 calls were coveted at the July 10 strike price for a premium of 40 cents apiece by traders positioning for a near-term rebound in the stock. Shares must rally 9% higher before investors begin amass profits at the breakeven price of $10.40. Elsewhere, traders singing a bearish tune were seen making reversals in the December contract. It appears that 10,000 calls were shed for 75 cents apiece at the December 12.5 strike and spread against the purchase of 10,000 put options at the December 7.5 strike price for 65 cents each. The reversal yields a net credit of 10 cents per contract. The full credit is safe in the bank if both options expire out-of-the-money by expiration. Additional profits would be enjoyed by investors long the bearish puts in the event that shares decline through $7.50. The short call position leaves traders vulnerable to potentially unlimited losses if the stock were to rebound through the breakeven point to the upside at $12.60 by the third Friday in December. – Virgin Media, Inc.

FSLR – The designer and manufacturer of solar modules appeared on our ‘most active by options’ volume market scanner after one trader put on a bearish put spread in the August contract. Shares of the firm are currently lower by 2% to stand at $143.25. The put spread involved the purchase of 11,500 puts at the August 125 strike price for an average premium of 4.90 apiece against the sale of 11,500 puts at the lower August 115 strike for 2.70. The net cost of the transaction amounts to 2.20 per contract and yields maximum potential profits of 7.80 if shares decline to $115.00 by expiration next month. The stock would need to slip approximately 14% lower before the trader starts to profit at the breakeven point of $122.80. – First Solar, Inc.

BDK – Shares of the global manufacturer of power tools and home improvement products have climbed about 2% to $27.24 following renewed takeover rumors reported by one news source, which cited Danaher (DHR) as a “possible
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T. Row Price Calls Trading Heavily

Today’s tickers: TROW, BDK, EWZ, AMZN, PLD, MON, POT, XLF & WFC

TROW T. Rowe Price Group, Inc. – Shares of the financial services company have risen by 6% to $29.01 amid broad market gains for financials. TROW appeared on our ‘hot by options volume’ market scanner after one investor sold 16,300 calls at the July 35 strike price for a premium of 1.90. This trade was enacted for one of two plausible reasons. It could be pure naked selling in which case the investor takes in the 1.90 premium afforded by today’s 6% increase in the underlying share price. The trader is then left short 16,300 calls which he would need to buy back at some point in the future before expiration. Another explanation could be that this trade is a covered call. If this is the case, the investor purchased shares of the underlying stock and sold the calls to create an exit strategy. If shares were to rise through $35.00 by expiration this investor would enjoy the 1.90 in premium plus an additional 20% gain on shares of the underlying.

BDK The Black & Decker Corporation – Shares of the global manufacturer and marketer of power tools and home improvement goods have increased by more than 5% to $32.20. Shares are gaining amid improvements in other durable goods companies today as well as on the coattails of news regarding BDK’s increasingly large debt offering. The company has upped the size of the offering to $350 million from the previously announced $250 million, according to one news source. Option traders responded by picking up calls in the April and May contracts. At the April 35 strike price some 5,400 calls were scooped up for an average premium of 70 cents. Reflecting even more optimism, investors looked to the May 40 strike where over 2,100 calls were bought for an average of 66 cents apiece. Investors seem to be looking for BDK to put the $350 million in borrowed funds to good use in the hopes that such action will spur shares to continue to move higher.

EWZ iShares MSCI Brazil Index Fund – The Brazil ETF has added more than 2% to its share price today and currently stands at $38.12. A butterfly spread established in the near-term April contract caught our attention. The investor constructed the butterfly by purchasing the wings and selling the body. At…
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ValueWalk

Goldman Raking in Billions As Workers Face Looming Aid Cut

By Anna Peel. Originally published at ValueWalk.

