Posts Tagged ‘CECO’

Call Seller On Activision Blizzard Eyes Pullback In 2012

Today’s tickers: ATVI, CECO, TRGT & RENN

ATVI - Activision Blizzard, Inc. – Shares in video game developer Activision Blizzard went the way of the broad market this morning, declining 2.05% to $11.99 in the first half of the trading session. Activity in Activision options indicate one strategist doubts shares will rebound in the first half of 2012. It looks like the trader sold two chunks of 3,717 call options at both the May 2012 $12 and $13 strikes to pocket premiums of $1.00 and $0.54 per contract, respectively. The investor responsible for the transaction retains the full amount of premium as long as shares in ATVI trade below $12.00, and the calls land out-of-the-money at expiration day in May.

CECO - Career Education Corp. – Put selling on the provider of for-profit education services suggests one investor is betting shares in Career Education Corp. are unlikely to realize sharp losses during the next five weeks to January 2012 expiration. Shares in CECO are up 0.60% to stand at $7.18 in early-afternoon trade. The investor responsible for generating nearly all of the volume in Career Education Corp. options today appears to have sold 5,700 puts at the Jan. 2012 $6.0 strike for a premium of $0.35 each. The trader walks away with the full amount of premium in hand as long as CECO’s shares exceed $6.00 at expiration day next year. But, if shares drop and the put options land in-the-money, the investor may be obliged to purchase 500,000 shares of the underlying at $6.00 each regardless of where shares trade in the open market. The premium received for bearing this risk acts as a limited buffer against losses on the downside. Losses kick in if shares in CECO plunge 21.3% to breach the effective breakeven price of $5.65 at expiration.…
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Straddle-Seller Takes To AIG

Today’s tickers: AIG, PHM, TKLC & CECO

AIG - American International Group, Inc. – The insurer’s shares, which fell 2.5% to trade at $23.31 this afternoon, may remain range-bound through year-end, according to one options position established in the December contract. AIG was cut to ‘Hold’ from ‘Buy’ with a 12-month share price target of $26.00 at Sandler O’Neill today. It looks like one investor sold a 5,000-lot straddle at the Dec. $24 strike for a gross premium of $3.45 per contract. The straddle-seller keeps the full amount of premium received on the transaction as long as shares in AIG settle at $24.00 at expiration day next month. Some amount of premium is safe in the investor’s wallet as long as shares trade within the $20.55 to $27.45 range implied by the position. But, the investor risks uncapped losses to the upside above the upper breakeven price of $27.45, and losses to the downside in the event that shares slip beneath the lower breakeven point at $20.55, at expiration in December. The position was not tied to stock.

PHM - PulteGroup, Inc. – The homebuilding company popped up on our scanners this morning after one investor initiated a large bullish position that may be profitable if PulteGroup’s shares realize double-digit gains by expiration next month. Shares in PHM are currently up 1.8% at $5.58 as of 11:50 am in New York, perhaps on a positive note about the sector from an analyst at Wells Fargo. It looks like one trader purchased a block of 12,000 call options at the Dec. $6.0 strike for a premium of $0.35 each, in the first hour of the trading week. The investor stands ready to profit should shares in PulteGroup rally another 13.8% over the current price of $5.58 to surpass the effective breakeven point on the upside at $6.35 by expiration. Shares in PHM last traded above $6.35 at the beginning of August.

TKLC - Tekelec – Shares in the provider of communication network software and systems surged 11.8% to a six-month high of $11.07 this morning on news investors led by private-equity firm, Siris Capital Group LLC, agreed to buy Tekelec for $780 million. Shareholders in the Morrisville, North Carolina-based Company will reportedly receive $11.00 a share in cash in the deal. Relatively large call open interest in the November contract suggests some strategists saw the value of previously established bullish positions on Tekelec sky-rocket on the move…
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Rumor Mill Spurs Feverish Trading in Alcoa Options

