Posts Tagged ‘BYD’

Boyd Gaming Corp. Calls Draw Crowds As Shares Rally

 

Today’s tickers: BYD, UPS & CMG

BYD - Boyd Gaming Corp. – Call options on casino operator, Boyd Gaming Corp, are changing hands at a clip today, with shares in the name up better than 11% at $6.73 in early-afternoon trading. Overall options volume on Boyd is up sharply, with nearly 15,000 contracts in play as of 12:40 p.m. ET, versus the stock’s average daily volume of around 314 contracts. Most of the trading traffic today has been in Boyd calls today, driving the call-to-put ratio on the name up above 34-to-1. Heavy call buying across expiries suggests some traders are positioning for Boyd’s shares to extend gains during the next few months. The purchase of a block of 2,955 in-the-money Dec. 21 ’12 $6.0 strike calls purchased this morning at a premium of $0.40 apiece is amassing substantial paper profits for the buyer just a couple of hours after purchase. The $6.0 strike calls, which expire at the end of this week, currently tout a price tag that has doubled intraday to $0.80 per contract as of 12:45 p.m. ET in New York. Bullish traders also stepped in to buy more than 1,700 calls at the Dec. 21 ’12 $7.0 strike for an average premium of $0.08 apiece during the session. These contracts make money as long as shares in Boyd Gaming Corp. top $7.08 at expiration. Like-minded strategists purchased upside call options expiring in January 2013 and March 2013, as well. The most active contracts are the Jan. 2013 $7.0 strike calls, seeing volume in excess of 10,000 contracts versus open interest of 1,079 positions during the first half of the trading day. Time and sales data suggests most of the $7.0 strike calls expiring next month were purchased for an average premium of $0.22 apiece today. Traders long the $7.0 strike calls stand ready to profit should Boyd’s shares tack on another 7% to top the average breakeven price of $7.22 by expiration next year.

UPS - United Parcel Service, Inc. – Stocks are rallying this morning amid signs of progress in negotiations…
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Thursday Thoughts – GDP Up, Jobs Down

Forget the GDP.

We'll get the report on Q2 GDP at 8:30 tomorrow but I'll be watching the Employment Cost Index to see if we are recovering.  I know it seems like "commie talk" to my Conservative friends, but rising wages and benefits are signs of a healthy economy and you can plot the rise and fall of the stock market very neatly against how well the workers are treated

It was Henry Ford who first "discovered" that, if you expect American consumers to buy your products, you have to pay American workers enough to afford them.  In January of 1914, the Ford Motor Company announced they would pay $5 a day to its workers. The pay increase would also be accompanied by a shorter workday (from nine to eight hours). While this rate didn't automatically apply to every worker, it more than doubled the average autoworker's wage.  Workers came from all over the nation and all over the world to work for Ford, who had their pick of the best and the brightest, which led to a 60-year legacy of dominance in American Industry. 

Henry Ford had reasoned that since it was possible to build inexpensive cars in volume, more of them could be sold if employees could afford to buy them. The $5 day helped better the lot of all American workers and contributed to the emergence of the American middle class and that led to a massive economic boom in "the Roaring 20's" until greedy Banksters and speculators crashed the market in 1929.  

Unfortunately, earning $5 a day is still a dream for much of the workforce employed by US corporations as that is more money than is paid to their tens of millions of employees and suppliers in China, India, Vietnam, South Korea, Taiwan, Indonesia, etc.  Not only have American corporations "unlearned" the lessons that made this country great but they are actively involved in tearing down what is left of the American Middle Class by undermining their ability to earn and save as they ship jobs out of the country and cut wages and benefits for those few workers (135M at last count) who are left.

8:30 Update:  Make that 134,543,000 workers left - as we lost another 457,000 American jobs last week.  Continuing Claims picked back up to 4.56M, also more than expected but, as I said…
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Thrill-Ride Thursday – Where Will Economic Indicators Lead Us?

Isn't this fun?

