Posts Tagged ‘BZH’

Bulls Binge On XLF Calls Following FOMC Announcement

 

Today’s tickers: XLF, LVS & BZH

XLF - Financial Select Sector SPDR ETF – Traders positioning for financial stocks to extend gains on the heels of Thursday’s FOMC announcement are loading up on XLF call options this morning. Shares in the Financial Select Sector SPDR ETF earlier rallied as much as 1.8% to hit a new 52-week high of $16.44. Overall options volume on the fund is well above 500,000 contracts as of 11:35 a.m. ET, with the call-to-put ratio hovering just below 10-to-1. The Oct. $17 strike call has changed hands more than 320,000 times so far today against open interest of 215,271 positions. Much of the previously opened positions were established yesterday as traders stepped up to purchase the contracts for an average premium of $0.07 apiece. This morning, it looks like buyers are once again in the driver’s seat, paying an average of $0.12 per contract for the $17 strike call options. Traders getting long the contracts at around $0.12 apiece stand ready to profit at expiration next month if the price of the underlying rallies another 4% over today’s high of $16.44 to top the average breakeven price of $17.12. Shares in the XLF are off their highs of the day, up 0.90% at $16.30 as of 11:50 a.m. in New York.

LVS - Las Vegas Sands Corp.– Shares in the resort casino operator are up sharply today, trading 4.0% higher on the day at $47.21 just before 12:30 p.m. in New York. The Fed’s decision to extend its bond buying program and a number of analyst upgrades on Las Vegas Sands helped lift demand for bullish options on the stock this morning. A number of options market participants appear to be betting that shares in LVS have more room to run in the near term. Plain-vanilla call buying is prevalent across several out-of-the-money strikes in the September and October expiries. Traders positioning to benefit from strong performance in the shares…
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Options Player Takes to Beazer Homes USA

Today’s tickers: BZH, CPB, EMR & RENN

BZH - Beazer Homes USA, Inc. – Shares in the designer and builder of single- and multi-family homes increased as much as 5.7% today to $3.53, joining other homebuilding companies in a sector rally ahead of May new home sales data due out on Thursday morning. One options player populating Beazer Homes this afternoon constructed what appears to be a long-term bullish bet on the stock. It looks like the investor sold 3,000 puts at the January 2012 $3.0 strike for a premium of $0.42 each in order to purchase 3,000 calls up at the February 2012 $4.0 strike at a premium of $0.52 apiece. Net premium paid to get long the calls amounts to $0.10 per contract and positions the trader to make money should Beazer’s shares surge 16.15% over today’s high of $3.53 to surpass the effective breakeven price of $4.10 at February expiration. Shares in BZH last traded above $4.10 on June 1. The stock is currently down more than 43% off its January 14th 52-week high of $6.23. Beazer Homes USA reports third-quarter earnings before the market opens on August 2.

CPB - Campbell Soup Co. – Demand for put options on the food products manufacturer jumped this morning after analysts at Goldman Sachs reportedly recommended buying July $33 strike puts on the chicken noodle soup maker ahead of the company’s analyst day. The sharp increase in put activity on the stock sent Campbell’s overall reading of options implied volatility up 34.4% to 16.55% by 12:05pm in New York. Shares in CPB currently trade 0.60% lower on the day at $34.01. The July $33 strike put is by far the most active this afternoon, with more than 7,400 puts having changed hands against previously existing open interest of just 576…
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Bull Constructs Three-Legged Spread on Beazer Homes USA

 Today’s tickers: BZH, HBC, MON, EBAY, ELX & PMCS

BZH - Beazer Homes USA, Inc. – A three-legged options combination play initiated on the homebuilder that designs, sells and builds single-family and multi-family homes in the U.S. indicates one strategist sees shares improving ahead of August expiration. Shares in Beazer Homes USA rose 1.5% this afternoon to $5.99 in the final hour of the session. The homebuilding company will reveal its performance for the first quarter before the market opens for trading on February 4, 2011. The investor responsible for the bullish spread sold 5,000 puts at the August $4.0 strike for a premium of $0.25 each, purchased 5,000 calls at the August $6.0 strike for a premium of $1.05 a-pop, and sold the same number of calls at the higher August $7.0 strike at a premium of $0.60 apiece. The net cost of putting on the trade amounts to $0.20 per contract. Thus, the trader stands ready to make money should shares in BZH rally 3.5% over the current price of $5.99 to surpass the effective breakeven point to the upside at $6.20 by expiration day. Maximum potential profits of $0.80 per contract are available to the trader if the homebuilder’s shares surge 16.9% to trade above $7.00 by the time the contracts expire in August. Selling the upper-strike calls as well as the out-of-the-money put options greatly reduced the cost of taking a bullish stance on the stock. The sale of the August $4.0 strike put options suggests this trader is more than willing to bear the risk of having 500,000 shares of the underlying stock put to him at $4.00 each should the puts land in-the-money at expiration.

