Posts Tagged ‘CBI’

Bearish Trades Initiated In Autodesk Options

Today’s tickers: ADSK, SODA & CBI

ADSK - Autodesk, Inc. – Shares in the maker of 2D and 3D design and engineering software are down more than 4.0% today at $35.01 as of 11:40 a.m. ET and options activity on the stock this morning suggests some traders are bracing for the price of the underlying to extend losses during the next couple of weeks. Trading traffic in Autodesk options is heaviest at the Aug $34 strike where upwards of 2,900 puts have changed hands against open interest of 757 contracts. Time and sales data suggests most of the volume was purchased during morning trading for an average premium of $0.33 apiece. Put buyers may profit at expiration next month in the event that ADSK shares slide 3.8% from the current price of $35.01 to breach the average breakeven point on the downside at $33.67. The August expiry put options were also trading heavily during Tuesday’s session. It looks like a roughly 1,900-lot Aug $33/$35 put spread was purchased yesterday at an average net cost of $0.25 per contract. The bearish spread may generate maximum potential profits of $1.75 per contract if shares in Autodesk drop 5.7% to $33.00 by August expiration. The cost of initiating the same Aug $33/$35 put spread has roughly doubled overnight to $0.60 per spread as of the time of this writing.

SODA - Sodastream International Ltd. – Bullish options are active on Sodastream today following the company’s better than expected second-quarter earnings report released ahead of the open this morning. Shares in the name jumped more than 16% to $67.81 after the company raised its full year revenue forecast and posted higher than estimated second-quarter results. Traders positioning for shares in SODA to continue higher during the next couple of sessions snapped up weekly calls on the…
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NASDAQ OMX Group Puts In Play As Shares Decline

 

Today’s tickers: NDAQ, CBI & IPGP

NDAQ - NASDAQ OMX Group, Inc. – Bearish options activity on the second-largest U.S. equity exchange operator suggests shares in NASDAQ OMX Group, Inc., currently down 1.3% on the day at $22.86 as of 11:15 a.m. ET, may extend losses during the next couple of months. Better-than-expected second-quarter earnings from the company against the backdrop of a broad market rally added 8% to NDAQ’s share price in the second half of last week. The stock surrendered some of those gains Monday and Tuesday, however, and it appears one strategist is positioned to benefit from continued weakness in the share price going forward. Options on NDAQ are most active at the Sept. $23 strike where upwards of 1,400 in-the-money puts changed hands against open interest of 973 contracts. The buyer of the $23 strike puts paid an average premium of $1.10 apiece and makes money at expiration as long as shares in NASDAQ drop 4% to breach the breakeven point on the downside at $21.90.

CBI - Chicago Bridge & Iron Co. – Traders positioning for shares in Chicago Bridge & Iron Co. to bounce following Monday’s severe 14% decline on news the company agreed to buy Shaw Group Inc. for about $3 billion are picking up front month calls on the stock this morning. Shares in CBI recovered a bit in the first half of the trading session Tuesday, standing 0.50% higher at $35.12 as of midday in New York, despite a number of analyst downgrades. Options players betting on a more substantial recovery in the shares in the next couple weeks traded upwards of 5,800 calls at the Aug. $39 strike against open interest of 492 contracts. It looks like most of the calls were purchased for an average premium of $0.32 apiece, thus positioning buyers to profit in the event of a 12% move to the upside in CBI’s stock price by August expiration.…
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Weekly Wrap-Up – 10,000 or Bust!

I think I was right on the money last week when I said:

The bar for corporate earnings is still set at very easy to beat levels yet, like this limbo-playing child, when they announce their beats of very low expectations we’re going to get all excited and tell them how great they are doing.  The problem is, these are not kids who we hope may grow up one day to be President or CEOs of major companies. these ARE CEOs of major companies and they are being paid top salaries for top performance and we, the stock purchasing public, are paying top dollar for what should be SPECTACULAR performance, not beating 75% off last year’s earnings by a penny! 

In that post, I rattled off a list of stocks that seemed overpriced to me: AMZN, BIDU, AM, PALM, NFLX, PCLN, URBN, UHS, CERN, CREE, GMCR, CY, SWM, TRLG, BKE and you would have had a fabulous week just shorting those stocks as only NFLX, URBN and CREE stayed positive.  Now most newsletter writers would quit right there and make a giant ad saying they were 12 for 15 on the week but, as our members know, THAT'S NO BIG DEAL AT PSW!  I'm just going to remind members that they can refer friends to FREE advice like that in our trial newsletter and earn 20% or more off their subscriptions for doing it. 

