Posts Tagged ‘CASY’

Contrarian Player Constructs Three-Legged Bullish Spread on Sprint Nextel Corp.

Today’s tickers: S, WFC, LAMR, MGM, AMR, CASY & AIG

S - Sprint Nextel Corp. – A sizeable long-term bullish transaction involving 30,000 option contracts on Sprint Nextel Corp. indicates one optimistic player expects shares in the telecommunications company to rebound ahead of February 2011 expiration. Since reporting third-quarter earnings the morning of October 27, 2010, Sprint’s shares have fallen as much as 20.4% from a high of $4.85 on October 26 to today’s lowest value of $3.86. It looks like the 20% correction in the price of the underlying stock has made conditions favorable enough for this contrarian strategist to establish a relatively cheap bullish stance on Sprint. The trader enacted a three-legged bullish position, selling a chunk of put options in order to partially finance the purchase of a debit call spread. Sprint’s shares have recovered off their intraday low of $3.86 and are currently down 2.2% to stance at $4.01 as of 2:55 pm. The investor sold 10,000 puts at the February 2011 $3.5 strike for a premium of $0.21 each, purchased 10,000 now in-the-money calls at the February 2011 $4.0 strike at a premium of $0.43 per contract, and sold 10,000 calls at the February 2011 $5.0 strike for a premium of $0.16 apiece. Net premium paid to initiate the three-legged spread amounts to $0.06 per contract. The investor responsible for the transaction makes money if Sprint’s shares rally 1.25% over the current price of $4.01 to surpass the effective breakeven point at $4.06 by expiration day in February. The bullish trader will walk away with maximum potential profits of $0.94 per contract if Sprint’s shares surge 24.7% and trade above $5.00 ahead of expiration next year. The short stance in Feb. 2011 $3.5 strike puts implies the investor sees shares trading above $3.50, but also indicates his willingness to have 1 million shares of the underlying put to him at that price if the puts should land in-the-money by expiration. Interestingly, Sprint is scheduled to report fourth-quarter earnings…
continue reading


Tags: , , , , , ,




Appetite for Options on YUM! Brands, Inc. Grows Ahead of Earnings

Today’s tickers: YUM, INTC, CBRL, CASY, RMD, PG & STEC

YUM – YUM! Brands, Inc. – Traders are placing bullish and bearish bets on the operator of KFC, Pizza Hut and Taco Bell ahead of the firm’s second-quarter earnings report slated for release after the closing bell on Tuesday afternoon. YUM’s shares are up 0.97% to stand at $40.66 with 35 minutes remaining in the trading day. The overall reading of options implied volatility jumped 21.8% to 33.38% this afternoon as investors anxiously await the firm’s earnings for the second quarter. Some investors are preparing for a rally following earnings and ahead of July expiration. These optimistic individuals picked up at least 1,300 now in-the-money calls at the July $40 strike for an average premium of $1.13 apiece. Investors long the calls make money if YUM’s shares increase 1.15% to trade above the effective breakeven price of $41.13 by expiration on Friday. Bullish sentiment spread to the higher July $41 strike where 1,000 calls were purchased at an average premium of $0.57 a-pop. Traders long the higher-strike call options stand ready to accrue profits should YUM! Brands’ shares rally 2.2% to surpass the average breakeven price of $41.57 by expiration day. In contrast to the bullish behavior observed, pessimistic players purchased put options on the stock to position for disappointing second-quarter earnings from the firm. Bears bought approximately 4,900 puts at the July $40 strike for an average premium of $0.95 per contract. Put buyers make money if YUM’s shares decline 3.95% from the current price of $40.66 to breach the average breakeven point to the downside at $39.05 by July expiration.

INTC – Intel Corp. – Options investors are hard at work populating the chip maker with various trading strategies ahead of Intel’s second-quarter earnings report scheduled for release after the closing bell tomorrow. Thus far in the session more than 144,700 option contracts have changed hands on INTC with investors exchanging 2 call options on the stock for each single put option in play today. The semiconductor manufacturer’s shares are currently up 1.40% to stand at $20.53 as of 3:10 pm (ET). One options trader expecting Intel’s shares to remain range-bound through expiration in January 2012 opted to sell a strangle in the first half of the trading session. It looks like the investor sold 5,000 calls at the January 2012 $25 strike for a premium of $1.54…
continue reading


Tags: , , , , , ,




 
 
 

Phil's Favorites

As schools prepare to reopen during COVID-19, are the kids alright?