HBC - HSBC Holdings PLC – Some investors trading options on the financial services firm are positioning for the price of the underlying to appreciate in the next couple of months, while others appear to be taking profits off the table today. Shares in London-based HSBC Holdings increased as much as 4.9% during the current…
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UnitedHealth Bulls Have a Fever – the Only Prescription is More Call Options

Today’s tickers: UNH, BZH, WFC, GE, XLB, WMT, BAC, COF, HOG, ETFC & STJ

UNH – UnitedHealth Group, Inc. – Health and well-being company, UnitedHealth Group, commenced the trading session in the red after Goldman Sachs Group removed the firm from its ‘Conviction Buy List’. However, UNH is still rated as a ‘buy’ at Goldman, and the company’s shares recovered this afternoon to stand 0.60% higher at $32.73. A fire-storm of bullish activity descended on UnitedHealth during the middle of the trading day. Investors gobbled up April contract call options perhaps to position for continued bullish movement in the price of the underlying shares. Options players purchased 42,600 call options at the April $34 strike for an average premium of $0.87 per contract. More than 50,000 calls changed hands at that strike, which blows the 4,333 contracts of open interest at that strike right out of the water. Investors long the calls are positioned to amass profits should UNH’s shares rally another 6.5% to breach the breakeven price of $34.87 by April expiration. Wild-and-crazy options activity on the stock lifted the overall reading of options implied volatility 5% to 43.06% as of 2:05 pm (ET).

BZH – Beazer Homes USA, Inc. – Single- and multi-family homebuilding company, Beazer Homes USA, attracted bullish options players today amid a 4.65% rally in its share price to $4.95. Beazer was upgraded to a ‘buy’ rating and a target share price of $6.25 at Citigroup yesterday. Plain-vanilla call buying took place at the near-term March $5.0 strike where investor picked up 2,100 contracts for an average premium of $0.14 apiece. Investors long these contracts are hoping Beazer’s shares rally another 4.25% from the current price to surpass the effective breakeven point at $5.14 ahead of expiration on Friday. Optimism spread to the April $5.0 strike as traders coveted 2,200 calls for an average premium of $0.32 per contract. Call-buyers in the April contract profit if shares jump 8% and trade above the breakeven price of $5.32 by expiration day next month. The surge in investor demand for options on Beazer Homes lifted the overall reading of options implied volatility on the stock 15.8% to 61.92% this afternoon.

WFC – Wells Fargo & Co. – The bank holding company’s shares increased more than 0.65% during the session to $30.09, inspiring bullish options activity on the stock. Investors positioning for a continued rally in the price…
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Toppy Tuesday – Happy Anniversary Bull Market!

It's hard to believe that just one year ago today investors thought the world was ending!

Well, not all investors – we were BUYBUYBUYing at the time, as I recapped back in September whan we did our "Market Crash – Year One Review."  Click on Cramer's picture for the Daily Show's March 4th, 2009 review of the magical moments that led us down to the bottom and here's another great video from the evening broadcast on March 9th and, of course, there is my own legendary appearance on LiveStock from March 6th, but that's summarized in the crash link, so save yourself 3 hours, although the first 10 minutes are worth it for people who want to learn about our buy/write strategy as I explained the logic of it as I recommended FAS at $2.41 using those hedges

And what a wild year it has been as we've made an epic recovery.  The only question is – have we come too far too fast?  Should we be up 75% from our March 9th lows?  We are still down 25% from our highs but let's keep in mind that we made those highs thinking AIG was MAKING money, that FNM and FRE were great stocks for your retirement virtual portfolio, that Kirk Kirkorean was going to rescue GM, that BZH wasn't some kind of scam, that BSC, LEH et al were "the smartest guys in the room."  I urge you to click on Cramer and listen to the idiocy of the analysts who would tell you everything is all right even as it was all falling apart around them – why does everyone suddenly trust them again?