Up 200, down 200, up 200, down 200 - wash out your savings, rinse and repeat!  What a total sham of a market we have these days with machines running us up and down on virtually no news at all.  Yesterday they would have you believe that Ben Bernanke caused a sell-off.  How ridiculous is that?  He didn't say one thing that he didn't already say in the Fed Minutes that were released on the 14th, which were the notes from the meeting of June 23rd so for analysts to get on TV and say "the markets were concerned by the Chairman's comments" is beyond stupid – it's criminal negligence

That's Can Not Be Correct and other media outlets are supposed to have something that is called a Public Trust, which means that broadcast licenses are a national resource that are meant to be used responsibly.  I know, that almost sounds like a joke but it's not – we used to care about these things…  Now the public is treated like cattle and is simply stampeded to the slaughterhouse at the whim of the media and the Big Money that pulls their strings and our equally puppet Government spend their days fighting over who gets to wear the captian's hat on the Titanic.  Maybe it is a joke - too bad it's on us!  

That's why we keep things light over at PSW – we know it's a crock but, as long as it's a crock we can figure out, we're happy.  I mentioned yesterday that Tuesday morning's Alert to Members had 2 long plays on the Russell that made over 40% each in a day.  Well yesterday we shorted the Russell at 9:42 with TNA $32 puts $1.60 and IWM $60 puts at $1.32.  It wasn't as exciting as Tuesday but the TNA puts made $2 (25%) and the IWM puts performed much better, also hitting $2 for a 50% gain on the day.  We have now learned that TNA and TZA, despite looking sexy, are not as good to play for direction as the IWM puts and calls.  This is due to the wide bid ask spread and low liquidity, which means the Market Maker can rob you blind by stealing nickels and dimes from you every time you buy and sell – this is something you should always be aware of when trading options on ultra-ETFs. 

We
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Weekend Wipe Out – All the Way Back to Mid-November Lows!

Well I hate to say I told you so but

No wait, that's nonsense – what market prognosticator doesn't love to say "I told you so"?  Actually, it's kind of my job to tell you so and the reason I'm so popular is because, more often than not, when I tell you so, I tend to be right.   I'm not right all the time and my single biggest flaw is I am often right but sometimes way too early and timing is EVERYTHING in the markets.  It's not good enough to tell you what is going to happen (give things enough time and everything happens eventually, right Cramer?) - I need to get the period right as well so we can turn it into an actionable trading idea that makes money

As a fundamentalist, I didn't like the entire last 500 points of the rally.  I had predicted the market would finish the year at 10,200 way back when it was down at 8,650 when the idea was we'd have a Santa Clause rally to 20% (10,380) and then a 20% pullback of that run (346) into Jan earnings that would take us back to 10,034 so the entire run from 10,200 to 10,700 REALLY annoyed me.  It didn't annoy me just because it made me wrong – I'm wrong a lot and I'm old enough to have learned how to deal with it.  What annoyed me was the manipulation as, clearly, the fundamentals in no way, shape or form justified the additional 5% move up. 

I've gone on and on about how fake the move was and how manipulated the markets were and how artificial the support was and I think I've pulled out the Seinfeld "fake, Fake, FAKE" clip often enough now that I don't even have to do a link (but I love it, so I do) or explain how it's a metaphor for recent market activity so I'm not going to waste our valuable time here.  Let's just do a review of the recent action, which is my best way of preparing for the upcoming Members only post where I'll be charting out new levels and coming up with action plans for the week ahead. 

So don't read this if you can't stand to hear "I told you so" because this is the review post and I did tell you so!

When did
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Bullish Option Play at State Street Despite Weaker Shares

Today’s tickers: STT, HPQ, AMAT, PBR, BYD, AMD, VALE & ITUB

STT– The 1% decline in State Street’s shares to $43.75 today has not deterred one investor from enacting a bullish ratio call spread in the July contract. Hoping for a nearer-term rally in the stock, the trader bought 5,000 calls at the July 44 strike price for 4.70 each and sold 10,000 calls at the higher July 50 strike for an average premium of 2.20 apiece. The spread cost the investor just 30 cents (1*4.70 – 2*2.20 = 0.30) and yields a maximum potential profit of 5.70 if shares were to climb to $50.00 by expiration. The stock need only rise about 55 cents from the current value to surpass the breakeven point for the trade at $44.30. – State Street Corp.

