Posts Tagged ‘CBST’

Energy ETF Options Portend Tough Times Ahead, but Smooth Sailing to Follow

 Today’s tickers: XLE, LIZ, NE & CBST

XLE - Energy Select Sector SPDR Fund – Two massive transactions in XLE options today suggest nearer-term pessimism on the energy sector and longer-term optimism. Shares in the fund started the session in positive territory, but the rally proved to be short-lived as shares are currently trading 0.60% lower on the day at $73.72 just before 12:50pm. The XLE, an exchange-traded fund that corresponds to the performance of the Energy Select Sector of the S&P 500 Index, jumped to the top of our ‘most active by options volume’ market scanner this morning after a huge bull call spread was purchased outright in the September contract. The transaction is a profitable one if shares in the XLE top recent highs to trade at levels not seen since mid-2008. The options player purchased 52,750 calls at the September $79 strike for a premium of $2.23 each, and sold the same number of calls up at the September $90 strike at a premium of $0.28 apiece. Net premium paid to initiate the spread amounts to $1.95 per contract, a price tag of more than $10.28 million. Profits are available to the trader should shares in the fund surge 9.8% over the current price of $73.72 to exceed the effective breakeven point at $80.95 by September expiration. Maximum potential profits implied by the spread’s parameters amount to $9.05 per contract if the price of the underlying fund jumps 22.1% in the next four months to trade above $90.00 at expiration. Meanwhile, a large put spread purchased in the nearer-term June ‘30 expiry suggests a less rosy outlook on the energy sector over the next seven weeks. The spread was likely purchased by the investor, although direction in this case is more difficult to determine as both legs of the transaction traded to the middle of the market. The pessimistic player appears to have purchased 33,330 in-the-money puts at the June $75 strike for a premium of $3.27 each, against the sale of the same number of put options at the lower June $65 strike at a premium of $0.52 a-pop. The net cost of the spread amounts to $2.75 per contract, thus yielding profits below…
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Bearish Player Paws at Cubist Pharmaceuticals

Today’s tickers: CBST, STJ, EFA & PEP

CBST - Cubist Pharmaceuticals, Inc. – A three-legged transaction involving Cubist Pharmaceuticals stock, as well as call and put options, appears to be the work of a bearish investor positioning for shares in the name to pullback ahead of August expiration. CBST shares are currently down 1.05% to arrive at $22.15 as of 11:55am in New York. It looks like the strategist initiated a delta neutral position, selling around 88,600 shares at $22.24 each, selling 2,100 calls at the August $30 strike for a premium of $0.80 per contract, and buying 2,100 puts at the August $17 strike at a premium of $1.45 apiece, on a delta of approximately 0.42. The parameters of the transaction prepare the trader to potentially amass substantial profits if shares in the biopharmaceutical company continue to trend lower in the time remaining to expiration. The value of the long put options will rise as shares fall, while the short calls will decline in value and become cheaper to buy back. Erosion in the price of the underlying shares is also favorable on the short stock leg of the transaction.

STJ - St. Jude Medical, Inc. – The medical devices manufacturer popped up on our scanners in early morning trade after a large number of call and put options changed hands in the January 2012 contract. It looks like one investor initiated a sizeable bullish stance on the stock in order to position for shares in St. Jude Medical to rise substantially by January of next year. Shares in the name increased as much as 2.2% today to secure an intraday- and new 52-week high of $44.95 in the first half of the session. The trader appears to have sold 5,900 puts at the January 2012 $40 strike for a…
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Brocade Options Hyperactive