How could we not love this market?  Markets do this sort of thing all the time don't they?  It's all part of the "efficient pricing model" that always lets you know what a stock is truly worth like when GE was "worth" $30 in 2008 and "worth" $6 in 2009 and is now "worth" $16.  This is not some biotech folks – this is GE, they've been around for 100 years and they have $170Bn in global sales.  Did they really drop 80% in value in 2009?  No.  That's why it was easy to pick a bottom – the valuations got ridiculous and, as fundamentalists, we siezed…
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Gold Mminers ETF Attracts Bullish Option Plays

Today’s tickers: GDX, CF, S, XHB, PCLN, XLF, CX, CAR, BZH, CRI & ERTS

GDX – Market Vectors Gold Miners ETF – Shares of the gold ETF that invests in shares of precious metals mining companies are up 0.5% to $49.53 with one hour remaining in the trading session. Option implied volatility has come down from 54% to 46% recently as gold’s price has surged. Nearer-term investors sought downside protection on the fund, whereas long-term traders initiated bullish plays. Investors hoping to lock in gains experienced during the recent run-up in the price of gold purchased 4,000 puts at the January 2010 47 strike for 3.05 apiece. Further along, at the March 2010 44 strike, another 6,000 puts were picked up for an average premium of 3.10 per contract. Finally, long-term bullishness took the form of a call spread in the January 2011 contract. It appears one investor purchased about 5,000 calls at the January 50 strike for an average of 9.52 each, marked against the sale of the same number of calls at the higher January 55 strike for 7.55 each. The net cost of the optimistic play amounts to 1.97 per contract. The trader stands to accrue maximum potential profits of 3.03 each if shares of GDX rally 11% over the current price to $55.00 by expiration in January 2011.

CF – CF Industries Holdings, Inc. – Bearish option plays appeared on the manufacturer of nitrogen and phosphate fertilizer products today after the firm rejected rival Agrium Inc.’s increased takeover offer of $4.52 billion. Shares of CF are currently trading 4% lower to $77.20. Investors purchased put options at the now in-the-money December 80 strike for an average premium of 6.70 apiece. Perhaps put-buyers are protecting long stock positions. Otherwise, they are hoping to accrue profits if shares of CF decline through the effective breakeven price of $73.30. Another trader unraveled a previously established bullish play in the January 2010 contract. The investor originally placed an extremely bullish 8,500-lot call spread at the January 90/100 strikes. However, the trader abandoned bullish sentiment today by closing out the spread. Option implied volatility on CF jumped 7.5% over Monday’s closing value of 52.9% to reach an intraday high of 55.9%.

S – Sprint Nextel Corp. – Shares of the wireless communications company surrendered a portion of gains experienced during yesterday’s 20% rally to an intraday high of $3.43. The stock…
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Beazer Homes bounces on sales data, inspiring covered calls

Today’s tickers: BZH, AG, TSN, XLF, XRT & JNPR

BZH Beazer Homes USA, Inc. – The builder of single-family homes across the United States has experienced an enormous share price rally of more than 21.5% to $2.14 following today’s upbeat new home sales data. BZH jumped onto our ‘hot by options volume’ market scanner after one investor established what appears to be a covered call in the June contract. The covered call was initiated by buying shares of the underlying stock and selling 10,000 calls at the June 5.0 strike price for a premium of 17 cents apiece. This investor receives the premium on the sale of the options as well as positions an exit strategy at the June 5.0 strike by maintaining a short position on the calls. If shares can rally through $5.00 come June, the shares will likely be called away from him at expiration. Should this come to fruition, he will have enjoyed gains of 134% on the stock from the current price of $2.14 in addition to the 17 cent premium.

AG AGCO Corporation – Shares of the manufacturer of agricultural equipment have skyrocketed by more than 10% to $26.00 ahead of its earnings release expected on Tuesday, April 28th. One news source has reported unconfirmed takeover speculation surrounding the company perhaps leading option traders to position themselves for a continued near-term price rally. The more than 16,000 lots that have exchanged hands on AGCO thus far today represent 70% of the existing open interest on the stock of 23,000 contracts. Furthermore, we have observed that nearly 12 call options have been traded to each single put option in action. At the now in-the-money May 25 strike price investors picked up 1,300 calls for an average premium of 1.71 apiece. More optimistic individuals targeted the May 30 strike price where more than 6,300 calls were purchased for 53 cents per contract. In order for the May 30 strike call to land in-the-money by expiration, shares would need to continue to rise by an additional 15% from the current share price. Option implied volatility is up slightly on the day from 71% to the current reading of 74%.

TSN Tyson Foods, Inc. – The processor and marketer of chicken, beef and pork products has attracted bullish investors to the pigpen amid a share price rally of about 1% to $11.15 today. Tyson’s shares have been…
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Phil's Favorites

What if GDP falls more than the stock market?

 

What if GDP falls more than the stock market?

Courtesy of 

In the last recession, GDP contracted by less than 5%, but the stock market fell 57% from peak to trough. Stocks reacted to economic conditions in a way the “real” economy did not.

In our present situation, Wall Street strategists are predicting a second quarter contraction for the economy of up to 30% (annualized), which the drop in stock prices have already achieved.

Michael and Ben sort out some important distinctions between the stock market’s historic reaction to recessions and the recessions themselves…

  ...



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Zero Hedge

Trump Says "No Quarantine Necessary" For NY, NJ And CT As US Death Toll Tops 2,000: Live Updates

Courtesy of ZeroHedge View original post here.

