Posts Tagged ‘C’

Sizable Trade In Sirius XM Radio Options

Today’s tickers: SIRI, C & TSM

SIRI - Sirius XM Radio, Inc. – Satellite radio provider, Sirius XM Radio, popped up on our ‘most active by options volume’ market scanner on Tuesday morning due to heavy volume in long-dated put options on the stock. The largest trades in SIRI options suggest one trader expects shares in the name to at least exceed their lowest levels of the past 52-weeks through January of 2015. Shares in SIRI are currently flat on the session at $3.22 as of midday in New York, but earlier rallied as much as 1.9% to $3.28. The stock is currently up 80% since this time last year. Volume in SIRI options is concentrated in the Jan 2015 $2.0 strike puts, with upwards of 50,000 contracts in play versus open interest of 29,386 contracts. It looks like one trader sold the puts to pocket premium of $0.15 per contract. The seller keeps the full amount of premium at expiration in 2015 as long as shares in Sirius XM Radio settle above $2.00. Shares in SIRI last traded below $2.00 in July of 2012. The stock was reiterated with a ‘buy’ recommendation and a price target of $4.00 at Bank of America Merrill Lynch yesterday.

C - Citigroup, Inc. – Bullish traders positioning for shares in Citigroup to rebound this week following four consecutive sessions of declines snapped up weekly call options on the stock this morning, with shares in the name up 3.3% on the day at $46.93. The Jun 28 ’13 $47 strike calls are the most active by volume of the weekly contracts available on Citi today, trading more than 6,200 times against open interest of 3,220 contracts. Time and sales data suggests most of the contracts were purchased this morning for an average premium of $0.59. Call buyers stand ready to profit at expiration this week should shares in the name rally another 1.4% over the current price of $46.93 to exceed the average breakeven point at $47.59.…
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Bullish Options Active On Financial Stocks As Shares In BAC, C Extend Gains

 

Today’s tickers: BAC, C & AEGR

BAC - Bank of America Corp. – Trading traffic in Bank of America calls this morning suggests some options players are looking for shares in the name to continue to climb this week. BAC is the strongest performer in the Dow Jones Industrial Average today, with shares up nearly 3% during the first half of the session to $10.89, the highest level since July 2011. The stock has gained 120% since this time last year. Bullish traders positioning for BAC shares to extend gains snapped up calls that have four full trading sessions remaining to expiration. The Dec. 21 ’12 $11 strike calls changed hands more than 40,000 times in the early going, with most of the volume purchased by traders for an average premium of $0.08 apiece. Upside call buyers appear to be adding to positions established on last week. Time and sales data suggests some 32,000 of the $11 strike calls were purchased on Friday for an average premium of $0.04 per contract. Meanwhile, fresh interest is building in the Dec. 21 ’12 $11.5 strike calls, with some 7,700 call options in play versus open interest of just one contract. Most of the $11.5 strike calls appear to have been purchased this morning for an average premium of $0.02 each. Buyers of these contracts stand ready to profit at expiration should shares in BAC rally another 5.8% over the current price of $10.89 to exceed the average breakeven point at $11.52.

C - Citigroup, Inc. – Shares in Citigroup are trading 2.8% higher this afternoon at $38.66 on an up day for U.S. equities and a strong day for financial stocks. Citi shares touched a new 52-week high of $38.74 during the first half of the session, marking a near 60% move to the upside for the stock since this time last year. Traders anticipating higher highs in Citigroup shares by year end snapped up 2,200 calls at the Dec. 28 ’12 $39 strike for an average premium of $0.51 apiece. Call buyers may profit at expiration next…
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Universal Display Corp. Options Look For Near-Term Rebound

 

Today’s tickers: PANL, C & DDS

PANL - Universal Display Corp. – A surprise third-quarter loss reported yesterday by the provider of technology and components in flat panel displays, lighting and electronics, sent shares in Universal Display Corp. down nearly 25% on Thursday morning to an intraday low of $21.55. A number of analysts cut their ratings on the stock following the earnings miss and after the company lowered its full-year revenue forecast. The stock is off its lows of the session, trading down 18% on the day at $23.03 as of 11:40 a.m. ET. Much of the trading traffic in front month calls and puts indicates some options market participants expect shares in PANL to potentially rebound in the near term, or at least stem further declines ahead of November expiration. Traders betting that PANL shares are at their lowest point for the time being sold in- and out-of-the-money put options that expire at the end of next week. It looks like the single largest put play was the sale of 500 contracts at the Nov. $23 strike for a premium of $0.65 apiece early in the trading session. The seller walks away with the full amount of premium in hand as long as shares in the name settle above $23.00 at expiration. At present, PANL shares have rebounded off an earlier low of $21.55, and the Nov. $23 strike put options are out-of-the-money. Similar positioning was observed at the lower Nov. $20, $21 and $22 strikes, with strategists selling at least a few hundred put contracts at each strike in the early going. Meanwhile, traders prepared to profit from a quick turnaround in the price of the underlying picked up around 300 calls at the Nov. $24 strike for an average premium of $0.74 per contract. Call buyers make money at expiration next week if PANL shares rally at least 7% over the current price of $23.03 to trade above the average breakeven price of $24.74.…
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Bullish Options Plays Cheer Surprise Shakeup In Citi C-suite