Today’s tickers: AA, BMC, CECO & XRX

AA - Alcoa, Inc. – Frenzied trading in Alcoa options this morning was driven largely by bullish players piling into calls on the aluminum manufacturer with shares in the name rallying as much as 4.3% to as high as $17.96 in the first half of the session. Rumors that Rio Tinto could make a $25.50 a share bid for the U.S. company spurred speculators to the options market, lifting options implied volatility on the stock 31.2% to 35.53% just before 11:30am. Both Rio Tinto and Alcoa are mum on the subject of takeover talks as of now, but investors are making a lot of noise in options land. Volume in Alcoa’s options has topped 220,000 contracts within the first two hours of trading, with investors heavily favoring call options on the aluminum maker. Traders are exchanging more than 8.4 contracts on Alcoa for each single put option in action this morning. Trading traffic is heaviest in the front month where investors are picking up out-of-the-money calls at every available strike price. May $18 strike calls are most active, followed by the May $20 strike calls. Call volume in the May $20 strike calls is currently pushing 30,000 contracts, which is more than two times the number of calls represented in open interest at that strike. Most of the call options were purchased for an average premium of $0.12 apiece, implying an average breakeven price for buyers at $20.12 through May expiration. Continued speculation regarding a potential takeover, or confirmation of such rumors for that matter, would no doubt send premium on the May $20 strike calls higher still. Optimism spread to the June contract calls where buyers of the options are leading the feeding frenzy. Investors traded more than 15,800 call options at the June $21 strike on nearly nonexistent open interest of 241 contracts. Buyers of these calls paid just $0.10 this morning, but the huge spike in implied volatility in conjunction with the rally…
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Bullish Player Initiates Three-Legged Spread on Cisco Systems

Today’s tickers: CSCO, CECO, SPG & GE

CSCO - Cisco Systems, Inc. – Shares in the world’s largest maker of networking equipment increased as much as 2.5% during the session to secure an intraday high of $17.42 after the company announced it will pay its first ever cash dividend on April 20, to shareholders of record on March 31, 2011. Cash-rich Cisco Systems said the dividend will amount to $0.06 a share. Shares in the San Jose, CA-based manufacturer of switches and routers are still hovering around their lowest level since April 2009, and fell to a new 52-week low of $16.97 earlier this week. But, it looks like one big option strategist is looking for the price of the underlying to rebound ahead of January 2012 expiration. The investor initiated a three-legged bullish play, selling puts to partially finance the purchase of a call spread, in order to position for brighter days in CSCO’s future. The trader sold 40,000 puts at the January 2012 $15 strike at a premium of $0.95 each, purchased the same number of calls up at the January 2012 $17.5 strike for a premium of $1.72 per contract, and sold 40,000 calls at the higher January 2012 $22.5 strike at a premium of $0.42 apiece. Net premium paid to initiate the spread amounts to $0.35 per contract, thus positioning the investor to make money in the event that Cisco’s shares rally another 2.5% over today’s high of $17.42 to surpass the effective breakeven price of $17.85 by expiration. Maximum potential profits of $4.65 per contract are available to the trader should shares in CSCO jump 29.2% to exceed $22.50 ahead of expiration day next January. Shares in the name last traded above $22.50 back in November 2010.

CECO - Career Education Corp. – Put options on…
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Demand for GM Calls Rises as Analyst Upgrades Lift Shares

 Today’s tickers: GM, CECO, PFE & EDMC

GM - General Motors Co. – An onslaught of analyst upgrades for General Motors sent the automaker’s shares higher and kicked bullish trading in its options into high gear today. GM’s shares increased as much as 3.00% to secure an intraday high of $35.64 as of 12:55pm. The car and truck manufacturer was rated new ‘outperform’ with a target share price of $43.00 at Credit Suisse, new ‘hold’ with a 12-month target of $38.00 at Soleil Securities, new ‘buy’ with a target share price of $45.00 at Citigroup, and was rated new ‘overweight’ at JPMorgan Chase & Co., Barclays PLC and Morgan Stanley, among others. While near-term calls were active during the session, it was a large print in March 2011 contract calls that caught our eye. It looks like one bullish player scooped up 10,000 calls at the March 2011 $38 strike, which is more than two times greater than the 4,463 lots of previously existing open interest at that strike, for a premium of $0.85 per contract. The call buyer stands ready to profit should GM’s shares jump 9.00% over the current price of $35.64 to trade above the effective breakeven point at $38.85 before the contracts expire in March. It looks like General Motors may report fourth-quarter results at some point on March 10, 2011.