 

As schools prepare to reopen during COVID-19, are the kids alright?

A seven-year-old boy waits at the bus stop in Dallas, Ga., for the first day of school on Aug. 3, 2020. Canadian schools are reopening in September, but is anyone really thinking about the well-being of the children? (AP Photo/Brynn Anderson)

Courtesy of Sydney Chapados, Carleton University

As September approaches and schools prepare to reopen, there are concerns for children, including the risk they might spread COVID-19, ...



more from Ilene

Biotech/COVID-19

As schools prepare to reopen during COVID-19, are the kids alright?

 

As schools prepare to reopen during COVID-19, are the kids alright?

A seven-year-old boy waits at the bus stop in Dallas, Ga., for the first day of school on Aug. 3, 2020. Canadian schools are reopening in September, but is anyone really thinking about the well-being of the children? (AP Photo/Brynn Anderson)

Courtesy of Sydney Chapados, Carleton University

As September approaches and schools prepare to reopen, there are concerns for children, including the risk they might spread COVID-19, ...



more from Biotech/COVID-19

ValueWalk

Emerging Market Airports - Broyhill Asset Management

By Jacob Wolinsky. Originally published at ValueWalk.

Broyhill Asset Management investment thesis on Mexico’s airports.

The economic impacts of COVID-19 have been felt far and wide. The pandemic has indiscriminately affected both developing and emerging economies. The virus has shuttered some businesses but has also created some interesting opportunities for the long-term, value-oriented investor.

Emerging market air travel has been hard hit by the global pandemic. But air travel is key to economic development.  Airports are recognized as critical infrastructure, supporting employment and fostering growth in tourism, trade, and business.

Broyhill Asset Management’s investment thesis below, highlights how private airports carry lower risk than airlines, generate highe...



more from ValueWalk

Kimble Charting Solutions

History Says Gold Correction Could Lead to Big Rally!

Courtesy of Chris Kimble

Over a decade ago, Gold rallied past its 1980 highs and over $1000/oz at (1) on today’s chart.

That rise to new highs was met with a 30 percent correction at (2), followed by a blast off rally to new highs.

Is gold setting up for a repeat of its past?

Gold recently rallied past its 2011 highs and above $2000/oz. Could Gold soon turn lower for a sharp correction before another blast off toward $3000?

If so, Gold bulls should look for a pullback, before blasting higher. Stay tuned!

This article was first written fo...



more from Kimble C.S.

Zero Hedge

El Erian: Reading The Dollar Doldrums

Courtesy of ZeroHedge View original post here.

Authored by Mohamed El-Erian via Project Syndicate,

A sharp decline in the relative value of the dollar this year has been met with cheers from those hoping for a short-term boost to the US economy, and with hand-wringing by those worried about the currency's global standing. But while both views reflect underlying truths, neither tells the whole story.

...



more from Tyler

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...



more from Tech. Traders

Chart School

Silver Big Channel

Courtesy of Read the Ticker

Big channels are the sand pit of price action. Lets review some big trends of these past months.


GLD
- Moving higher to upper solid red line channel


Click for popup. Clear your browser cache if image is not showing.






XAU
- Ready to pause, or simply explode.



Click for popup. Clear your browser cache if image is not showing.





SILVER
- Ready to pause, or simply explode.


Click for popup. Clear your browser cache if image i...



more from Chart School

Digital Currencies

Raoul Pal: "It May Not Be Worth Owning Any Asset Other Than Bitcoin"

Courtesy of ZeroHedge View original post here.

Authored by Turner Wright via CoinTelegraph.com,

Raoul Pal, CEO and founder of Real Vision, says Bitcoin may soon become his only asset for long-term investments.

image courtesy of CoinTelegraph ...



more from Bitcoin

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...



more from Lee

Members' Corner

Coronavirus, 'Plandemic' and the seven traits of conspiratorial thinking

 

Coronavirus, 'Plandemic' and the seven traits of conspiratorial thinking

No matter the details of the plot, conspiracy theories follow common patterns of thought. Ranta Images/iStock/Getty Images Plus

Courtesy of John Cook, George Mason University; Sander van der Linden, University of Cambridge; Stephan Lewandowsky...



more from Our Members

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.
...

http://www.insidercow.com/ more from Insider

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.  

...

more from Promotions

Mapping The Market

How IPOs Are Priced

Via Jean Luc 

Funny but probably true:

...

more from M.T.M.





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...

Learn more About Phil >>


As Seen On:




About Ilene:

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