 

Today’s tickers: C, DPZ & HD

C - Citigroup, Inc. – Shares in Citigroup are on the rise Tuesday despite the unexpected departure of CEO, Vikram Pandit, and President and COO, John P. Havens, this morning. The stock fell ahead of the opening bell on the announcement, but reversed losses at the open, gaining as much as 2% to $37.40 in the first half of the session. Trading traffic in out-of-the-money calls expiring in January of 2013 suggests some strategists are positioning for shares to reach their highest levels since July 2011 in the next few months. Traders exchanged more than 4,500 calls at the Jan. 2013 $41 strike this morning against open interest of 2,697 contracts. It looks like most of the volume was purchased for an average premium of $0.81 apiece, thus positioning buyers to profit in the event of an 11% move up in the price of the underlying to top the breakeven price of $41.81 by expiration next year. Bullish positioning at the higher Jan. 2013 $44 strike, where around 750 calls were purchased this morning at an average premium of $0.33 each, indicates traders are prepared to profit should the stock jump 18.5% to exceed $44.33 by January 2013 expiration. Overall options volume topping 200,000 contracts by 11:35 a.m. ET on Citigroup is well above the stock’s average daily options volume of 140,192 contracts. Calls are more active than puts, with roughly 1.3 call options changing hands on the stock for each single put option. Shares in the name rose on Monday following the company’s third-quarter earnings report.

DPZ - Domino’s Pizza, Inc. – The pop in shares of Domino’s Pizza following the company’s better-than-expected third-quarter earnings report this morning is delivering hefty paper profits to traders who snapped up call options on the stock yesterday. Shares in DPZ rallied more than 8% this morning to touch $41.51, the highest level since March, after the company posted earnings and sales…
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Monday Market Miracle – Everything is Fixed, or it will be, or Something…

NOTHING!

Nothing happened this weekend and I guess that's better than something because most somethings that are likely to happen are bad and the only something that MIGHT happen that would be good is not all that likely to happen – not soon anyway.  So better to have nothing happen so we can hope that something will happen than to have something happen that turns out to be nothing after all, right?  

Welcome to 21st Century Investing.  Please do not make the mistake of discussing the actual BUSINESS PROSPECTS of the companies you buy and sell with an average hold time of 22 seconds – that's so 1900's.  It's rumors, not earnings, that power the modern markets so you'd better have your ears on the ground and keep your nose out of the financial statements – making money is so passe' – especially since money isn't worth the paper it's printed on anyway.  What matters is how much FREE MONEY our Central Banksters will give us to play with today.  Then we can have fun, Fun, FUN 'till Bernanke takes our T-Bills away.

This morning "ECB Officials" said that the Central Bank could intervene and buy the bonds of struggling euro-zone countries without unanimous approval, raising hopes that a bond buying program is still a possibility, and offsetting the disappointment caused by the bank's President Mario Draghi on Thursday.  This is not new information but it's treated as such by Uncle Rupert's WSJ, who need a strong market as they look to split the company so Murdoch and his paper have Billions riding on a positive market environment – not that that would influence their reporting of course – allegedly.

That was enough to get the Asian markets excited – again – and the Asian markets closing higher was enough to give the EU a good open (even though the reason the Asian markets went up was nothing that would have gotten Europeans to buy again but – they don't know that) and the EU markets going higher helps our Futures go higher and that allows Cramer to go on CNBC this morning and tell you to BUYBUYBUY because, as Cramer tells us, the market is going to go higher because it went higher and higher is higher than higher so
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Frustrating Thursday – From .EUphoria to .DEspair

SPY 5 MINUTE.DE is Germany's web domain.

So I'm trademarking .DEspair to consolidate all the anti-EU statements coming out of Germany this week as the rhetoric reaches a crescendo and goes up from there.  .EU is, of course the EU domain and .EUphoria is where we will store all the glowing pro-EU rhetoric that makes the market rise (until someone in Germany says something).  

