Posts Tagged ‘CAG’

Hertz Investors Hurting As Stock Tumbles On Revised Annual Forecast

HTZ – Hertz Global Holdings Inc. – Investors in car rental company Hertz Global Holdings Inc. are taking it on the chin today, with shares in the name sliding as much as 13% in the early going to a three-month low of $22.47. Shares fell after Hertz lowered its full year 2013 earnings and revenue guidance, primarily due to weaker than expected U.S. airport car rentals, according to a press release issued by the company.  

October expiry put options changing hands on the stock this morning indicates one or more traders are bracing for shares in the name to weaken further in the near term. Around 2,000 of the Oct $23 strike puts appear to have been purchased, most of the contracts at a premium of $1.00 each. Put buyers make money at expiration next month if shares in HTZ decline 2.0% from today’s low of $22.47 to breach the breakeven point on the downside at $22.00. Shares in Hertz last traded below $22.00 in April. 

CAG – ConAgra Foods, Inc. – Shares in the provider of Chef Boyardee, Hunt’s and other branded consumer food products are in negative territory on Thursday morning, off 0.25% at $30.37 as of 10:45 a.m. ET. The stock has been hit hard in recent weeks, currently down more than 18% from a multi-year high of $37.28 reached at the beginning of August.

Trading in ConAgra call options this morning, however, suggests some strategists may be positioning for the price of the underlying to rebound during the final months of 2013. The most traded options contracts on CAG thus far in the session are the Dec $32 strike calls, with volume topping 5,500 contracts versus open interest of 1,615 contracts. Time and sales data suggests most of the volume was purchased within 15 minutes of the opening bell at a premium of $0.55 each. Call buyers may profit at December expiration in the event that ConAgra’s shares rally 7.0% over the current price of $30.28 to exceed the breakeven point at $32.55. 


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ConAgra Call Options Active As Shares Soar To Multi-Year Highs

 

Today’s tickers: CAG, NSC & JEF

CAG - ConAgra Foods, Inc. – Options on food products company, ConAgra Foods, Inc., are more active than usual this morning after the provider of Snack Packs, Slim Jims and Hebrew National hot dogs boosted its quarterly dividend and raised its full-year earnings forecast. Shares in CAG rallied more than 8% this morning to a multi-year high of $27.75. Traders positioning for shares in the name to extend gains in the near term snapped up call options in the September and October expiries. Overall volume in ConAgra options today is above 12,400 contracts as of 12:00 p.m. ET; heavy activity for the name, which typically sees average daily options volume of 598 contracts. Upside call buying in contracts with just one full trading day remaining to expiration indicate some strategists anticipate a strong end to the week for ConAgra shares. Traders appear to be buying most of the volume in the Sep. $27 and $28 strikes this morning at average premiums of $0.27 and $0.05 apiece. Thus far in the session, these contracts have traded more than 1,600 times each. Fresh interest in the Oct. $28 strike call, where 1,400 contracts changed this morning versus zero open positions, appears to have been largely initiated by buyers paying an average premium of $0.20 per contract. Traders long the calls profit at expiration next month as long as shares in ConAgra rally another 3% over the current price of $27.35 to top the average breakeven point at $28.20.

NSC - Norfolk Southern Corp.– Rail transportation services provider, Norfolk Southern Corp., said Wednesday third-quarter earnings are likely to trail analyst estimates, sending the price of its shares down nearly 10% this morning to $65.58. At least one options trader is positioned for the shares to come off further. It looks like the strategist purchased a 2,000-lot Oct. $60/$65 bear put spread at an average net premium outlay of $0.65 per contract. The…
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Dell Options In Demand

Today’s tickers: DELL, CAG, GPS & XLNX

DELL - Dell, Inc. – Strategists populating Dell options today are sending mixed signals on the PC maker ahead of the company’s first-quarter earnings report on May 17. Call buyers in the June contract appear to be gearing up for a rally in the price of the underlying shares, while ratio put spreaders are taking a more cautious stance on the stock. Shares in Dell are currently up 0.25% to stand at $15.84 as of 12:15pm. Options traders exchanged more than 9,800 calls at the June $16 strike on open interest of 3,774 contracts. It looks like nearly all of the contracts were purchased for an average premium of $0.63 a-pop. Investors long the calls profit if DELL’s shares rally 5.0% over the current price of $15.84 to exceed the average breakeven price of $16.63 by expiration day next month. Meanwhile, one or more put players initiated ratio spreads. Approximately 3,500 in-the-money puts at the June $16 strike were purchased for an average premium of $0.81 each, while 7,000 puts at the lower June $15 strike sold for an average premium of $0.37 apiece. Investors employing the spreads paid a net premium of $0.07 per contract, on average. The sale of twice as many of the lower-strike put options substantially reduced the cost of positioning for a pullback in Dell’s shares through expiration day next month. Traders may be using the put-play to hedge a long position in the stock, or may be positioning for shares to decline rather than rally as call buyers’ actions suggest. The parameters of the put spread, for outright bearish players, indicate maximum potential profits of $0.93 per contract if shares in DELL settle at $15.00 at expiration. But, if the position turns out to be not quite bearish enough, investors start losing money beneath a breakeven share price of $14.07.…
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Motorola-Bull Cleans Up

