Posts Tagged ‘CA’

Options Volume Pops On CA Inc. As Stock Hits Highest Since 2005

Today’s tickers: CA, GME & DGX

CA - CA, Inc. – Shares in the provider of IT management solutions rallied to the highest level since 2005 this morning, gaining as much as 6.6% in the early going to hit $29.83. An analyst at RBC Capital Markets raised his target price on the sector perform rated stock to $30.00 from $26.00 today. Options on CA Technologies are far more active than usual today, with volume in excess of 11,000 contracts versus average daily volume of around 500 contracts. June and July expiry calls also attracted heavier than usual trading traffic on Thursday, with much of the volume changing hands within minutes of the closing bell. Buyers of front month calls yesterday afternoon are seeing big overnight gains in the value of their positions today. The most-traded contracts by volume on CA yesterday were the Jun $28 strike calls. It looks like one or more traders may have purchased roughly 7,000 of the $28 calls for an average premium of $0.45 apiece. These contracts are currently trading at $1.35 each as of 11:15 a.m. ET, down from an earlier high of $2.00 in premium apiece. A burst of activity near the close of trading on Thursday occurred in the July expiry calls as well, with around 1,400 lots purchased at the $28 strike for an average premium of $0.80 each, and 500 calls picked up at each of the $29 and $30 strikes at average premiums of $0.40 and $0.20 apiece, respectively. The $28, $29 and $30 strike calls today are trading at $1.70, $1.10 and $0.65 per contract as of the time of this writing. Buyers of the bullish options yesterday have in some cases seen a three-fold increase in the value of their contracts overnight. Finally, traders positioning for shares in CA to extends gains snapped up calls on the stock straight out of the gate on Friday. Much of the volume is concentrated in the July expiry options, with calls purchased across the several in and out of the money striking prices.

GME - GameStop Corp. – Video game retailer, GameStop Corp., is in rally mode on Friday, with shares up as much as 8.2%…
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Value of Large Temple-Inland Call Spread Pops Post-IP Takeover Attempt

Today’s tickers: TIN, CA, CTRP & VPRT

TIN - Temple-Inland, Inc. – Just under two weeks ago we made note of a sizable bullish transaction on Temple-Inland in which one strategist purchased a call spread in the January 2012 contract to position for a huge rally in shares of the corrugated packaging producer by expiration. As it turns out, the run-up in the price of the underlying stock arrived far sooner than predicted by the spread, with shares soaring 42.6% at the start of today’s session to an intraday- and multi-year high $29.97 following a hostile $3.31 billion takeover offer from International Paper Co. The bullish investor paid a net premium of $1.10 per contract back on May 25 – when shares in TIN were trading around $22.81 – for the 6,425-lot Jan. 2012 $25/$30 call spread. Call open interest at these strikes indicates the trader is still holding on to the position. To purchase the same Jan. 2012 $25/$30 call spread in the aftermath of the takeover bid, one would need to shell out a net premium of $3.70 per contract at present, which is $2.60 per contract more than the investor paid less than two weeks prior. Meanwhile, options traders taking to Temple-Inland today are focusing their attention on nearer-term contracts. Frenzied put selling is taking place at the June $29 strike where it looks like at least 6,500 puts sold for an average premium of $0.17 each. Traders short the puts keep the full amount of premium received on the transaction as long as shares in TIN exceed $29.00 through June expiration. Approximately 9,100 puts appear to have changed hands at that strike against zero open positions as of 11:45am in New York. Temple-Inland’s overall reading of options implied volatility is currently 32.8% lower to arrive at 23.76%.…
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Options Player Reveals Long-Term Bullish Sentiment on AIG

Today’s tickers: AIG, MU, F, POT, CLF, PAYX, ERIC, SVU, LFC & CA

AIG – American International Group, Inc. – The insurer’s shares experienced a fantastic 56.7% run up from its low point in the current month of $24.54 on March 3, 2010, up to yesterday’s intraday high of $38.45. During the current session, AIG surrendered a small portion of its recent share price gains, slipping slightly lower by 1.40% to stand at $34.62 in afternoon trading. Extreme-bullish positioning in long-dated options caught our attention today as one investor established a call spread in the January 2011 contract. The optimistic trader purchased 5,500 calls at the January 2011 $50 strike for a premium of $3.65 apiece, and sold the same number of calls at the higher January 2011 $75 strike for $1.30 each. The net cost of the transaction, and maximum loss potential faced by the investor, amounts to $2.35 per contract. American International Group’s shares must surge 51.2% from the current price of $34.62 in order for the trader to break even on the spread at $52.35 per share. Perhaps the individual responsible for the trade expects AIG’s shares to rebound up to the current 52-week high on the stock of $55.90 (attained back on August 28, 2009), or above within the next ten months to expiration. Maximum available profits of $22.65 per contract – total gains of $12.4575 million – accumulate for the bullish player if AIG’s shares jump 116.6% from today’s price to $75.00 by January expiration day. Shares last traded above $75.00 back in October of 2008.