It's a typical case of .DE said, SH.Eu said and all the kiddies can do is hide in their room until Mommy and Daddy stop fighting.   

Things were getting silly enough on the plus side as we rallied for no reason at all that we added a very aggressive short position on the Russell using TZA.  My 3:07 comment in Member Chat was:  

Big RUT move makes TZA fairly cheap at $20 and the July $20/24 bull call spread is $1, which makes for a nice hedge and if the RUT pops, you can offset it with the July $18 puts, now .45, for $1 or better or, of course, there's always the TWIL List

We had no long plays to make yesterday as we added them all when the market was much lower (told you so!) and now it has moved to the top of the bottom of our range and we pick up a short – this is not rocket science, folks.  It's going to be a choppy, terrible market until either the EU saves us by tomorrow or we crash and burn horribly and my comment to Members in the Morning Alert at 10:24 was: 

We still need the Dollar to go lower and this morning it's zooming higher (82.80) and keeping us from a better move up on the indexes.  This will go on for the next few days with each syllable uttered by anyone of presumed authority in the EU so – if you can't stand the heat – stay in cash!  

FXE WEEKLYThe Dollar had worked it's way down to 82.50 into the close but now (8am) it's been jammed back to 82.90 as the Euro plunges back to $1.2426 on whatever silly thing someone just said.  Financials are dragging everyone down as they are DOOMED if the EU can't pull things together.

Financials are also hurting as the NY Times Dealbook Blog is reporting that JPM's Trading losses "may reach $9Bn."  I'm a little…
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Wednesday Wheeee – No More QE For You!

SPY 5 MINUTEI hate to say I told you so but…

Oh, who are we kidding?  I could not be happier saying I told you so and neither could our Members as our "Sell in March and Go Away" strategy seems to have hit the nail on the head – and it's only April 4th!  

Back then (2/24), we were still bullish but the plan was to let the rally run its course and cash out ahead of earnings and our plays from that Wednesday (2/22) which I posted right in the morning post for all to see, have performed very well, of course.  

We had April SQQQ and DXD hedges that failed, of course, but those were paid for by the short sale of AAPL 2014 $300 puts for $15, which are already $10.75, so up 28% already on those pays for a lot of protection.  

Another offset we had looked at was the short sale of FDX April $80 puts at $1.10, which expired worthless (up 100%).  We also looked at longer-term put sales on SKX, with the Oct $12 puts fetching $1.55 per contract, now $1.25 (up 19%), and the T 2014 $25 puts at $2.15, now $1.75 (up 18%). 

Along the same vein, the XOM 2014 $65 puts at $5, now $4.05 (up 19%) were sold to pay for the SU 2014 $25/37 bull call spread for $6 for net $1 on the spread.  The bull call spread is still $6 but that's net $1.95 now – up 95% on the combo.  Our other bullish play on oil was the USO June $40/46 bull call spread at $2, selling he SCO Oct $26 puts for $3 for a net $1 credit.  The USO spread has fallen to $1.40 but the short SCO puts dropped to $1.65 a net gain of .75 – up a quick 75% on a fairly neutral oil play, which was BRILLIANT as it covered many, many of our aggressive oil shorts over the month that went VERY well

Our other trade ideas from the morning post (and the logic and strategies are detailed in the post):  

  • AA 2014 $10 puts sold for $2, still $2 – even
  • X at $28.49, selling Jan $25 calls for $8.50 and 2014 $20 puts for $2.95 for net $17.04/18.52 


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Weekly Calls Draw A Crowd At Las Vegas Sands As Shares Extend Gains

 

Today’s tickers: LVS, RL & C

LVS - Las Vegas Sands Corp. – Shares in the resort casino operator are off to the races today, trading up 5.25% this afternoon at $59.56, after the Company said it will open its new 13.7 million square foot integrated resort, Sands Cotai Central, on April 11. Options traders expecting the shares to continue to hit fresh multi-year highs during the next four trading sessions snapped up weekly call options. The Mar. ’23 $60 strike calls attracted the most action, with nearly 6,000 contracts in play so far today against open interest of 760 positions. It looks like the majority of the calls were purchased for an average premium of $0.32 apiece, thus preparing buyers to profit in the event that shares in Las Vegas Sands rally another 1.3% to top the average breakeven price of $60.32 at expiration. LVS executives are scheduled to present at the J.P. Morgan 2012 Gaming, Lodging, Restaurant and Leisure Management Access Forum in Las Vegas this afternoon at around 2:15 p.m. ET.

