Posts Tagged ‘CHRW’

Potash Options Look For Shares To Rebound

Today’s tickers: POT, CHRW & HD

POT – Potash Corporation of Saskatchewan, Inc. – Options activity on Potash Corp on Monday morning suggests some traders are positioning for shares in the name to continue to rebound in the near term. Shares in POT, down more than 25% since the start of the year, rose 2.4% this morning to $30.59 by 11:35 a.m. ET. Traders looking for shares in Potash to extend gains ahead of the holiday weekend snapped up weekly calls on the stock. Upwards of 1,700 of the Aug 30 ’13 $31.5 strike calls changed hands during the first few hours of the session versus open interest of 51 contracts, with much of the volume purchased at an average premium of $0.26 each. Traders long the $31.5 calls stand ready to profit at expiration in the event that POT’s shares rally another 4.0% over the current price of $30.59 to exceed the average breakeven price of $31.76. The higher Aug 30 ’13 $32 calls are also active today, with around 600 lots purchased for an average premium of $0.16 apiece. Buyers of the $32 weekly calls may profit at expiration if shares in Potash Corp rally 5.0% to settle above the breakeven price of $32.16. Finally, trading in the Oct $32 call options also appears to be bullish on the potential for continued gains in POT shares. Roughly 1,200 of the Oct $32 calls traded this morning against open interest of 731 contracts, with much of the volume purchased for an average premium of $1.21 apiece. Options players long the Oct $32 calls make money at expiration if shares in the potash producer jump more than 8.0% during the next seven weeks to top $33.21.

CHRW – C.H. Robinson Worldwide, Inc. – Options volume on transportation services company, C.H. Robinson, is elevated on Monday, with…
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Bears Bombard Wells Fargo with Pessimistic Option Plays

Today’s tickers: WFC, GS, EWZ, EK, CHRW, BIDU, CBY, ACOR, INTC, EK & EAT

WFC – Wells Fargo & Co. – Bearish traders lumbered around Wells Fargo today purging calls and feasting on out-of-the-money put options. Pessimistic positions were initiated during the trading session despite the 1.5% move up in shares of the underlying to $29.02. Investors piled into put options at the February $23 strike where roughly 23,000 contracts were purchased for an average premium of $0.13 apiece. Perhaps put buyers are merely securing cheap downside protection in case WFC’s shares fall off the proverbial cliff by expiration next month. Traders may be expecting a pull back in shares of the financial firm. If the puts were purchased as an outright bearish bet on the stock, investors long the contracts could turn profits by selling the puts before expiration next month if premium levels on the lots appreciate above $0.13. Medium-term pessimism was apparent in the April contract where traders shed 4,700 calls at the April $32 strike for an average premium of $0.66 each. Additional bearishness took place at the April $28 strike as investors picked up roughly 5,600 puts for $1.55 apiece. Pessimistic trading patterns suggest a bumpy start to the new year for Wells Fargo.

GS – Goldman Sachs Group, Inc. – Bullish activity in the February contract on investment banking firm, Goldman Sachs, suggests shares are poised to pop up in the next few weeks. Shares appreciated slightly during today’s session, rising 0.10% to $169.22 ahead of the closing bell. One optimistic options strategist purchased a debit spread to position for bullish movement in the price of the underlying. The trader bought 10,000 calls at the February $180 strike for a premium of $2.25 apiece, spread against the sale of 10,000 calls at the higher February $185 strike for $1.30 each. The investor shelled out a net $0.95 per contract on the trade. Goldman’s shares must gain approximately 7% from the current price in order for the call-spreader to breakeven at $180.95. Maximum potential profits of $4.05 per contract amass for the trader if GS shares jump 9.3% to $185 by expiration day in February.

EWZ – iShares MSCI Brazil Index ETF – Shares of the EWZ, which corresponds to the performance of publicly traded securities in the Brazilian market, edged 1.75% lower during the trading day to stand at $74.53. Bearish option traders made…
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Reversal combinations at play in Lamar Advertising

Today’s tickers: LAMR, SVU, DIS, CHRW & OI

LAMR Lamar Advertising Company – Shares of the outdoor advertising company have remained relatively flat and currently stand at $16.92 today. LAMR appeared on our ‘hot by options volume’ market scanner after one investor appears to have taken a bullish stance on the stock in the June contract. It looks as though this individual sold about 5,100 puts at the June 12.5 strike price for an average premium of 58 cents apiece in order to fund the purchase of some 5,100 calls picked up at the June 20 strike for 1.32 each. The net cost of getting long of the calls amounts to 47 cents. In order to profit from the bullish position shares would need to rally by about 21% to the breakeven point located at $20.47 by expiration.

SVU Supervalu, Inc. – The grocery retailer has climbed by about 1% to $16.51 per share. We observed some investors taking a bullish position on the stock by selling about 1,400 puts at the June 15 strike price for about 72 cents each in order to fund the purchase of 1,400 calls at the June 17.5 strike for an average premium of 65 cents. The trade results in a 7 cent credit to the investor who is looking for shares to climb by 6% from the current price in order for the calls to land in-the-money by expiration. The same strike prices described above were also targeted by a trader who appears to have established a sold strangle by shedding approximately 3,600 puts at the June 15 strike for about 72 cents while also selling the same amount of calls for 68 cents each at the June 17.5 strike. The strangle strategy yields a gross premium of 1.40 and will be fully retained by the investor if the share price remains ‘strangled’ between the two strike prices. The trader would face losses at any share price below the breakeven to the downside at $13.60 or at any price above the breakeven to the upside at $18.90.

DIS The Walt Disney Co. – Shares have declined by about 3% to $21.20 today amid news that the entertainment company plans to obtain a 27% stake in the third most popular video website, Hulu.com. The DIS ticker jumped onto our ‘most active by options volume’ market scanner after one investor fiddled with put options…
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Kimble Charting Solutions

This is where selling pressure could really ramp up!

