Posts Tagged ‘BX’

Big Prints In Bearish Options On GDX

 

Today’s tickers: GDX, BX & TXN

GDX - Market Vectors Gold Miners Index ETF – Trading traffic in call options on GDX is outpacing activity in puts on the ETF this morning, with shares in the Market Vectors Gold Minders Index ETF popping up 4.0% to $36.07 just before midday in New York. In contrast, the single-largest trade in GDX options established in the early going this morning protects against – or profits from – a significant pullback in the price of the underlying fund to the lowest levels since January of 2009. Shares in the ETF have declined steadily during the past six months, and are down roughly 35% since September of 2012. The sizable bearish bet, the purchase of 8,000 puts at the Dec. $30 strike for a premium of $1.32 per contract, makes money if shares in the ETF plunge 20% from the current price of $36.07 to settle below the effective breakeven point at $28.68 at expiration.

BX - Blackstone Group LP – Options changing hands on the asset management and advisory firm on Tuesday morning effectively place a floor underneath shares in Blackstone for traders positioning for the price of the underlying to retain gains realized this year. Blackstone is scheduled to report first-quarter earnings next Thursday. Shares in BX, up more than 80% since May of 2012, added 0.65% today to trade at $20.40 by 11:30 a.m. ET. The most active options contracts on Blackstone as measured by volume are the May $19 strike puts, with roughly 3,000 lots traded against open interest of 892 contracts. Time and sales data suggests most of the volume was sold at an average premium of $0.48 apiece during the first 30 minutes of the session. Put sellers keep the full amount of premium received on the transaction as long as shares in Blackstone exceed $19.00 at May expiration. The bullish strategy may start to lose money, however, in the event that shares in BX slip beneath the breakeven point on the downside at $18.52. Shares…
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Straddle-Seller Sees Range-Bound Shares for Avanir Pharmaceuticals

Today’s tickers: AVNR, S, ORCL, TSN, PSS, XRT & BX

AVNR – Avanir Pharmaceuticals, Inc. – Shares of the pharmaceuticals firm fell as much as 9.6% this afternoon to an intraday low of $2.64 on news the company filed for a mixed shelf offering for up to $75 million. Options volume on the stock surged late in the session after one strategist sold a straddle in the December contract. The short straddle suggests the trader expects AVNR’s shares to trade within a specified range through expiration day in the final month of the year. The investor sold approximately 8,440 puts at the December $2.5 strike and sold 8,440 calls at the same strike to take in gross premium of $2.025 per contract. The straddle-seller retains the full amount of premium received if Avanir’s shares settle at $2.50 at expiration. However, the short stance taken in both call and put options expose him to losses should shares shift significantly in either direction away with from the strike price selected. Losses are certainly limited to the downside because shares cannot fall below $0.00. Thus, the investor faces maximum potential losses of $0.475 per contract in the event that Avanir’s shares are worthless at expiration. Losses could be more painful if AVNR shares suddenly fly upward. Shares would need to jump 71.4% to shatter the current 52-week high on the stock of $3.72 in order for losses to start to accumulate for the trader above the effective breakeven price to the upside at $4.525 by expiration. The strategy seems to indicate that the investor does not see AVNR shares collapsing to $0.00, but also suggests shares are not likely rally substantially any time soon.

S – Sprint Nextel Corp. – The wireless and wireline telecommunications company was one of the 10 most actively traded stocks on the New York Stock Exchange as of 1:00 pm ET this afternoon, and was also one of the most actively traded in terms of options volume today. Sprint’s shares earlier rallied 2.30% to record an intraday high of $4.44, but are currently up a lesser 1.15% at $4.39 as of 2:30 pm ET. Shares were perhaps higher on reports out this morning that suggested Sprint is currently looking at a possible November release date for Samsung’s Galaxy Tablet, which is a device aimed at rivaling Apple’s iPad. The vast majority of contracts exchanged on Sprint Nextel Corp.…
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Bulls Go Bananas for Chiquita Call Options

Today’s tickers: CQB, BX, BAC, SWY, LLY, NFLX, MHS & UPS

CQB – Chiquita Brands International, Inc. – Shares of the marketer and distributer of bananas and other fresh produce surged 5.2% this afternoon to an intraday high of $12.68, giving bullish players a healthy appetite for call options on the stock just one week before the firm is slated to report second-quarter financial results. Chiquita Brands International popped up on our ‘hot by options volume’ market scanner after investors coveted approximately 2,900 calls at the now in-the-money November $12.5 strike for an average premium of $1.52 a-pop. Call buyers make money if, by expiration, Chiquita’s shares jump 10.6% over today’s high of $12.68 to trade above the average breakeven point to the upside at $14.02. CBQ shares last traded above $14.02 back on June 15, 2010, but traded as high as $16.84 on April 26, 2010. Investors long the calls are well positioned to accumulate significant profits should the price of the underlying shares rebound to the value recorded at the end of April.