Today’s tickers: BRCD, WYN, CAR, TGT, CBST & KMB

BRCD - Shares of the telecommunications equipment provider continue to rally today. The stock gained more than 6.5% during the session and reached a new 52-week high of $9.65. The BRCD ticker symbol catapulted to the top of our ‘most active by options volume’ market scanner as investors exchanged more than 235,000 option contracts on the stock by lunchtime. It appears one investor executed a massive bull call spread in the November contract. The transaction involved the purchased of about 65,000 calls at the November 12 strike for an average premium of 37 cents each, spread against the sale of approximately 65,000 calls at the higher November 13 strike for 20 pennies apiece. The net cost of the trade amounts to 17 cents per contract for an approximate total price tag of $1,105,000. The investor stands to make 83 cents per contract for maximum potential profits of $5,395,000 if shares of BRCD rise 35% to $13.00 by expiration in November. – Brocade Communications Systems, Inc. –

WYN - Shares at the hotelier broke nicely to the upside earlier in the week and stand 3% ahead of a congestion zone at $18.00. Yesterday Goldman Sachs raised the stakes with an upgrade and a 12-month price forecast of $26 per share. With earnings scheduled for October 28, it appears that one investor has used a call option combination to target a move higher in WYN today. Option implied volatility remains high at 67% but is not rising as the shares surge. There was an outright buyer of 15,000 November 22.50 strike calls purchased for 45 cents, while the 20/25 call spread traded about 9,000 times at a net of 75 cents. To break even the share price needs to accelerate by a further 15% to $20.75 ahead of expiration. – Wyndham Worldwide –

CAR - The global car rental company’s share price contracted 4.5% this morning to $11.93 after firm announced the pricing of its offering of $300 million of 3.50% convertible senior notes due 2014. Despite the decline in shares, one investor utilized options in the January 2010 contract to take a bullish stance on the stock. It appears the trader financed the purchase of a call spread by selling out-of-the-money put options. The three-legged transaction involved the sale of 2,200 puts at the January 10 strike for 1.15 apiece, spread against the purchase…
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Cubist Calls Active As Shares Rise 10%

Today’s tickers: CBST, EFA, IYR, WFMI, PG, FXI, UNG & DVA

CBST – The biopharmaceutical company edged onto our ‘hot by options volume’ market scanner this afternoon amid bullish call buying activity. Shares of CBST have surged 10% higher to stand at the current price of $21.91. Near-term optimists hoping for continued gains picked up more than 4,700 calls at the August 22.5 strike price for an average premium of 42 cents per contract. Investors long the calls will begin to accumulate profits in the event that shares rise another 5% to surpass the breakeven point at $22.92 by expiration. Investors exchanged 16,125 lots on the stock today which represents 91.5% of the existing open interest on the stock of 17,594 option contracts. – Cubist Pharmaceuticals, Inc.

EFA– The implementation of a bearish put spread on the EFA this afternoon indicates that some see the price of the underlying shares slipping lower by expiration in January 2010. The exchange-traded fund is currently off slightly by less than 0.5% to $51.32. The spread involved the purchase of 7,500 puts at the January 50 strike price for 3.50 each against the sale of 7,500 puts at the lower January 43 strike for 1.40 apiece. The net cost of the transaction amounts to 2.10 per contract and yields maximum potential profits of 4.90 if the stock declines to $43.00 by expiration. – iShares MSCI EAFE Index ETF

IYR– Shares of the real estate exchange-traded fund have rallied more than 2.5% to $39.40 during today’s trading session. Despite the intraday gains, option traders initiated bearish plays on the fund. One investor anticipating significant declines in the fund established a long butterfly spread set to expire in September. The butterfly was constructed through the sale of 20,000 puts [the body] at the central September 34 strike price for 65 cents apiece. The body was then flanked by the purchase of two wings. The higher September 36 strike price had 10,000 puts picked up for 1.15 per contract and the lower September 32 strike had another 10,000 puts bought for 40 cents each. The net cost of the spread amounts to just 25 cents per contract and yields maximum potential profits of 1.75 if the stock declines to $34.00 by expiration. Profits will begin to accrue for the investor if shares fall 9% to breach the upper breakeven point at $35.75. If shares continue to
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Put sellers back General Electric