Today’s tickers: MOT, RIMM, WMB, CAG, PFCB & SAI

MOT – Motorola, Inc. – Shares of the maker of the Droid smartphone fell in morning trading but recovered during the session to add as much as 3 pennies or 0.35% to arrive at an intraday-high of $8.39 this afternoon. Motorola appeared on our ‘most active by options volume’ market scanner today after one options player appears to have booked profits on a previously established bullish position. It looks like the investor originally purchased roughly 28,000 calls at the September $7.0 strike for an average premium of $0.70 each back on August 19, 2010, when MOT shares were trading at a volume-weighted average price of $7.55. The appreciation in the price of the underling since the calls were purchased lifted premium on the September $7.0 strike calls, allowing the trader to sell the contracts for $1.35 in premium apiece today. Net profits on the transaction amount to $0.65 per contract. Next, it looks like the bullish player re-opened, or rolled, the position to the higher October $8.0 strike where approximately 28,000 calls were picked up at an average premium of $0.10 a-pop. The investor starts to make money on the fresh batch of calls if Motorola’s shares surge 8.5% over the current price of $8.39 to surpass the effective breakeven price of $9.10 by expiration. We note that the investor may walk away with profits on the new long call position before October expiration if circumstances going forward lift the premium on those calls and the trader opts to sell the position at an advantageous price.

RIMM – Research in Motion Ltd. – Options on the Blackberry maker are a hot ticket item today ahead of the firm’s second-quarter earnings report scheduled for release after the closing bell this afternoon. Frenzied trading ensued right out of the gate this morning with investors heavily trafficking in September and October contract call and put options. Shares are currently up 1.1% at $46.02 as of 1:45 pm ET, but earlier rallied as much as 2.3% to reign in an intraday high of $46.58. The overall reading of options implied volatility on the stock increased 5.1% in the first half of the session to top out at 58.22%, but has come off to stand just 2.6% higher on the day at 56.82%. Although more than 1.7 call options changed hands for each single put on…
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Blackberry Bull Banks Profits as RIMM Shares Rebound

Today’s tickers: RIMM, BAC, VZ, CAG, NYB, RMBS, TEVA, DIS & NVDA

RIMM – Research in Motion Limited – Blackberry maker, Research in Motion, revealed a distribution deal with Digital China – a unit of Legend Holdings – aimed at expanding its business in China. Shares stood 2.5% higher to $60.22 thirty minutes before the closing bell. One option investor banked profits on a previously established call position in the January 2010 contract today. It appears the trader originally purchased 25,000 calls at the January 80 strike for 30 cents apiece on December 4, 2009. Today the investor shed all 25,000 lots for 43 cents each. Net profits on the closing sale amount to 13 cents per contract for total gains of $325,000. Option implied volatility on the stock is up slightly on the day to 59.91%.

BAC – Bank of America Corp. – A bearish risk reversal on Bank of America this afternoon suggests one investor expects shares to suffer significant declines by expiration in May 2010. BAC’s shares slipped 2% to $15.98 in late-day trading. It appears the pessimistic player shed 7,500 calls at the May 22 strike for 36 cents apiece in order to partially offset the cost of buying the same number of put options at the lower May 13 strike for 70 cents premium each. The net cost of the transaction amounts to 34 cents per contract. The effective breakeven point on the put options of $12.66 is 20.77% lower than the current price per BAC share. The investor responsible for the reversal could be taking an extremely bearish bet on Bank of America. If this is the case, the investor expects shares to nosedive down to lows experienced at the end of July 2009. Alternatively, the trader could be long the stock, and financing cheap downside protection by selling covered call options. The long puts serve as protection in case the stock tumbles, whereas the short calls suggest the investor is happy to have the underlying stock position called from him at $22.00 each. Shares of BAC would need to rally 38% from the current price in order for the March 22 strike calls to land in-the-money.

VZ – Verizon Communications, Inc. – Option traders displayed mixed near-term sentiment on the communications company this afternoon. Shares edged 2% higher to a new 52-week high of $33.36 with less than one hour remaining in the…
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Phil's Favorites

Tell Me a Story

 

Tell Me a Story

Courtesy of Scott Galloway, No Mercy/No Malice,@profgalloway

“A man’s reach should exceed his grasp, or what’s a heaven for?”