BX – The Blackstone Group LP – Activity observed in LEAPS on the global asset manager and provider of financial advisory services suggests one strategist expects Blackstone’s shares to rise significantly by expiration in January 2012. BX’s shares are up 3.9% at $10.71 as of 3:15 pm (ET), but earlier increased as much as 5.00% to secure an intraday high of $10.83. It looks like the investor enacted a three-legged bullish transaction, selling put options to partially finance the purchase of a debit call spread. The trader sold 4,700 puts at the January 2012 $10 strike for premium of $2.30 each, purchased 4,700 calls at the January 2012 $10 strike at $2.60 in premium apiece, and finally sold 4,700 calls at the higher January 2012 $17.5 strike for a premium of $0.40 a-pop. The transaction yields a net credit of $0.10 per contract, which is safe in the investor’s wallet as long as Blackstone’s shares trade above $10.00 at expiration day. Additional profits accrue above a share price of $10.00, with maximum potential profits of $7.60 per contract available to the trader if the price of the underlying stock jumps 63.3% to trade above $17.50 by expiration day in January 2012. Bullish trading in options on the world’s biggest buyout firm arrived after the release of its second-quarter earnings report before today’s open. The company…
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Testy Tuesday – Things Start To Go Wrong

Over 100 people were killed by car bombs in Baghdad at about 3:30 this morning.

That got Europe off in a foul mood this morning and poor earnings guidance from MMM didn't help, nor did poor Industrial Production numbers out of Germany or new fears that Dubai World will cause massive losses (Nakheel lost $3.65Bn in it's first half report).  Then Moody’s Investors Service said today deteriorating public finances in the U.S. and U.K. may “test the Aaa boundaries” while Fitch Ratings downgraded Greece’s credit grade to BBB+.  Ben Bernanke told the Washington Economic Club yesterday that the U.S. economy faces “formidable headwinds” but, on the bright side Japan’s government backed a stimulus package worth 7.2 trillion yen ($81 billion).   

Before we know it, futures are off 100 points at 7:30.  Hopefully we don't break below 10,320 at the open as we covered our long DIA puts to that spot, more worried about a bounce up than a market move in our generally bearish direction.  We had a very nice day yesterday with our $100K Virtual Portfolio already making it's target $1,000 for the week so locking in the gains seemed prudent but maybe we could have been greedier…

Central banks and governments around the world are totally right in saying that the recovery is still very weak,” Philippe Gijsels, a senior structured product strategist at Fortis Global Markets in Brussels, said in an interview with Bloomberg Television. “Going into 2010 I would be extremely surprised if we do not see a serious hiccup somewhere.”  German industrial output unexpectedly fell for the first time in three months in October, led by a drop in production of energy and investment goods such as machinery. Output decreased 1.8 percent from September, when it advanced 3.1 percent, the Economy Ministry in Berlin said today. Economists forecast a 1 percent gain,  off by 280%, according to the median of 38 estimates by "expert" economists in a Bloomberg survey.  

Moody's fingers the U.S. and U.K. among top-rated sovereign borrowers, saying they must prove they can reduce their bulging deficits or risk a downgrade to their AAA credit ratings. Under its most pessimistic scenario, the U.S. could lose its rating in 2013 if economic growth lags, interest rates rise and the government fails to shrink the deficit or recover its loans to the financial sector.


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Blackstone bulls line up

Today’s tickers: BX, GCI, AA, LVS, XLF, JPM, C, AGN, RHT, SU & SWY

BX The Blackstone Group L.P. – The broader market experienced gains after fresh information from the Treasury Department was released regarding its plan to utilize private and public funds to relieve banks of bad credit and toxic assets. Shares of BX soared on the news by 23% to $7.77 because it is has now been widely reported that hedge funds and private-equity firms are likely to reap substantial gains from the public-private partnership. Blackstone jumped to the top of our ‘hot by options volume’ market scanner after one investor established a sold straddle in the May contract. At the May 7.5 strike price 10,000 calls were sold for 1.60 each while 10,000 puts were also sold for 1.10 each. The gross premium pocketed on the trade amounts to 2.70 and is fully retained if shares settle at $7.50 by expiration. Call volume has far outweighed put volume with a ratio of 2.4 calls to each put traded. We observed pure call buying in the April contract where traders picked up lots as high up as the 10 strike for a premium of 33 cents each. One investor paid a net cost of 40 cents in order to roll 4,350 in-the-money calls at the June 2.5 strike price forward to the same low strike expiring in January 2010. Optimistic traders also picked up 3,000 calls at the January 10 strike price for 1.86 each. Option implied volatility peaked at 120% today, but has since come off to the current reading of 105%.

GCI Gannett Co., Inc. – Shares of the international news and information company are up by more than 7% to stand at $2.30. GCI appeared on our ‘hot by options volume’ market scanner after one trader utilized options in search of gains on the rising stock. We believe that this investor likely purchased 1,000,000 shares of the underlying stock and simultaneously sold 10,000 calls at the April 2.5 strike price for a 15 cent premium. By selling the option contracts the trader effectively reduced the price of the shares to $2.00 each because the stock was trading at $2.15 at the time of the trade. Should the 2.5 calls land in-the-money by expiration this investor will have sustained gains of 23% if the shares get called away from him at the end of the…
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Phil's Favorites

Do Public Markets Matter Like They Used To?