Today’s tickers: GE, TGT, XLI, CBST, HAL, DELL, XRT, CAL & JAVA

GE General Electric – Shares have enjoyed a 2% rally to $10.98. GE jumped to the top of our ‘most active by options volume’ market scanner after one investor took a bullish stance on the stock. The trader sold 82,800 puts at the April 10 strike price for a premium of 33 cents per contract. This implies that he does not think that shares are going to fall beneath $10.00 by expiration in a few weeks. He pockets 33 cents in exchange for bearing the risk that shares fall beneath the strike price, which would see him breakeven by $9.67 at which point his premium will have fully eroded. Should the 10 strike land in-the-money by expiration, this investor could have 8,280,000 shares of the underlying stock put to him at $10.00. Established open interest at the 10 strike is 77,000 lots and so this would appear to be the work of fresh interest in the contract today.

TGT Target Corp. – The retailer has had a slight share price rally of less than 0.5% to $36.18. Despite the modest rise today, a couple of investors were observed looking for a significant jump in shares heading into January of 2010. The first of two bullish trades was a sold straddle at the January 45 strike price. The sale of 2,600 puts for a hefty premium of 12.48 coupled with the sale of 2,600 calls for 3.08 yields the investor a gross premium of 15.56. He will retain the full 15.56 if shares can rally by 24% and settle at $45.00 by expiration. The second of the two trades was even more bullish. This investor established a bull call spread by purchasing 7,500 calls at the January 45 strike price for 3.10 each and by selling 7,500 calls at the January 55 strike for a premium of 1.02 apiece. The net cost to get bullish in the January contract amounts to 2.08 and yields a maximum potential profit of 7.92 if shares can rise to $55.00 by expiration. Shares would need to rally by 30% to the breakeven point at $47.08 in order for this investor to begin to garner profits.

XLI Industrial Select Sector SPDR – Shares of the industrials ETF have risen just under 0.5% to $19.93. The XLI ticker jumped onto our ‘most active by options…
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Behold, the power of compounding! And fall to your knees in the presence of its invincibility!

 

Behold, the power of compounding! And fall to your knees in the presence of its invincibility!

Okay, this one was really fun to make. I hope you like it. Make sure to let my bosses at CNBC know and maybe they’ll let me make more of these!

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How to Double Your Money in the Market

Hope you love it! https://t.co/yqRDtS32O5...



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Zero Hedge

San Francisco: An Expensive, Shit-Covered Cesspool Marked By Crime And Depression

Courtesy of ZeroHedge. View original post here.

Thanks to high-crime, squalor, relaxed drug laws and an excruciatingly high cost of living, San Francisco has become one of the nation's most depressing places to live, according to the City-Journal's Erica Sandberg. 

And it's not just the shit-covered streets which require ...



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Insider Scoop

Jefferies Sees 60-Percent Upside In Aphria Shares, Says Buy The Dip

Courtesy of Benzinga.

After a red-hot start to 2019, Canadian cannabis producer Aphria Inc (NYSE: APHA) has run out of steam, tumbling more than 31 percent in the past three months.

Despite the recent weakness, one Wall Street analyst said Friday that the stock has 30-percent upside potential. 

The Analyst

Jefferies analyst ...



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Kimble Charting Solutions

DAX (Germany) About To Send A Bearish Message To The S&P 500?

Courtesy of Chris Kimble.

Is the DAX index from Germany about to send a bearish message to stocks in Europe and the States? Sure could!

This chart looks at the DAX over the past 9-years. It’s spent the majority of the past 8-years inside of rising channel (1), creating a series of higher lows and higher highs.

It looks to have created a “Double Top” as it was kissing the underside of the rising channel last year at (2).

After creating the potential double top, the DAX index has continued to create a series of lower highs, while experiencing a bearish divergence with the S...



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Chart School

Brexit Joke - Cant be serious all the time

Courtesy of Read the Ticker.

Alistair Williams comedian nails it, thank god for good humour! Prime Minister May the negotiator. Not!


Alistair Williams Comedian youtube

This is a classic! ha!