CECO - Career Education Corp. – Put buying observed on the beleaguered provider of for-profit education services on Monday continued this morning as shares in Career Education Corp. slipped 1.6% lower to $19.95 in the first half of the session. Investors positioning for shares in CECO to decline significantly in the next couple of months purchased at least 2,000 puts at the February 2011 $17 strike for a premium of $0.39 apiece yesterday. Today, bears once again targeted the same February 2011 $17 strike, buying up more than 2,400 puts for an average premium of $0.49 each. Put buyers paying $0.49 in premium per contract are poised to profit should Career…
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Mixed Trading in Career Education Corp. Options

Today’s tickers: CECO, ROST, LSI, ADBE, AVNR, PNC & ODP

CECO – Career Education Corp. – Shares of the for-profit provider of education geared toward career-oriented disciplines rallied as much as 10.9% during the session to secure an intraday high of $23.00 on analyst reports stating the industry is likely to rebound as bearish investors close out short positions. Options traders employed a mix of bullish and bearish strategies on the stock ahead of the release of the Education Department’s timeline for regulations on for-profit education industry firms tomorrow. One cautious investor prepared for CECO’s shares to falter ahead of October expiration by purchasing a ratio put spread. The options trader picked up 500 puts at the October $22 strike at a premium of $1.15 each, and sold 1,000 puts at the lower October $19 strike at a premium of $0.20 apiece. The net cost of the transaction amounts to $0.75 per contract. The investor is poised to profits should Career Education’s shares fall 7.6% from today’s high of $23.00 to breach the effective breakeven price of $21.25 by expiration day next month. Maximum potential profits of $2.25 are available to the trader if CECO shares plummet 17.4% to settle at $19.00 at expiration. In contrast, bullish players looking for a near-term rally picked up roughly 3,200 calls at the October $23 strike for an average premium of $1.02 each. Investors make money if shares gain 4.4% to surpass the average breakeven point at $24.02 by October expiration. The most optimistic traders purchased approximately 1,000 calls at the October $25 strike for an average premium of $0.43 a-pop. Call buyers at this strike stand ready to profit should shares surge 10.55% and exceed the average breakeven price of $25.43. Options implied volatility on stock is up sharply ahead of the Education Dept. announcement, and currently stands 11.6% higher on the day at 61.28%, as of 3:40 pm ET.

ROST – Ross Stores, Inc. – Shares of the operator of off-price retail apparel and home accessories stores increased as much as 2.3% during the trading session to secure an intraday high of $56.12. Ross Stores appeared on our scanners due to near-term activity in call options. It looks like the majority of trading in October contract calls is the work of one investor booking profits and rolling a previously purchased chunk of calls to a higher strike price. The investor likely…
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Bears Once Again Bombard Financial Select Sector SPDR (XLF)

Today’s tickers: XLF, CECO, SLB, CTB, WFC, CACI, WSM, CTXS & FITB

XLF – Financial Select Sector SPDR – A massive put spread comprised of approximately 200,000 put options on the XLF, an exchange-traded fund that corresponds to the price and yield performance of the Financial Select Sector of the S&P 500 Index, indicates investor pessimism is alive and well despite positive first-quarter earnings announcements from a number of large financial firms this week. Bearish plays also dominated activity on the XLF earlier in the week. Shares of the underlying fund are currently down 1.2% to $16.54 as of 3:10 pm (ET). The pessimistic options player appears to have purchased roughly 100,000 put options at the June $16 strike for an average premium of $0.39 each, marked against the sale of about the same number of puts at the lower June $15 strike for $0.16 apiece. Net premium paid for the spread amounts to $0.23 per contract. The massive size of the transaction suggests the trade was initiated by an investor seeking downside protection on sizeable underlying stock positions in either the XLF itself, related holdings of the fund, or perhaps both, through June expiration. Suppose the investor is building up insurance on a large position in the underlying shares of the XLF. In this scenario, downside protection kicks in should shares of the XLF breach the effective breakeven point on the spread at $15.77 ahead of June expiration. Options players exchanged more than 415,000 option contracts on the XLF as of 3:10 pm (ET), with put options trading more than 3.5 times to each single call option in play today.

CECO – Career Education Corp. – Shares of the provider of private, for-profit, postsecondary education in the United States jumped 4.8% during the session to a new 52-week high of $35.41 after the firm received an upgrade to ‘overweight’ from ‘equal weight’ at Barclays Capital today. Options movement on the stock suggests one investor was prepared for the breakout in CECO’s shares. It looks like the investor first banked profits today by selling a previously established long call position in the July contract, and next extended and augmented bullish sentiment on the stock by purchasing fresh calls at a higher strike price. The trader likely purchased 1,900 calls at the July $35 strike f or an average premium of $1.70 each back on March 17, 2010, when shares of…
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Bears Once Again Bombard Financial Select Sector SPDR (XLF)

