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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ValueWalk

Coronavirus stimulus checks: Trump says he can overcome GOP resistance in 'two minutes'

By Aman Jain. Originally published at ValueWalk.

Hopes of another coronavirus stimulus reignited after Treasury Secretary Steve Mnuchin and House Speaker Nancy Pelosi restarted negotiations. Though the two are seemingly close to striking a deal, Senate Majority Leader Mitch McConnell is likely to block any such deal. When President Donald Trump was asked about possible resistance from the GOP over the coronavirus stimulus and checks, he said he would take care of it in “two minutes.”

Q3 2020 hedge fund letters, conferences and more

Trump confident on overcoming GOP resistance...

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Kimble Charting Solutions

Will 2020 Mark Historic Low For Interest Rates?

Courtesy of Chris Kimble

US treasury bond yields have been trending lower for over 3 decades. Could the latest drop mark a significant low for bond yields and interest rates?

In today’s chart, we can see that interest rates have had several spike lows and highs, but that each low is lower and each high is lower. That’s the definition of a downtrend. BUT, each of these spike lows has resulted in big rallies within the downtrend channel. And each of these lows and subsequent rallies have been marked by significant momentum lows (see each green line and shaded box).

So is it time for short-term yields to rally?

Looking at the current set-up, we can see that yiel...



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Phil's Favorites

How Criminal Charges Against a Wall Street Icon Went from Front Page News to a Yawn at the New York Times

Courtesy of Pam Martens

E.F. Hutton Story on Front Page of New York Times, May 3, 1985

On May 2, 1985 the highest law enforcement officer in the United States, the head of the U.S. Department of Justice, Attorney General Edwin Meese, held a news conference to announce that the sixth largest brokerage firm on Wall Street, E.F. Hutton, was pleading guilty to 2,000 felony counts of wire and mail fraud. It had also agreed to pay criminal fines of $2 million and up to $8 million in restitution ...



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Zero Hedge

Howard Marks Interviewed: What If The Fed's Master Plan Is To Kill The Business Cycle

Courtesy of ZeroHedge View original post here.

There was a brief period when in the days just after the covid crash, Oaktree's iconic founder Howard Marks - perhaps due to lack of more productive outlets - was publishing memos faster than people could read them. Then, he kinda faded away - perhaps because he was too busy cramming down his fellow investors in creditors fights involving covenant-lite loans - but re-emerged again last week when his latest memo "...



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Biotech/COVID-19

Coronavirus reinfection cases: what we know so far - and the vital missing clues

 

Coronavirus reinfection cases: what we know so far – and the vital missing clues

By Sheena Cruickshank, University of Manchester

As President Trump claims that he is immune to COVID-19 and isolated reports emerge of reinfection, what is the truth about immunity to COVID-19?

To date, there have been six published ...



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Politics

Dan's Covid Charts: Blue States vs. Red States Over Time

 

The trend of lower Covid-19 case numbers per capita in blue states compared to red states isn't itself surprising, but the magnitude of the differences may be. You can visualize the evolving differences in case loads by watching the infection's progression, as measured by cases per capita, at Dan's website.

[Visit Dan’s COVID Charts to see these amazing animated charts and more. Fortunately, Dan broke his Twitter hiatus to share his work.]

People say I should break my 12-year Twitter hiatus to share my latest animated COVID chart. It compares state cases factoring in partisanship since June 1, when science had proven methodology as to how to stop the spread after the initial sucker punch. ...



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Digital Currencies

Bitcoin: the UK and US are clamping down on crypto trading - here's why it's not yet a big deal

 

Bitcoin: the UK and US are clamping down on crypto trading – here's why it's not yet a big deal

Where there’s a bit there’s a writ. Novikov Aleksey

Courtesy of Gavin Brown, University of Liverpool

The sale and promotion of derivatives of bitcoin and other cryptocurrencies to amateur investors is being banned in the UK by the financial regulator, the Financial Conduct Authority (FCA). It is a...



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Chart School

Bitcoin chart review, here we go again!

Courtesy of Read the Ticker

Bitcoin has charged to the moon 4 times, well it looks like we going for a 5th. Bitcoin having 52 week new highs will bring the 'Robin Hoods' into the game.

This time may not be 10x, but 1x or 2x is still very nice thank you!


Chart 1: Accumulation is present, this alone suggest higher prices. In this blog view a typical risk on period is required to allow crypto's to rally (that is SP500 and oil up with the US dollar down), and this may arrive during the US election chaos.


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Chart 2: Big point. Notice how open interest has a lot of room to move before ...

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Mapping The Market

COVID-19 Forces More Than Half of Asset Management Firms to Accelerate Adoption of Digital Marketing Technology

By Jacob Wolinsky. Originally published at ValueWalk.

There is no doubt that the use of technology to support client engagement initiatives brings both opportunities and threats but this has been brought into sharp focus this year with the COVID-19 pandemic.

The crisis has brought to the fore the need for firms to enable flexibility in client engagement – the expectation that providers will communicate to clients on their terms, at their speed and frequency and on their preferred channels, is now a given. This is even more critical when clients are experiencing unparalleled anxiety from both market conditions and their own personal circumstances.

...

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The Technical Traders

Adaptive Fibonacci Price Modeling System Suggests Market Peak May Be Near

Courtesy of Technical Traders

Our Adaptive Fibonacci Price Modeling system is suggesting a moderate price peak may be already setting up in the NASDAQ while the Dow Jones, S&P500, and Transportation Index continue to rally beyond the projected Fibonacci Price Expansion Levels.  This indicates that capital may be shifting away from the already lofty Technology sector and into Basic Materials, Financials, Energy, Consumer Staples, Utilities, as well as other sectors.

This type of a structural market shift indicates a move away from speculation and towards Blue Chip returns. It suggests traders and investors are expecting the US consumer to come back strong (or at least hold up the market at...



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Lee's Free Thinking

Texas, Florida, Arizona, Georgia - The Branch COVIDIANS Are Still Burning Down the House

 

Texas, Florida, Arizona, Georgia – The Branch COVIDIANS Are Still Burning Down the House

Courtesy of Lee Adler, WallStreetExaminer 

The numbers of new cases in some of the hardest hit COVID19 states have started to plateau, or even decline, over the past few days. A few pundits have noted it and concluded that it was a hopeful sign. 

Is it real or is something else going on? Like a restriction in the numbers of tests, or simply the inability to test enough, or are some people simply giving up on getting tested? Because as we all know from our dear leader, the less testing, the less...



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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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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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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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