Courtesy of Chris Kimble.

Even though stocks have been weak of late, breaks of certain price levels could actually trigger much more selling than stocks have seen so far.

This 4-pack applies Fibonacci extension levels to the S&P 500, Dow, Nasdaq 100 and Transports. Each of these indices hit key extension levels earlier this year at each (1), where strong uptrends looked to have potentially ended.

Each index is now testing the bottom of 2018 trading ranges and long-term rising support at each (2).

If these multi-year support lines are broken to the downside at each (2), look for selling pressure to increase from what we have seen of late...



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Zero Hedge

Global Stock Rally Fizzles As Europe Slammed By "Retail Apocalypse"

Courtesy of ZeroHedge. View original post here.

Another attempt to rally S&P futures overnight has fizzled, this time as a result of weakness in Europe and a mixed session in Asia, following a sharp decline in European retailers due to a record plunge in UK online retailer Asos Plc which collapsed after warning that Christmas shopping got off to a disastrous start, dragging its shares to a 2 year low and hitting the sector.

In an otherwise quiet session as traders prepare for this week's critical Fed meeting, sha...



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Chart School

Weekly Market Recap Dec 16, 2018

Courtesy of Blain.

A significant selloff Friday had bears continuing to enjoy December and calls for the bulls for the Federal Reserve to save them.  It’s been a very long time since bears have had the upper hand for such an extended period.  Volatility continues to be very high and the charts continue to say “remain in safety”.  The Russell 2000 – the laggard of 2018 – broke a yearly low set in February and the S&P 500 broke October lows to create a “lower low”.

Karyn Cavanaugh, senior market strategist with Voya Investment Management, said that disappointing economic data out of China was the biggest driver of Friday’s losses. “The Chinese data was a dirt sandwich, not because it showed deceleration in the Chinese economy, but because it’s showing...



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Phil's Favorites

Barry Ritholtz: Donald Trump Owns This Stock Market

Trump vs. Stock Market...

Many thought that Trump’s aggressive style and economic ignorance wouldn’t leave a lasting mark on either stocks or bonds.

That was wishful thinking. https://t.co/COMz54EOk6

— Bloomberg Opinion (@bopinion) December 16, 2018

...

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Insider Scoop

Economic Data Scheduled For Monday

Courtesy of Benzinga.

  • The Empire State manufacturing index for December is schedule for release at 8:30 a.m. ET.
  • The housing market index for December will be released at 10:00 a.m. ET.
  • The Treasury is set to auction 3-and 6-month bills at 11:30 a.m. ET.
  • The Treasury International Capital report for October is schedule for release at 4:00 p.m. ET.

Posted-In: Economic DataNews Economics Pre-Market Outlook ...



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Digital Currencies

Crypto Bull Tom Lee: Bitcoin's 'Fair Value' Closer To $15,000, But He's Sick Of People Asking About It

Courtesy of ZeroHedge. View original post here.

Listening to the crypto bulls of yesteryear continue to defend their case for new new all-time highs, despite a growing mountain of evidence to suggest that last year's rally was spurred by the blind greed of gullible marginal buyers (not to mention outright manipulation), one can't help but feel a twinge of pity for Mike Novogratz and Wall Street's original crypto uber-bull, Fundstrat's Tom Lee.

Lee achieved rock star status thanks to ...



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Biotech

Those designer babies everyone is freaking out about - it's not likely to happen

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

 

Those designer babies everyone is freaking out about – it's not likely to happen

Babies to order. Andrew crotty/Shutterstock.com

Courtesy A Cecile JW Janssens, Emory University

When Adam Nash was still an embryo, living in a dish in the lab, scientists tested his DNA to make sure it was free of ...



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Members' Corner

Blue Wave with Cheri Jacobus (Q&A II, Updated)

By Ilene at Phil's Stock World

Cheri Jacobus is a widely known political consultant, pundit, writer and outspoken former Republican and frequent guest on CNN, MSNBC, FOX News, CBS.com, CNBC and C-Span. Cheri shares her thoughts on the political landscape with us in a follow up to our August interview.

Updated 12-10-18

Ilene: What do you think about Michael Cohen's claim that the Trump Organization's discussions with high-level Russian officials about a deal for Trump Tower Moscow continued into June 2016?

...

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Mapping The Market

Trump: "I Won't Be Here" When It Blows Up

By Jean-Luc

Maybe we should simply try him for treason right now:

Trump on Coming Debt Crisis: ‘I Won’t Be Here’ When It Blows Up

The president thinks the balancing of the nation’s books is going to, ultimately, be a future president’s problem.

By Asawin Suebsaeng and Lachlan Markay, Daily Beast

The friction came to a head in early 2017 when senior officials offered Trump charts and graphics laying out the numbers and showing a “hockey stick” spike in the nationa...



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ValueWalk

Vilas Fund Up 55% In Q3; 3Q18 Letter: A Bull Market In Bearish Forecasts

By Jacob Wolinsky. Originally published at ValueWalk.

The Vilas Fund, LP letter for the third quarter ended September 30, 2018; titled, “A Bull Market in Bearish Forecasts.”

Ever since the financial crisis, there has been a huge fascination with predictions of the next “big crash” right around the next corner. Whether it is Greece, Italy, Chinese debt, the “overvalued” stock market, the Shiller Ratio, Puerto Rico, underfunded pensions in Illinois and New Jersey, the Fed (both for QE a few years ago and now for removing QE), rising interest rates, Federal budget deficits, peaking profit margins, etc...



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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

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.

Some other great content in this free eBook includes:

 

·       How 2017 Will Affect Oil, the US Dollar and the European Union

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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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