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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Zero Hedge

Chinese Soldiers Deployed Onto Street Of Hong Kong To "Help Clean Up"

Courtesy of ZeroHedge View original post here.

Dozens of People's Liberation Army (PLA) soldiers were spotted on the streets of Hong Kong's Kowloon Tong neighborhood on Saturday afternoon, cleaning up bricks and roadblocks left behind by pro-democracy protestors, according to broadcaster Radio Television Hong Kong (RTHK). 

Chinese People's Liberation Army (#PLA) soldiers in shorts and t-shirts...



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Phil's Favorites

Cities and states take up the battle for an open internet

 

Cities and states take up the battle for an open internet

Communities across the U.S. are taking network construction into their own hands. T.Dallas/Shutterstock.com

Courtesy of David Elliot Berman, University of Pennsylvania and Victor Pickard, University of Pennsylvania

Internet service providers like Comcast and Verizon are ...



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The Technical Traders

When Oil Collapses Below $40 What Happens? PART III

Courtesy of Technical Traders

This, the final section of this multi-part research article, will continue our exploration of the consequences that may result from our ADL predictive modeling system’s suggestion that Oil may continue to fall to levels below $40 over the next few months. 

In Part I and ...



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Biotech

Why telling people with diabetes to use Walmart insulin can be dangerous advice

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

 

Why telling people with diabetes to use Walmart insulin can be dangerous advice

A vial of insulin. Prices for the drug, crucial for those with diabetes, have soared in recent years. Oleksandr Nagaiets/Shutterstock.com

Courtesy of Jeffrey Bennett, Vanderbilt University

About 7.4 million people ...



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Insider Scoop

Glass House Group Appoints Graham Farrar As President

Courtesy of Benzinga

Glass House Group, a California-based cannabis and hemp company, earlier this week appointed Graham Farrar as president.

In his new role, Graham will oversee the company’s short and long-term business strategies, budgets and operations, and report up to Glass House Group CEO Kyle Kazan.

A long-time entrepreneur and an original team member of both Sonos (NASDAQ: SONO...



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Chart School

Dow Jones cycle update and are we there yet?

Courtesy of Read the Ticker

Today the Dow and the SP500 are making new all time highs. However all long and strong bull markets end on a new all time high. Today no one knows how many new all time highs are to go, maybe 1 or 100+ more to go, who knows! So are we there yet?

readtheticker.com combine market tools from Richard Wyckoff, Jim Hurst and William Gann to understand and forecast price action. In concept terms (in order), demand and supply, market cycles, and time to price analysis. 

Cycle are excellent to understand the wider picture, after all markets do not move in a straight line and bear markets do follow bull markets. 



CHART 1: The Dow Jones Industrial average with the 900 period cycle.

A) Red Cycle:...

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Digital Currencies

Is Bitcoin a Macro Asset?

 

Is Bitcoin a Macro Asset?

Courtesy of 

As part of Coindesk’s popup podcast series centered around today’s Invest conference, I answered a few questions for Nolan Bauerly about Bitcoin from a wealth management perspective. I decided in December of 2017 that investing directly into crypto currencies was unnecessary and not a good use of a portfolio’s allocation slots. I remain in this posture today but I am openminded about how this may change in the future.

You can listen to this short exchange below:

...



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Kimble Charting Solutions

Silver Testing This Support For The First Time In 8-Years!

Courtesy of Chris Kimble

Its been a good while since Silver bulls could say that it is testing support. Well, this week that can be said! Will this support test hold? Silver Bulls sure hope so!

This chart looks at Silver Futures over the past 10-years. Silver has spent the majority of the past 8-years inside of the pink shaded falling channel, as it has created lower highs and lower lows.

Silver broke above the top of this falling channel around 90-days ago at (1). It quickly rallied over 15%, before creating a large bearish reversal pattern, around 5-weeks after the bre...



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Lee's Free Thinking

Today's Fed POMO TOMO FOMC Alphabet Soup Unspin

Courtesy of Lee Adler

But make no mistake, if the Fed wants money rates to stay down by another quarter, it will need to imagineer even more money.

That’s on top of the $281 billion it has already imagineered into existence since addressing its “one-off” repo market emergency on September 17. This came via  “Temporary” Repo Man Operations money, and $70.6 billion in Permanent Open Market Operations (POMO) money.

By my calculations that averages out to $7.4 billion per business day. That works out to a monthly pace of $155 billion or so.

If they keep this up, it will be more than enough to absorb every penny of new Treasury supply. That supply had caused the system to run out of money in mid September.  This flood of paper had been inundati...



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Mapping The Market

How IPOs Are Priced

Via Jean Luc 

Funny but probably true:

...

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Members' Corner

Despacito - How to Make Money the Old-Fashioned Way - SLOWLY!

Are you ready to retire?  

For most people, the purpose of investing is to build up enough wealth to allow you to retire.  In general, that's usually enough money to reliably generate a year's worth of your average income, each year into your retirement so that that, plus you Social Security, should be enough to pay your bills without having to draw down on your principle.

Unfortunately, as the last decade has shown us, we can't count on bonds to pay us more than 3% and the average return from the stock market over the past 20 years has been erratic - to say the least - with 4 negative years (2000, 2001, 2002 and 2008) and 14 positives, though mostly in the 10% range on the positives.  A string of losses like we had from 2000-02 could easily wipe out a decades worth of gains.

Still, the stock market has been better over the last 10 (7%) an...



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Promotions

Free eBook - "My Top Strategies for 2017"

 

 

Here's a free ebook for you to check out! 

Phil has a chapter in a newly-released eBook that we think you’ll enjoy.

In My Top Strategies for 2017, Phil's chapter is Secret Santa’s Inflation Hedges for 2017.

This chapter isn’t about risk or leverage. Phil present a few smart, practical ideas you can use as a hedge against inflation as well as hedging strategies designed to assist you in staying ahead of the markets.

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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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