Posts Tagged ‘BID’

Sotheby’s Put Options In Focus

Shares in Sotheby’s are in negative territory on Thursday morning, off 1.3% to stand at $39.67 one hour into the trading session. Options activity on the auction house suggests some traders are positioning for the price of the underlying to potentially drop substantially this summer. Traders initiating August expiry bear put spreads on BID today may be positioning ahead of the company’s second-quarter earnings report expected out in August.
As of the time of this writing more than 2,400 put options have traded at both the Aug 35.0 and 40.0 strikes. It looks like most of the volume is part of the spread trade purchased at a net premium of around $1.25 per contract. The position starts making money if shares in Sotheby’s decline 2.3% from the current level to trade below the breakeven price of $38.75, with maximum possible profits of $3.25 per contract available on the spread in the event that BID shares slump 12% to $35.00 at expiration. Shares in Sotheby’s last traded below $35.00 back in May of 2013. The stock has declined more than 25% since the start of 2014.


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Fusion-io Calls Change Hands As Shares Rebound

 

Today’s tickers: FIO, EXPE & BID

FIO - Fusion-io, Inc. – Shares in the provider of big data storage solutions are in recovery mode on Friday, up 3.3% at $14.70 as of 11:10 a.m. ET, on the heels of a sharp selloff earlier in the week. The stock dropped 27%, the most ever, to a record low of $13.13 on Wednesday after Fusion-io’s CEO, David Flynn, and co-founder, Rick White, resigned. The company issued a press release on Wednesday announcing the management changes, naming former EVP and Chief Strategy and Technology Officer at Hewlett-Packard Co., Shane Robison, Fusion-io’s new Chairman and CEO. Options changing hands on FIO this morning indicates some traders are positioning for shares in the name to continue to recover in the near term. The most actively traded contracts as measured by volume are the Jun $16 strike calls, with volume currently topping 13,000 contracts versus open interest of 2,713 lots. Most of the $16 strike calls appear to have been purchased during the first 30 minutes of the trading session for an average premium of $0.65 each. Buyers of the upside calls stand ready to profit at expiration should shares in FIO rally more than 13% over the current price of $14.70 to surpass the average breakeven point at $16.65.

EXPE - Expedia, Inc. – Options in play on online travel company, Expedia, Inc., today are looking for shares in the name to rally substantially during the next couple of months. The stock, which advanced 3.4% to $57.89 by 11:30 a.m. in New York, is down roughly 15% off a record high of $68.09 achieved back in February. EXPE shares at the current level are still up more than 40% since this time last year. A sizable print in Expedia calls straight out of the gate this morning positions one strategist to benefit from continued gains in the price of the underlying. It looks like the trader purchased 3,000 calls at the July $59.48 strike for a premium of $2.05 per contract. The position…
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Options Trades Look For Sotheby’s Shares To Leap Higher After Earnings

 

Today’s tickers: BID, AIG & WDC

BID - Sotheby’s Holdings Inc. – The major indices opened Wednesday in positive territory on the heels of a positive revision to fourth-quarter GDP data; however, gains proved short-lived as stocks reversed course during Fed Chairman Bernanke’s testimony to Congress. Sotheby’s shares followed the broad market trend, erasing early gains to trade 2.5% lower on the session at $38.96 as of 11:55 a.m. in New York. The auctioneer is scheduled to release fourth-quarter earnings after the final bell this afternoon, and it looks like some options players are initiating bullish positions on the stock ahead of the report. Options are most active out at the April $45 strike, where more than 1,800 calls changed hands against open interest of 900 contracts. Traders appear to have purchased the majority of the calls for an average premium of $1.02 apiece. The single largest transaction, a block of 807 of the calls, traded to the middle of the market within minutes of the opening bell at $1.05 each. Investors paying an average premium of $1.02 per contract for the call options may profit at expiration in the event that BID’s shares jump 18.1% over the current price of $38.96 to surpass the average breakeven price of $46.02. Shares in Sotheby’s last traded above $46.02 back in July 2011. The auctioneer’s shares have moved up more than 30.0% year-to-date.