RL - Ralph Lauren Corp. – Near-term bearish or perhaps protective positioning in Ralph Lauren put options this morning suggests one trader is prepared for shares in the retailer of high-end apparel and home goods to decline in the next five weeks. Shares in RL currently trade 1.15% lower on the session at $175.70 as of 11:30 a.m. in New York. It looks like the trader purchased a roughly 2,600-lot April $165/$175 put spread at a net premium of $3.00 per contract. The spread may be an outright bearish bet on Ralph Lauren’s near-term share price performance, or could be a protective stance to secure the value of a long position in the stock. Profits, or downside protection, kick in if RL’s shares decline…
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Monday Market Movement – Trying to Get Bullish

We are still trying to get more bullish.

Over the weekend we set a new, higher set of levels for our Big Chart on the assumption that our breakout levels hold up and our new Must Hold lines become Dow 13,600 (not there yet), S&P 1,360, Nasdaq 3,000, NYSE 8,000 and Russell 800, which means it's now up to the Dow and Nasdaq to continue to show leadership if we're going to be having a rally good enough to get us to add our next 10 bullish plays.

I already added 2 aggressive upside trade ideas on XLF and SPY in the weekend post and last week we already looked at WFR, X, BAC, GLW, BBY, CHK, AAPL, AA, and BA but we also added a new Long Put List (Members Only), which had 19 stocks that we thought were good downside horses to ride if, per chance, we fail to hold 3 of our 5 breakout levels.  

It shouldn't be too much to ask – IF this is a real bull market.  We've been extremely skeptical up to this point and, Fundamentally, I still have my doubts but Technically, we can't keep fighting the tape so were drawing a line in the sand for Mr. Market to cross and, if it does so, we're happy to play along.  If it fails to do so, however, well – we've already made those bets!  

Our aggressive take on the Dow is the result of analyzing the 5 components that were replaced since the crash with MO and HON thrown out for BAC and CVX in Feb of 2008, AIG replaced by KFT in Sept 2008 and C and GM replaced by CSCO and TRV in June 2009, causing a massive distortion in the index, meaning 16,000 is the old 15,000, possibly even lower:  

The Nasdaq is similarly distorted by AAPL, who are up 500% since 2009 and when a stock that is 11.5% of an index is up 500%, that stock alone causes the index to go up 57.5%, which is why we now call it the AAPLdaq.  The AAPLdaq itself is "only" up 100%, which means the ENTIRE rest of the index is lagging with a 42.5% contribution – those who tell you that tech is somehow loved again are fooling themselves
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Testy Tuesday – How Many Times Will You Fall for the Same Thing?

Isn't this exciting!

The pre-markets are up 1% after a long weekend.  That hasn't happened since – two weeks ago!  Of course last Tuesday, we were jammed up as well and the Tuesday after Christmas, we were jammed up as well but THIS TIME – we're REALLY feeling it, right?  

The funniest thing is the way they have dozens of idiots saying all sorts of ridiculous things on CNBC and not one of them mentions even the vaguest hint of deja vu in what has been the most consistent pattern of late 2011, early 2012.

On this Dollar chart from Scott Pluschau, you can see the dives that are occasionally taken to goose the markets and we have another one this morning with the Dollar down 1%, making the 1% pop in the futures slightly less impressive when taken in context.  

This time may be different because, according to Friday's Legacy Commitments of Traders Report released by the CTFC, Commercial Traders are now net short on the Dollar to the tune of 59,023 to just 6,061 longs – about a 10:1 ratio that is EXTREME to say the least.  Non-Reportable, Non-Commercial Traders (ie. Speculators), on the other hand, are almost 10:1 the other way with 9,765 long contracts and just 1,390 shorts.  Reportable Non-Commercial Traders (Hedge Funds) fill out the rest of the longs with 52,644 long contracts against just 8,057 shorts.  

To some extent, hedge funds are also speculators and usually you would assume their bets are covered but that's kind of hard to see with a 7:1 long/short ratio.  Keep in mind that Commercial Traders are institutions with business reasons to hedge – they are not going to be flip-flopping their positions so they will NOT be buying Dollars just because they get cheaper.  So, if it all hits the fan and the Funds shift to short – we could get quite a tidal-wave of Dollar selling.

That's an odd sort of positions for the speculating class to be taking (super-long on the Dollar) considering the possibility of a highly dilutive quantitative event (QE3) in the very near future.   This is why we can't be gung-ho bearish – tempting though it may be and this is why every little rumor of Europe being "fixed" sends the Dollar flying down – there are no buyers – only nervous long Dollar holders.  