HPQ – Shares have remained relatively flat today and are currently at $34.45. Our attention was drawn to two trades that appear to be covered calls initiated by investors looking for bullish movement in the stock. The first of the two transactions was the work of a nearer-term HPQ-optimist who looks to have purchased shares of the underlying stock and simultaneously written about 5,000 calls at the July 38 strike price for a premium of 55 cents each. This tactic limits potential gains for the investor but in return effectively reduces the price per share to $34.20 (assuming a purchase price of $34.75) and also provides an exit strategy should the July 38 calls land in-the-money by expiration. If the underlying shares are called away at expiration the trader will have realized total gains of 11%. The other covered-call-cohort we observed on HPQ targeted the August 40 strike price and wrote about 4,500 calls for a premium of 63 cents each. This individual effectively reduced the price of the underlying shares to approximately $34.19 (assuming a purchase price of $34.82) by writing the call options. The investor will bank gains of 17% on the trade if HPQ rallies through $40.00 and the underlying shares are called away from him at expiration in August. – Hewlett-Packard Co.

AMAT– The manufacturer and marketer of integrated circuit fabrication equipment for the global semiconductor industry, has experienced a more than 3% rally in shares to $11.30. Option traders drove the call-to-put ratio up to 11.18 indicating that more than 11 call options were traded for each put option on the
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Market bullish, options bearish

Today’s tickers: XLI, XLY, DELL, CAT, XLF, AET, AN, EWT, SLAB, QLGC, BYD & INTC

XLI Industrial Select Sector SPDR – The industrials ETF attracted massive amounts of downside protection by investors fearing a near-term contraction in shares of the fund. The price per share is currently up by 3% to $23.19 on the day following broader market gains experienced today. However, traders have enacted a decidedly bearish position on the fund in the near-term May contract. At the May 19 strike price more than 65,100 puts were purchased for an average premium of 17 cents apiece. These option contracts will begin to yield profits to the downside beginning at the breakeven share price of $18.83. Further along, the in-the-money June 23 strike price saw traders who were likely banking gains on the rise in shares today by selling approximately 27,000 calls for an average premium of 65 cents per contract.

XLY Consumer Discretionary Select Sector SPDR – The consumer discretionary ETF jumped onto our ‘most active by options volume’ market scanner after investors bought a huge chunk of puts in the near-term May contract. Shares have rallied by 4% to $21.80 today, creating lesser cost premiums on put options. At the May 20 strike price approximately 58,100 puts were picked up for an average premium of 18 cents apiece. Investors have certainly appeared to brace themselves for bearish movements in the fund. Fleshing out the pessimistic picture was the sale of 2,290 calls at the May 23 strike for 82 cents which indicates that traders do not see today’s rally stemming too much further, particularly in the near-term.

DELL Dell Inc. – The just-in-time manufacturer of personal computers has rallied by more than 4% to $11.35 amid broad market gains today. We observed one trader who appears to have established a covered call in the January 2010 contract. It is likely that this investor bought shares of the underlying stock today or was already long the stock previously, and then sold 24,500 calls at the January 12.5 strike price for a premium of 1.50 each. The trader pockets the 1.50 premium and has locked into gains of 10% on the rise in share price should the calls land in-the-money and the underlying stock get called from him at expiration next year.

CAT Caterpillar, Inc. – Shares of CAT have rallied by more than 3.5% today to arrive at…
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Phil's Favorites

Coronavirus: the blow to the Chinese economy could be felt for years

 

Coronavirus: the blow to the Chinese economy could be felt for years

Courtesy of Chusu He, Coventry University

Investors are still being fairly complacent about the novel coronavirus. After the number of new daily cases suddenly shot up to more than 15,000 on February 12 following more than a week of decline, there were some jitters in the markets. With Chinese authorities saying the increase was due to a decision to broaden the definition for diagnosing people, there were falls in the region of 1% in European markets, and smaller retrenchments in Asia and North America.

It is...



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Biotech & Health

Coronavirus: the blow to the Chinese economy could be felt for years

 

Coronavirus: the blow to the Chinese economy could be felt for years

Courtesy of Chusu He, Coventry University

Investors are still being fairly complacent about the novel coronavirus. After the number of new daily cases suddenly shot up to more than 15,000 on February 12 following more than a week of decline, there were some jitters in the markets. With Chinese authorities saying the increase was due to a decision to broaden the definition for diagnosing people, there were falls in the region of 1% in European markets, and smaller retrenchments in Asia and North America.