Today’s tickers: XLF, CECO, SLB, CTB, WFC, CACI, WSM, CTXS & FITB

XLF – Financial Select Sector SPDR – A massive put spread comprised of approximately 200,000 put options on the XLF, an exchange-traded fund that corresponds to the price and yield performance of the Financial Select Sector of the S&P 500 Index, indicates investor pessimism is alive and well despite positive first-quarter earnings announcements from a number of large financial firms this week. Bearish plays also dominated activity on the XLF earlier in the week. Shares of the underlying fund are currently down 1.2% to $16.54 as of 3:10 pm (ET). The pessimistic options player appears to have purchased roughly 100,000 put options at the June $16 strike for an average premium of $0.39 each, marked against the sale of about the same number of puts at the lower June $15 strike for $0.16 apiece. Net premium paid for the spread amounts to $0.23 per contract. The massive size of the transaction suggests the trade was initiated by an investor seeking downside protection on sizeable underlying stock positions in either the XLF itself, related holdings of the fund, or perhaps both, through June expiration. Suppose the investor is building up insurance on a large position in the underlying shares of the XLF. In this scenario, downside protection kicks in should shares of the XLF breach the effective breakeven point on the spread at $15.77 ahead of June expiration. Options players exchanged more than 415,000 option contracts on the XLF as of 3:10 pm (ET), with put options trading more than 3.5 times to each single call option in play today.

CECO – Career Education Corp. – Shares of the provider of private, for-profit, postsecondary education in the United States jumped 4.8% during the session to a new 52-week high of $35.41 after the firm received an upgrade to ‘overweight’ from ‘equal weight’ at Barclays Capital today. Options movement on the stock suggests one investor was prepared for the breakout in CECO’s shares. It looks like the investor first banked profits today by selling a previously established long call position in the July contract, and next extended and augmented bullish sentiment on the stock by purchasing fresh calls at a higher strike price. The trader likely purchased 1,900 calls at the July $35 strike f or an average premium of $1.70 each back on March 17, 2010, when shares of…
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Earthlink calendar spreader maintains pessimistic stance

Today’s tickers: ELNK, HBC, CECO, XLE, C, CMCSK, SWKS & ARNA

ELNK Earthlink , Inc. – The internet service provider has experienced a 5% decline in shares today to $6.29. ELNK popped onto our ‘hot by options volume’ market scanner after one investor initiated a calendar roll. At the March 7.5 strike price 5,200 puts were sold for a premium of 95 cents each, while at the April 7.5 strike price 5,200 puts were purchased for 1.15 per contract. Maybe this investor sees Earthlink continuing to fall through next month, and therefore has rolled his in-the-money long-put position previously established in March into the next month’s contract.

HBC HSBC Holdings Plc ADS – As with many other financials today, shares of HBC have rallied 4% to $27.05. One trade of interest occurred at the March 30 strike price where an investor appears to have purchased a straddle by picking up 7,500 calls for 15 cents apiece and 7,500 puts for 3.20 per contract. You may be thinking, given where shares are with today’s rally – why on earth would someone pay a combined premium of 3.35 in the hope that shares of the bank swing to either breakeven point located at $33.35 on the upside and at $26.65 on the downside? While it is possible that this investor’s motivation for the trade is to see profits amass on falling share price, we believe there may be a different explanation. Perhaps this trader had previously sold the options leaving him short and now he is buying back the contracts in order to close out his short position. It appears that about 7,500 of the existing open interest for calls and puts at the March 30 strike was built up between February 5th and 6th. Thus, we propose that this investor may have originally sold the straddle in February and is not buying it back before the March contract expires on Friday.

CECO Career Education Corporation – Shares of the global education company have fallen 12% to $20.24. CECO is an on-ground provider of education at various levels and also has a significant presence in online education. The company edged onto our ‘hot by options volume’ market scanner after one investor established plays in the March and April contracts. At the March 22.5 strike price it appears that one investor initiated a credit spread by purchasing 5,000 calls for 38 cents apiece…
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Zero Hedge

Aramco Scraps US And London IPO Roadshows Amid Too Many "Uncertainties" 

Courtesy of ZeroHedge View original post here.

Saudi Aramco has withdrawn from IPO roadshows in the US and London after it's likely they don't want to disclose oil reserve totals to Western banks and regulators. 

Meanwhile, it's becoming a giant circle-jerk for the Saudis, the IPO is expected to list on the Tadawul exchange, while the Saudi Arabian Monetary Authority (SAMA) is expected to double the amount it would lend out to domestic "buyers" for IPO purchases, reported Bloomberg.  ...