WASHINGTON, D.C. – Amid a global pandemic and economic crisis hurting small businesses and workers across the country, Goldman Sachs reported “blowout second-quarter earnings” today, raking in a whopping $2.42 billion in profit — a boon CNBC is calling the mega bank’s “biggest earnings outperformance in nearly a decade.” Goldman Sachs was able to capitalize on the trillions of dollars the Federal Reserve and the Trump administration inje...



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Kimble Charting Solutions

Junior Gold Miners Working On 7-Year Breakout!

Courtesy of Chris Kimble

Its been a long 7-years if you happened to buy Junior miners ETF (GDXJ) back in 2013, as it has traded sideways since those highs.

This chart comes from Marketsmith.com, which reflects that GDXJ is trading above long-term moving averages and its relative strength continues to push higher.

GDXJ has spent the majority of the past 7-years inside of the trading range (1).

The rally off the bottom of the range in March, has GDXJ working on an upside breakout of this trading range at (2).

A...



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Zero Hedge

Gary Shilling: The Social Security's Funding Crisis Has Arrived

Courtesy of ZeroHedge View original post here.

Authored by A. Gary Shilling, originally published in Bloomberg Opinion

The Social Security Trust Fund has done quite well in recent years, due to the postwar babies’ surge into the labor force in the last decades of the 20th century while retirees from the low-birth rate Great Depression years were drawing relatively few benefits. The combination of these two forces pushed the Social Security Trust Fund balance from about zero in ...



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The Technical Traders

Second Phase Real Estate Collapse Pending

Courtesy of Technical Traders

Real estate, especially commercial real estate, is likely to be the first segment of the real estate market to enter the second phase of an extended collapse.  The COVID-19 virus has created an atmosphere where continuing operations for retail, restaurants, and many other business segments is virtually impossible to maintain.  Without the ability to earn sufficient income, thousands of restaurants and other retail businesses have already closed or are in the process of closing.  This has pushed the commercial real estate market into turmoil.  We believe the residential real estate market will follow the commercial market because consumers are going to suffer as commercial real estate collapses....



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Phil's Favorites

The Future Of Remote Work, According To Startups

Courtesy of Visual Capitalist's Theresa A.G. Wood

No matter where in the world you log in from—Silicon Valley, London, and beyond—COVID-19 has triggered a mass exodus from traditional office life. Now that the lucky among us have settled into remote work, many are left wondering if this massive, inadvertent work-from-home experiment will change work for good.

In the following charts, we feature data from a comprehensive survey conducted by UK-based startup network Founders Forum, in which hundreds of founders and their teams revealed their experiences of remote work and their plans for a ...



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Biotech/COVID-19

While coronavirus cases spike in the South, the Northeast seems to have it under control - here's what changed

 

While coronavirus cases spike in the South, the Northeast seems to have it under control - here's what changed

Face masks and social distancing have become the norm in New York City. Noam Galai/Getty Images

Courtesy of Taison Bell, University of Virginia

Hospital Capacity Crosses Tipping Point in U.S. Coronavirus Hot Spots” – Wall Street Journal

This is a head...



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Digital Currencies

Chainlink Crypto Surges To A New All-Time High - Here's Why...

Courtesy of ZeroHedge View original post here.

Authored by Joseph Young via CoinTelegraph.com,

Surging volume, price discovery, and new partnerships pushed Chainlink price to a new all-time high at $8.48...

image courtesy of CoinTelegraph

...

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Chart School

Dow 2020 Crash Watch - Update

Courtesy of Read the Ticker

Like 1929 the markets have bounced. This time it is on the back of the FED $6.5T money printing.

Previous Post: Dow 2020 Crash Watch 

But can the FED blow $6T every time the market rolls down to test support.

Yes, maybe before the US 2020 elections the FED will do 'what it takes'. But post elections not so much, the year 2021 is a long way from the next election (presidential or congress) and defense of the markets may not be so supportive at $6T or $10T per market smash. The FED may hesitate, and that will be window for stocks to break lower.

The 36 month simple moving a...

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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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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

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

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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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