Posts Tagged ‘BJS’

Satyam Computer Attracts Bullish Option Strategies

Today’s tickers: SAY, UNG, DVN, BJS, AXP, & IP

SAY - The global IT solutions provider popped up on our ‘hot by options volume’ market scanner this afternoon after bullish call activity was observed in the near-term September contract. Shares of the firm have rallied higher by more than 16% during the session to stand at the current price of $6.37. Investors appear to have purchased approximately 4,000 calls at the September 7.5 strike for an average premium of 35 cents apiece. Shares of SAY would need to surge 23% higher in order for traders long the calls to begin to amass profits above the breakeven price of $7.85. Bullish sentiment spread to the October 7.5 strike where another 1,600 calls were scooped up for a premium of 51 cents. Option implied volatility on Satyam has exploded upwards from an intraday low of 74% to the current reading of 120%. We note that the 15,000 contracts exchanged on the stock today represent more than 54% of the total existing open interest on SAY of 27,735 lots. – Satyam Computer Service Limited –

UNG - Shares of the natural gas exchange-traded fund have slipped 4.4% lower today to reach a 5-year low of $10.64. Despite the present weakness in UNG, one investor was seen making far-term bullish bets on the fund by targeting the April 2010 contract. It appears that the trader established a bullish reversal play by shedding 3,000 puts at the April 10 strike for 1.85 apiece in order to purchase 3,000 calls at the higher April 11 strike for 1.82 each. The trader receives a net credit of 3 pennies per contract and has positioned himself to add to his gains if shares rally higher than $11.00 by expiration. The short put position indicates that the investor is happy to have shares put to him at an effective price of $8.15 in the event that the put options land in-the-money by expiration. Shares need only remain higher than $10.00 for this individual to retain the 3 cent credit indefinitely. – United States Natural Gas ETF –

DVN - The independent energy company appeared on our ‘most active by options volume’ market scanner following contrarian options activity in the January 2011 contract. Shares of DVN may have slipped more than 2% lower to $61.15 today, but did not deter one option trader from initiating a bull call spread on the stock. Hoping…
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Monday Mandarin Market Meltdown

The Shanghai Composite fell 6.7% this morning!

I mentioned our love of FXP (ultra-short China) in our August Market Review and the short sale of FXP puts (a bullish play) was our primary cover in the last $100KP since early August for exactly the reason we are seeing play out today.  Of course China's problems were my theme on Friday and on 8/16 we warned that China's GDP wasn't real and on 8/7 we pointed out that China's 2009 growth was nothing more than an accounting trick after my August 6th article in which I pointed out that GS was desperately working to pump China up at the top (likely while they were dumping their own shares on unsuspecting suckers).  Do fundamentals matter?  Sure they do — evenutally.  But we had to roll and DD our August FXP short puts (big winners now) as it always pays to remember the words of John Keynes: "The market can stay irrational longer than you can remain solvent."

We nailed the move in the Shanghai, which is now down 25% since we turned negative on it but the Hang Seng, which is much easier to manipulate as it's controlled by foreign IBanks (our beloved gang of 12), has mysteriously flatlined near their August highs, maintaining the myth of the Chinese recovery so Uncle Rupert could run his almost daily articles telling you how great the global economy is on the other side of the world, where you can't see it.  Interestingly, in China he's running stories telling them how the US economy is leading the way back and in Europe he has total control of the media so whatever he wants to tell them is the truth anyway. 

By the way, this is your LAST week to get Stock Market Truth with a FREE Trial Subscription to the PSW Report

China stocksLer's see how rational the markets get as mainland China falls to it's lowest level since May and let's keep in mind that "limit down" on the Shanghai is 10% so a 6.7% drop in one day indicates that scores of companies were likely halted at 10% down.  It's going to take some really big plate spinning by GS et al (already attempred by GS last night with this idiotic release calling China…
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Nvdia Options Under the Spotlight

Today’s tickers: NVDA, BJS, LDK, MCD, CAT, MGM & IYR

NVDA– The worldwide provider of visual computing technologies has seen shares rally more than 1% today to $11.51. We observed a number of option traders getting bullish on the stock and looking for continued upward movement as far out as expiration in January 2010. The near-term June contract attracted one investor to bank profits. It appears that this individual originally bought 10,000 calls at the June 11 strike price for 35 cents back on May 29, 2009 in the expectation of a rally in the stock. Today, with the June 11 calls in-the-money, he exited the position by selling the options for a premium of 75 cents apiece. The net profit pocketed on the trade amounts to 40 cents per contract or $400,000. Looking at the June 12.5 strike price, a similar strategy was employed albeit at a loss. We note that the transaction may or may not have been the work of the same investor described in the previous trade. Some 43,000 calls were sold for a dime apiece at the 12.5 strike today and look to have been originally purchased for an average premium of 18 cents. This transaction yields a net loss of 8 cents or $344,000. If both trades were initiated by the same individual, he would still be rewarded for his efforts in the amount of $56,000. Additional activity on NVDA was a massive chunk of 60,000 calls which traded to the middle of the market at the July 12 strike for an average premium of 75 cents each. Rounding out July activity was optimistic call buying enacted at the July 13 strike price where 2,000 lots were scooped up for 35 cents a pop. Finally, a bullish reversal took place in the January 2010 contract where 5,000 puts were shed at the January 10 strike price for a premium of 1.28 in order to finance the purchase of 5,000 calls at the sky-high January 15 strike for 98 cents each. The investor responsible for this trade has taken a credit of 30 cents and will add to his profits if shares can rally 30% and breach the breakeven point at $15.00 by expiration next year. – NVDIA Corporation