Summary:

  • Global case total tops 600k
  • Global COVID-19 death toll tops 30k
  • US death toll tops 2k
  • After Trump earlier said he was weighing enforceable quarantine order for all the tri-state area, late on Sunday he said that "on the recommendation of the White House CoronaVirus Task Force, and upon consultation with the Governor’s of New York, New Jersey and Connecticut" he would not be imposing a quarantine. ...


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Biotech/COVID-19

The world before this coronavirus and after cannot be the same

 

The world before this coronavirus and after cannot be the same

Gettyimages

Courtesy of Ian Goldin, University of Oxford and Robert Muggah, Pontifical Catholic University of Rio de Janeiro (PUC-Rio)

With COVID-19 infections now evident in 176 countries, the pandemic is the most significant threat to humanity since the second world war. Then, as now, confidence in international cooperation and institutions plumbed new lows.

While the on...



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Digital Currencies

While coronavirus rages, bitcoin has made a leap towards the mainstream

 

While coronavirus rages, bitcoin has made a leap towards the mainstream

Get used to it. Anastasiia Bakai

Courtesy of Iwa Salami, University of East London

Anyone holding bitcoin would have watched the market with alarm in recent weeks. The virtual currency, whose price other cryptocurrencies like ethereum and litecoin largely follow, plummeted from more than US$10,000 (£8,206) in mid-February to briefly below US$4,000 on March 13. Despite recovering to the mid-US$6,000s at the time of writin...



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Insider Scoop

'Psyched': Hawaii Considers Resolution For Shrooms, Champignon Eyes Ketamine Products

Courtesy of Benzinga

Psyched is a bi-monthly column covering the most important developments in the industry of medicinal psychedelics. We hope you follow us periodically as we report on the growth of this exciting new industry.

Champignon Brands Buys IP Company and Adds Ketamine and New Formulations To Its Portfolio

On March 19, Champignon Brands Inc. (CSE: SHRM) (OTC: SHRMF), a Canadian healt...



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The Technical Traders

These Index Charts Will Calm You Down

Courtesy of Technical Traders

I put together this video that will calm you down, because knowing where are within the stock market cycles, and the economy makes all the difference.

This is the worst time to be starting a business that’s for sure. I have talked about this is past videos and events I attended that bear markets are fantastic opportunities if you can retain your capital until late in the bear market cycle. If you can do this, you will find countless opportunities to invest money. From buying businesses, franchises, real estate, equipment, and stocks at a considerable discount that would make today’s prices look ridiculous (which they are).

Take a quick watch of this video because it shows you ...



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Kimble Charting Solutions

Broadest Of All Stock Indices Testing Critical Support, Says Joe Friday!

Courtesy of Chris Kimble

One of the broadest indices in the states remains in a long-term bullish trend, where a critical support test is in play.

The chart looks at the Wilshire 5000 on a monthly basis over the past 35-years.

The index has spent the majority of the past three decades inside of rising channel (1). It hit the top of this multi-decade channel to start off the year, where it created a monthly bearish reversal pattern.

Weakness the past 2-months has the index testing rising support and the December 2018 lows at (2).

Joe...



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Chart School

Cycle Trading - Funny when it comes due

Courtesy of Read the Ticker

Non believers of cycles become fast believers when the heat of the moment is upon them.

Just has we have birthdays, so does the market, regular cycles of time and price. The market news of the cycle turn may change each time, but the time is regular. Markets are not a random walk.


Success comes from strategy and the execution of a plan.















Changes in the world is the source of all market moves, to catch an...

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Members' Corner

Bloody Mob Sh*t: An Interview with Lincoln's Bible

 

Bloody Mob Sh*t: An Interview with Lincoln's Bible

We talk Trump, Mogilevich, Epstein, Giuliani, Fred Trump, Roy Cohn, and more.

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

(Originally published on Feb. 21, 20.)

...

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ValueWalk

Entrepreneurial activity and business ownership on the rise

By Jacob Wolinsky. Originally published at ValueWalk.

Indicating strong health of entrepreneurship, both entrepreneurial activity and established business ownership in the United States have trended upwards over the past 19 years, according to the 2019/2020 Global Entrepreneurship Monitor Global Report, released March 3rd in Miami at the GEM Annual Meeting.

Q4 2019 hedge fund letters, conferences and more

The Benefit Of Entrepreneurial Activity ...

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Promotions

Free, Live Webinar on Stocks, Options and Trading Strategies

TODAY's LIVE webinar on stocks, options and trading strategy is open to all!

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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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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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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About Ilene:

Ilene is editor and affiliate program coordinator for PSW. Contact Ilene to learn about our affiliate and content sharing programs.