It is...



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Zero Hedge

China Adopts 'Cultural Revolution-Style' Social Controls To Crush Outbreak As Death Toll Nears 2,000

Courtesy of ZeroHedge View original post here.

Summary:

  • Taiwan reports 1st coronavirus death
  • Hubei reports 1,933 new cases, 100 deaths
  • Hubei health officials report 1,933 new cases, 100 new deaths
  • Taiwan taxi driver who died from virus carried passengers from mainland, Hong Kong, Macau
  • Singapore reports 3 more cases
  • Total cases aboard 'Diamond Princess' climbs to 355 as US prepares to evacuate citizens
  • Indonesia says 6 passengers from Westerdam cruise ship tested negative
  • There are now at least 68,500 cases worldwide, and at least 1,665 de...


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Members' Corner

How to Stop Bill Barr

 

How to Stop Bill Barr

We must remove this cancer on our democracy.

Courtesy of Greg Olear, at PREVAIL, author of Dirty Rubles: An Introduction to Trump/Russia

...



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The Technical Traders

Is The Technology Sector Setting Up For A Crash? Part I

Courtesy of Technical Traders

One thing that continues to amaze our research team is the total scale and scope of the Capital Shift which is taking place across the globe.  For almost 5+ years, foreign investors have been piling into the US stock market chasing the stronger US dollar and continued advancement of US share prices. It is almost like there is no other place on the planet that will allow investors to pool capital into such a variety of strong assets while protecting against foreign capital risks.  Yet the one big question remains – when will a price reversion event hit the US stock
market?

So many researchers, even our team of researchers, believe we have found the keys to unloc...



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Kimble Charting Solutions

Joe Friday Says Germany (DAX) Could Rally 30%, Happy Valentines Day For The Bulls!

Courtesy of Chris Kimble

German DAX Index “weekly” Chart

The German DAX is one of the more important global stock market indices, as it represents the largest economy / market in the Euro Zone.

So it would be a real treat for the bulls to see this stock market index breakout as we celebrate Valentine’s Day.

The facts, Ma’am. Just the facts; The German DAX looks to have formed a bullish ascending triangle over the past 3 years and it is currently attempting to breakout above the top at (1)....



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Insider Scoop

Nissan Shares Tumble To Decade Low After Q3 Earnings Miss

Courtesy of Benzinga

The shares of Nissan Motor Co. Ltd. (OTC: NSANY) dropped to a decade low on Thursday after the company missed third-quarter earnings estimates and significantly cut its annual forecast for the financial 2019 year.

What Happened

Nissan, on Thursday, reported a net loss o...



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ValueWalk

Russell 2000 Index (RUT) hits an almost one-month high

By Gorilla Trades. Originally published at ValueWalk.

Ad the Russell 2000 Index (INDEXRUSSELL: RUT) hit an almost one-month high today, commenting on today’s trading Gorilla Trades strategist Ken Berman said:

Q4 2019 hedge fund letters, conferences and more

Russell 2000 Index (INDEXRUSSELL: RUT) Outperforms Large-Cap Benchmarks

While the overnight session was nothing short of scary stocks held on to most of yesterday's gains and small-caps even extended their winning streak. The Russell 2000 Index (INDEXRUSSELL: RUT) hit an almost one-month high today, finishing higher for the fourth day in a row while outperforming the large-cap benchmarks, and since the Volatility...



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Chart School

Dow theory warning from the Utilities Index

Courtesy of Read the Ticker

Charles Dow died in 1902, and the investors should thank him for his ever lasting Dow Theory Analysis.

Carrying on this blog theme looking at the Utility stocks. Previous post.
Dow Jones Utility index could trade like the FANGs
Formula for when the Great Stock Market Rally ends



You can learn about Dow Theory here

This post is concerned wi...

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Digital Currencies

Bitcoin Price May Hit $27K All-Time High By Summer, Predicts Fundstrat's Tom Lee

Courtesy of ZeroHedge View original post here.

Authored by William Suberg via CoinTelegraph.com,

Bitcoin is primed for average gains of almost 200% over the next six months, one of its best-known supporters has told mainstream media. 

...



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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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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.

Some other great content in this free eBook includes:

 

·       How 2017 Will Affect Oil, the US Dollar and the European Union

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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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