MU – Micron Technology, Inc. – A large-volume long-term bullish transaction on the manufacturer of semiconductor devices indicates one big options player anticipates continued upward movement in the price of Micron’s shares by expiration in January 2011. Shares rallied 2.55% to $10.05 this afternoon, but earlier increased more than 4% to reach an intraday high of $10.25. The optimistic investor purchased a debit call spread in by picking up 20,000 in-the-money call options at the January 2011 $10 strike for a premium of $2.07 apiece, marked against the sale of 20,000 calls at the higher January 2011 $15 strike for $0.58 each. The net cost of the spread amounts to $1.49 per contract, positioning the investor to amass profits if Micron’s shares exceed the breakeven price of $11.49 by expiration next year. Maximum potential profits of $3.51 per contract…
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Options Trader Constructs Bullish Risk Reversal on SandRidge Energy, Inc.

Today’s tickers: SD, DTV, YHOO, SLXP, MDVN, PDCO, XLE, LOW, AIG & CA

SD – SandRidge Energy, Inc. – A bullish risk reversal on natural gas and oil exploration and development company, SandRidge Energy, Inc., suggests one investor may be positioning for a rally in the value of the underlying shares by expiration in June. SandRidge’s shares slipped 0.50% during the session to stand at $8.52. The trader sold 10,000 put options at the June $7.5 strike for an average premium of $0.53 apiece in order to offset the cost of buying 10,000 calls at the higher June $9.0 strike for $0.90 each. The net cost of the reversal play amounts to $0.37 per contract. Shares of the energy firm must rally approximately 10% over the current day’s price in order for the trader to break even on the transaction at $9.37. Profits are available to the upside beyond the breakeven point at $9.37 through expiration day in June.

DTV – The DIRECTV Group, Inc. – Investors sold strangles on the subscription television services company today amidst a 0.55% rally in the price of the underlying stock to $33.83. The use of the short strangle strategy implies traders anticipate reduced volatility in the price of DTV shares and expect the share price to remain range-bound through expiration in June. Throughout the trading session options traders sold approximately 15,000 calls at the June $35 strike for an average premium of $1.77 apiece in combination with the sale of 15,000 puts at the lower June $30 strike for a premium of $0.78 each. Strangle-sellers pocket a gross premium of $2.55 per contract, which they keep if Directv’s share price trades within the range of $30.00 to $35.00 through expiration. The premium received on the transaction provides limited protection against losses should DTV’s shares swing outside of the strike prices described. Stranglers accumulate losses if shares of Directv trade above the upper breakeven price of $37.55, or if shares decline beneath the lower breakeven point at $27.45, by expiration day.

YHOO – Yahoo!, Inc. – The slight 0.15% decline in the price of Yahoo’s shares to $15.55 today did not some options traders from establishing bullish stances on the stock. One individual initiated a bullish risk reversal to position for a rebound in shares by expiration in January of 2011. The investor sold 15,000 put options at the January 2011 $15 strike for…
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Phil's Favorites

The Fed finds another kitchen sink to throw at us

 

The Fed finds another kitchen sink to throw at us

Courtesy of 

This morning, Federal Reserve Chairman Jerome Powell will be speaking on the just-unveiled $2.3 trillion plan to get more money flowing throughout our shutdown economy.

The Fed’s dual mandate is stable prices and full employment. This morning we learned that another 6 million people have filed for unemployment insurance last week, which is on top of the 10 million cumulative from the previous two weeks. Small and midsize enterprises account for more than 40% of all economic activity and employment – so going directly to Main Str...