AIG - American International Group, Inc. – The insurer popped up on our ‘most active by options volume’ market scanner this morning after a large block of call options changed hands in the April expiry. More than 19,300 calls in total have changed hands at the April $32 strike against open interest of just 843 contracts, with the largest stake initiated in one block of 16,445 calls…
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Call Volume Picks Up Ahead Of MetroPCS Earnings Report

Today’s tickers: PCS, BID, BBBY & CVC

PCS - MetroPCS Communications, Inc. – Shares in the wireless provider are down 4.25% at $8.56 ahead of the company’s pre-market third-quarter earnings release on Tuesday. Options players populating the front month calls and puts appear to be taking largely bullish stances on the stock. Investors positioning for shares to move higher in the next few weeks picked up more than 2,600 in-the-money calls at the Nov. $8.0 strike for an average premium of $1.05 a-pop. Call buyers at this strike profit at expiration in the event that shares in MetroPCS rally 5.7% to surpass the average breakeven point at $9.05. Options players also snapped up more than 300 call options at each of the higher Nov. $9.0 and $10 strike prices at average premiums of $0.49 and $0.19 each, respectively. Finally, the sale of some 1,100 puts at the Nov. $8.0 strike for an average premium of $0.40 per contract may mean traders see shares in the name trading above $8.00 come expiration day next month. Put open interest at the Nov. $8.0 strike is sufficient to cover volume in play thus far in the session. As such, traders may be adjusting existing positions rather than selling-to-open bullish stances on PCS. Options implied volatility on the stock is up 15.9% at 77.25% in early-afternoon trade. Nearly 9,000 option contracts have changed hands on MetroPCS so far today, with trading in calls outpacing that of puts by a factor of roughly two-to-one.

BID - Sotheby’s Holdings Inc. – The auctioneer of authenticated fine art, antiques, jewelry and collectibles popped up on our ‘hot by options volume’ market scanner this morning after one strategist initiated a sizable ratio put spread in the January 2012 contract. BID’s shares are currently down 3.2% at $36.26 as of 11:50 am in New York. The put player responsible for just about all of the activity in Sotheby’s options today may be bracing for limited bearish movement in the price of the underlying heading into the company’s third-quarter earnings report after the close on Thursday. The investor appears to have purchased 2,000 puts at the Jan. 2012 $35 strike for an average premium of $3.325 each, and sold 4,000 puts at the lower Jan. 2012 $30 strike at a premium of $1.50 apiece. Net premium paid to initiate the spread amounts to $0.325 per contract. The strategist profits if BID’s shares slide 4.4%…
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Vale Options Combination Play

Today’s tickers: VALE, BID, EBAY & YGE

VALE - Vale S.A. – Earlier we reported that a large-volume three-legged bearish transaction had taken place on iron ore producer, Vale. Market sources have since informed us that the direction of the trade is the reverse of what had been indicated by raw time and sales data. The new information regarding the transaction alters our interpretation of the spread to bullish from the previously reported bearish view. Shares in the Brazilian firm increased as much as 0.82% during the session to secure an intraday high of $35.60, but are currently trading 0.20% high on the session at $35.38 as of 2:50pm. The options investor responsible for most of the volume in options exchanged on Vale today reportedly sold a large number of puts on the stock in order to buy in- and out-of-the-money call options in the May contract. The investor paid a net $2.24 per contract, selling 23,000 May $30 strike puts in order to buy 11,500 May $35 strike calls and another 11,500 calls up at the May $40 strike. The transaction positions the trader to benefit from bullish movement in the price of the underlying shares heading into Vale’s fourth-quarter earnings report on February 24, 2011, through to expiration day in May.

BID - Sotheby’s Holdings Inc. – One options player pocketed big profits on a well-timed bullish bet in Sotheby’s calls this morning. The auctioneers’ shares are currently up 0.2% at $48.34 as of 11:30am in New York, but hit a 6-month high of $49.03 yesterday, driving the stock’s run up to 86.4% since August 31, 2010. The gavel-bearer populating Sotheby’s today initiated a bullish bet back on January 25, 2011, when shares in the name encountered a bump in rally-road and slipped to a three-month low of $38.23.…
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Bears at Work as AMAG Pharmaceuticals Shares Head Lower