Fundamentals are important, and so is market timing, here at readtheticker.com we believe a combination of Gann Angles, ...

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Digital Currencies

Cryptocurrencies are finally going mainstream - the battle is on to bring them under global control

 

Cryptocurrencies are finally going mainstream – the battle is on to bring them under global control

The high seas are getting lower. dianemeise

Courtesy of Iwa Salami, University of East London

The 21st-century revolutionaries who have dominated cryptocurrencies are having to move over. Mainstream financial institutions are adopting these assets and the blockchain technology that enables them, in what ...



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Biotech

DNA as you've never seen it before, thanks to a new nanotechnology imaging method

Reminder: We are available to chat with Members, comments are found below each post.

 

DNA as you've never seen it before, thanks to a new nanotechnology imaging method

A map of DNA with the double helix colored blue, the landmarks in green, and the start points for copying the molecule in red. David Gilbert/Kyle Klein, CC BY-ND

Courtesy of David M. Gilbert, Florida State University

...



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ValueWalk

More Examples Of "Typical Tesla "wise-guy scamminess"

By Jacob Wolinsky. Originally published at ValueWalk.

Stanphyl Capital’s letter to investors for the month of March 2019.

rawpixel / Pixabay

Friends and Fellow Investors:

For March 2019 the fund was up approximately 5.5% net of all fees and expenses. By way of comparison, the S&P 500 was up approximately 1.9% while the Russell 2000 was down approximately 2.1%. Year-to-date 2019 the fund is up approximately 12.8% while the S&P 500 is up approximately 13.6% and the ...



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Members' Corner

Despacito - How to Make Money the Old-Fashioned Way - SLOWLY!

Are you ready to retire?  

For most people, the purpose of investing is to build up enough wealth to allow you to retire.  In general, that's usually enough money to reliably generate a year's worth of your average income, each year into your retirement so that that, plus you Social Security, should be enough to pay your bills without having to draw down on your principle.

Unfortunately, as the last decade has shown us, we can't count on bonds to pay us more than 3% and the average return from the stock market over the past 20 years has been erratic - to say the least - with 4 negative years (2000, 2001, 2002 and 2008) and 14 positives, though mostly in the 10% range on the positives.  A string of losses like we had from 2000-02 could easily wipe out a decades worth of gains.

Still, the stock market has been better over the last 10 (7%) an...



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Mapping The Market

It's Not Capitalism, it's Crony Capitalism

A good start from :

It's Not Capitalism, it's Crony Capitalism

Excerpt:

The threat to America is this: we have abandoned our core philosophy. Our first principle of this nation as a meritocracy, a free-market economy, where competition drives economic decision-making. In its place, we have allowed a malignancy to fester, a virulent pus-filled bastardized form of economics so corrosive in nature, so dangerously pestilent, that it presents an extinction-level threat to America – both the actual nation and the “idea” of America.

This all-encompassing mutant corruption saps men’s souls, crushes opportunities, and destroys economic mobility. Its a Smash & Grab system of ill-gotten re...



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OpTrader

Swing trading portfolio - week of September 11th, 2017

Reminder: OpTrader is available to chat with Members, comments are found below each post.

 

This post is for all our live virtual trade ideas and daily comments. Please click on "comments" below to follow our live discussion. All of our current  trades are listed in the spreadsheet below, with entry price (1/2 in and All in), and exit prices (1/3 out, 2/3 out, and All out).

We also indicate our stop, which is most of the time the "5 day moving average". All trades, unless indicated, are front-month ATM options. 

Please feel free to participate in the discussion and ask any questions you might have about this virtual portfolio, by clicking on the "comments" link right below.

To learn more about the swing trading virtual portfolio (strategy, performance, FAQ, etc.), please click here ...



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Promotions

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Phil has a chapter in a newly-released eBook that we think you’ll enjoy.

In My Top Strategies for 2017, Phil's chapter is Secret Santa’s Inflation Hedges for 2017.

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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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