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Biotech/COVID-19

COVID-19 is hitting black and poor communities the hardest, underscoring fault lines in access and care for those on margins

 

COVID-19 is hitting black and poor communities the hardest, underscoring fault lines in access and care for those on margins

Nurse Shelia Rickman participates in an after-shift demonstration on Monday, April 6, 2020, in Chicago’s Hyde Park neighborhood, after media reports of disproportionate numbers of black people dying from COVID-19 in the city. AP Photo/Charles Rex Arbogast

Grace A. Noppert, University of North Carolina at Chapel Hill

As the COVID-19 epidemic continues to ravage the American public, an unsurprisin...



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ValueWalk

Coronavirus symptoms, causes, prevention and cure

By Jacob Wolinsky. Originally published at ValueWalk.

The best case situation for Coronavirus or COVID-19 is that in a few weeks it dies down and things get back to normal. However, we must entertain the possibility of a far more frightening scenario.

COVID-19 models continue to change for the better

April 9, 2020 Update: More than 1.5 million people around the world have been infected by the novel coronavirus, and nearly 90,000 have died. In the U.S., the death toll surpassed 14,000 on Wednesday. Tuesday alone saw a record 1,858 deaths. So far, approximately 425,000 people in the U.S. have tested positive for COVID-19.

Although researchers say the peak hasn’t been reached yet, the model in use by the White House and many other agencies was updated on Wednesday. The number of projected deaths from the virus in the U.S. declined to 60,415 by August, compared...



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Kimble Charting Solutions

Silver/Gold Indicator Creates Largest Bullish Pattern In Decades!

Courtesy of Chris Kimble

Is an important metals indicator sending one of the largest bullish messages in nearly 50-years? Very Possible!

This chart looks at the Silver/Gold ratio on a monthly basis since the mid-1970s. Historically metals bulls want to see the ratio heading up, to send the metals complex a solid bullish message.

The ratio hit the top of the falling channel (A) back in 2011, where it created a large bearish reversal pattern. Since creating the bearish pattern at resistance, the ratio has experienced a significant decline.

9 years after hitting the top of the channel the ratio hit the bottom of the channel at (1) last month, where it looks to have created one of the largest monthly b...



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Zero Hedge

Futures Reverse Rally As Oil Slides Ahead Of Surge In Unemployment Claims

Courtesy of ZeroHedge View original post here.

U.S. stock index futures dipped on Thursday, reversing a 3-day rally as investors braced for another staggering weekly jobless claims number, while European stocks clung to modest gains on the last trading day before the Easter holiday. Oil initially rose in the wake of Russia signaling readiness to cut output although US resistance to join the conversation has sparked concerns today's OPEC+ meeting could end up a major disappointment.

...



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The Technical Traders

Adaptive Fibonacci Suggests Much Lower Prices Yet To Come - Part I

Courtesy of Technical Traders

Our Adaptive Fibonacci Price Modeling system suggests a much deeper price move is in the works and the current price rally will likely end near resistance levels identified by the Adaptive Fibonacci Price Modeling system.  We are posting this research post for friends and followers to help them understand the true structure of price and to allow them to prepare for what we believe will become a much deeper downside price move in the future.

Fibonacci Price Theory teaches us that price moves in waves within up and down price cycles. The recent peak in price, near February 25, 2020, has resulted in a very deep -36% price collapse in the S&P 500 (ES) recently. This dow...



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Chart School

The Big Short movie guides us to what is next for the stock market

Courtesy of Read the Ticker

There is nothing new in WallStreet, it is only the players that change. Sometimes a market player or an event gets ahead of the crowd and WallStreet has to play catch up.

Previous Post Dow 2020 Crash Watch Dow, Three strikes and your out!

It is important to understand major WallStreet players do not want to miss out on a money making moves.  







...

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Insider Scoop

Economic Data Scheduled For Friday

Courtesy of Benzinga

  • Data on nonfarm payrolls and unemployment rate for March will be released at 8:30 a.m. ET.
  • US Services Purchasing Managers' Index for March is scheduled for release at 9:45 a.m. ET.
  • The ISM's non-manufacturing index for March will be released at 10:00 a.m. ET.
  • The Baker Hughes North American rig count report for the latest week is scheduled for release at 1:00 p.m. ET.
...

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Members' Corner

10 ways to spot online misinformation

 

10 ways to spot online misinformation

When you share information online, do it responsibly. Sitthiphong/Getty Images

Courtesy of H. Colleen Sinclair, Mississippi State University

Propagandists are already working to sow disinformation and social discord in the run-up to the November elections.

Many of their efforts have focused on social media, where people’s limited attention spans push them to ...



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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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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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