Today’s tickers: AMAG, BID, ERIC, BAX, NVDA, VIT, BVF & ETFC

AMAG – AMAG Pharmaceuticals, Inc. – Safety concerns surrounding AMAG’s Feraheme, the biopharmaceutical firm’s intravenous iron-replacement therapy for patients with chronic kidney disease and its lead product, continue to drive shares to new lows. Shares are down 4.00% at $18.15 as of 3:20 pm ET, but earlier plunged 11.6% to touch down at an intraday- and 4-year low of $16.70. Today’s low of $16.70 put shares down 68.2% since January 12, 2010, when the stock was trading up at its 52-week high of $52.49. Erosion in the price of AMAG’s shares accelerated at the end of August when the FDA added Feraheme to a list of products touting serious risks and connected the drug to unspecified serious cardiac disorders. One options investor appears to be positioning for shares to continue to decline by enacting a ratio put spread in the October contract. The trader purchased approximately 2,500 puts at the October $18 strike for premium of $1.98 each, and sold roughly 5,000 puts at the lower October $16 strike at a premium of $0.84 apiece. Average net premium paid to establish the spread amounts to $0.30 per contract. Thus, the strategist stands ready to profit if AMAG’s shares slip beneath the effective breakeven price of $17.70 by expiration. Maximum potential profits of $1.70 per contract are available to the trader if AMAG shares fall 11.85% from the current price of $18.15 to settle at $16.00 at expiration. The ratio of twice as much sold puts as long puts held by the investor expose him to losses should shares collapse below the effective lower breakeven price of $14.30 by expiration day next month.

BID – Sotheby’s, Inc. – Shares of the auctioneer fine art, antiques and other collectibles rallied as much as 7.65% this afternoon to touch an intraday high of $35.86. One options investor bought call options back in August and was well positioned to book profits on today’s rally. It looks like the trader originally purchased some 1,000 calls at the October $35 strike at an average premium of $0.90 each back on August 11, 2010, when BID’s shares were trading at a volume-weighted average price of $29.41. Shares have since increased significantly, boosting premium on the October $35 strike calls. Thus, the bullish player was able to sell all 1,000 lots at that strike for a premium…
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Netflix Tie With Apple TV Spurs Options Frenzy As Shares Take Off

Today’s tickers: NFLX, ULTA, BKC, RIG, COH, RDC & BID

NFLX – Netflix, Inc. – Call options on Netflix are in high demand today after Apple, Inc. CEO, Steve Jobs, said the new Apple TV product will allow consumers to stream movies from Netflix for the first time. NFLX shares jumped 8.5% on the news to an intraday high of $136.25 in late afternoon trading. Near-term bullish trading strategies dominated options action on Netflix today as a number of investors picked up calls and sold puts on the stock. Traders purchased approximately 1,400 now in-the-money calls at the September $135 strike for premium of $4.45 apiece. Another 1,500 calls were coveted at the higher September $140 strike at an average premium of $2.55 each. Shares in NFLX must increase another 4.6% in order for traders long the September $140 strike calls to start to accrue profits above the average breakeven price of $142.55 by expiration day. Optimists also scooped up 1,500 calls at the September $145 strike for premium of $1.57 each, and bought approximately 1,300 calls at the September $150 strike. Some put players drew a line of resistance in the sand at $130.00 and sold roughly 2,000 puts at the September $130 strike for an average premium of $4.98 apiece. Put sellers keep the full premium received as long as Netflix shares exceed $130.00 through expiration day. Otherwise, it seems these individuals are happy to have shares of the underlying stock put to them at an effective price of $125.02 each in the event the puts land in-the-money at expiration.

ULTA – Ulta Salon Cosmetics & Fragrance, Inc. – Shares of the operator of full-service salons and retail stores that sell cosmetics, fragrance, haircare and skincare products in off-mall locations earlier declined as much as 8.9% to touch down at an intraday low of $20.67. Ulta’s shares dropped sharply after analysts at Jeffries & Co. lowered their price target on the beauty products provider to $25.00 from $27.00. The stock was able to crawl its way higher throughout the session, however, and is currently down just 2.25% on the day to arrive at $22.19 as of 3:20 pm ET. Options investors populating ULTA picked up put options following the target share price revision, and ahead of the firm’s second-quarter earnings report slated for release after the closing bell tomorrow evening. Traders expecting ULTA’s shares to slip once…
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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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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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