As you…
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Zero Hedge

Watch: Hong Kong Cop Taken Out By Flying Drop-Kick To Stop Arrest

Courtesy of ZeroHedge View original post here.

A Hong Kong police officer was knocked down by a flying drop kick as he attempted to arrest a protester during the 19th week of anti-government unrest. 

The officer can be seen struggling over custody of a protester until the kick levels him, followed by others running up and hitting the man before they run off. 

The protests - this week's revolving around a new 'anti-mask' law - saw turnouts in more than half of the semiautonomous Chinese territory's 18 districts. 

...



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Insider Scoop

Can Netflix Deliver A Hit After Q2 Subscriber Disappointment?

Courtesy of Benzinga

Netflix Inc (NASDAQ: NFLX) is scheduled to report its third-quarter results Tuesday, after the market close.

The consensus estimate calls for earnings of $1.04 per share, up from 89 cents per share in the year-ago quarter. Analysts, on average, expect the company to report revenues of $5.25 billion, up 31.30% year-over-year.

Over the past four quarters, ...



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Phil's Favorites

Traditional banks are struggling to stave off the fintech revolution

 

Traditional banks are struggling to stave off the fintech revolution

Shutterstock

Courtesy of Kamal A Munir, Cambridge Judge Business School and Hamza Mudassir, Cambridge Judge Business School

Traditional banks are haunted by financial technology – fintech – firms. Challengers such as mobile-first banks Chime in the US, Monzo in the UK and Germ...



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Kimble Charting Solutions

New Gold Bull Market? Not Until This Happens!

Courtesy of Chris Kimble

After a big summer rally, Gold peaked out at $1566/oz in September.

Since then, Gold prices have been consolidating between $1475 and $1550.

So what’s happening here? Enter the Swiss Franc currency…

In today’s chart, we look at a key indicator (and correlation) for Gold. As you can see, the Swiss Franc has an uncanny resemblance to Gold.

Both Gold and the Franc are testing heavy resistance at the same time.

Until both breakout at (2), odds are low that a new Gold bull market emerges with another big rally leg higher....



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The Technical Traders

Lots of Upside Ahead for the Metals and Miners

Courtesy of Technical Traders

Palisade Radio talks with Chris as he discusses his approach to trading and why technical analysis works for him. He focuses on the chart and price action and explains why investors need to follow a trading strategy that suits their personality.

He cautions that a broad sell-off is likely when stocks move into the next bear market. This liquidation will pull everything down, including gold, for a time. Afterward, he anticipates a massive rally in the juniors.

Time Stamp References:

...



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Chart School

US Economic Review 2019Q4

Courtesy of Read the Ticker

An investor must form an opinion of the wider economic risk, here is a small sample of readtheticker.com US economy review.


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Example of the first chart in the video.


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Fundamentals are important, and so is market timing, here at readtheticker.com we believe a combination of ...

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Digital Currencies

Zuck Delays Libra Launch Date Due To Issues "Sensitive To Society"

Courtesy of ZeroHedge View original post here.

Authored by William Suberg via CoinTelegraph.com,

Facebook is taking a much more careful approach to Libra than its previous projects, CEO Mark Zuckerberg has confirmed. 

“Obviously we want to move forward at some point soon [and] not have this take many years to roll out,” he said. “But ...



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Lee's Free Thinking

Look Out Bears! Fed New QE Now Up to $165 Billion

Courtesy of Lee Adler

I have been warning for months that the Fed would need new QE to counter the impact of massive waves of Treasury supply. I thought that that would come later, rather than sooner. Sorry folks, wrong about that. The NY Fed announced another round of new TOMO (Temporary Open Market Operations) today.

In addition to the $75 billion in overnight repos that the Fed issued and has been rolling over since Tuesday, next week the Fed will issue another $90 billion. They’ll come in the form of three $30 billion, 14 day repos to be offered next week.

That brings the new Fed QE to a total of $165 billion. Even in the worst days of the financial crisis, I can’t remember the Fed ballooning its balance sheet by $165 bi...



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Biotech

The Big Pharma Takeover of Medical Cannabis

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

 

The Big Pharma Takeover of Medical Cannabis

Courtesy of  , Visual Capitalist

The Big Pharma Takeover of Medical Cannabis

As evidence of cannabis’ many benefits mounts, so does the interest from the global pharmaceutical industry, known as Big Pharma. The entrance of such behemoths will radically transform the cannabis industry—once heavily stigmatized, it is now a potentially game-changing source of growth for countless co...



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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.

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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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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