                                                    — Robert Browning

Entrepreneur is a synonym for salesperson, and salesperson is the pedestrian term for storyteller. Pro tip: No startup makes sense. We (entrepreneurs) are all impostors who must deploy a fiction (i.e. story) that captures imaginations and capital to pull the future forward and turn rhyme into reason. No business I have started, at the m...



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Zero Hedge

US To Close Borders To Unvaccinated Canadian, Mexican Truckers On Saturday

Courtesy of ZeroHedge View original post here.

By Nate Tabak of FreightWaves,

The U.S. will close its borders to unvaccinated and partially vaccinated Canadian and Mexican truck drivers on Saturday, the Department of Homeland Security said on Thursday.

“These updated travel requirements reflect the Biden...



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Biotech/COVID-19

Long COVID: For the 1 in 10 patients who become long-haulers, COVID-19 has lasting effects

 

Long COVID: For the 1 in 10 patients who become long-haulers, COVID-19 has lasting effects

Long COVID appears to affect about one in 10 people who have recovered from a COVID-19 infection. (Shutterstock)

Courtesy of Manali Mukherjee, McMaster University and Zain Chagla, McMaster University

Even as the unpredictable rise and fall of COVID-19 infections continues at home and around the world, a new and ugly pandemic-related problem is emerging.

We know it generically as “...



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Chart School

Bitcoin Swings Down to Support

Courtesy of Read the Ticker

Come on! Seriously do you think a 400% rally for Bitcoin was going to be given to the public easily. Without any pain! Come on muppets!

The uniformed (public) buy when price is rising or breaking new highs, the informed buy when price is falling or breaking lows.

The informed have to do it this way as they are large volume players and the only way they can buy large volume is to create chaos. The chaos brings to the market the weak holders and a forced sell. Price is moved to where the volume can be accumulated, in a bull trend that is down to critical support.

Of course if price is in a true bull market the 'chaos' created should not break critical long term trend signals, the short and intermediate term signals are fair game. The next fe...

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ValueWalk

Elm Ridge 4Q21 Commentary: The Punch You Don't See

By Jacob Wolinsky. Originally published at ValueWalk.

Elm Ridge commentary for the fourth quarter ended December 31, 2021, titled, “The Punch You Don’t See.”

Q4 2021 hedge fund letters, conferences and more

“Graham and Dodd investors are people who place a very high value on having the last laugh. In exchange for the privilege they have missed out on a lot of laughs in between.” – Michael Lewis

“It’s the punch you don’t see coming that knocks ...



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Kimble Charting Solutions

Nasdaq Weakness Has Bears Circling Tech Stocks!

Courtesy of Chris Kimble

One theme over the past several months has been tech stock’s under-performance. And 2022 seems to be amplifying this theme as we kick off the new year.

Today’s chart focus is on the ratio of the Nasdaq Composite to the S&P 500 Index. We have shared this ratio a few times recently as the price pattern has become a concern.

As you can see in the chart, there’s a potential that the ratio double topped last year at the 2000 highs. And weakness this month has it attempting to break dual support at...



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Politics

What Supreme Court's block of vaccine mandate for large businesses will mean for public health: 4 questions answered

 

What Supreme Court’s block of vaccine mandate for large businesses will mean for public health: 4 questions answered

New York City’s vaccine mandates are unaffected by the court ruling. AP Photo/Mary Altaffer

Courtesy of Debbie Kaminer, Baruch College, CUNY

The U.S. Supreme Court on Jan. 13, 2022, blocke...



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Digital Currencies

The metaverse is money and crypto is king - why you'll be on a blockchain when you're hopping

 

The metaverse is money and crypto is king – why you’ll be on a blockchain when you’re virtual-world hopping

In the metaverse, your avatar, the clothes it wears and the things it carries belong to you thanks to blockchain. Duncan Rawlinson - Duncan.co/Flickr, CC BY-NC

Courtesy of Rabindra Ratan, Michigan State University and Dar Meshi, Michigan State University ...



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Promotions

Phil's Interview on Options Trading with TD Bank

TD Bank's host Bryan Rogers interviewed Phil on June 10 as part of TD's Options Education Month. If you missed the program, be sure to watch the video below. It should be required viewing for anyone trading or thinking about trading using options. 

Watch here:

TD's webinar with Phil (link) or right here at PSW

Screenshots of TD's slides illustrating Phil's examples:

 

 

&n...



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Mapping The Market

Suez Canal: Critical Waterway Comes to a Halt

 

Suez Canal: Critical Waterway Comes to a Halt

Courtesy of Marcus Lu, Visual Capitalist

The Suez Canal: A Critical Waterway Comes to a Halt

On March 23, 2021, a massive ship named Ever Given became lodged in the Suez Canal, completely blocking traffic in both directions. According to the Suez Canal Authority, the 1,312 foot long (400 m) container ship ran aground during a sandstorm that caused low visibility, impacting the ship’s navigation. The vessel is owned by Taiwanese shipping firm, Evergreen Marine.

With over 2...



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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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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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