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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Phil's Favorites

Three reasons it's not 1929

 

Three reasons it’s not 1929

Courtesy of 

I could be wrong, but let me point out three things that I think about when I hear Great Depression analogies being made to the current crisis.

The first thing I think about is that the financial markets of the 1930’s were prehistoric. Yes, the Federal Reserve was in existence, but it was nowhere near as powerful and it hadn’t had any institutional memory (or history) to draw on. Its basic structure was patterned on the still-nascent central banks of various European countries thanks to the listening tour Senator Nelson Aldrich and others had made across the Continent. Fun fact: the US Sen...



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Biotech/COVID-19

5 reasons the coronavirus hit Italy so hard

 

5 reasons the coronavirus hit Italy so hard

A nursing home resident in Rome is moved to a hospital. Mauro Scrobogna/LaPresse via AP

Sara Belligoni, University of Central Florida

Italy is one of the nations worst hit by the global coronavirus pandemic. As a scholar in the field of security and emergency management who has studied and worked in Italy, I have determined that there are at least five major reasons why the country is suffering so much.

1. Lots of old people

Italians have the ...



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Zero Hedge

"What Is Really Essential"? In The US Golf And Guns, In France Wine And Pastries

Courtesy of ZeroHedge View original post here.

Among countless other unprecedented changes and transformation, the coronavirus pandemic has unveiled an odd divergence within global cultures: the definition of what's deemed "essential" for people across the world, and what things we really can't do without, even though we might not need most of them for survival.

As AP reports, in its attempt to slow the spread of the virus, authorities in many places are determining what shops and services can remain open. They'...



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Kimble Charting Solutions

Tech Testing 9-Year Support, With Fear Levels At 2009 Highs!

Courtesy of Chris Kimble

Is an important Tech Index sending a bullish message to investors? It is making an attempt!

Does that mean a low in this important sector is in play? Humbly it is too soon to say at this time!

This chart looks at the Nasdaq Composite Index over the past 25-years on a monthly basis.

The index has spent the majority of the past 9-years inside of rising channel (1), as it has created a series of higher lows and higher highs. It created bearish reversal patterns in January & February as it was kissing the underside of the top of the channel and...



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Insider Scoop

With Everybody Stuck At Home, Investor Conferences Are Going Virtual

Courtesy of Benzinga

With the world at a COVID-19-induced standstill, many conference organizers have either gone online (Benzinga is one of them) or had to cancel upcoming events altogether. There is no clear timetable on how much longer we will be in this state.

Publicly traded companies are already limited in wh...



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Members' Corner

10 ways to spot online misinformation

 

10 ways to spot online misinformation

When you share information online, do it responsibly. Sitthiphong/Getty Images

Courtesy of H. Colleen Sinclair, Mississippi State University

Propagandists are already working to sow disinformation and social discord in the run-up to the November elections.

Many of their efforts have focused on social media, where people’s limited attention spans push them to ...



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Digital Currencies

While coronavirus rages, bitcoin has made a leap towards the mainstream

 

While coronavirus rages, bitcoin has made a leap towards the mainstream

Get used to it. Anastasiia Bakai

Courtesy of Iwa Salami, University of East London

Anyone holding bitcoin would have watched the market with alarm in recent weeks. The virtual currency, whose price other cryptocurrencies like ethereum and litecoin largely follow, plummeted from more than US$10,000 (£8,206) in mid-February to briefly below US$4,000 on March 13. Despite recovering to the mid-US$6,000s at the time of writin...



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The Technical Traders

These Index Charts Will Calm You Down

Courtesy of Technical Traders

I put together this video that will calm you down, because knowing where are within the stock market cycles, and the economy makes all the difference.

This is the worst time to be starting a business that’s for sure. I have talked about this is past videos and events I attended that bear markets are fantastic opportunities if you can retain your capital until late in the bear market cycle. If you can do this, you will find countless opportunities to invest money. From buying businesses, franchises, real estate, equipment, and stocks at a considerable discount that would make today’s prices look ridiculous (which they are).

Take a quick watch of this video because it shows you ...



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Chart School

Cycle Trading - Funny when it comes due

Courtesy of Read the Ticker

Non believers of cycles become fast believers when the heat of the moment is upon them.

Just has we have birthdays, so does the market, regular cycles of time and price. The market news of the cycle turn may change each time, but the time is regular. Markets are not a random walk.


Success comes from strategy and the execution of a plan.















Changes in the world is the source of all market moves, to catch an...

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ValueWalk

Entrepreneurial activity and business ownership on the rise

By Jacob Wolinsky. Originally published at ValueWalk.

Indicating strong health of entrepreneurship, both entrepreneurial activity and established business ownership in the United States have trended upwards over the past 19 years, according to the 2019/2020 Global Entrepreneurship Monitor Global Report, released March 3rd in Miami at the GEM Annual Meeting.

Q4 2019 hedge fund letters, conferences and more

The Benefit Of Entrepreneurial Activity ...

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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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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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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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