BJS – The oilfield services firm has experienced a share price decline of approximately 1% to $15.30. Despite the bearish movement in the stock,
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Zero Hedge

Frontrunning: May 23

Courtesy of ZeroHedge. View original post here.

  • Rare Bipartisan Deal Rolls Back Postcrisis Banking Regulation (WSJ)
  • Fed Minutes to Detail Views on Inflation Overshoot, Yield Curve (BBG)
  • Turkey Heads Toward a Currency Crisis as Lira Goes Into Freefall (BBG) ...


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Phil's Favorites

QOTD: How Politicians Use Economics

 

QOTD: How Politicians Use Economics

Courtesy of 

“The jobs pay for themselves,” she says, by creating new socially productive stuff that makes its way into the economy. What matters isn’t the deficit but whether these new work hours can generate something useful.

Kelton thinks it’s obvious that there’s plenty of room for more work today. Poverty and unemployment are tricks played on the economy by money ? there are no material or productive barriers to eliminating either one.

What if, instead of a Universal Basic Income, as some European nations are currently experimenting with, we talked ab...



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Chart School

Wide Market Cycle Review

Courtesy of Read the Ticker.

Lets review some big market cycles, to see where cycle pressure is building or peaking.

Cycles are like long term trend lines and are great for the long term view, of course price action leads (Wyckoff Logic) before cycles.

Lets go ...

US 10 yr: Trending higher to 4% ... Ouch. Inflation moving from Wall Street to Main Street.

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The EURO looks to bottom (USD topping).

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SSEC looks forward to another pump up to save the SP...

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Biotech

Could this be the year for a Canadian Breakthrough Prize in Life Sciences?

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

 

Could this be the year for a Canadian Breakthrough Prize in Life Sciences?

Courtesy of John Bergeron, McGill University

In 2013, Kyoto University’s Shinya Yamanaka was awarded one of the first Breakthrough Prizes in Life Sciences for his discovery of “induced” stem cells that enabled researchers to convert adult cells back into stem cells.

The Breakthrough Prize is not to be sneezed at. Founded in 2013, the prize “honours transformative advances toward understanding living systems and extending human life.” It’s also the most financially attractive aw...



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Insider Scoop

8 Stocks Moving In Monday's After-Hours Session

Courtesy of Benzinga.

Related PTX Benzinga's Daily Biotech Pulse: FDA Panel Nod For Akcea, Synergy's Revenue Miss, FDA Warns E-Liquid Makers Again 18 Stocks Moving In Friday's Pre-Market Session Related 36 Biggest Movers From Friday ...

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Digital Currencies

5 Factors That Drive Bitcoin's Ups & Downs

Courtesy of ZeroHedge. View original post here.

By Kayla Matthews via Hackernoon.com

The price of Bitcoin has been wildly volatile. From November to December 2017, it increased by 223 percent. It fell by 59 percent between January and February 2018, increased by 64 percent from February to March and then dropped again during March by 40 percent.

While this isn&r...



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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...



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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 ...



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Members' Corner

Cambridge Analytica and the 2016 Election: What you need to know (updated)

 

"If you want to fundamentally reshape society, you first have to break it." ~ Christopher Wylie

[Interview: Cambridge Analytica whistleblower: 'We spent $1m harvesting millions of Facebook profiles' – video]

"You’ve probably heard by now that Cambridge Analytica, which is backed by the borderline-psychotic Mercer family and was formerly chaired by Steve Bannon, had a decisive role in manipulating voters on a one-by-one basis – using their own personal data to push them toward voting ...



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Mapping The Market

The tricks propagandists use to beat science

Via Jean-Luc

How propagandist beat science – they did it for the tobacco industry and now it's in favor of the energy companies:

The tricks propagandists use to beat science

The original tobacco strategy involved several lines of attack. One of these was to fund research that supported the industry and then publish only the results that fit the required narrative. “For instance, in 1954 the TIRC distributed a pamphlet entitled ‘A Scientific Perspective on the Cigarette Controversy’ to nearly 200,000 doctors, journalists, and policy-makers, in which they emphasized favorable research and questioned results supporting the contrary view,” say Weatherall and co, who call this approach biased production.

A second approach promoted independent research that happened to support ...



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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 ...



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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...



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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...

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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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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.

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