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Phil's Favorites

How rich people like Gordon Sondland buy their way to being US ambassadors - 4 questions answered

 

How rich people like Gordon Sondland buy their way to being US ambassadors – 4 questions answered

Some positions attract more political appointments – like those in Western Europe. Markus Pfaff/Shutterstock.com

Courtesy of Dennis Jett, Pennsylvania State University

In every other developed democratic country, the role of ambassador, with only very rare exceptions, is given to career diplomats who have spent decades learning the art of international relations.

In the U.S., however, many ambassadors are untrained in diplo...



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Kimble Charting Solutions

Dow Megaphone Breakout Continues, As It Tests 77-Year Breakout Level

Courtesy of Chris Kimble

I’ve heard many times over the past 39-years I’ve been in the financial services business that charts have memories? Is it true they do? Is it possible that they have very long-term memories?

This theory looks to be put to a big test by the chart above, which looks at the Dow Jones Industrial Index since 1910.

The Dow has spent the majority of the past 77-years, inside of rising channel (1). While inside of this channel, it looks to have created two very long-term megaphone patterns.

It broke above the first megaphone pattern in the early 1980s, where ...



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Lee's Free Thinking

NY Department of Welfare Announces Increased Subsidies for Primary Dealers, Thank God!

 

NY Department of Welfare Announces Increased Subsidies for Primary Dealers, Thank God!

Courtesy of , Wall Street Examiner

Here’s today’s press release (11/14/19) from the NY Fed verbatim. They’ve announced that they will be making special holiday welfare payments to the Primary Dealers this Christmas season. I have highlighted the relevant text.

The Open Market Trading Desk (the Desk) at the Federal Reserve Bank of New York has released the schedule of repurchase agreement (repo)...



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The Technical Traders

VIX Warns Of Imminent Market Correction

Courtesy of Technical Traders

The VIX is warning that a market peak may be setting up in the global markets and that investors should be cautious of the extremely low price in the VIX. These extremely low prices in the VIX are typically followed by some type of increased volatility in the markets.

The US Federal Reserve continues to push an easy money policy and has recently begun acquiring more dept allowing a deeper move towards a Quantitative Easing stance. This move, along with investor confidence in the US markets, has prompted early warning signs that the market has reached near extreme levels/peaks. 

Vix Value Drops Before Monthly Expiration

When the VIX falls to levels below 12~13, this typically v...



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Insider Scoop

HP Rejects Xerox's Buyout Offer: Experts Debate What's Next

Courtesy of Benzinga

HP Inc. (NYSE: HPQ) rejected Xerox Holdings Corp (NYSE: XRX)'s $33-billion takeout offer Sunday, and experts are divided on what will occur next in the ongoing saga between two tech...



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Biotech

Why telling people with diabetes to use Walmart insulin can be dangerous advice

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

 

Why telling people with diabetes to use Walmart insulin can be dangerous advice

A vial of insulin. Prices for the drug, crucial for those with diabetes, have soared in recent years. Oleksandr Nagaiets/Shutterstock.com

Courtesy of Jeffrey Bennett, Vanderbilt University

About 7.4 million people ...



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Chart School

Dow Jones cycle update and are we there yet?

Courtesy of Read the Ticker

Today the Dow and the SP500 are making new all time highs. However all long and strong bull markets end on a new all time high. Today no one knows how many new all time highs are to go, maybe 1 or 100+ more to go, who knows! So are we there yet?

readtheticker.com combine market tools from Richard Wyckoff, Jim Hurst and William Gann to understand and forecast price action. In concept terms (in order), demand and supply, market cycles, and time to price analysis. 

Cycle are excellent to understand the wider picture, after all markets do not move in a straight line and bear markets do follow bull markets. 



CHART 1: The Dow Jones Industrial average with the 900 period cycle.

A) Red Cycle:...

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Digital Currencies

Is Bitcoin a Macro Asset?

 

Is Bitcoin a Macro Asset?

Courtesy of 

As part of Coindesk’s popup podcast series centered around today’s Invest conference, I answered a few questions for Nolan Bauerly about Bitcoin from a wealth management perspective. I decided in December of 2017 that investing directly into crypto currencies was unnecessary and not a good use of a portfolio’s allocation slots. I remain in this posture today but I am openminded about how this may change in the future.

You can listen to this short exchange below:

...



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Mapping The Market

How IPOs Are Priced

Via Jean Luc 

Funny but probably true:

...

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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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Promotions

Free eBook - "My Top Strategies for 2017"

 

 

Here's a free ebook for you to check out! 

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.

This chapter isn’t about risk or leverage. Phil present a few smart, practical ideas you can use as a hedge against inflation as well as hedging strategies designed to assist you in staying ahead of the markets.

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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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