Picking stocks is easy but a few percent here and a few percent there isn't much fun is it?  On that list, the two we attacked were AMZN and BIDU, both of which ran (in our opinion) way too high AND had very liquid and very overpriced call options that we could sell to collect premiums.  AMZN is a staple short in our $100K Virtual Portfolio and we had set up BIDU the week before, selling Oct $420 calls for $8.30 and the Oct $430 calls for $7,20.  While both went higher on Monday, the fact that we had a plan for managing the trade kept us from panicking and, thankfully, Monday was the only day those positions gave us trouble and both finished the week worthless (100% profit for us). 

Adjusting our positions kept us busy this week as we STILL have a slightly bearish
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Zero Hedge

Risk Assets Don't Have A Central Bank Superhero This Time

Courtesy of ZeroHedge View original post here.

By Michael Read, Bloomberg Markets Live commentator and reporter

Why hasn’t risk bounced?

Why hasn’t there been a large troupe of dip buyers at the ready after Friday’s rout? 

There are three main factors behind the underwhelming price action so far this week:

  1. The emergence of previous variants has come as central bankers were roughly midway through an easing program: there was a backdrop of asset purchases and dovish forward guidance to placate an angsty market. This time not so much, and while policy makers may twe...



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Phil's Favorites

Omicron: why the WHO designated it a variant of concern

 

Omicron: why the WHO designated it a variant of concern

Courtesy of Ed Feil, University of Bath

The World Health Organization (WHO) has announced that the B.1.1.529 lineage of Sars-CoV-2, thought to have emerged in southern Africa, is to be designated as a variant of concern (VoC) named omicron. This decision has already precipitated a broad shift in priorities in pandemic management on a global scale.

The WHO has recommended, among other things, increased surveillance, particularly virus genome sequencing; focused research to understand the dangers posed by this...



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Biotech/COVID-19

The hunt for coronavirus variants: how the new one was found and what we know so far

 

The hunt for coronavirus variants: how the new one was found and what we know so far Scientists find variants by sequencing samples from people that have tested positive for the virus. Lightspring/Shutterstock

Courtesy of Prof. Wolfgang Preiser, Stellenbosch University; Cathrine Scheepers, University of the Witwatersrand; Jinal Bhiman, National Institute for Communicable Diseases; ...



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Politics

The first Thanksgiving is a key chapter in America's origin story - but what happened in Virginia four months later mattered much more

 

The first Thanksgiving is a key chapter in America’s origin story – but what happened in Virginia four months later mattered much more

In the 19th century, there was a campaign to link the Thanksgiving holiday to the Pilgrims. Bettman/Getty Images

Courtesy of Peter C. Mancall, USC Dornsife College of Letters, Arts and Sciences

This year marks the 400th anniversary of the first Thanksgiving in New England. Remembered and retold as an allegory for perseverance and cooper...



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Chart School

Gold and Silver still working higher

Courtesy of Read the Ticker

Using Gann Angles from zero we can time the next run up, and it is near.

The last two days gold and silver are down on the back of central bankers talking the US Dollar higher in a attempt to off set inflation. A rising dollar is a form of tightening. Also the talk of a faster 'taper' has sent interest rates higher. But Luke Gromen knows this cant not last.

@LukeGromen Externally-financed twin deficit nations with insufficient external financing (ie the US, not Japan) cannot abide rising real rates for long.


RTT Comments: What this means a higher US Dollar makes it harder for those outside the US to buy the vast quantity of US Treasuries. 


U...

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Digital Currencies

Stablecoins: these cryptocurrencies threaten the financial system, but no one is getting to grips with them

 

Stablecoins: these cryptocurrencies threaten the financial system, but no one is getting to grips with them

Safe as houses? iQoncept

Courtesy of Jean-Philippe Serbera, Sheffield Hallam University

Cryptocurrencies have had an exceptional year, reaching a combined value of more than US$3 trillion (£2.2 trillion) for the first time in November. The market seems to have benefited from the public having tim...



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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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Kimble Charting Solutions

Crude Oil Cleared For Blast Off On This Dual Breakout?

Courtesy of Chris Kimble

Is Crude Oil about to blast off and hit much higher prices? It might be worth being aware of what could be taking place this month in this important commodity!

Crude Oil has created lower highs over the past 13-years, since peaking back in 2008, along line (1).

It created a “Double Top at (2), then it proceeded to decline more than 60% in four months.

The countertrend rally in Crude Oil has it attempting to break above its 13-year falling resistance as well as its double top at (3).

A successful breakout at (3) would suggest Crude Oil is about to mo...



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ValueWalk

Managing Investments As A Charity Or Nonprofit

By Anna Peel. Originally published at ValueWalk.

Maintaining financial viability is a constant challenge for charities and nonprofit organizations.

Q4 2020 hedge fund letters, conferences and more

The past year has underscored that challenge. The pandemic has not just affected investment returns – it’s also had serious implications for charitable activities and the ability to fundraise. For some organizations, it’s even raised doubts about whether they can continue to operate.

Finding ways to generate long-term, sustainable returns for ...



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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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