 

Do Public Markets Matter Like They Used To?

Courtesy of Howard Lindzon

The new hip mantra is ‘public markets DON’T matter as much anymore‘ and a lot of the smart money has moved to the private markets- see Matt Levine’s great post.

?The people that say this loudest are journalists, fintwit opinionados , underperforming hedge funds and billionaires.

The truth is OF COURSE public markets matter depending on where you sit.

My friend Ba...



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Zero Hedge

Microsoft Reportedly Expands Scope Of TikTok Deal Talks To Cover Entire Ex-China Business

Courtesy of ZeroHedge View original post here.

Updates about the ongoing deal talks between Microsoft and ByteDance are arriving almost as rapidly as updates about the ongoing negotiations between the White House and Congressional Democrats over an extension of financial relief for American citizens and businesses.

And the latest report comes from the FT, which says that Microsoft and ByteDance ar...



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ValueWalk

Coronavirus stimulus checks: McConnell ready to delay Aug recess

By Aman Jain. Originally published at ValueWalk.

We are now just days away from the August 7 deadline for the next coronavirus package. Though negotiators are working hard to come up with a deal, there are still differences between the two sides. In case there is no decision on the coronavirus stimulus checks deal by August 7, Senate Majority Leader Mitch McConnell has assured that they will delay the scheduled recess. Presently, the last day in session is scheduled for August 7, after which the Senate will go on a month-long break until September 8.

Q2 2020 hedge fund letters, conferences and more

Coronavirus stimulus: pr...

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Kimble Charting Solutions

Silver Headed Back To $50, Top Of The Cup & Handle Pattern?

Courtesy of Chris Kimble

Could Silver be creating a multi-decade bullish “Cup & Handle” pattern? Possible!

Did a retest of a handle breakout take place in March at (1), where Silver created one of the largest bullish reversals in decades? Possible!

Could Silver be creating a 40-year bullish pattern? Anything is possible! I humbly have to say share this; I’ve been in the business for 40-years and I haven’t seen anything like this.

Silver looks to have double topped back in 2011 at $50, which was the 1980 highs. After double topping, Silver ...



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The Technical Traders

Walk Through the Gold and Silver Charts to See What to Expect

Courtesy of Technical Traders

Check out the analysis of this morning’s Gold and Silver charts by our own Chris Vermeulen, Chief Market Strategist and Founder of TheTechnicalTraders.com, to see what is in store for precious metals. Make sure you check out our Gold and Silver article from August 4th, 2020 for additional context behind our predictions and rationale for continued price appreciation.

Learn more about our ...



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Biotech/COVID-19

What the huge COVID-19 testing undercount in the US means

 

What the huge COVID-19 testing undercount in the US means

Health care workers use a nasal swab to test a person for COVID-19 in Pembroke Park, Florida. Joe Raedle / Getty Images News

Courtesy of Melissa Hawkins, American University

Researchers from the Centers for Disease Control and Prevention and other institutions recently published a study which estimated that the true number of people infected by COVID-19 could be six to 24 times high...



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Chart School

RTT browsing latest..

Courtesy of Read the Ticker

Please review a collection of WWW browsing results. The information here is delayed by a few months, members get the most recent content.



Date Found: Sunday, 29 March 2020, 07:00:37 PM

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Comment: Silver Shorts Are In a Bind | Ted Butler youtu.be/qQc0AoJp-Q8



Date Found: Monday, 30 March 2020, 05:21:45 PM

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Comment: 5 Questions From You for Luke Gromen youtu.be/nVZD_fuxbQE


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Digital Currencies

Twitter Says "Human Error" And "Spear-Phishing Attack" Responsible For Massive Bitcoin Hack

Courtesy of ZeroHedge

Twitter suffered from a major hack about two weeks ago and has now said that its staff was tricked by "spear-phishing", which is a targeted attack to trick people into simply handing out their passwords. 

Twitter staff were targeted through their phones, according to a new report from the BBC. The attacks then allowed hackers the ability to Tweet from celebrity Twitter accounts. Twitter has said it was "taking a hard look" at how it could improve its permissions and processes.

"The attack on July 15, 2020, targeted a small number of employees through a phone spear phishing attack. This attack relied on ...



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Lee's Free Thinking

Texas, Florida, Arizona, Georgia - The Branch COVIDIANS Are Still Burning Down the House

 

Texas, Florida, Arizona, Georgia – The Branch COVIDIANS Are Still Burning Down the House

Courtesy of Lee Adler, WallStreetExaminer 

The numbers of new cases in some of the hardest hit COVID19 states have started to plateau, or even decline, over the past few days. A few pundits have noted it and concluded that it was a hopeful sign. 

Is it real or is something else going on? Like a restriction in the numbers of tests, or simply the inability to test enough, or are some people simply giving up on getting tested? Because as we all know from our dear leader, the less testing, the less...



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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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